SPG - Macerich Is Worth At Least $22 By 2022
- Macerich's business performance is often overshadowed by poor management. The company raised cash during the peak of lockdown, securing liquidity and diluting share count by 50% since 2020.
- Business is returning to pre-COVID levels as evidenced by the portfolio update on Monday, 6 December.
- However, dividend payout will remain low as FFO is expected to pay off debt and the FFO YoY increase comes at a slower rate vs shareholder dilution.
- Nonetheless, shares were oversold and investors should capitalise on the 23% share price correction from November 2021 peak as Class A malls remain relevant in the retail industry.
- Based on Macerich's $17 share price today, 30% upside by the end of 2022 is an achievable target.
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Macerich Is Worth At Least $22 By 2022