MAC - Macerich: Bad Quarter Bad Track-Record But Promising Future

2024-05-05 14:29:05 ET

Summary

• Macerich Company's Q1 2024 earnings report caused a significant drop in stock price, raising concerns about the overall investability here.
• The company's performance was below expectations, with FFO per share coming in lower than the previous year and guidance.
• The report highlighted struggles with Express bankruptcy, increased extraordinary costs, and a strategic shift in capital allocation.
• While the new strategy implementation plan looks indeed great, given the past and the numerous equity issuances before, I am reluctant to go long MAC in this case.

On April 30, 2024, the Macerich Company (NYSE: MAC ) reported its Q1, 2024 results , which presented a nightmare scenario for the existing shareholders, causing the Stock price to drop by double digits. There is definitely a component of worsened performance, which has triggered a notable repricing by the market, but there is also a sentiment from the past involved, where historically MAC has every now and then dropped a bombshell in the form of share dilution, that in the context of these news really questions the investability in MAC....

For further details see: