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The Macerich Company (MAC - Free Report) reported funds from operations (FFO) per share, excluding financing expenses in relation to Chandler Freehold, of 40 cents, missing the Zacks Consensus Estimate by two cents. Moreover, the figure declined 13% from the year-ago quarter’s 46 cents. Shares of Macerich gained marginally in the Aug 8 regular trading session on the NYSE.
The results reflected a year-over-year increase in quarterly revenues. However, this retail REIT experienced a decline in same-center net operating income (NOI), including lease termination income, from the prior-year period.
Quarterly revenues of $212.4 million were higher than the year-ago quarter’s $204.1 million. However, the figure missed the Zacks Consensus Estimate of $218.7 million.
Behind the Headlines
The portfolio tenant sales per square foot for spaces less than 10,000 square feet in the trailing 12 months ended Jun 30, 2023, came in at $853 compared with $860 for the same period ended Jun 30, 2022.
During the reported quarter, Macerich signed 191 leases encompassing 1.4 million square feet. On a comparable center basis, this reflected a 21% increase in the amount of square footage signed year over year.
As of Jun 30, 2023, portfolio occupancy was 92.6%, up from 91.8% as of Jun 30, 2022. Our expectation for the same was pegged at 92.4%.
For the 12 months ended Jun 30, 2023, re-leasing spreads were 11.3% more than the expiring base rent.
Same-center NOI, including lease termination income, decreased marginally year over year to $193.6 million. Our expectation for the same was pegged at $193.7 million.
Balance Sheet
As of Aug 8, 2023, Macerich had around $565 million of liquidity. This included $405 million of available capacity on its $525 million revolving line of credit.
2023 Guidance
The company changed its 2023 FFO per share (excluding financing expenses in relation to Chandler Freehold) guidance to $1.77-$1.83, revised from the previously guided range of $1.75-$1.85. The Zacks Consensus Estimate for the same is currently pegged at $1.80, which lies within the guided range.
Simon Property Group, Inc.’s (SPG - Free Report) second-quarter 2023 FFO per share of $2.88 missed the Zacks Consensus Estimate of $2.91. Also, the figure declined 1% year over year.
SPG's results reflect better-than-anticipated revenues on healthy leasing activity and a rise in the base rent per square foot and occupancy levels. However, higher operating expenses and interest expenses acted as dampeners.
Realty Income Corporation’s (O - Free Report) second-quarter 2023 adjusted funds from operations per share of $1.00 beat the Zacks Consensus Estimate of 99 cents by a penny. The reported figure also compared favorably with the prior-year quarter’s 97 cents.
O’s results reflect better-than-expected revenues in the quarter. The company benefited from expansionary effects and a healthy pipeline of opportunities globally.
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Macerich (MAC) Q2 FFO & Revenues Miss, '23 View Revised
The Macerich Company (MAC - Free Report) reported funds from operations (FFO) per share, excluding financing expenses in relation to Chandler Freehold, of 40 cents, missing the Zacks Consensus Estimate by two cents. Moreover, the figure declined 13% from the year-ago quarter’s 46 cents. Shares of Macerich gained marginally in the Aug 8 regular trading session on the NYSE.
The results reflected a year-over-year increase in quarterly revenues. However, this retail REIT experienced a decline in same-center net operating income (NOI), including lease termination income, from the prior-year period.
Quarterly revenues of $212.4 million were higher than the year-ago quarter’s $204.1 million. However, the figure missed the Zacks Consensus Estimate of $218.7 million.
Behind the Headlines
The portfolio tenant sales per square foot for spaces less than 10,000 square feet in the trailing 12 months ended Jun 30, 2023, came in at $853 compared with $860 for the same period ended Jun 30, 2022.
During the reported quarter, Macerich signed 191 leases encompassing 1.4 million square feet. On a comparable center basis, this reflected a 21% increase in the amount of square footage signed year over year.
As of Jun 30, 2023, portfolio occupancy was 92.6%, up from 91.8% as of Jun 30, 2022. Our expectation for the same was pegged at 92.4%.
For the 12 months ended Jun 30, 2023, re-leasing spreads were 11.3% more than the expiring base rent.
Same-center NOI, including lease termination income, decreased marginally year over year to $193.6 million. Our expectation for the same was pegged at $193.7 million.
Balance Sheet
As of Aug 8, 2023, Macerich had around $565 million of liquidity. This included $405 million of available capacity on its $525 million revolving line of credit.
2023 Guidance
The company changed its 2023 FFO per share (excluding financing expenses in relation to Chandler Freehold) guidance to $1.77-$1.83, revised from the previously guided range of $1.75-$1.85. The Zacks Consensus Estimate for the same is currently pegged at $1.80, which lies within the guided range.
Currently, Macerich carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Macerich Company (The) Price, Consensus and EPS Surprise
Macerich Company (The) price-consensus-eps-surprise-chart | Macerich Company (The) Quote
Performance of Other REITs
Simon Property Group, Inc.’s (SPG - Free Report) second-quarter 2023 FFO per share of $2.88 missed the Zacks Consensus Estimate of $2.91. Also, the figure declined 1% year over year.
SPG's results reflect better-than-anticipated revenues on healthy leasing activity and a rise in the base rent per square foot and occupancy levels. However, higher operating expenses and interest expenses acted as dampeners.
Realty Income Corporation’s (O - Free Report) second-quarter 2023 adjusted funds from operations per share of $1.00 beat the Zacks Consensus Estimate of 99 cents by a penny. The reported figure also compared favorably with the prior-year quarter’s 97 cents.
O’s results reflect better-than-expected revenues in the quarter. The company benefited from expansionary effects and a healthy pipeline of opportunities globally.