Mack-Cali Realty Corp
) disclosed its plan of slashing its second quarter common stock
dividend by a third to 30 cents from 45 cents per share paid
earlier. The move comes as the company plans to retain its cash
for meeting investment needs that would help expand its
multi-family residential platform.
While the dividend cut at this Edison, NJ-based real estate
investment trust (REIT) is being cited as a wise one by the
company, the news triggered a 2.97% decline in Mack-Cali's stock
price during Monday's regular session. The stock price further
fell 3.38% during Tuesday's regular trading session. Notably, the
declaration of the company's dividend is expected to take place
at the board of directors' May 15, 2013 board meeting.
In the midst of the current demand for office space, Mack-Cali
has been focusing on expanding its multi-family apartment
portfolio. The company has been inking various acquisition deals
in this respect. In the recent months, Mack-Cali acquired both
Alterra IA and Alterra IB at Overlook Ridge - in Metro Boston
from a joint venture of Prudential Insurance Company of America,
an operational arm of
Prudential Financial Inc.
Also, the company entered the DC multifamily market, through
the buyout of Crystal House. The property was acquired through a
joint venture (JV) with a fund advised by UBS Global Asset
We believe that though the news of the dividend cut is
discouraging for the shareholders in the near term, the move will
ultimately help Mack-Cali diversify its business and stay on the
growth trajectory in the long term.
Mack-Cali currently owns or has interests in 279 properties,
comprising 270 offices and office/flex properties and 9
multi-family rental properties comprising over 3,300 residential
units, all located in the Northeast.
Mack-Cali currently carries a Zacks Rank #2 (Buy). Another
REIT that is also performing well and is worth a look includes
Cousins Properties Incorporated
) that carries a Zacks Rank #2.
MACK CALI CORP (CLI): Free Stock Analysis
COUSIN PROP INC (CUZ): Free Stock Analysis
PRUDENTIAL FINL (PRU): Free Stock Analysis
UBS AG (UBS): Free Stock Analysis Report
To read this article on Zacks.com click here.