Jefferies Raises Price Target on The Macerich Company (MAC), Management Sees $1-$1.5 Billion in Acquisitions Over Next 5 Years

Jefferies is reiterating its Hold rating on shares of The Macerich Company (NYSE: MAC), but is raising its price target by $3 to $52.

The company spent ~$134 million in Q1 acquisitions and anticipates on spending up to $1 billion to $1.5 billion over the next five years, which is up from its previous guidance of $750 million to $1 billion. The firm notes that years 1-2 will likely focus more on acquisitions, while years 3-5 will focus more on development.

During the quarter MAC completed the refinancing of Twenty Ninth Street with a $107 million loan priced at L+263 bps and debt pay-down of a 7.13% $33 million secured loan on Capitola Mall. The company's future intentions are to pay-off Pacific
View (~$84M @ ~7.2%) and Rimrock ($41M @ 7.57%), which come due in Q3 & Q4. Jefferies comments that MAC has also received a commitment on a 7-year, fixed rate loan of $200 million at 4.46% on its Los Cerritos Center, which it expects to close in Q2.

The firm is tweaking its FY11 and FY12 FFO estimates from $2.85 & $3.15 to $2.86 & $3.14.

For more ratings news on The Macerich Company click here and for the rating history of The Macerich Company click here.

Shares of The Macerich Company closed at $51.33 yesterday.

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