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Why Is Mack-Cali (CLI) Down 2.1% Since Last Earnings Report?

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A month has gone by since the last earnings report for Mack-Cali Realty . Shares have lost about 2.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Mack-Cali due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Mack-Cali Realty Q2 FFO Beat, Revenues Miss Estimates

Mack-Cali’s second-quarter 2021 core FFO per share of 15 cents topped the Zacks Consensus Estimate of 12 cents. However, the figure compares unfavorably with the year-ago quarter’s 28 cents.

While results reflect a year-over-year rise in same-store NOI for the office portfolio, the same witnessed decline in the multi-family portfolio.

Per management, “We are encouraged by the second quarter leasing activity and believe the quality of our multifamily portfolio, coupled with the live, work and play proposition of our office portfolio, makes us well positioned to continue capturing leasing demand as the economy reopens,”

Quarterly revenues of $81.25 million missed the Zacks Consensus Estimate of $83 million. The revenue figure, however, came in 9.5% higher than the prior-year quarter’s number.

Quarter in Detail

As of Jun 30, 2021, Mack-Cali’s consolidated core office properties were 74.7% leased, reflecting an improvement from 74.2% as of Mar 31, 2021. The Waterfront portfolio was 75.4% leased, up from the 74.2% seen as of the first-quarter end.

Same-store revenues for the office portfolio increased 3.6% and the same-store cash NOI was up 2.5% year over year, highlighting straight line rent adjustments in the current and prior periods.

In the reported quarter, Mack-Cali executed new or renewal/extension lease deals, spanning 88,600 square feet, in the company’s office portfolio.

Further, Roseland, the company’s subsidiary engaged in multi-family residential operations, reported that its overall operating portfolio was 92.3% occupied in second quarter, up from 89.7% as of March 31, 2021. The multi-family portfolio, which comprised 5,825 units, witnessed a same-store NOI decline of 12.7% from the prior-year period.

Portfolio Activity

In the second quarter, the company sold 1.8 million square feet of suburban office assets for $387 million.

Balance Sheet Position

Mack-Cali exited second-quarter 2021 with $37.6 million in cash, down from $38.1 million as of Dec 31, 2020.

The company’s net debt to adjusted EBITDA was 15.1xfor the reported quarter compared with the prior-year quarter’s 13.0x.

How Have Estimates Been Moving Since Then?

Fresh estimates followed an upward path over the past two months. The consensus estimate has shifted 5.36% due to these changes.

VGM Scores

At this time, Mack-Cali has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.


Mack-Cali has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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