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Why It Is Wise to Retain Mack-Cali Realty (CLI) Stock Now
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Mack-Cali Realty Corporation’s is well poised for growth with its focus on office and multifamily properties in waterfront and transit-oriented markets throughout New Jersey. A diversified tenant base also acts as a tailwind. However, its substantially-leveraged balance sheet is a concern.
Markedly,in recent years, Mack-Cali has made concerted efforts to transform from a sub-urban office REIT into a residential and geographically-focused office REIT. The company’s transformational plan entailed emphasis on the New Jersey Hudson River waterfront as well as a regional ownership of luxury multi-family residential properties. Its Harborside portfolio-repositioning strategy is focused on capturing the attention of people who prefer to live, work and play in the same area — a trend that drove development in several other cities in the United States.
Mack-Cali’s core office markets are witnessing improvement in rental rate. Notably, ample government stimulus, pent-up demand, recovering labor markets and office occupiers’ planned post-pandemic office returns are likely to support office real estate fundamentals and drive leasing activity at the company’s portfolio.
Amid this, its rejuvenation efforts and investments in high barrier-to-entry Hudson River waterfront assets are a strategic fit as it has enhanced the quality of its office space offering and will help the company capture the growing demand for highly-amenitized office spaces in business districts outside Manhattan. Also, Mack-Cali’s focus on multi-family assets is a strategic fit. This asset class is comparatively stable and will likely contribute more toward the company’s cash flows in the upcoming period.
Apart from these, Mack-Cali continues to make solid strides with its sub-urban office portfolio sale. Recently, the company announced the disposition of its River Centre portfolio, in Red Bank NJ, for $84 million to First Mile Properties.
Amid these, shares of this Zacks Rank #2 (Buy) company have appreciated 38% over the past six months, outperforming the industry's gain of 19.5%. In addition, the trend in estimate revisions for 2021 funds from operations (FFO) per share indicates a favorable outlook for the company as it has been revised 1.8% upward over the past two months.
Image Source: Zacks Investment Research
Though non-core asset dispositions are a strategic fit for the long run, the dilutive impact on earnings in the near term cannot be bypassed. Moreover, while the multi-family portfolio continues to witness an improvement in leasing traffic and occupancy, concessions and decline in average rent per unit remain concerns.
Also, a substantially-leveraged balance sheet and significant amount of debt relative to its cash flows act as headwinds. This limits the company’s strength to withstand any credit crisis and unexpected negative externalities in the future.
Geo Group Inc’s (GEO - Free Report) Zacks Consensus Estimate for the current-year FFO per share moved marginally north in the past month. The company carries a Zacks Rank of 2 at present.
BRAEMAR HOTELS & RESORTS INC.’s (BHR - Free Report) FFO per share estimate for the ongoing year has been revised upward by 4.5% in the past month. The company carries a Zacks Rank of 2, currently.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
Image: Bigstock
Why It Is Wise to Retain Mack-Cali Realty (CLI) Stock Now
Mack-Cali Realty Corporation’s is well poised for growth with its focus on office and multifamily properties in waterfront and transit-oriented markets throughout New Jersey. A diversified tenant base also acts as a tailwind. However, its substantially-leveraged balance sheet is a concern.
Markedly,in recent years, Mack-Cali has made concerted efforts to transform from a sub-urban office REIT into a residential and geographically-focused office REIT. The company’s transformational plan entailed emphasis on the New Jersey Hudson River waterfront as well as a regional ownership of luxury multi-family residential properties. Its Harborside portfolio-repositioning strategy is focused on capturing the attention of people who prefer to live, work and play in the same area — a trend that drove development in several other cities in the United States.
Mack-Cali’s core office markets are witnessing improvement in rental rate. Notably, ample government stimulus, pent-up demand, recovering labor markets and office occupiers’ planned post-pandemic office returns are likely to support office real estate fundamentals and drive leasing activity at the company’s portfolio.
Amid this, its rejuvenation efforts and investments in high barrier-to-entry Hudson River waterfront assets are a strategic fit as it has enhanced the quality of its office space offering and will help the company capture the growing demand for highly-amenitized office spaces in business districts outside Manhattan. Also, Mack-Cali’s focus on multi-family assets is a strategic fit. This asset class is comparatively stable and will likely contribute more toward the company’s cash flows in the upcoming period.
Apart from these, Mack-Cali continues to make solid strides with its sub-urban office portfolio sale. Recently, the company announced the disposition of its River Centre portfolio, in Red Bank NJ, for $84 million to First Mile Properties.
Amid these, shares of this Zacks Rank #2 (Buy) company have appreciated 38% over the past six months, outperforming the industry's gain of 19.5%. In addition, the trend in estimate revisions for 2021 funds from operations (FFO) per share indicates a favorable outlook for the company as it has been revised 1.8% upward over the past two months.
Though non-core asset dispositions are a strategic fit for the long run, the dilutive impact on earnings in the near term cannot be bypassed. Moreover, while the multi-family portfolio continues to witness an improvement in leasing traffic and occupancy, concessions and decline in average rent per unit remain concerns.
Also, a substantially-leveraged balance sheet and significant amount of debt relative to its cash flows act as headwinds. This limits the company’s strength to withstand any credit crisis and unexpected negative externalities in the future.
Other Stocks to Consider
Industrial Logistics Properties Trust’s (ILPT - Free Report) Zacks Consensus Estimate for 2021 FFO per share moved up 5% over the past two months. The company currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Geo Group Inc’s (GEO - Free Report) Zacks Consensus Estimate for the current-year FFO per share moved marginally north in the past month. The company carries a Zacks Rank of 2 at present.
BRAEMAR HOTELS & RESORTS INC.’s (BHR - Free Report) FFO per share estimate for the ongoing year has been revised upward by 4.5% in the past month. The company carries a Zacks Rank of 2, currently.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>