Macerich Names New Tenants
The Macerich Company (MAC), along with the leading U.S. outlet developer and manager AWE Talisman, announced the full list of tenants at the company’s upcoming shopping center – Fashion Outlets of Chicago – in Ill. The new property is all set to open on Aug 1, 2013.
This Rosemont-based shopping center is a two-level outlet mall spanning 530,000 square feet. The mall, which is jointly developed by Macerich and AWE Talisman, will boast over 150 of the most desired brands including Bloomingdale's The Outlet Store, Skechers USA Inc. (SKX), Last Call by Neiman Marcus, Gap Inc. (GPS), Saks Fifth Avenue OFF 5th and Forever 21. Apart from shopping outlets, the mall will have several restaurants to provide dining experiences to the shoppers.
Strategically positioned close to downtown Chicago and O’Hare International Airport, the shopping center is conveniently connected to neighboring attractions such as Allstate Arena, Akoo Theatre and Donald E. Stephens Convention Center. Moreover, to provide special concierge services to air passengers, Fashion Outlets of Chicago plans to ink partnership with BAGS Inc.
This strategic property development is a quality addition to Macerich’s portfolio of A-class malls in some of the most attractive markets in the U.S. including Ariz., Calif., Va. and N.J. Given the property’s strong tenant base, we expect it to generate a steady source of rental revenue going forward and strengthen its top-line growth.
Notably, Macerich has been active on enhancing its presence in vibrant U.S. markets. Subsequent to the end of the fourth quarter, the company added $500 million worth Valley Stream-based Green Acres Mall from a subsidiary of another REIT, Vornado Realty Trust (VNO). The 94% anchored mall generates revenues per square foot of over $535 annually.
Last month, Macerich reported fourth quarter 2012 results with core FFO (funds from operations) per share of 90 cents, beating the Zacks Consensus Estimate and the year-ago figure by 3 cents. The results were aided by strong fundamentals in the portfolio with solid tenant sales, leasing growth and occupancy gains.
Macerich currently holds a Zacks Rank #3 (Hold).
Note: Funds from operations, a widely accepted and reported measure of REITs performance, are derived by adding depreciation, amortization and other non-cash expenses to net income.
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