The largest shareholder in a luxury shopping center owner Macerich Co. sold its entire stake for nearly $ 500 million when the stock surged after being touted on Reddit.
The Ontario Teachers’ Pension Plan sold 24.56 million shares on Wednesday at an average price of $ 20.25 per share, according to details in a amended 13D. According to Bloomberg data, the Canadian fund owned 16.4% of the company.
Macerich, a real estate investment fund based in Santa Monica, California, has been struggling for years and was battered by a pandemic that forced shopping malls to close and push consumers towards ecommerce. The stock lost 84% of its value over the three-year period ending December 31, 2020.
Then comments appeared on Reddit boards, including r / wallstreetbets, the subreddit now famous for contributing to an astonishing rise in GameStop Corp., AMC Entertainment Holdings Inc. and other stocks with a strong short or out of favor.
Macerich shares were up 68% in four trading sessions, hitting about $ 26 at one point Wednesday on a frantic volume, allowing Ontario Teachers to get out.
“We have been a long-term investor with Macerich and they have been a valued partner throughout this relationship,” Dan Madge, a Teachers Fund spokesperson, said in a written statement. “Looking ahead, we focus on scaling and diversifying our global real estate platform, as well as growing our existing Canadian real estate business.”
A Reddit user touted Macerich as “GameStop’s landlord,” saying it “has the potential to provide a GME-like short squeeze, but with better bottom-end protection.” Short-term interest is 57% of the float, according to data collected by Bloomberg.
Lower rents and increased vacancy have plagued shopping center owners during the pandemic. According to his website, Macerich owns 52 shopping centers in the US, mostly in cities, including Kings Plaza Shopping Center in Brooklyn and The Shops at North Bridge in Chicago.
Macerich fell 15% to $ 19.01 on Thursday.
– With the help of Natalie Wong and Scott Deveau
(Updates with comments from the teacher spokesperson in the sixth paragraph)