We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why You Should Add Mack-Cali (CLI) to Your Portfolio Now
Read MoreHide Full Article
We updated our research report on Mack-Cali Realty Corp. on Sep 16, 2016.
The company recently announced strong progress on its 20/15 plan. This 39-month plan envisages Mack-Cali as a premier real estate investment trust (REIT), with focus on the waterfront and transit-based office holdings in the Northeast and on luxury multi-family portfolio growth as well. Chalked out last year, this plan aims to reposition Mack-Cali’s portfolio to include 20 million square feet of office and 15,000 luxury apartment units by 2018.
Over the last 12 months, the company has determined market mix, exited non-core markets and purchased assets in transit-based markets in Hoboken & Metropark. Mack-Cali targets 6% annual yield and 11% internal rate of return (IRR) on developments over the next 24 months.
It also intends to make up to $450 million non-core asset sales through 2017, upgrade its present amenities and improve its offerings with six major capital investment programs in the next 12–18 months. Among such projects is the $50–$75 million transformation and re-imagination of the Harborside complex on the Jersey City Waterfront.
In our view, despite the near-term dilution impact of the non-core assets sale, the transformation efforts and diversification into the apartment sector are expected to drive growth as well as improve Mack-Cali’s cash flow.
Moreover, besides this robust progress on its strategic plan, the company reported better-than-expected results in second-quarter 2016, backed by higher base rents and lower net property expense.
The company, which has a solid roster of commercial tenants from diverse industries, enjoys debt-free ownership for the bulk of its portfolio. As of Jun 30, 2016, the company had 205 unencumbered properties with a carrying value of $2.3 billion. This denoted 91.9% of the company’s total consolidated property count.
Reflecting positive sentiments, the funds from operations (FFO) per share estimates have also been improving lately. Over the past 30 days, FFO per share estimates for 2016 moved up 0.5% to $2.11 and 1.8% to $2.22. The 2016 and 2017 estimates also reflect 12.23% and 5.31% growth year over year. As such, Mack-Cali currently has a Zacks Rank #2 (Buy).
Also, investors can consider stocks like Alexandria Real Estate Equities, Inc. (ARE - Free Report) and HCP Inc. (HCP - Free Report) , both carrying the same Zacks Rank as Mack-Cali.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Why You Should Add Mack-Cali (CLI) to Your Portfolio Now
We updated our research report on Mack-Cali Realty Corp. on Sep 16, 2016.
The company recently announced strong progress on its 20/15 plan. This 39-month plan envisages Mack-Cali as a premier real estate investment trust (REIT), with focus on the waterfront and transit-based office holdings in the Northeast and on luxury multi-family portfolio growth as well. Chalked out last year, this plan aims to reposition Mack-Cali’s portfolio to include 20 million square feet of office and 15,000 luxury apartment units by 2018.
Over the last 12 months, the company has determined market mix, exited non-core markets and purchased assets in transit-based markets in Hoboken & Metropark. Mack-Cali targets 6% annual yield and 11% internal rate of return (IRR) on developments over the next 24 months.
It also intends to make up to $450 million non-core asset sales through 2017, upgrade its present amenities and improve its offerings with six major capital investment programs in the next 12–18 months. Among such projects is the $50–$75 million transformation and re-imagination of the Harborside complex on the Jersey City Waterfront.
In our view, despite the near-term dilution impact of the non-core assets sale, the transformation efforts and diversification into the apartment sector are expected to drive growth as well as improve Mack-Cali’s cash flow.
Moreover, besides this robust progress on its strategic plan, the company reported better-than-expected results in second-quarter 2016, backed by higher base rents and lower net property expense.
The company, which has a solid roster of commercial tenants from diverse industries, enjoys debt-free ownership for the bulk of its portfolio. As of Jun 30, 2016, the company had 205 unencumbered properties with a carrying value of $2.3 billion. This denoted 91.9% of the company’s total consolidated property count.
Reflecting positive sentiments, the funds from operations (FFO) per share estimates have also been improving lately. Over the past 30 days, FFO per share estimates for 2016 moved up 0.5% to $2.11 and 1.8% to $2.22. The 2016 and 2017 estimates also reflect 12.23% and 5.31% growth year over year. As such, Mack-Cali currently has a Zacks Rank #2 (Buy).
MACK CALI CORP Price and Consensus
MACK CALI CORP Price and Consensus | MACK CALI CORP Quote
Another favorably placed stock in the REIT industry is InfraREIT, Inc. , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Also, investors can consider stocks like Alexandria Real Estate Equities, Inc. (ARE - Free Report) and HCP Inc. (HCP - Free Report) , both carrying the same Zacks Rank as Mack-Cali.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>