Macerich Earnings: Is the Worst Finally Over?

The COVID-19 pandemic continued to take a heavy toll on Macerich (NYSE: MAC) last quarter. The owner of high-quality malls reported another set of sharp declines in net operating income (NOI) and adjusted funds from operations (FFO). But while the company's first-quarter results looked pretty ugly, Macerich is poised to turn the corner soon. Let's take a look.

Earlier this week, Macerich reported that same-center NOI (excluding lease termination income) plunged 29% to $148 million in the first quarter. This result was slightly better than the mall REIT's 33% decline in same-center NOI a quarter earlier, but it still gives the impression of a company in crisis.

This reduction in NOI -- augmented by recent shareholder dilution -- drove a sharp decline in Macerich's FFO per share. (Macerich ended the first quarter with approximately 207 million common shares and equivalents outstanding, up from around 161 million a quarter earlier and 152 million at the beginning of 2020.) Adjusted FFO per share plummeted 44% year over year to $0.45.

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Source Fool.com