Low but Steady Q4 Growth for Macerich In Line With Our Estimates

Macerich reported fourth-quarter results that were in line with our expectations, leading us to reaffirm our $27.50 fair value estimate for the no-moat company. Occupancy improved 50 basis points sequentially and 110 basis points year over year to 92.6%. Re-leasing spreads came in at 4.0% in the fourth quarter, which is down from the 6.6% figure reported in the third quarter, but slightly better than our estimate of 3.1%. Same-store net operating income grew 2.0% in the quarter, which was also slightly better than our 1.1% estimate. As a result, Macerich reported funds from operations of $0.53 per share for the fourth quarter, which is a penny better than our $0.52 estimate and in line with the $0.53 figure reported in the fourth quarter of 2021.