Macerich closes the second quarter with a net loss of 19.15 million pounds sterling.
The shopping center operator reports an FFO of £46.15 million and revenues of £136.24 million.
The Real Estate Investment Trust reports that the occupancy rate at the end of June was 91.3%.
The Macerich Company (NYSE: MAC) released its quarterly financial results on Tuesday, showing that the company ended its second quarter with a loss that was lower than the experts had predicted. However, its revenues and funds from operations (FFO) were lower than analysts’ estimates.
Macerich emphasized on Tuesday that the coronavirus pandemic again forced it to close nine of its California shopping centers as new COVID 19 cases continued to rise across the state. The Company’s Board of Directors declared 11.44 pence per share for the quarterly dividend at the end of July.
The Company’s shares opened over 2% higher on Tuesday. Macerich is currently changing hands at 6.38 pence per share. In the first week of April, when the health crisis pushed the company into closed shopping centers, the share price had fallen to a low of £3.86 per share. Here is a list of the best stockbrokers in 2020 for a safer investment in the stock market.
Macerich’s financial results for the 2nd quarter compared to analysts’ estimates
The Real Estate Investment Trust (REIT) reported a net loss of £19.15 million or 13.73 pence per share for the second quarter. In the same quarter last year, Macerich had reported a net loss of £11.98 million or 8.39 pence per share.
The Santa Monica-based company valued its FFO at £46.15 million or 29.75 pence per share in the final quarter, compared to £101.91 million or 67.13 pence per share in the same quarter of 2019. Macerich’s revenues for the second quarter of the financial year were £136.24 million, down 21.7% year-on-year.
According to FactSet, experts had predicted that the company would generate revenues of £141.58 million in the second quarter. Their estimate of loss per share was capped at 20.60 pence. In terms of FFO, they had anticipated 37.38 pence per share.
Macerich says the utilization rate at the end of June was 91.3%.
In addition to California’s nine shopping centers, Macerich said on Tuesday that two of his New York City shopping centers have been closed to the public since March. At the end of June, the third largest US mall operator registered an occupancy rate of 91.3%, lower than 94.1% at the end of June 2019.
According to Macerich, it took 65% of bar rents in July, compared with 58% of bar rents in June. Its peer company, Simon Property Group, also reported a 24% decline in second quarter revenues on Monday.
At the time of writing, Macerich has a market capitalization of £1.04 billion and a price/earnings ratio of 13.23.