Mack-Cali Realty Corp.
) stated the leasing details of its office and office/flex
commercial real estate assets in Westchester County, New York and
Fairfield County, Connecticut in fourth-quarter 2013. In
particular, the company leased 153,766 square feet of space in
this portfolio during the said quarter.
Notably, Westchester County and Fairfield County are among the
seven prime office markets of Mack-Cali. As per a report by
Cushman & Wakefield, these two regions experienced a notable
increase in leasing in fourth-quarter 2013. Further, the prospect
looks promising in 2014 on the back of rising demand and expected
acceleration in job growth in the area, as per Cushman &
In particular, during the fourth-quarter, Mack-Cali penned a
new lease deal for 28,430 square feet at 4 Executive Plaza in
Yonkers with the Montefiore Medical Center. Also, Mack-Cali
renewed its lease with Bright Horizons Children's Center - a
Bright Horizons Family Solutions, Inc.
) - for 14,200 square feet of space at 77 Executive Boulevard in
Elmsford and 7 Odell Plaza in Yonkers.
In addition, Mack-Cali inked a new lease deal with Solais
Lighting, Inc. - a lighting division of
PowerSecure International, Inc.
) - for 21,957 square feet of space at 650 West Avenue in
Stamford. The company also renewed lease for 12,060 square feet
of space at 3 Westchester Plaza with Fabrication Enterprises,
As a matter of fact, last week, Mack-Cali disclosed the
fourth-quarter 2013 leasing details of its office and office/flex
commercial real estate assets in Northern and Central New Jersey.
In particular, this real estate investment trust (REIT) leased
484,975 square feet of space in this portfolio during the said
quarter. We expect these leasing transactions of Mack-Cali to
prove accretive to its earnings going forward.
However, recently Mack-Cali reported lower-than-expected
fourth quarter 2013 results. Despite a revenue beat, the
company's fourth-quarter FFO per share fell a penny short of the
Zacks Consensus Estimate on higher expenses. Mack-Cali also
lowered its 2014 outlook.
Amid persistent weakness in the suburban office properties in
its markets, Mack-Cali is expanding into the multi-family
residential sector and divesting a part of its office and
office/flex assets. However, its aggressive disposition effort is
anticipated to continue to have a dilutive impact on its
financials in the near-to-medium term.
Consequently, Mack-Cali currently carries a Zacks Rank #5
(Strong Sell). However,
Cousins Properties Incorporated
) is a better-ranked stock in the REIT industry having a Zacks
Rank #2 (Buy).
FFO, a widely accepted and reported measure of the
performance of REITs is derived by adding depreciation,
amortization and other non-cash expenses to net income.
BRIGHT HORZN FS (BFAM): Free Stock Analysis
MACK CALI CORP (CLI): Free Stock Analysis
COUSIN PROP INC (CUZ): Free Stock Analysis
POWERSECURE INT (POWR): Free Stock Analysis
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