Yahoo Finance Macerich (MAC) to House Elephante at Scottsdale Fashion Square
The Macerich Company MAC and Wish You Were Here Group, a renowned, multi-concept hospitality company, announced that the south wing of Scottsdale Fashion Square will house the upscale, experiential restaurant concept — Élephante.
Following the announcement, shares of MAC gained 2.69% on May 19 regular trading session on the NYSE.
The move will mark Élephante’s first location outside Los Angeles and will encompass 12,000 square feet of Macerich’s top-performing shopping center, aiming to provide a multidimensional experience to the Scottsdale community.
Keeping up with the organic, breezy feel of its Los Angeles division, the restaurant will boast a lavish indoor-outdoor space, complemented by a sophisticated cocktail lounge within the restaurant, a unique feature exclusive to its Arizona location.
The restaurant/lounge will be set in a high-profile location on one side of the newly created porte cochere. It will offer luxury valet service and other high-end amenities and design features.
The introduction of Élephante to MAC’s Scottsdale Fashion Square, which is currently undergoing redevelopment, is part of the latter’s current project to extend the property's luxury presentation into the south wing anchored by Nordstrom to meet market demand.
Per Doug Healey, senior executive vice president of Leasing, Macerich, “We are very pleased to welcome the Wish You Were Here Group and Élephante to our top-performing Scottsdale Fashion Square. Unique, upscale experiential restaurant concepts like Élephante continue to differentiate Macerich's A+ property in Arizona and further cement its place as one of the top luxury retail destinations in the entire country.”
Macerich has a portfolio of premium assets in the United States, with a notable presence in California, the Pacific Northwest, Arizona and the Metro New York to Washington, DC corridor. These properties are located in densely populated areas, where affluent consumers with significant disposable incomes live and play, offering the company solid scope to generate decent cash flows.
The increase in consumers’ preference for in-person shopping experiences following the pandemic downtime has driven the recovery in the retail real estate industry. Retailers continue to rent out more physical store spaces to meet this growing demand.
As a result, retail REITs, including Macerich, are expected to experience a rise in leasing activity and pricing power, and flourish.
Earlier this year, the company welcomed Chinese restaurant Din Tai Fung to Santa Monica Place, and fashion retailer — Zara — and Irish retail brand — Primark — to Queens Center in New York City.
In first-quarter 2023, MAC signed 256 leases encompassing 949,000 square feet. On a comparable center basis, this reflected a 59% increase in the amount of square footage leased and a 20% rise in the number of deals signed year over year.
MAC is also making concerted redevelopment efforts to boost the quality of its retail properties, drive more footfall and lure tenants. In January 2023, it announced that its Santa Monica Place will house the first U.S. flagship location for global art and technology phenomenon ARTE MUSEUM, replacing the former ArcLight Cinemas site.
Nonetheless, higher e-commerce adoption and rising interest rates are key concerns for Macerich.
Shares of this Zacks Rank #3 (Hold) company have lost 9.9% in the quarter-to-date period compared with its industry's decline of 3.7%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are Iron Mountain IRM, Rexford Industrial Realty REXR and Stag Industrial STAG, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Iron Mountain’s 2023 funds from operations (FFO) per share is pegged at $3.96.
The Zacks Consensus Estimate for Rexford Industrial’s current-year FFO per share is pegged at $2.19.
The Zacks Consensus Estimate for Stag Industrial’s ongoing year’s FFO per share is pegged at $2.25.
Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Iron Mountain Incorporated (IRM) : Free Stock Analysis Report
Macerich Company (The) (MAC) : Free Stock Analysis Report
Stag Industrial, Inc. (STAG) : Free Stock Analysis Report
Rexford Industrial Realty, Inc. (REXR) : Free Stock Analysis Report
