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.
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.
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