NEW YORK (TheStreet) -Shares of Macerich Co. (MAC - Get Report) are climbing higher by 5.66% to $91.63 in mid-morning trading on Monday, after Simon Property Group (SPG - Get Report) made an offer to acquire the real estate investment trust in a transaction valued at approximately $22.4 billion.

If the buyout is approved Macerich shareholders would receive consideration in the form of 50% cash and 50% Simon Property common stock. Simon Property Group is also a real estate investment trust.

The transaction includes the assumption of close to $6.4 billion of Macerich's debt.

"We believe Simon's cash and stock offer would bring compelling value to shareholders of both companies. Macerich shareholders would receive a significant current cash premium as well as the long-term upside potential of an investment in Simon, which is widely recognized for its high-quality portfolio and industry-leading operating performance," Simon Property CEO David Simon said in a statement.

Simon also reached an agreement, following completion of the deal, to sell some Macerich assets to General Growth Properties Inc. (GGP), a REIT based in Chicago.

Shares of Simon Property Group are up by 0.23% to $181 this morning.

Separately, TheStreet Ratings team rates MACERICH CO as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate MACERICH CO (MAC) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, solid stock price performance and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • MAC's revenue growth has slightly outpaced the industry average of 9.9%. Since the same quarter one year prior, revenues rose by 11.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, MACERICH CO's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Powered by its strong earnings growth of 13685.71% and other important driving factors, this stock has surged by 42.50% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MAC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 886.5% when compared to the same quarter one year prior, rising from $144.88 million to $1,429.22 million.
  • Net operating cash flow has increased to $103.80 million or 11.39% when compared to the same quarter last year. In addition, MACERICH CO has also modestly surpassed the industry average cash flow growth rate of 8.19%.
  • You can view the full analysis from the report here: MAC Ratings Report