The Macerich Company ( MAC Quick Quote MAC - Free Report) recently announced plans for the next phase of the ongoing reinvestment in the company’s iconic Scottsdale Fashion Square, encompassing 1.9 million square feet. One of the nation's premier shopping destinations — Scottsdale Fashion Square — is located in the heart of upscale Scottsdale, AZ, and comprises more than 240 shops and restaurants. In November 2018, Macerich launched the first phase of the property’s spectacular luxury wing, which was an enormous success. It drew an enviable collection of new-to-market, pure luxury retailers and restaurants while the existing top luxury brands at the property recommitted, expanded and renovated their stores. As part of the next phase of continued reinvestment at Scottsdale Fashion Square, Macerich plans to renovate the interior and exterior of the south wing extensively. Particularly, the south wing anchored by Nordstrom will be redefined. The property will offer a striking arrival point, complete with luxury valet service, at its most active entrance. Additionally, two-story storefronts and exterior-facing retail buildings at the south entrance and a porte cochere, capable of accommodating up to five destination restaurants, have been planned for in this phase. Scottsdale Fashion Square will cater to new, complementary uses that will include high-end fitness + wellness destination Life Time Scottsdale and the Caesars Republic Scottsdale boutique hotel, both presently under construction. Further, based on its past experience to enrich the customer base and sales potential for retailers at the property, Macerich is planning on adding more mixed-use elements at Scottsdale Fashion Square. This will be executed on a seven-acre parcel situated immediately north of the mall that reaches Goldwater Boulevard to Scottsdale Road. It will include high-end residential units, class A office space and hospitality uses. Macerich has a high concentration of premium malls in vibrant U.S. markets, primarily concentrated in California, the Pacific Northwest, Phoenix/Scottsdale and the Metro New York to Washington, DC corridor. It has nine regional shopping centers in the Phoenix metro area with its Arizona portfolio covering more than 9 million square feet. These properties are located in densely-populated areas, where affluent consumers with significant disposable incomes live and play. The recent move to reinvest in Scottsdale Fashion Square will provide the company an opportunity to capitalize on the expenditure trend of affluent customers and generate decent cash flows. Shares of this Zacks Rank #3 (Hold) company have lost 5.3% in the past three months compared with the industry's decline of 9.7%. Image Source: Zacks Investment Research Stocks to Consider
Some better-ranked stocks from the retail REIT sector are
Kimco Realty ( KIM Quick Quote KIM - Free Report) , Regency Centers ( REG Quick Quote REG - Free Report) and SITE Centers Corp. ( SITC Quick Quote SITC - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here The Zacks Consensus Estimate for Kimco Realty’s current-year FFO per share has moved 1.3% northward in the past two months to $1.56. The Zacks Consensus Estimate for Regency Centers’ ongoing year’s FFO per share has been raised 1.8% over the past two months to $3.96. The Zacks Consensus Estimate for SITE Centers’ 2022 FFO per share has moved nearly 1% upward in the past two months to $1.16. 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.