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.
Mack-Cali (CLI) Strides Ahead With Suburban Office Sale Plan
Read MoreHide Full Article
Mack-Cali Realty Corporation continues to make solid strides with its sub-urban office portfolio sale. Recently, the company announced the disposition of its Metropark portfolio, in Edison and Iselin NJ, for $254 million to Opal Holdings. This also marks one of the largest sub-urban office transactions of the year.
The portfolio comprises four office buildings and encompasses 945,906 square feet of space. Presently, the portfolio is more than 90% leased to blue chip tenants. With the proceeds from the sale, the company intends to pay down its unsecured corporate debt during the second quarter of 2021.
As part of a strategic shift in its operations, in December 2019, the company announced its plan to sell the entire sub-urban New Jersey office portfolio, spanning 6.6 million square feet. It intends to use the sales proceeds to repay corporate-level, unsecured debt.
Since late December 2019 through fourth-quarter 2020 end, Mack-Cali disposed 20 of such sub-urban office properties, aggregating 3.2 million square feet, for net sales proceeds of $377.4 million. As of 2020 end, the company had 16 office properties remaining in the sub-urban office portfolio, totaling 3 million square feet.
In addition to the above-mentioned recent Metropark portfolio disposition, this January, the company sold 100 Overlook Center, a 149,600-square-foot office building situated in Parsippany, NJ, for $38 million. The sale of its remaining sub-urban office portfolio properties is expected to close by second-quarter 2021.
After the completion of the sub-urban office portfolio sale, Mack Cali’s holdings will comprise waterfront class A office portfolio and multi-family rental portfolio, as well as related development projects and land holdings.
Particularly, post the sub-urban office portfolio sale, the company expects to derive around 55% of its net operating income (NOI) from multi-family portfolio, and 45% from its office portfolio. Though such non-core asset dispositions are a strategic fit for the long term, the dilutive impact on earnings in the near term cannot be bypassed.
Mack-Cali has made concerted efforts in recent years to transform from a sub-urban office REIT to a residential and geographically-focused office REIT. The company’s transformational plan entailed emphasis on New Jersey Hudson River waterfront as well as a regional ownership of luxury multi-family residential properties. The company’s Harborside 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 several other cities in the United States.
Nonetheless, while the multi-family portfolio continues to witness improvements in leasing traffic and occupancy, this has come at the expense of decline in net effective rent. Further, office vacancy as well as hotel and parking disruptions due to the pandemic are hurting the company’s performance.
Shares of this Zacks Rank #4 (Sell) company have gained 12.5% over the past year, underperforming the industry's rally of 35.5%.
Stocks to Consider
Alpine Income Property Trust, Inc.’s (PINE - Free Report) FFO per share estimate for the current year has moved up 3.9% to $1.61 in the past month. The company sports a Zacks Rank of 1 (Strong Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Extra Space Storage Inc.’s (EXR - Free Report) Zacks Consensus Estimate for first-quarter 2021 FFO per share has moved 4.2% north to $1.48 over the past month. The company currently carries a Zacks Rank of 2 (Buy).
Global Net Lease, Inc. (GNL - Free Report) holds a Zacks Rank of 2, at present. The Zacks Consensus Estimate for the ongoing year’s FFO per share has been revised 4% upward to $2.10 in a month’s time.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
5G Revolution: 3 Stocks to Make Your Move
With super high data speed, it will make current cell phones obsolete and unlock the full potential of big data, cloud computing, and artificial intelligence. In the next few years this industry is predicted to create 22 million jobs and a stunning $12.3 trillion in revenue.
Today you have an historic chance to pursue almost unimaginable gains like Microsoft, Netflix, and Apple in their early phases. Zacks has released a Special Report that reveals our . . .
Image: Bigstock
Mack-Cali (CLI) Strides Ahead With Suburban Office Sale Plan
Mack-Cali Realty Corporation continues to make solid strides with its sub-urban office portfolio sale. Recently, the company announced the disposition of its Metropark portfolio, in Edison and Iselin NJ, for $254 million to Opal Holdings. This also marks one of the largest sub-urban office transactions of the year.
The portfolio comprises four office buildings and encompasses 945,906 square feet of space. Presently, the portfolio is more than 90% leased to blue chip tenants. With the proceeds from the sale, the company intends to pay down its unsecured corporate debt during the second quarter of 2021.
As part of a strategic shift in its operations, in December 2019, the company announced its plan to sell the entire sub-urban New Jersey office portfolio, spanning 6.6 million square feet. It intends to use the sales proceeds to repay corporate-level, unsecured debt.
Since late December 2019 through fourth-quarter 2020 end, Mack-Cali disposed 20 of such sub-urban office properties, aggregating 3.2 million square feet, for net sales proceeds of $377.4 million. As of 2020 end, the company had 16 office properties remaining in the sub-urban office portfolio, totaling 3 million square feet.
In addition to the above-mentioned recent Metropark portfolio disposition, this January, the company sold 100 Overlook Center, a 149,600-square-foot office building situated in Parsippany, NJ, for $38 million. The sale of its remaining sub-urban office portfolio properties is expected to close by second-quarter 2021.
After the completion of the sub-urban office portfolio sale, Mack Cali’s holdings will comprise waterfront class A office portfolio and multi-family rental portfolio, as well as related development projects and land holdings.
Particularly, post the sub-urban office portfolio sale, the company expects to derive around 55% of its net operating income (NOI) from multi-family portfolio, and 45% from its office portfolio. Though such non-core asset dispositions are a strategic fit for the long term, the dilutive impact on earnings in the near term cannot be bypassed.
Mack-Cali has made concerted efforts in recent years to transform from a sub-urban office REIT to a residential and geographically-focused office REIT. The company’s transformational plan entailed emphasis on New Jersey Hudson River waterfront as well as a regional ownership of luxury multi-family residential properties. The company’s Harborside 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 several other cities in the United States.
Nonetheless, while the multi-family portfolio continues to witness improvements in leasing traffic and occupancy, this has come at the expense of decline in net effective rent. Further, office vacancy as well as hotel and parking disruptions due to the pandemic are hurting the company’s performance.
Shares of this Zacks Rank #4 (Sell) company have gained 12.5% over the past year, underperforming the industry's rally of 35.5%.
Stocks to Consider
Alpine Income Property Trust, Inc.’s (PINE - Free Report) FFO per share estimate for the current year has moved up 3.9% to $1.61 in the past month. The company sports a Zacks Rank of 1 (Strong Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Extra Space Storage Inc.’s (EXR - Free Report) Zacks Consensus Estimate for first-quarter 2021 FFO per share has moved 4.2% north to $1.48 over the past month. The company currently carries a Zacks Rank of 2 (Buy).
Global Net Lease, Inc. (GNL - Free Report) holds a Zacks Rank of 2, at present. The Zacks Consensus Estimate for the ongoing year’s FFO per share has been revised 4% upward to $2.10 in a month’s time.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
5G Revolution: 3 Stocks to Make Your Move
With super high data speed, it will make current cell phones obsolete and unlock the full potential of big data, cloud computing, and artificial intelligence. In the next few years this industry is predicted to create 22 million jobs and a stunning $12.3 trillion in revenue.
Today you have an historic chance to pursue almost unimaginable gains like Microsoft, Netflix, and Apple in their early phases. Zacks has released a Special Report that reveals our . . .
Download now. Today the report is FREE >>