Mack-Cali Realty Corporation (CLI - Free Report) , one of the largest office REITs in the U.S., has recently declared a cash dividend of 45 cents per share or $1.80 on an annualized basis. The first quarter 2012 dividend is payable on April 13, 2012 to shareholders of record as of April 4.
A steady dividend payout facilitates the long-term strategy of Mack-Cali to provide attractive risk-adjusted returns to its stockholders. The company has also historically promulgated a dividend reinvestment and direct stock purchase plan through which stockholders may buy additional shares of the company by reinvesting some or all of the cash dividends received on the common shares.
Investors looking for high dividend yields are increasingly favoring REITs like Mack-Cali. Solid dividend payouts are arguably the biggest enticement for REIT investors as the U.S. law requires REITs to distribute 90% of their annual taxable income in the form of dividends to shareholders.
Mack-Cali is primarily engaged in owning, leasing, managing, and developing Class A office and industrial/flex properties with approximately 2,000 tenants from diverse industries. The company focuses on high-barrier markets mostly in the suburban areas in the northeast and mid-Atlantic regions in the U.S., and derives most of its annualized base rents from New Jersey.
With debt-free ownership of the bulk of its portfolio, Mack-Cali offers a faster and more streamlined leasing process. In addition, Mack-Cali is structured as a vertically integrated company, providing a full range of leasing, property management, construction, legal, space planning and architectural services on a single platform.
We maintain our long-term ‘Neutral’ recommendation on Mack-Cali, which currently retains a Zacks #3 Rank that translates into a short-term ‘Hold’ rating. We also have a ‘Neutral’ recommendation and a Zacks #3 Rank for Boston Properties Inc. (BXP - Free Report) , one of the competitors of Mack-Cali.