Macerich Hits 52-week High
On Mar 21, shares of The Macerich Company (MAC) – a real estate investment trust (:REIT) – soared to touch a 52-week high of $62.94, as it gained momentum following its strong fourth-quarter 2012 results.
The closing price of Macerich on Mar 21, 2013, was $62.43, representing a solid year-to-date return of 7.2%. The average trading volume over the last 3 months was 0.4 million shares.
Despite hitting its 52-week high, this Zacks Rank #3 (Hold) stock has plenty of upside left, given its estimate revisions over the last 30 days.
Growth Drivers
Macerich reported robust fourth-quarter 2012 results with core FFO and revenues surpassing the Zacks Consensus Estimate. Successful implementation of its strategic plan, which led to a concentration of company’s solid portfolio of A-quality malls across the most attractive U.S. markets, was the major growth driver. Moreover, the acquisition of upscale properties – such as Green Acres Mall and Kings Plaza – during the quarter further strengthened its portfolio.
On Feb 6, Macerich’s fourth-quarter 2012 FFO (funds from operations) per share came in at 90 cents, beating the Zacks Consensus Estimate as well as the year-ago FFO by 3 cents. For full-year 2012, core FFO per share escalated 10.4% year over year to $3.18 and exceeded the Zacks Consensus Estimate of $3.04. The remarkable results were aided by strong fundamentals in the portfolio with solid tenant sales, leasing growth and occupancy gains.
Notably, Macerich has delivered strong earnings surprises in 4 straight quarters with an average beat of 6.40%.
Estimate Revisions Show Potency
Over the last 30 days, the Zacks Consensus Estimate for full-year 2013 has been revised marginally upward to $3.38 per share. On the other hand, the Zacks Consensus Estimate for full-year 2014 has remained unchanged at $3.57 per share.
On Mar 21, a number of REITs crafted 52-week highs. This includes Plum Creek Timber Co. Inc. (PCL), Health Care REIT, Inc. (HCN) and BioMed Realty Trust Inc. (BMR).
Note: Funds from operations, a widely accepted and reported measure of REITs performance, are derived by adding depreciation, amortization and other non-cash expenses to net income.
Read the Full Research Report on PCL
Read the Full Research Report on HCN
Read the Full Research Report on MAC
Read the Full Research Report on BMR
More From Zacks.com