• 0
  • Home
  • About Us
  • What We Do

Shopping Cart

GPAM
  • Home
  • About Us
  • What We Do

Stock market madness: Macerich soars, sinks, and ends up worse off

Mall owners saw dramatic gains before equally dramatic losses. (Macerich, Getty)
Mall owners saw dramatic gains before equally dramatic losses. (Macerich, Getty)
 

“Macerich is the next GameStop.”

That’s what one Reddit user said Wednesday on the platform’s wild Wall Street Bets forum, which has helped individual investors scorch hedge funds this week by buying up shares in ailing companies.

The prediction has not quite panned out: GameStop’s share price soared 68 percent Friday, to close near its Wednesday peak, while Macerich’s lost 18 percent as the firm rejoined the ranks of mortal mall owners.

The Macerich Company, one of the nation’s largest retail property owners and shopping mall operators, has been imperiled by Covid-19 as many people continue to avoid indoor shops.

But in a bizarre week of trading, its share price shot up 72 percent by Wednesday, then gave up all that gain and more to finish Friday at $15.69, or 29 cents shy of where it started.

Read more
  • Macerich posts $27M loss; CEO touts physical retail
  • Open air windfalls: Shopping centers breeze past malls in their recovery
  • Here’s what tenants are paying at Macerich’s Santa Monica Place

Tanger Factory Outlet Centers, another large retail owner with locations throughout the country, experienced a similar week. Its share price rose more than 32 percent before ending the week close to its opening level Monday.

Both companies’ heyday in the markets came in 2016, when their shares traded at many multiples of their current value. Since then, ecommerce has become a dominant force — never more so than during the pandemic — and some investors began betting against them.

Approximately half of all Macerich and Tanger shares were held in January by short sellers, who reap profits when share prices decline. But this week’s spike, driven by quixotic day traders, gave some companies and their backers a financial reprieve.

The largest shareholder in Macerich sold its entire holding Wednesday at an average share price of $20.25 for a total of $500 million, Bloomberg reported. The shares belonged to the Ontario Teachers’ Pension Plan, which owned 16.4 percent of the company.

Massive share-dumping typically drives the price down, and in this case, it also suggests a loss of faith in the company.

“The fact that OTPP decided to hit the eject button on its Macerich investment at seemingly the first feasible opportunity post-Covid could be interpreted as a dire outlook,” said Vince Tibone, a senior retail analyst at GreenStreet.

Macerich has $1.5 billion in outstanding unsecured loans, which will come due on July 6. It also has $800 million in mortgage forbearance against its properties. One reason for its precarious position is its past habit of converting equity in its properties to cash.

“Macerich was active historically about cash-out refinancing — clearly a complication now,” said Alexander Goldfarb, managing director of equity research at Piper Sandler.

Stock-price jumps present an opportunity for companies to raise capital, but for now, Macerich appears to have missed its chance. Goldfarb said it would need $2 billion to cope with its line of credit and mortgage situations.

When OTPP decided to head for the exit, Macerich lost an important ally, said Tibone. The pension fund had sided with Macerich in 1995 when Simon Property tried to acquire the company at $95.50 per share.

“The departure of OTPP appears to make Macerich more susceptible to activism or even an unsolicited takeout offer down the road,” said Tibone.

[contact-form-7 404 "Not Found"]

The post Stock market madness: Macerich soars, sinks, and ends up worse off appeared first on The Real Deal Los Angeles.

Powered by WPeMatico

  • 29 January 2021
  • The Real Deal
  • Uncategorized
  •  Like
Shaquille O’Neal sells Orlando megamansion for $16.5M →← But the commute is still great: US office occupancy at just 22%
  • Recent Posts

    • Mayor Karen Bass blasts everyone but herself for wildfire mishandling May 7, 2025
    • WEA, Beverly Hills Estates cut deal on $27M Malibu Colony home May 7, 2025
    • Oil firm eyes homes, hotel near Bolsa Chica wetlands in Huntington Beach May 7, 2025
    • Bankrupt Rite Aid to market 1.3K stores, including dozens in LA County May 7, 2025
    • Carolwood flexes with new LA pocket listings portal, boasting $1B+ in inventory May 7, 2025
  • Recent Comments

    • Archives

      • May 2025
      • April 2025
      • March 2025
      • February 2025
      • January 2025
      • December 2024
      • November 2024
      • October 2024
      • September 2024
      • August 2024
      • July 2024
      • June 2024
      • May 2024
      • April 2024
      • March 2024
      • February 2024
      • January 2024
      • December 2023
      • February 2023
      • January 2023
      • December 2022
      • November 2022
      • October 2022
      • September 2022
      • August 2022
      • July 2022
      • June 2022
      • May 2022
      • April 2022
      • March 2022
      • February 2022
      • January 2022
      • December 2021
      • November 2021
      • October 2021
      • September 2021
      • August 2021
      • July 2021
      • June 2021
      • May 2021
      • April 2021
      • March 2021
      • February 2021
      • January 2021
      • December 2020
      • November 2020
      • October 2020
      • September 2020
      • August 2020
      • July 2020
      • June 2020
      • May 2020
      • April 2020
      • March 2020
      • February 2020
      • January 2020
      • December 2019
      • November 2019
      • October 2019
      • September 2019
      • August 2019
      • July 2019
      • June 2019
      • May 2019
      • April 2019
      • March 2019
      • February 2019
      • January 2019
      • December 2018
      • November 2018
      • October 2018
      • September 2018
      • August 2018
      • July 2018
      • June 2018
      • May 2018
      • April 2018
      • March 2018
      • February 2018
      • January 2018
      • December 2017
    • Global Property and Asset Mangement, Inc.
      137 North Larchmont
      Los Angeles, California 90010
      +1 213-427-1127

    © 2025 GPAM