Piper Sandler has revised its stance on Macerich (MAC, Financial), moving its rating from Underweight to Neutral. Despite this change in recommendation, the firm has maintained its previous price target for the stock at $16. This adjustment reflects a shift in sentiment regarding Macerich's market position.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 12 analysts, the average target price for Macerich Co (MAC, Financial) is $18.48 with a high estimate of $25.00 and a low estimate of $13.70. The average target implies an upside of 21.39% from the current price of $15.22. More detailed estimate data can be found on the Macerich Co (MAC) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, Macerich Co's (MAC, Financial) average brokerage recommendation is currently 2.9, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Macerich Co (MAC, Financial) in one year is $12.26, suggesting a downside of 19.45% from the current price of $15.22. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Macerich Co (MAC) Summary page.
MAC Key Business Developments
Release Date: May 12, 2025
- Leasing Activity: Signed 2.6 million square feet of leases in Q1 2025, including 2.3 million square feet of renewals.
- Portfolio Sales: $837 per square foot, flat compared to Q4 2024; $928 per square foot excluding Eddy properties, up $13 from last quarter.
- Occupancy Rate: 92.6% in Q1 2025, down from 94.1% in Q4 2024; 95.2% excluding Eddy properties.
- Leasing Spreads: Trailing 12-month leasing spreads at 10.9%, with 22% on new deals and 7% on renewals.
- FFO: Approximately $87 million or $0.33 per share in Q1 2025, up from $75 million or $0.33 per share in Q1 2024.
- Same-Center NOI: Increased 0.9% in Q1 2025 compared to Q1 2024; 2.4% increase excluding Eddy assets.
- Net Debt to EBITDA: 7.9 times at the end of Q1 2025, nearly a full turn lower than at the start of the Path Forward plan.
- Dispositions: Completed almost $800 million in sales; Lakewood sale under contract, expected to increase total to over $1.1 billion.
- Liquidity: Approximately $995 million, including $650 million capacity on revolving line of credit.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Macerich Co (MAC, Financial) is ahead of schedule on its leasing progress targets, having signed 2.6 million square feet of leases in the first quarter, more than double the previous year's first quarter.
- The company has made significant progress in its Path Forward plan, including consolidating joint ventures, issuing equity, and completing refinancings and dispositions.
- Macerich Co (MAC) has a strong pipeline of new leases, with a goal to achieve $130 million in cumulative signed not open (SNO) potential by mid-2026.
- The company has successfully executed asset sales and loan givebacks, with $1.1 billion in dispositions completed and a clear path to achieving its $2 billion target.
- Macerich Co (MAC) has implemented a new corporate structure and technology enhancements, such as the leasing speedometer, to streamline operations and improve decision-making.
Negative Points
- Occupancy in the first quarter was 92.6%, down from 94.1% in the previous quarter, primarily due to the closure of temporary holiday stores and transitioning projects.
- The company faces challenges with tenant bankruptcies, such as Forever21, which requires remerchandising efforts to fill vacated spaces.
- Despite progress, Macerich Co (MAC) still has $50 million of SNO and remaining mall dispositions and givebacks to complete its Path Forward plan.
- Same-center NOI growth was modest at 0.9% year-over-year, indicating limited immediate revenue growth from existing properties.
- The company anticipates higher capital expenditures than initially planned, which could impact short-term financial performance.
