Macerich: Stable Outlook with Hold Rating Amid Mixed Financial Indicators

Morgan Stanley analyst Ronald Kamdem maintained a Hold rating on Macerich (MAC – Research Report) yesterday and set a price target of $19.00.

Ronald Kamdem has given his Hold rating due to a combination of factors that suggest a stable but not overly optimistic outlook for Macerich. The company’s recent financial performance showed a slight beat in Funds From Operations (FFO), driven by better-than-expected Net Operating Income (NOI). However, key performance indicators such as same-store NOI and releasing spreads were largely in line with expectations, indicating no significant upward momentum.
Additionally, while the company has made progress in addressing its near-term debt maturities, the overall occupancy rate has declined year-over-year and quarter-over-quarter, which could pose challenges moving forward. The dividend remained unchanged, and tenant sales per square foot were flat, suggesting limited growth in immediate revenue streams. These factors collectively support a neutral stance, leading to the Hold rating.

Kamdem covers the Real Estate sector, focusing on stocks such as Hudson Pacific Properties, Paramount Group, and Healthpeak Properties. According to TipRanks, Kamdem has an average return of 4.6% and a 50.99% success rate on recommended stocks.