A month has gone by since the last earnings report for Macerich (MAC Quick QuoteMAC - Free Report) . Shares have added about 15.8% 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 its most recent earnings report in order to get a better handle on the important drivers.

Macerich Q3 FFO Meets Estimates, Revenues Rise Y/Y

Macerich reported FFO per share, excluding financing expenses in relation to Chandler Freehold and accrued default interest expense, of 44 cents, in line with the Zacks Consensus Estimate. However, the figure declined 4.3% from the year-ago quarter’s 46 cents.

The results reflected a year-over-year increase in quarterly revenues. This retail REIT experienced a rise in same-center NOI, including lease termination income, from the prior-year period.

Quarterly revenues of $218.2 million were higher than the year-ago quarter’s $210.7 million. However, the figure missed the Zacks Consensus Estimate of $226.2 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 Sep 30, 2023, came in at $847 compared with $877 for the same period ended Sep 30, 2022.

From the beginning of 2023 through Sep 30, 2023, Macerich signed leases encompassing 3.14 million square feet. On a comparable center basis, this reflected a 10% increase in the amount of square footage signed year over year.

As of Sep 30, 2023, portfolio occupancy was 93.4%, up from 92.1% as of Sep 30, 2022. Our expectation was pegged at 93%.

For the 12 months ended Sep 30, 2023, re-leasing spreads were 10.6% more than the expiring base rent.

Same-center NOI, including lease termination income, increased 4.6% year over year to $194.7 million. Our expectation was pegged at $201 million.

Balance Sheet

As of Oct 31, 2023, Macerich had around $665 million of liquidity. This included $515 million of available capacity on its $650 million revolving line of credit.

2023 Guidance

The company maintained its 2023 FFO per share (excluding financing expenses in relation to Chandler Freehold and accrued default interest expense) guidance in the range of $1.77-$1.83.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

VGM Scores

At this time, Macerich has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. 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 has been net zero. It's no surprise Macerich has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

Macerich belongs to the Zacks REIT and Equity Trust - Retail industry. Another stock from the same industry, Equinix (EQIX Quick QuoteEQIX - Free Report) , has gained 9.4% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.

Equinix reported revenues of $2.06 billion in the last reported quarter, representing a year-over-year change of +12%. EPS of $2.93 for the same period compares with $7.73 a year ago.

For the current quarter, Equinix is expected to post earnings of $6.78 per share, indicating a change of -4.4% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.7% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Equinix. Also, the stock has a VGM Score of F.