The concept of companies returning more and more to their shareholders through various types of dividend-related events is always something that has intrigued me. With that said, I wanted to highlight one particular company that has recently announced a 4.8% increase in its regular quarterly payout.

The Macerich Company (MAC) – On Thursday, October 23, Macerich, which now possesses a forward yield of 3.81% ($2.60/share annualized), announced a 4.8% or $0.03/share increase, from its prior payout of $0.62/share, for the upcoming quarter.

Headquartered in Santa Monica, California, The Macerich Company is an independent real estate investment trust. The firm invests in the real estate markets of the United States. It primarily engages in acquisition, ownership, development, redevelopment, management and leasing of regional and community shopping centers located throughout the United States.  

Based on Thursday’s closing price of $68.28/share, The Macerich Company now possesses a market capitalization of $9.61 billion and a forward yield of 3.81% ($2.60). Its trend behavior, although positive in both the near-term and the long-term (given the fact shares are trading 4.79% above their 20-DSMA, 4.75% above their 50-DSMA, and 8.35% above their 200-DSMA), should get a boost from its upcoming earnings which are due out on October 28. If the company can demonstrate a very solid quarter and surpass Wall Street’s expectations of $0.89/share in terms of FFO, I strongly believe we could see its shares reach a sustainable range of $70.00/share-to-$72.00/share by late-November.

Recent Joint Venture Aimed At Redeveloping The Gallery In Philadelphia

On July 29, Pennsylvania Real Estate Investment Trust (PREIT) (PEI) and Macerich Company announced a joint venture partnership to redevelop The Gallery in downtown Philadelphia. Through this partnership, the PREIT will capitalize on Macerich's extensive expertise in developing and leasing vertical, multi-use projects in dense, urban environments and Macerich will benefit from PREIT's Philadelphia-area relationships and retail dominance.

Under the terms of the agreement, Macerich will acquire a 50% common ownership interest in The Gallery for $106.8 million. Macerich and PEI will jointly handle the development, leasing and management of The Gallery. Costs related to the future development will be split 50/50 between each of the companies.

According to Art Coppola, Chairman and CEO of Macerich, "This joint venture represents a great opportunity to participate in one of the top real estate markets in the United States with a high quality asset. The Gallery is aligned with the type of assets we look for; it has dominant positioning and strong long-term growth prospects. I look forward to working closely with the management team at PREIT as we combine our knowledge and skills to create an unparalleled shopping and dining environment for shoppers”. If both Macerich and PREIT can successfully execute on this particular joint venture, then there’s a very good chance both companies could see significant enhancements to their full-year earnings for years to come.

Conclusion

For those of you who may be considering a position in The Macrich Company, I strongly recommend keeping a close eye on both the company's dividend and earnings behavior over the next 12-18 months as each of these catalysts should directly impact the long-term value of the company’s shares.