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Mack-Cali (CLI) Brings Major Changes in Senior Management
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Mack-Cali Realty Corporation announced changes in its senior management on Apr 5. While president Michael J. DeMarco took position as the chief executive officer, with immediate effect, Mitchell Rudin has taken charge as the vice chairman. Further, Marshall Tycher continues as chairman of Mack-Cali’s residential subsidiary, Roseland Residential Trust.
DeMarco joined Mack-Cali in 2015 as the president and chief operating officer. He is an expert real estate investment professional, with over 30 years of industry experience. He previously served in premium positions in real estate companies like Vornado Realty Trust (VNO - Free Report) , Fortress Investments (FIG - Free Report) and Lehman Brothers Real Estate Investment Banking Group.
Per the new CEO, “The day to day leadership of the business” would be handled by him. On the other hand, Mitchell Rudin, who has taken charge of the newly created vice chairman position, will continue to work toward the transformation of the company.
Importantly, the company has been making solid strides in its 20/15 strategic plan. This strategic initiative, revealed in Sep 2015, is aimed at transforming the company into a more concentrated owner of the waterfront and transit-oriented office properties, as well as a regional owner of luxury multi-family residential properties. It also includes planned exits from non-core markets and capital improvement in core assets.
Mack-Cali’s portfolio repositioning strategy is focused on capturing the attention of people who prefer to live, work and play in the same area – a trend that drove development in a number of other cities in the U.S. This specific group also gives high importance to transit options. Thus, in turn, it is a strategic choice for the company to focus on such areas.
Such efforts and diversification into the apartment sector are likely to drive growth and improve cash flow. However, earnings-dilutive effects of disposition in the near term remain concerns for the company. Also, rate hikes add to its woes.
Currently, Mack-Cali carries a Zacks Rank #3 (Hold).
Notably, shares of Mack-Cali outperformed the Zacks categorized REIT and Equity Trust – Other industry in the past one year. Over this time frame, Mack-Cali’s shares ascended 17.8%, while the industry climbed 4.0%.
CoreSite Realty currently has a long-term growth rate of 19.1%.
Piedmont Office Realty’s estimates for 2017 moved north by nearly 0.6% to $1.73, over the past 60 days.
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Mack-Cali (CLI) Brings Major Changes in Senior Management
Mack-Cali Realty Corporation announced changes in its senior management on Apr 5. While president Michael J. DeMarco took position as the chief executive officer, with immediate effect, Mitchell Rudin has taken charge as the vice chairman. Further, Marshall Tycher continues as chairman of Mack-Cali’s residential subsidiary, Roseland Residential Trust.
DeMarco joined Mack-Cali in 2015 as the president and chief operating officer. He is an expert real estate investment professional, with over 30 years of industry experience. He previously served in premium positions in real estate companies like Vornado Realty Trust (VNO - Free Report) , Fortress Investments (FIG - Free Report) and Lehman Brothers Real Estate Investment Banking Group.
Per the new CEO, “The day to day leadership of the business” would be handled by him. On the other hand, Mitchell Rudin, who has taken charge of the newly created vice chairman position, will continue to work toward the transformation of the company.
Importantly, the company has been making solid strides in its 20/15 strategic plan. This strategic initiative, revealed in Sep 2015, is aimed at transforming the company into a more concentrated owner of the waterfront and transit-oriented office properties, as well as a regional owner of luxury multi-family residential properties. It also includes planned exits from non-core markets and capital improvement in core assets.
Mack-Cali’s portfolio repositioning strategy is focused on capturing the attention of people who prefer to live, work and play in the same area – a trend that drove development in a number of other cities in the U.S. This specific group also gives high importance to transit options. Thus, in turn, it is a strategic choice for the company to focus on such areas.
Such efforts and diversification into the apartment sector are likely to drive growth and improve cash flow. However, earnings-dilutive effects of disposition in the near term remain concerns for the company. Also, rate hikes add to its woes.
Currently, Mack-Cali carries a Zacks Rank #3 (Hold).
Notably, shares of Mack-Cali outperformed the Zacks categorized REIT and Equity Trust – Other industry in the past one year. Over this time frame, Mack-Cali’s shares ascended 17.8%, while the industry climbed 4.0%.
Stocks to Consider
Better-ranked stocks in the REIT space include CoreSite Realty Corporation (COR - Free Report) and Piedmont Office Realty Trust, Inc. (PDM - Free Report) . Both the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CoreSite Realty currently has a long-term growth rate of 19.1%.
Piedmont Office Realty’s estimates for 2017 moved north by nearly 0.6% to $1.73, over the past 60 days.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>