Mack-Cali Vends Hawthorne Property - Analyst Blog

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Mack-Cali Realty Corp. ( CLI ) , a real estate investment trust (REIT), recently sold a Hawthorne-based office property - 19 Skyline Drive - to New York Medical College for approximately $17.5 million. New York Medical College is a member of the Touro College and University System.

Located in Westchester County, 19 Skyline Drive is a five-storey vacant property and spans 248,400 square feet. The transaction comes as a part of the company's strategy of repositioning its portfolio through the disposal of non-strategic assets and acquisition of high-quality properties.

Notably, the divestiture also depicts Mack-Cali's motive of utilizing the funds generated from non-core assets sale for strengthening its multi-family apartment portfolio. Lately, Mack-Cali has been inking various acquisition deals in this respect. Earlier this week, Mack-Cali acquired a luxury multi-family property - Alterra at Overlook Ridge IB - in Metro Boston for around $88 million.  Also, last month, 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 Management of UBS AG ( UBS ) .

Mack-Cali currently owns 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 is scheduled to release its first-quarter 2013 results on Apr 25, 2013 before the opening bell. The Zacks Consensus Estimate for the company's first-quarter FFO (funds from operations) is currently pegged at 64 cents per share.

Zacks Earnings ESP (Read: Zacks Earnings ESP: A Better Method ) for Mack-Cali is 0.00% for the first quarter. This, combined with its Zacks Rank #2 (Buy), reflects that the company is expected to report in line with the Zacks Consensus Estimate in the first quarter.

Other REITs that are also performing well and are worth a look include Federal Realty Investment Trust ( FRT ) and Simon Property Group Inc. ( SPG ) , both carrying a Zacks Rank #2.

Note: 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.



MACK CALI CORP (CLI): Free Stock Analysis Report

FED RLTY INV (FRT): Free Stock Analysis Report

SIMON PROPERTY (SPG): Free Stock Analysis Report

UBS AG (UBS): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: CLI , FRT , SPG , UBS

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