source: https://www.macerich.com
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I am not a financial advisor. This post is to provide information and not provide financial product advice. I discuss why I personally chose to invest in a stock, ETF, REIT, investment fund or cryptocurrency (which I have held for over a week) and also share information that is public about the following stock, ETF, REIT, investment fund or cryptocurrency and they are based on my own personal opinion.
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It is recommended that you should always consider visiting a financial advisor for independent financial advice before making investment decisions.
I do not work in the financial industry, so just because I write about it, doesn’t mean you should own it. So, consult with a financial advisor and do your due diligence, RESEARCH!
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When it comes to major retail and mix-use real estate, Macerich Co. is a REIT (Real estate investment trusts) that caught my attention and a REIT that I have invested in.
Macerich is a fully integrated, self-managed and self-administered real estate investment trust (REIT), which focuses on the acquisition, leasing, management, development and redevelopment of regional malls throughout the United States.
Macerich currently owns 50 million square feet of real estate consisting primarily of interests in 46 regional shopping centers. Macerich specializes in successful retail properties in many of the country’s most attractive, densely populated markets with significant presence on the West Coast, and in Arizona and the Metro New York to Washington, DC corridor. A recognized leader in sustainability, Macerich has achieved the #1 GRESB ranking in the North American Retail Sector for six straight years (2015 – 2020).
From 46 properties in their portfolio which include the Broadway Plaza in Walnut Creek, the Biltmore Fashion Park in Phoenix, Fashion Fair in Fresno, Freehold Raceway Mall in Freehold, New Jersey, Lakewood Center in Lakewood, California, Los Angeles Premium Outlets in Carson, California, the Los Cerritos Center in Cerritos, California, to name a few.
As a high school student who attended Lakewood High School ages ago, the Lakewood Center was a place I shopped at. And often as a teenager, I visited the Los Cerritos Center, Fashion Fair and a few of other properties which Macerich Co. has in their portfolio.
But it’s important to note that my perspectives towards retail real estate, especially mall properties that I enjoy today are not the traditional mall setups with the old school food courts do not appeal to me. I am not interested in mall locations that look and operate as they did back in the ’80s or 90s and have not adapted to modern living.
What appeals to me are shopping centers that are able to become destinations not just for shopping including the incorporation of luxury shopping but also popular shopping locations and also has wonderful restaurants and entertainment.
Similar to the awesome shopping centers which I have visited in different parts of the world and shopping centers which I have visited in various cities. Retail locations that have high street retail and feature iconic brands.
Some of these properties which Macerich has in their portfolio that I like is Santa Monica Place in Santa Monica, Pacific View in Ventura, California, Fashion District Philadelphia and more.
For me, retail locations in affluent communities and desirable locations are important. Especially locations which attract tourists and make people want to visit, may it be to shop, eat, to be entertained or hang out with friends.
The 52 week range of the REIT is about $6.42 to $25.99 and currently at $14.96 a share. The quarterly dividend is around $0.15 and an annual dividend at $0.60 with an annual dividend yield at 4.01%.
While the dividend was lowered in 2020 due to the Pandemic at $1.11 annually, from $2.84 in 2019, I hope to see these retail outlets do much better in 2021 as more people are getting vaccinated and are out shopping and eating out but it takes some time and I’m just happy that Macerich still pays a dividend.
While the dividend is quarterly, the largest dividend payment was in 2015 when the company gave two extra special dividends of $1.89.
But again, just happy they are able to pay their dividends consistently to their shareholders.
It’s important to note that on May 6th, Macerich Co. traded their ex-dividend for their respective dividend. Macerich Co will pay its quarterly dividend of $0.15 on June 3rd.
Morningstar Equity Research has a five star rating for the company as of February 1, 2021. The company does not have an economic moat and their Schwab Equity Ratings is D with a percentile ranking of 78.
As for insider trading, there was insider buying around March 2020 and Insider Sales, a huge sell off in January 2021 as 24,562,964 shares were sold (a value of $538,149,978). According to Insider Monitor, 1700480 Ontario Inc (10% owner) sold those shares. Many of the executives had purchased shares in 2020 during the height of the pandemic around February/March 2020.
The top five funds holding MAC as of March 31st according to the Holdings Channel are BlackRock Inc. (21,876,619), Vanguard Group Inc. (19,141,927), State Street Corp. (7,151,820), Smead Capital Management Inc. (7,044,224) and JP Morgan Chase & Co. (5,899,512).
Now, looking at the company’s performance, you’ll notice that when years were good, they surpassed $80 a share, but during the 2008 economic collapse and the 2020 pandemic, was the lowest times for the company.
But similar to 2008, I am hoping for a climb, and its current price at under $15 to me is a bargain right now, considering that Morningstar gave Macerich Co. a $29.50 fair value estimate. For me, despite the popularity of online shopping and new films being streamed, I do feel that there is still a lot of people who will want to go out, to shop, to eat, to go out and watch a movie at the theater.
But for me, I’m holding out hope we will see these retail shopping centers start to head upward this year but to see Macerich reach its high’s of 2007 and 2015-2017. But we’ll see.
I do have high conviction towards Macerich Co. and how it handled its business during when years were good but also during the 2008 economic collapse and the 2020 pandemic, and I have even better expectations as our country starts to gain some normalcy.
I understand concerns of rising interest rates and inflation, I understand how a lot changed during the pandemic but they have a strong portfolio and again, I’m hoping for that upward surge. And I hope to see more tenant sales and more new and renewal lease signings.
As always, perform due diligence and do a lot of research before investing. Talk to a financial advisor and find out if Macerich Co. is a perfect investment for you.
