SPY423.51-0.80 -0.19%
DIA342.84-2.28 -0.66%
IXIC14,131.29+61.87 0.44%

Research Alert: CFRA Reiterates Sell Opinion On Shares Of The Macerich Company

05/11/2021 13:07

05:05 PM EDT, 05/11/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We maintain our $12 target price, equal to 6.6x our 2021 FFO per share estimate, which we lower by $0.37 to $1.83; we lower 2022's by $0.44 to $1.91. MAC reported Q1 FFO per share of $0.45 vs. $0.81, missing consensus by $0.01. Portfolio occupancy at the end of March was 88.5%, down from the 89.7% last quarter. MAC believes this represents the occupancy low coming out of Covid-19 with a rebound similar to the Great Financial Crisis expected (where occupancy rose to 92% by mid 2011). We think it is reasonable occupancy will recover from here, but remain skeptical that the pace will be as fast. Even if MAC's portfolio is of higher quality compared to 2009, we think the environment for malls is much worse than in 2009 and 2010 due to both the rise of e-commerce that has been accelerated by the pandemic as well as social distancing measures stretching out for much longer. MAC noted late March '21 foot traffic was approaching 80% of pre-Covid levels (March '19) but sales were nearing 100%.