Macerich (MAC) Q3 FFO Meets Estimates, Revenues Rise Y/Y
The Macerich Company MAC reported funds from operations (FFO) per share, excluding financing expenses in relation to Chandler Freehold, 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 net operating income (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 for the same 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 for the same 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. The Zacks Consensus Estimate for the same is currently pegged at $1.79, 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 Retail REITs
Simon Property Group, Inc. SPG third-quarter 2023 FFO per share of $3.20 surpassed the Zacks Consensus Estimate of $2.98. Also, the figure increased 9.2% 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 property operating expenses and interest expenses partly offset the upsides. However, this retail behemoth raised its 2023 FFO per share outlook.
Kimco Realty Corp. KIM reported a third-quarter 2023 FFO per share of 40 cents, ahead of the Zacks Consensus Estimate of 39 cents. The figure was only a cent lower than the year-ago quarter’s tally.
Results reflect better-than-anticipated revenues, aided by rental rate growth and healthy occupancy levels. KIM raised its 2023 FFO per share outlook and also announced a hike in its quarterly dividend.
Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Simon Property Group, Inc. (SPG) : Free Stock Analysis Report
Kimco Realty Corporation (KIM) : Free Stock Analysis Report
Macerich Company (The) (MAC) : Free Stock Analysis Report
