After losing more than 3% of its value after releasing its first-quarter earnings last month, shares in The Macerich Co. have rebounded.

Still, the price per share since the start of the year was down 5% as of June 5, when it closed at $10.27. The stock closed at $10.84 on Jan. 3. 

On May 4, the Santa Monica shopping mall owner reported a net loss of $58.7 million (27 cents a share) for the quarter ending March 31, compared with a net loss of $37.2 million (17 cents) in the same period the previous year. Revenue decreased by a fraction of a percent to $215 million.

Investors reacted to the news by driving the stock price down from $10.07 on May 3 to $9.76 the following day, a loss of nearly 3.1%.

The share price closed at $11.10 on June 8.

But as investor website Zacks.com put it, while Macerich has underperformed the market this year, the question that comes to investors’ minds is what’s next for the stock.

While conceding there are no easy answers, Zacks did point to “one reliable measure” that could help investors address this: the company’s funds from operations, or FFO, outlook.

“Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately,” Zacks said.

Prior to last month’s earning release, the estimate revisions for Macerich were mixed, the site continued. And while the magnitude and direction of the estimate revisions could change, the current status translates into Zacks putting a hold rating on the stock. 

“So, the shares are expected to perform in line with the market in the near future,” according to Zacks.

A pair of analysts also put a hold rating on Macerich shares. 

Truist Securities Inc.’s Ki Bin Kim noted in a research report from May 4 that the real estate company hadn’t changed its 2023 guidance on FFO and kept it at $1.80, “which implies -8% (year over year) growth and compares to our estimate of $1.82 and the Street’s $1.80.” 

Linda Tsai, a New York-based equity analyst with Jefferies LLC, said in a research report from May 4 that the company’s Q1 results were mixed. Stil,l she put a hold rating and a $10 target price on the stock. 

Her target was derived from a dividend discount model, she said. 

“Upside risks include material improvement in leverage, accelerating leasing volumes, and material improvement in annualized base rent,” Tsai said. “Downside risks include tenant failure, slower than expected occupancy improvements, and reduced pricing power.” 

During a call with analysts to discuss the first-quarter financials, Macerich Chief Executive Thomas O’Hern said that the leasing environment was a good one so far this year. 

The leasing interest continues to come from a wide range of retail and hospitality categories, including health and fitness, food and beverage, entertainment, sports, co-working, hotels and multi-family projects, O’Hern added. 

“Interest continues at levels we’ve never seen before. Bankruptcies continued to be at a record low,” O’Hern said. “We continue to expect gains in occupancy throughout the year and net operating income as we progress through 2023.”