Jefferies analyst Omotayo Okusanya reiterates Hold rating and $74.00 price target on Macerich Co. (NYSE: MAC) citing disappointing 2017 guidance from the company.

Okusanya notes, "After a follow up conversation with mgmt to clarify guidance, we think the main components that impact FY2017 guidance are as follows: 1) 3%-4% SSNOI growth on top of the $4.08 2016 FFO adds ~ $0.20, which would bring 2017 to $4.28; 2) subtract ~$0.11/sh due to lost Sears rent at Kings Plaza (cash + non-cash rent); 3) $0.08 dilution from asset sales; 4)~$0.07 dilution due to refinancings and a 100bp assumed increase in LIBOR; 5) subtract $0.05 - $0.06 of miscellaneous items including lower land sales gains, debt extinguishment costs, etc. This would equate to $3.96 - $3.97, which is towards the middle of the guidance range. That said, adjusting our model to reflect the items that we were missing, results in 2017 FFO/sh of ~$4.10. As such we think the additional $0.10 we would need to subtract to get to the top-end of the guidance range is due to conservatism."

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Shares of The Macerich Company closed at $69.02 yesterday.