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Mack-Cali (CLI) Disposes Suburban Office Portfolio for $84M
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Mack-Cali Realty Corporation continues to make solid strides with its sub-urban office portfolio sale. Recently, the company announced the disposition of its River Centre portfolio, in Red Bank NJ, for $84 million to First Mile Properties. River Centre is Mack-Cali's last suburban office portfolio and this sale comes as part of the company’s objective of simplifying its business.
The Class A office complex comprises six buildings and encompasses 639,490 square feet of space. Presently, the portfolio is 66% leased. The company intends to use the proceeds towards the repayment of its term loan.
Per Mahbod Nia, CEO of Mack-Cali, "We remain focused on concluding the remaining asset sales to meet our objectives of streamlining the business, strengthening our balance sheet and creating value for our shareholders."
As part of a strategic shift in its operations, in December 2019, the company announced the plan to sell the entire suburban 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 the end of first-quarter 2021, Mack-Cali has disposed 25 of such sub-urban office properties, aggregating 4.3 million square feet, for net sales proceeds of $659.4 million. During the same time frame, the company had 11 office properties remaining in the sub-urban office portfolio. In April, Mack Cali concluded the sale of the Short Hills, NJ office portfolio for $255 million to The Birch Group. The portfolio comprised four office buildings and spans 843,300 square feet.
In addition to this, the company announced the disposition of its Metropark portfolio, in Edison and Iselin, NJ, in March for $254 million to Opal Holdings. The portfolio comprised four office buildings and encompassed 945,906 square feet of space.
Mack-Cali has made concerted efforts in recent years to transform from a sub-urban office REIT into a residential and geographically-focused office REIT. The company’s transformational plan entailed emphasis on the 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.
Though such non-core asset dispositions are a strategic fit for the long run, the dilutive impact on earnings in the near term cannot be bypassed. Moreover, while the multifamily portfolio continues to witness an improvement in leasing traffic and occupancy, concessions and decline in average rent per unit remain concern.
Shares of this Zacks Rank #3 (Hold) company have appreciated 36.7% over the past six months compared with the industry's gain of 20.1%.
Image Source: Zacks Investment Research
Stocks to Consider
BRT Apartments Corp.’s (BRT - Free Report) Zacks Consensus Estimate for 2021 funds from operations (FFO) per share moved up 6.1% over the past month. The company currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bluerock Residential Growth REIT, Inc.’s Zacks Consensus Estimate for the current-year FFO per share moved 3.1% north in a month’s time. The company carries a Zacks Rank of 2 (Buy) at present.
RPT Realty’s FFO per share estimate for the ongoing year has been revised upward by 3.7% over the past month. The company carries a Zacks Rank of 2, currently.
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.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Image: Bigstock
Mack-Cali (CLI) Disposes Suburban Office Portfolio for $84M
Mack-Cali Realty Corporation continues to make solid strides with its sub-urban office portfolio sale. Recently, the company announced the disposition of its River Centre portfolio, in Red Bank NJ, for $84 million to First Mile Properties. River Centre is Mack-Cali's last suburban office portfolio and this sale comes as part of the company’s objective of simplifying its business.
The Class A office complex comprises six buildings and encompasses 639,490 square feet of space. Presently, the portfolio is 66% leased. The company intends to use the proceeds towards the repayment of its term loan.
Per Mahbod Nia, CEO of Mack-Cali, "We remain focused on concluding the remaining asset sales to meet our objectives of streamlining the business, strengthening our balance sheet and creating value for our shareholders."
As part of a strategic shift in its operations, in December 2019, the company announced the plan to sell the entire suburban 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 the end of first-quarter 2021, Mack-Cali has disposed 25 of such sub-urban office properties, aggregating 4.3 million square feet, for net sales proceeds of $659.4 million. During the same time frame, the company had 11 office properties remaining in the sub-urban office portfolio. In April, Mack Cali concluded the sale of the Short Hills, NJ office portfolio for $255 million to The Birch Group. The portfolio comprised four office buildings and spans 843,300 square feet.
In addition to this, the company announced the disposition of its Metropark portfolio, in Edison and Iselin, NJ, in March for $254 million to Opal Holdings. The portfolio comprised four office buildings and encompassed 945,906 square feet of space.
Mack-Cali has made concerted efforts in recent years to transform from a sub-urban office REIT into a residential and geographically-focused office REIT. The company’s transformational plan entailed emphasis on the 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.
Though such non-core asset dispositions are a strategic fit for the long run, the dilutive impact on earnings in the near term cannot be bypassed. Moreover, while the multifamily portfolio continues to witness an improvement in leasing traffic and occupancy, concessions and decline in average rent per unit remain concern.
Shares of this Zacks Rank #3 (Hold) company have appreciated 36.7% over the past six months compared with the industry's gain of 20.1%.
Stocks to Consider
BRT Apartments Corp.’s (BRT - Free Report) Zacks Consensus Estimate for 2021 funds from operations (FFO) per share moved up 6.1% over the past month. The company currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bluerock Residential Growth REIT, Inc.’s Zacks Consensus Estimate for the current-year FFO per share moved 3.1% north in a month’s time. The company carries a Zacks Rank of 2 (Buy) at present.
RPT Realty’s FFO per share estimate for the ongoing year has been revised upward by 3.7% over the past month. The company carries a Zacks Rank of 2, currently.
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.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>