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Investing in Macerich: a Must-Know Company Overview

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Oct. 15 2015, Published 4:38 p.m. ET

Brief history

Macerich (MAC) is a self-managed REIT (real estate investment trust) headquartered in Santa Monica, California. The company was founded in New York in 1964 by Mace Siegel and Richard Cohen as MaceRich Real Estate Company. In 1994, the company went public as “The Macerich Company,” which was rebranded to “Macerich” in 2006. It is the third-largest owner and operator of shopping centers in the United States. The company is a part of an S&P 500 index and employs about 1,117 people as of the end of fiscal 2014.

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Business interest

The company is involved in the acquisition, ownership, development, redevelopment, management, and leasing of regional and community, or “power,” shopping centers located throughout the United States. Macerich’s portfolio consists of prime properties in some of the most desirable, densely populated and highest barrier-to-entry US markets.

Competitors

Macerich is the third-largest retail REIT company in the US, after Simon Property Group (SPG) and General Growth Properties (GGP), with a current market capitalization of $12.7 billion. The company competes with numerous other malls, outlet centers, community and lifestyle centers, and shopping centers in the United States.

In the US, there are seven other publicly traded mall companies, as well as a number of publicly traded shopping center companies and several large private mall companies, which could compete against Macerich for an anchor or tenant. Macerich also competes with internet retailing sites that provide retailers with distribution options beyond existing brick-and-mortar retail properties.

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Apart from Simon Property Group and General Growth Properties, other major competitors of Macerich in the regional malls REIT space include Tennessee-based CBL & Associates Properties (CBL) and Michigan-based Taubman Centers (TCO). Macerich (MAC) makes up 0.42% of the total holdings of the iShares Cohen & Steers REIT ETF (ICF).

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