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Mack-Cali cuts dividend by a third, shares fall

EDISON, N.J. (AP) -- Mack-Cali Realty Corp., a real estate investment trust in the northeastern U.S., said Monday that it would cut its second-quarter dividend to 30 cents per share from 45 cents in order to save cash. Shares plunged in after-hours trading.

"With the current demand for office space, the dividend reduction represents a prudent step in retaining cash to invest in our multifamily residential platform along with use for general corporate purposes," CEO Mitchell Hersh said in a statement.

Mack-Cali owns or has interests in 270 office space properties totaling 31.3 million square feet and nine residential properties with 3,300 units, all located in the Northeast.

Shares fell $3.39, or 12 percent, to $24.75 in after-hours trading, after already sinking 3 percent in a declining market to close at $28.14.