Real estate investment trust (REIT) Mack-Cali Realty Corp. (CLI - Free Report) announced that it has entered into two lease deals for 133,008 square feet of space at 125 Broad Street in downtown Manhattan. The company was represented by CBRE Group Inc. (CBG - Free Report) for both the transactions.
The first transaction was with one of its existing tenants – AECOM Technology Corporation (ACM - Free Report) – for 91,414 square feet of space. AECOM is a technical and support services firm and provides services for commercial and government clients worldwide. Mack-Cali inked the second transaction with a non-profit organization – Institute for Community Living, Inc. – for 41,594 square feet of space.
The class A, state-of-the-art office space – 125 Broad Street – is located at the entrance to FDR Drive and is a favorable corporate address in downtown Manhattan. The property is well connected to Hugh L. Carey Tunnel, the Brooklyn Bridge, and the Holland Tunnel. The strategic location of the property makes it one of the most prestigious office properties in the region. With both the leasing transaction, the company’s ownership interests of 524,476 square feet in the building are 100% occupied.
We expect the company’s noteworthy leasing transaction to boost its strong tenant base. Also, it will likely prove accretive to the earnings going forward and strengthen its top-line growth.
Particularly, Mack-Cali leased 1,147,218 square feet of space portfolio-wide during the fourth quarter. Last week, Mack-Cali reported fourth quarter 2012 FFO (funds from operations) of 66 cents per share, beating the Zacks Consensus Estimate by 3 cents. The reported figure, however, fell short of the year-ago figure by 2 cents.
Mack-Cali currently carries a Zacks Rank #3 (Hold). Another REIT – Terreno Realty Corp. (TRNO - Free Report) – holds a Zacks Rank #1 (Strong Buy).
Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.