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) to Dispose Entire Sub-urban Office Portfolio
Read MoreHide Full Article
Mack-Cali Realty Corporation announced that as recommended by the Shareholder Value Committee, the company’s board of directorshas determined to dispose its entire 6.6 million square-foot suburban office portfolio. It plans to complete the sale of this entire portfolio in 2020.
As part of this decision, the board has approved the sale of two sub-urban office portfolios, aggregating around 2.4 million square feet of office space in New Jersey, Parsippany and Madison, NJ, to Onyx Equities, LLC, in partnership with Axonic Capital LLC and Taconic Capital Advisors, L.P.
This portfolio represents nearly 36% of the square footage of Mack-Cali’s sub-urban holdings, and will be sold for $285 million in cash and roughly $3.5 million of assumed lease obligations.
The company intends to redeploy asset sales proceeds to repay outstanding corporate-level, unsecured debt. This effort to reduce leverage will strengthen its balance-sheet position.
Post the sub-urban portfolio sale, Mack-Cali's entire holdings will consist of its waterfront Class-A office portfolio, spanning 5 million square feet of space and the multi-family residential real estate operations through its subsidiary Roseland Residential Trust.
In fact, the company has made concerted efforts in recent years to transform from a sub-urban office REIT to a residential and geographically-focused office REIT. Through a three-year strategic initiative beginning September 2015, it has transformed itself into a more concentrated owner of the New Jersey Hudson River waterfront and transit-oriented office properties, as well as a regional owner of luxury multi-family residential properties.
Further, as part of portfolio-streamlining efforts, Mack-Cali has been aggressively disposing its assets for the past few years. This has enabled the company to exit non-core markets and shed non-core assets. In addition, it has largely completed the disposition program that entails exodus from non-core suburban markets.
Moreover, for full-year 2019, Mack-Cali estimates $190-$240 million of asset sale, excluding its flex properties. While the measures are a strategic fit for the long run, the dilutive impact on earnings from such huge asset sales cannot be bypassed in the near term.
Shares of this Zacks Rank #3 (Hold) company have gained 7.6% in the past three months, as against the industry’s loss of 1.5%.
Stocks to Consider
Prologis, Inc. (PLD - Free Report) currently sports a Zacks Rank of 1 (Strong Buy). The company’s funds from operations (FFO) per share estimate for 2019 has been revised 0.3% upward to $3.31 in two months’ time. Shares of the company have improved 9.2% over the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
Duke Realty's Zacks Consensus Estimate for the current-year FFO per share moved north to $1.44 in the past two months. This Zacks Rank #2 (Buy) company’s shares have gained 7.6% over the past six months.
Cousins Properties Incorporated’s (CUZ - Free Report) Zacks Consensus Estimate for the ongoing-year FFO per share moved 2.1% north to $2.96 over the past two months. Shares of this Zacks Rank #2 company have gained 8% in six months’ time.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.6% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
Mack-Cali (CLI) to Dispose Entire Sub-urban Office Portfolio
Mack-Cali Realty Corporation announced that as recommended by the Shareholder Value Committee, the company’s board of directorshas determined to dispose its entire 6.6 million square-foot suburban office portfolio. It plans to complete the sale of this entire portfolio in 2020.
As part of this decision, the board has approved the sale of two sub-urban office portfolios, aggregating around 2.4 million square feet of office space in New Jersey, Parsippany and Madison, NJ, to Onyx Equities, LLC, in partnership with Axonic Capital LLC and Taconic Capital Advisors, L.P.
This portfolio represents nearly 36% of the square footage of Mack-Cali’s sub-urban holdings, and will be sold for $285 million in cash and roughly $3.5 million of assumed lease obligations.
The company intends to redeploy asset sales proceeds to repay outstanding corporate-level, unsecured debt. This effort to reduce leverage will strengthen its balance-sheet position.
Post the sub-urban portfolio sale, Mack-Cali's entire holdings will consist of its waterfront Class-A office portfolio, spanning 5 million square feet of space and the multi-family residential real estate operations through its subsidiary Roseland Residential Trust.
In fact, the company has made concerted efforts in recent years to transform from a sub-urban office REIT to a residential and geographically-focused office REIT. Through a three-year strategic initiative beginning September 2015, it has transformed itself into a more concentrated owner of the New Jersey Hudson River waterfront and transit-oriented office properties, as well as a regional owner of luxury multi-family residential properties.
Further, as part of portfolio-streamlining efforts, Mack-Cali has been aggressively disposing its assets for the past few years. This has enabled the company to exit non-core markets and shed non-core assets. In addition, it has largely completed the disposition program that entails exodus from non-core suburban markets.
Moreover, for full-year 2019, Mack-Cali estimates $190-$240 million of asset sale, excluding its flex properties. While the measures are a strategic fit for the long run, the dilutive impact on earnings from such huge asset sales cannot be bypassed in the near term.
Shares of this Zacks Rank #3 (Hold) company have gained 7.6% in the past three months, as against the industry’s loss of 1.5%.
Stocks to Consider
Prologis, Inc. (PLD - Free Report) currently sports a Zacks Rank of 1 (Strong Buy). The company’s funds from operations (FFO) per share estimate for 2019 has been revised 0.3% upward to $3.31 in two months’ time. Shares of the company have improved 9.2% over the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
Duke Realty's Zacks Consensus Estimate for the current-year FFO per share moved north to $1.44 in the past two months. This Zacks Rank #2 (Buy) company’s shares have gained 7.6% over the past six months.
Cousins Properties Incorporated’s (CUZ - Free Report) Zacks Consensus Estimate for the ongoing-year FFO per share moved 2.1% north to $2.96 over the past two months. Shares of this Zacks Rank #2 company have gained 8% in six months’ time.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.6% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>