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Macerich (MAC) Stock Tanks, Q4 FFO & Revenues Lag Estimates
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Shares of The Macerich Company (MAC - Free Report) tanked 2.3% during the regular trading session on Feb 11 after the company reported lower-than-projected numbers both in terms of adjusted funds from operations (FFO) per share and revenues for fourth-quarter 2020.
Macerich delivered an adjusted FFO per share of 45 cents, which missed the Zacks Consensus Estimate of 54 cents. The figure also plunged 54% year over year. Adjusted FFO per share for the quarter excludes financing expenses in relation to Chandler Freehold.
The decrease was primarily due to a revenue decline from COVID-related rent abatements. Macerich also saw a decline in same-center net operating income (NOI).
The company generated revenues of $194.6 million in the December-end quarter. The figure declined 19.5% year over year and missed the Zacks Consensus Estimate of $205.2 million.
In fact, the company is seeing an improvement in rental receipts, and has collected 89% and 92% of billings in the third and fourth quarters, respectively.
For 2020, the company reported an adjusted FFO per share of $2.16, down 39% from the prior year’s $3.54. The reported figure also lagged the Zacks Consensus Estimate of $2.24. Total revenues of $786.1 million slid 15.3% year over year.
Moreover, at the end of 2020, its mall portfolio occupancy was 89.7%, declining 430 basis points year over year. Also, 2020 same center NOI, excluding lease termination income, dipped 22% on a year-over-year basis.
Behind the Headlines
As of Dec 31, 2020, average rent per square foot rose 1.3% year over year to $61.87. During the December quarter, Macerich signed 217 leases for 900,000 square feet of space.
Same-center NOI (excluding lease termination income) slump 33.3% to $153.5 million from the prior-year number.
As of Dec 31, 2020, it had cash and cash equivalents of $555 million.
Dividend Update
On Jan 28, Macerich announced a quarterly cash dividend of 15 cents per share. The dividend will be paid out on Mar 3 to shareholders of record as of Feb 19, 2021.
Guidance
The company expects 2021 FFO per share of $2.05-$2.25. The Zacks Consensus Estimate for the same is pegged at $2.20.
Currently, Macerich carries a Zacks Rank #4 (Sell).
Macerich Company The Price, Consensus and EPS Surprise
Kimco Realty Corp.’s (KIM - Free Report) fourth-quarter 2020 NAREIT FFO came in at 31 cents per share, surpassing the Zacks Consensus Estimate of 30 cents. Results reflected better-than-anticipated revenue numbers.
Simon Property Group, Inc.’s (SPG - Free Report) fourth-quarter 2020 FFO per share of $2.17 missed the Zacks Consensus Estimate of $2.19. The reported figure was also 26.7% lower than the year-ago quarter’s $2.96.
Federal Realty Investment Trust’s (FRT - Free Report) fourth-quarter 2020 adjusted FFO per share of $1.14 surpassed the Zacks Consensus Estimate of $1.07. Results reflected better-than-anticipated revenues. Quarterly revenues of $219.5 million topped the consensus mark of $208.9 million.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Macerich (MAC) Stock Tanks, Q4 FFO & Revenues Lag Estimates
Shares of The Macerich Company (MAC - Free Report) tanked 2.3% during the regular trading session on Feb 11 after the company reported lower-than-projected numbers both in terms of adjusted funds from operations (FFO) per share and revenues for fourth-quarter 2020.
Macerich delivered an adjusted FFO per share of 45 cents, which missed the Zacks Consensus Estimate of 54 cents. The figure also plunged 54% year over year. Adjusted FFO per share for the quarter excludes financing expenses in relation to Chandler Freehold.
The decrease was primarily due to a revenue decline from COVID-related rent abatements. Macerich also saw a decline in same-center net operating income (NOI).
The company generated revenues of $194.6 million in the December-end quarter. The figure declined 19.5% year over year and missed the Zacks Consensus Estimate of $205.2 million.
In fact, the company is seeing an improvement in rental receipts, and has collected 89% and 92% of billings in the third and fourth quarters, respectively.
For 2020, the company reported an adjusted FFO per share of $2.16, down 39% from the prior year’s $3.54. The reported figure also lagged the Zacks Consensus Estimate of $2.24. Total revenues of $786.1 million slid 15.3% year over year.
Moreover, at the end of 2020, its mall portfolio occupancy was 89.7%, declining 430 basis points year over year. Also, 2020 same center NOI, excluding lease termination income, dipped 22% on a year-over-year basis.
Behind the Headlines
As of Dec 31, 2020, average rent per square foot rose 1.3% year over year to $61.87. During the December quarter, Macerich signed 217 leases for 900,000 square feet of space.
Same-center NOI (excluding lease termination income) slump 33.3% to $153.5 million from the prior-year number.
As of Dec 31, 2020, it had cash and cash equivalents of $555 million.
Dividend Update
On Jan 28, Macerich announced a quarterly cash dividend of 15 cents per share. The dividend will be paid out on Mar 3 to shareholders of record as of Feb 19, 2021.
Guidance
The company expects 2021 FFO per share of $2.05-$2.25. The Zacks Consensus Estimate for the same is pegged at $2.20.
Currently, Macerich carries a Zacks Rank #4 (Sell).
Macerich Company The Price, Consensus and EPS Surprise
Macerich Company The price-consensus-eps-surprise-chart | Macerich Company The Quote
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other REITs
Kimco Realty Corp.’s (KIM - Free Report) fourth-quarter 2020 NAREIT FFO came in at 31 cents per share, surpassing the Zacks Consensus Estimate of 30 cents. Results reflected better-than-anticipated revenue numbers.
Simon Property Group, Inc.’s (SPG - Free Report) fourth-quarter 2020 FFO per share of $2.17 missed the Zacks Consensus Estimate of $2.19. The reported figure was also 26.7% lower than the year-ago quarter’s $2.96.
Federal Realty Investment Trust’s (FRT - Free Report) fourth-quarter 2020 adjusted FFO per share of $1.14 surpassed the Zacks Consensus Estimate of $1.07. Results reflected better-than-anticipated revenues. Quarterly revenues of $219.5 million topped the consensus mark of $208.9 million.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
AccessZacks Top 10 Stocks for 2021 today >>