Ronald Kamdem, an analyst from Morgan Stanley, maintained the Hold rating on Macerich (MAC – Research Report). The associated price target remains the same with $19.00.
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Ronald Kamdem has given his Hold rating due to a combination of factors related to Macerich’s recent acquisition and financial strategy. The acquisition of Crabtree Mall for approximately $290 million is expected to provide an initial yield of around 11%, with the potential to increase to 12.5% when including signed but not yet opened leases. This acquisition is part of Macerich’s strategy to enhance its net operating income (NOI) growth by investing $60 million in redevelopment and leasing efforts from 2025 to 2028.
Despite the positive outlook for future financial performance, the company is also taking on additional debt to fund this acquisition, with plans to repay $100 million of revolver borrowing through a new two-year term loan. While this move is expected to increase the 2028 Target Funds From Operations (FFO) by $0.08 per share, it also maintains the company’s leverage within its target range. These factors, combined with the potential for increased occupancy and sales at Crabtree Mall, contribute to the Hold rating as the company balances growth opportunities with financial prudence.
According to TipRanks, Kamdem is a 4-star analyst with an average return of 4.0% and a 53.62% success rate. Kamdem covers the Real Estate sector, focusing on stocks such as Macerich, Eastgroup Properties, and Hudson Pacific Properties.