Is Macerich a Buy?
Real estate investment trusts (REITs) have been a tough sector to love over the past four months or so. With the COVID-19-related shutdown, tenants are unable to pay rent, but the interest payments for the REIT are still due. Probably the hardest-hit sector has been shopping malls. Mall operator Macerich (NYSE: MAC) will report its second-quarter earnings on Aug. 11, and investors will be keenly focused on interest expense and coverage ratios.
Macerich is one of the major mall REITs in the U.S. The company operates 47 regional shopping centers (malls) and five power shopping centers (outdoor shopping malls that usually have three or more big box stores). Malls generally have 400,000 square feet of gross leasing area and contain one or two anchor stores. Macerich's biggest tenants include L Brands and H&M.
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Source Fool.com
