We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Retail REIT The Macerich Company (MAC - Free Report) came up with third-quarter 2017 funds from operations (FFO) per share of 96 cents, lagging the Zacks Consensus Estimate of 98 cents. The prior-year quarter’s FFO per share was $1.04. The quarter witnessed improvement in same-center net operating income (NOI).
The company posted revenues of $242.5 million for the quarter, surpassing theZacks Consensus Estimate of $227.5million. However, revenues came in 4.3% lower than the prior-year quarter figure.
Note: All EPS numbers presented in this write up represent funds from operations (FFO) per share.
Macerich Company (The) Price, Consensus and EPS Surprise
As of Sep 30, 2017, mall portfolio occupancy contracted 100 basis points (bps) year over year to 94.3%. Mall tenant annual sales increased to $659 per square feet from $626 at the end of third-quarter 2016. Re-leasing spreads increased 15% on a year-over-year basis. Also, same-centers net operating income grew around 3.1% from the prior-year comparable period.
As of Sep 30, 2017, Macerich’s cash and cash equivalents were $71.1 million, declining from $87.1 million as of Jun 30, 2017.
Share Repurchase Activity
During the quarter, Macerich repurchased and retired 742,017 shares at an average price of $53.42.
Dividend Hike
On Oct 24, 2017, Macerich announced its quarterly cash dividend of 74 cents per share, reflecting a hike of 4.2% from the prior payout. The dividend will be paid on Dec 1, 2017 to shareholders on record as of Nov 10.
2017 Guidance
Macerich has reaffirmed its guidance for 2017. The retail REIT expects FFO per share in the range of $3.90-$4.00. Currently, the Zacks Consensus Estimate for FFO is $3.96 per share.
Our Viewpoint
Increasing consumer purchases through the Internet have become a pressing concern for retail REITs, including Macerich. Also, concentration risk arising from the company’s significant positions in California, New York and Arizona may weigh on its earnings in times of economic uncertainty. Nevertheless, Macerich enjoys a premium portfolio and a presence of well-capitalized tenants in its roster.
Macerich’s shares have lost nearly 21.4% year to date compared with an 8.6% decline for the industry it belongs to.
We now look forward to the earnings releases of Hospitality Properties Trust , Global Net Lease, Inc. (GNL - Free Report) and Apple Hospitality REIT, Inc. (APLE - Free Report) , which are expected next week.
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.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Macerich (MAC) Q3 FFO Lags Estimates, Guidance Reaffirmed
Retail REIT The Macerich Company (MAC - Free Report) came up with third-quarter 2017 funds from operations (FFO) per share of 96 cents, lagging the Zacks Consensus Estimate of 98 cents. The prior-year quarter’s FFO per share was $1.04. The quarter witnessed improvement in same-center net operating income (NOI).
The company posted revenues of $242.5 million for the quarter, surpassing theZacks Consensus Estimate of $227.5million. However, revenues came in 4.3% lower than the prior-year quarter figure.
Note: All EPS numbers presented in this write up represent funds from operations (FFO) per share.
Macerich Company (The) Price, Consensus and EPS Surprise
Macerich Company (The) Price, Consensus and EPS Surprise | Macerich Company (The) Quote
Quarter in Detail
.jpg)
As of Sep 30, 2017, mall portfolio occupancy contracted 100 basis points (bps) year over year to 94.3%. Mall tenant annual sales increased to $659 per square feet from $626 at the end of third-quarter 2016. Re-leasing spreads increased 15% on a year-over-year basis. Also, same-centers net operating income grew around 3.1% from the prior-year comparable period.
As of Sep 30, 2017, Macerich’s cash and cash equivalents were $71.1 million, declining from $87.1 million as of Jun 30, 2017.
Share Repurchase Activity
During the quarter, Macerich repurchased and retired 742,017 shares at an average price of $53.42.
Dividend Hike
On Oct 24, 2017, Macerich announced its quarterly cash dividend of 74 cents per share, reflecting a hike of 4.2% from the prior payout. The dividend will be paid on Dec 1, 2017 to shareholders on record as of Nov 10.
2017 Guidance
Macerich has reaffirmed its guidance for 2017. The retail REIT expects FFO per share in the range of $3.90-$4.00. Currently, the Zacks Consensus Estimate for FFO is $3.96 per share.
Our Viewpoint
Increasing consumer purchases through the Internet have become a pressing concern for retail REITs, including Macerich. Also, concentration risk arising from the company’s significant positions in California, New York and Arizona may weigh on its earnings in times of economic uncertainty. Nevertheless, Macerich enjoys a premium portfolio and a presence of well-capitalized tenants in its roster.
Currently, Macerich has a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Macerich’s shares have lost nearly 21.4% year to date compared with an 8.6% decline for the industry it belongs to.
We now look forward to the earnings releases of Hospitality Properties Trust , Global Net Lease, Inc. (GNL - Free Report) and Apple Hospitality REIT, Inc. (APLE - Free Report) , which are expected next week.
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.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>