MAC - Macerich's Comeback Takes Another Step Forward
Three months ago, The Macerich Company (NYSE: MAC) reported that its net operating income (NOI) returned to growth in the second quarter, following a series of steep declines during the worst of the pandemic. Last week, the mall real estate investment trust (REIT) reported that NOI and tenant sales continued to bounce back in the third quarter. This good news helped Macerich stock rally to a new 52-week high, and for good reason.
In the third quarter, comparable small-shop sales for Macerich's portfolio jumped 14% compared to the same period in 2019, in line with its tenant-sales growth a quarter earlier. Meanwhile, occupancy continued to recover, reaching 90.3%, up from 89.4% as of June 30 and 88.5% as of March 31. The company also has a sizable pipeline of signed leases for future store openings, paving the way for further increases in occupancy over the next year or so.
The improvement on these metrics points to the continued strength of most of Macerich's properties. Shopper traffic remains solid, and consumers are spending more than ever when they visit the mall. That, in turn, is encouraging prospective tenants to sign new leases.
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Macerich's Comeback Takes Another Step Forward