Mack-Cali Realty Corp.
) 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.
As a matter of fact, Northern and Central New Jersey region
has recorded the second-highest quarterly leasing volume for
office space in four years at the end of 2013, as per a report by
Cushman & Wakefield. We expect these leasing transactions of
Mack-Cali to boost its strong tenant base and prove accretive to
its earnings going forward.
In particular, during the fourth-quarter, Mack-Cali penned a
new lease deal for 66,999 square feet at 3600 Route 66 in Neptune
with Gannett Satellite Information Network, Inc, a subsidiary of
renowned newspaper publisher -
Gannett Co., Inc.
). Also, Mack-Cali renewed its lease with Groundwater &
Environmental Services, Inc for 30,070 square feet of space at
1340 Campus Parkway in Wall Township. Both the buildings are
In addition, Mack-Cali inked a lease renewal with Franklin
Credit Management Corporation during the fourth quarter for
33,866 square feet of space at 101 Hudson Street (83.4% leased)
in Jersey City. The company also leased 24,838 square feet of
space at 20 Commerce Drive (99.3% leased) in Cranford to a
full-service insurance brokerage firm, Herbert L. Jamison &
In total, Mack-Cali executed lease deals for 718,588 square
feet of space at its consolidated in-service portfolio in
fourth-quarter 2013. As of Dec 31, 2013, the consolidated
in-service portfolio of the company was 86.1% leased. The
persisting weakness in the company's suburban office markets
continues to impact its business.
However, despite a revenue beat, Mack-Cali's fourth-quarter
results came a penny short of the Zacks Consensus Estimate on
higher expenses. The company also lowered its 2014 outlook.
Mack-Cali currently carries a Zacks Rank #4 (Sell). Investors
interested in the REIT-Equity Trust - Other industry may consider
Cousins Properties Incorporated
). Both stocks carry a Zacks Rank #2 (Buy).
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.
MACK CALI CORP (CLI): Free Stock Analysis
COUSIN PROP INC (CUZ): Free Stock Analysis
GANNETT INC (GCI): Free Stock Analysis Report
PUBLIC STORAGE (PSA): Free Stock Analysis
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