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Macerich (MAC) Adds Round1 to 2 Shopping Centers, Shares Up
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Amid the growing demand for its premium shopping centers, The Macerich Company (MAC - Free Report) has opened its doors to a popular large-format entertainment brand — Round1 Bowling & Amusement. Round1 will open its entertainment space at two of Macerich’s popular centers — Arrowhead Towne Center in suburban Phoenix and Danbury Fair in Connecticut.
Reflecting positive sentiments, shares of this retail real estate investment trust (REIT) closed at $9.08, appreciating 1.79% in the Jul 12 trading session following the announcement.
In the recent past, along with many other names, Dave & Buster's (PLAY - Free Report) , Xlanes and Pinstripes have entered Macerich’s first-in-the-portfolio locations. While Dave & Buster's is now open at Vintage Faire in Modesto, CA, Xlanes recently set up its first Macerich location at Fashion Fair in Fresno, CA. Moreover, Pinstripes will soon be functional at Broadway Plaza in Walnut Creek, CA.
Per Doug Healey, senior executive vice president, leasing, Macerich, "More and more, people want physical places where they can be together and have fun. We're pleased that in addition to providing great settings for shopping, dining, staying, working and living, our Regional Town Centers continue to add even more large-format entertainment experiences that shoppers crave today."
In June, Macerich shared that Target (TGT - Free Report) will open its first store at Danbury Fair, CT. Target’s new store is coming up at a former Sears site, and it will be a 126,000 square foot store 2-level store. These leasing activities reflect the solid demand for space at MAC’s properties.
Macerich has a high concentration of premium malls in vibrant U.S. markets of California, the Pacific Northwest, Phoenix/Scottsdale and the Metro New York to Washington, DC corridor. As of Mar 31, 2022, Macerich’s real estate ownership encompassed 48 million square feet of gross leasable area, comprising mainly interests in 44 regional town centers and five community/power shopping centers.
The retail REIT sector is witnessing a recovery backed by increased consumer spending and widespread vaccination drives. The retailers’ focus has shifted from closing stores to the revival of their growth plans, resulting in more demand for physical store spaces. This paves the way for the retail REITs to experience gain in leasing activity, pricing power and flourish.
Furthermore, adopting an omni-channel strategy by retailers will be beneficial in the long run as online shopping cannot replace the benefits and satisfaction of visiting a brick-and-mortar store. As a result, digitally-native brands are keen on boosting their physical presence in the days to come as it provides them a direct connection with customers and drives expansion. Also, with the easing of pandemic-related regulations, families are preferring to spend their leisure time at shopping centers that have provisions for entertainment, thus driving the demand for large-format entertainment companies at shopping centers.
A better-ranked stock in the REIT sector to consider is Kite Realty Group Trust (KRG - Free Report) .
The Zacks Consensus Estimate for Kite Realty Group Trust’s 2022 FFO per share has moved 2.9% upward in the past two months to $1.80. KRG presently carries a Zacks Rank of 2 (Buy).
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) Adds Round1 to 2 Shopping Centers, Shares Up
Amid the growing demand for its premium shopping centers, The Macerich Company (MAC - Free Report) has opened its doors to a popular large-format entertainment brand — Round1 Bowling & Amusement. Round1 will open its entertainment space at two of Macerich’s popular centers — Arrowhead Towne Center in suburban Phoenix and Danbury Fair in Connecticut.
Reflecting positive sentiments, shares of this retail real estate investment trust (REIT) closed at $9.08, appreciating 1.79% in the Jul 12 trading session following the announcement.
In the recent past, along with many other names, Dave & Buster's (PLAY - Free Report) , Xlanes and Pinstripes have entered Macerich’s first-in-the-portfolio locations. While Dave & Buster's is now open at Vintage Faire in Modesto, CA, Xlanes recently set up its first Macerich location at Fashion Fair in Fresno, CA. Moreover, Pinstripes will soon be functional at Broadway Plaza in Walnut Creek, CA.
Per Doug Healey, senior executive vice president, leasing, Macerich, "More and more, people want physical places where they can be together and have fun. We're pleased that in addition to providing great settings for shopping, dining, staying, working and living, our Regional Town Centers continue to add even more large-format entertainment experiences that shoppers crave today."
In June, Macerich shared that Target (TGT - Free Report) will open its first store at Danbury Fair, CT. Target’s new store is coming up at a former Sears site, and it will be a 126,000 square foot store 2-level store. These leasing activities reflect the solid demand for space at MAC’s properties.
Macerich has a high concentration of premium malls in vibrant U.S. markets of California, the Pacific Northwest, Phoenix/Scottsdale and the Metro New York to Washington, DC corridor. As of Mar 31, 2022, Macerich’s real estate ownership encompassed 48 million square feet of gross leasable area, comprising mainly interests in 44 regional town centers and five community/power shopping centers.
The retail REIT sector is witnessing a recovery backed by increased consumer spending and widespread vaccination drives. The retailers’ focus has shifted from closing stores to the revival of their growth plans, resulting in more demand for physical store spaces. This paves the way for the retail REITs to experience gain in leasing activity, pricing power and flourish.
Furthermore, adopting an omni-channel strategy by retailers will be beneficial in the long run as online shopping cannot replace the benefits and satisfaction of visiting a brick-and-mortar store. As a result, digitally-native brands are keen on boosting their physical presence in the days to come as it provides them a direct connection with customers and drives expansion. Also, with the easing of pandemic-related regulations, families are preferring to spend their leisure time at shopping centers that have provisions for entertainment, thus driving the demand for large-format entertainment companies at shopping centers.
Shares of this Zacks Rank #3 (Hold) stock have plunged 36.2% over the past three months compared with the industry's decline of 14.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Stock to Consider
A better-ranked stock in the REIT sector to consider is Kite Realty Group Trust (KRG - Free Report) .
The Zacks Consensus Estimate for Kite Realty Group Trust’s 2022 FFO per share has moved 2.9% upward in the past two months to $1.80. KRG presently carries a Zacks Rank of 2 (Buy).
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.