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Why Is Macerich (MAC) Up 5.3% Since Last Earnings Report?
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A month has gone by since the last earnings report for Macerich (MAC - Free Report) . Shares have added about 5.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Macerich due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Macerich Q4 FFO & Revenues Lag Estimates
Macerich reported 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-end quarter, Macerich signed 217 leases for 900,000 square feet of space.
Same-center NOI (excluding lease termination income) slumped 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.
Guidance
The company expects 2021 FFO per share of $2.05-$2.25.
In 2021, it expects to generate more than $200 million in cash flow from operations, after accounting for recurring operating and leasing capital expenditure as well as dividend distribution.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Macerich has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Macerich has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Macerich (MAC) Up 5.3% Since Last Earnings Report?
A month has gone by since the last earnings report for Macerich (MAC - Free Report) . Shares have added about 5.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Macerich due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Macerich Q4 FFO & Revenues Lag Estimates
Macerich reported 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-end quarter, Macerich signed 217 leases for 900,000 square feet of space.
Same-center NOI (excluding lease termination income) slumped 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.
Guidance
The company expects 2021 FFO per share of $2.05-$2.25.
In 2021, it expects to generate more than $200 million in cash flow from operations, after accounting for recurring operating and leasing capital expenditure as well as dividend distribution.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Macerich has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Macerich has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.