Macerich: Old Retail Is Fading

Joseph Parrish
2.56K Followers

Summary

  • Macerich is a REIT focused on malls and shopping centers, currently yielding 3.8%, with no clear growth story.
  • Management aims to reduce debt by $2B through asset sales, but this likely means revenue and cash flows will decline in the near term.
  • E-commerce growth and the shift from brick-and-mortar retail present significant challenges, making MAC's turnaround and profitable growth uncertain.

green dollar symbol

Irina Gutyryak/iStock via Getty Images

The Macerich Company (NYSE:MAC) is a REIT that focuses on malls and shopping centers. Interestingly, while many REITs yield close to short-term interest rates (4.5% to 5%), MAC yields about 3.8% as I write this. As lower rates imply a

This article was written by

2.56K Followers
I analyze securities based on value investing, an owner's mindset, and a long-term horizon. I don't write sell articles as those are considered short theses, and I never recommend shorting.Former advisory representative at Fidelity. I do my own investing now and share my research here.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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