The Macerich Company (MAC - Free Report) 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 prior-year quarter tally of 97 cents. Improvement in releasing spread and same center net operating income aided the result.
Macerich posted revenues of $259.9 million, surpassing the Zacks Consensus Estimate $241 million. However, the year-ago quarter revenue figure was of $323 million.
Quarter in Detail
As of Jun 30, 2016, mall portfolio occupancy decreased 50 basis points (bps) year over year to 95%. Mall tenant annual sales increased to $626 per square foot from the $623 at the end of second quarter 2015. In addition, re-leasing spreads rose 16.1% on a year-over-year basis. Also, same centers NOI grew 6.5% during the quarter.
As of Jun 30, 2016, on a pro rata basis, Macerich’s share of cash and cash equivalents were $149.9 million, compared with $192.7 million as of Mar 31, 2016. Moreover, the company had a total debt of nearly $7.4 billion (on pro rata basis), up from $7.1 billion at the end of the prior quarter.
2016 Guidance
Macerich has reaffirmed the guidance range for 2016. The REIT expects FFO per share in a range of $4.05–$4.15. The Zacks Consensus Estimate of $4.09 falls in the range. Also, the company anticipates 2016 cash same store NOI to grow 4.50–5.00%.
Our Viewpoint
We believe Macerich’s premium operating portfolio shows promise, going forward. Improving mall tenant annual sales per square foot and re-leasing spreads would pave the way for a robust top line.
Currently, Macerich has a Zacks Rank #2 (Buy). Investors interested in the retail REIT space may consider stocks like Acadia Realty Trust (AKR - Free Report) , Equity One Inc. and National Retail Prloperties, Inc. (NNN - Free Report) . All these stocks hold the same Zacks Rank as Macerich.
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.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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The Macerich Company (MAC - Free Report) 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 prior-year quarter tally of 97 cents. Improvement in releasing spread and same center net operating income aided the result.
Macerich posted revenues of $259.9 million, surpassing the Zacks Consensus Estimate $241 million. However, the year-ago quarter revenue figure was of $323 million.
Quarter in Detail
As of Jun 30, 2016, mall portfolio occupancy decreased 50 basis points (bps) year over year to 95%. Mall tenant annual sales increased to $626 per square foot from the $623 at the end of second quarter 2015. In addition, re-leasing spreads rose 16.1% on a year-over-year basis. Also, same centers NOI grew 6.5% during the quarter.
As of Jun 30, 2016, on a pro rata basis, Macerich’s share of cash and cash equivalents were $149.9 million, compared with $192.7 million as of Mar 31, 2016. Moreover, the company had a total debt of nearly $7.4 billion (on pro rata basis), up from $7.1 billion at the end of the prior quarter.
2016 Guidance
Macerich has reaffirmed the guidance range for 2016. The REIT expects FFO per share in a range of $4.05–$4.15. The Zacks Consensus Estimate of $4.09 falls in the range. Also, the company anticipates 2016 cash same store NOI to grow 4.50–5.00%.
Our Viewpoint
We believe Macerich’s premium operating portfolio shows promise, going forward. Improving mall tenant annual sales per square foot and re-leasing spreads would pave the way for a robust top line.
Currently, Macerich has a Zacks Rank #2 (Buy). Investors interested in the retail REIT space may consider stocks like Acadia Realty Trust (AKR - Free Report) , Equity One Inc. and National Retail Prloperties, Inc. (NNN - Free Report) . All these stocks hold the same Zacks Rank as Macerich.
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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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