The largest shareholder in the high-end shopping center Macerich Co. sold its entire stake for about $ 500 million when the shares soared after being promoted 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 a modified 13D. The Canadian fund had owned 16.4% of the company, according to data compiled by Bloomberg.
Macerich, a real estate investment trust based in Santa Monica, California, has been fighting for years and suffered a pandemic that forced malls to close and pushed consumers toward e-commerce. The shares lost 84% of their value over a three-year period ending December 31, 2020.
Then comments began to appear on Reddit tables, including r / wallstreetbets, the subreddit that is now famous for helping feed a staggering increase in GameStop Corp., AMC Entertainment Holdings Inc. and other very short or unfavorable actions.
Macerich shares jumped 68% in four trading sessions and hit $ 26 at one point on Wednesday with a frantic volume, allowing Ontario teachers to exit.
“We have been a long-term investor with Macerich and throughout this relationship have been a valuable partner,” Dan Madge, a spokesman for the fund for teachers, said in a written statement. “Moving forward, we focus on scaling up and diversifying our global real estate platform and growing our existing Canadian real estate business.”
A Reddit user stated that Macerich was “the owner of GameStop,” saying it has “the potential to offer a short compression similar to GME, but with better downward protection.” Short interest is 57% of the float, according to data collected by Bloomberg.
Lower rents and rising vacancies have affected mall owners during the pandemic. Macerich owns 52 malls across the United States, mostly in cities, according to its website, including the Kings Plaza Mall in Brooklyn and The Shops at North Bridge in Chicago.
Macerich fell 15% on Thursday to $ 19.01.
– With the assistance of Natalie Wong and Scott Deveau
(Updates with comments from the teachers’ spokesperson in the sixth paragraph)