Is it Wise to Hold Macerich (MAC) in Your Portfolio Now?

We updated our research report on The Macerich Company MAC on Jun 9.

This Santa Monica, CA-based retail real estate investment trust (REIT) is engaged in owning, acquiring, leasing, managing, developing and redeveloping regional and community shopping centers in high barrier-to-entry U.S. markets. In first-quarter 2017, the company reported funds from operations (FFO) of $0.87, surpassing the Zacks Consensus Estimate of $0.84. The prior-year quarter's FFO per share figure was also $0.87. Amid challenging retail landscape, the quarter witnessed modest improvement in same-center net operating income (NOI).

In the last 30 days, the company's second-quarter 2017 FFO per share estimates moved up 1.1%. In fact, the company has a high concentration of premium malls in certain vibrant U.S. markets. Also, the company boasts well-capitalized retailers that have fared relatively well in the post-recession environment where the U.S. consumers have become more budget conscious. Additionally, its omni-channel model, steadily rising demand along with tempered supply and aggressive capital-recycling program are emerging as growth drivers.

However, increasing consumer purchases through the Internet has emerged as a pressing concern for retail REITs. While Macerich is making attempts to counter the pressure through various initiatives, the implementation of such measures requires a decent upfront cost, and therefore would limit any robust growth in its profit margins in the near term.

Shares of Macerich underperformed the Zacks categorized REIT and Equity Trust – Retail industry in the last three months. While the stock declined 7.9%, the industry lost 1.9%.



Currently, Macerich carries a Zacks Rank #3 (Hold).

Investors interested in the REIT space, may consider better-ranked stocks like DCT Industrial Trust Inc. DCT, Gaming and Leisure Properties, Inc. GLPI and PS Business Parks, Inc. PSB, each carrying a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

In the last 30 days, DCT Industrial Trust's funds from operations (FFO) per share for second-quarter 2017 remained unchanged at 59 cents.

In the last 30 days, Gaming and Leisure Properties' FFO per share for second-quarter 2017 remained unchanged at 77 cents.

In the last 30 days, PS Business Parkss FFO per share for second-quarter 2017 moved up 2% to $1.53.

Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income. All EPS numbers presented in this write up represent FFO per share.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.  Click here for the 6 trades >>


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
 
Macerich Company (The) MAC: Free Stock Analysis Report
 
PS Business Parks, Inc. PSB: Free Stock Analysis Report
 
DCT Industrial Trust Inc DCT: Free Stock Analysis Report
 
Gaming and Leisure Properties, Inc. GLPI: Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!