In a report released today, Ki Bin Kim from Truist Financial maintained a Hold rating on Macerich (MAC – Research Report), with a price target of $23.00.
Ki Bin Kim has given his Hold rating due to a combination of factors that reflect both positive and negative aspects of Macerich’s current performance. On the positive side, Macerich has shown strong leasing activity, with a notable increase in occupancy rates and substantial leasing volumes, which are up 15% year-over-year in the fourth quarter. This indicates a healthy demand for their retail spaces and suggests potential for future revenue growth.
However, there are also areas of concern that temper the overall outlook. The same-store net operating income (SSNOI) experienced a slight decline of 0.4% year-over-year, which was unexpected and may have contributed to some stock weakness. Additionally, while there has been strong execution on balance sheet improvements, such as raising $454 million in equity, the decrease in lease spreads from the previous quarter suggests some pressure on rental income. These mixed signals lead to a Hold rating, as the positive leasing trends are balanced by challenges in income growth.
Based on the recent corporate insider activity of 18 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MAC in relation to earlier this year.