DJ Store Closures, Debt Load Pressures Macerich -- Market Talk
08:52 ET - In spite of its quality portfolio, mall-owner Macerich is under pressure due to a relatively high debt load and because a number of retailers have been closing stores, Jefferies says. The flow-through from closures and potential store shutdowns--JC Penney has yet to meaningfully rationalize its portfolio--means Macerich may need to take steps like cutting its dividend to conserve cash amid relatively high debt, Jefferies says. The firm forecasts a 25% cut to the payout in 1Q next year. "We expect continued pressure on cashflow," Jefferies says, cutting its rating on Macerich to underperform. Shares fall 1.6% premarket. (micah.maidenberg@wsj.com; @MicahMaidenberg)
(END) Dow Jones Newswires
January 15, 2020 08:52 ET (13:52 GMT)
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