Published on 29 Nov 2021 on Zacks via Yahoo Finance

Is Hold Strategy Apt for Mack-Cali Realty (CLI) Stock Now?

The new variant of COVID-19 is becoming a concern for the office real-estate market fundamentals. In fact, it already made investors skeptical about the office REIT. However, Mack-Cali Realty Corporation CLI, with its superior quality of office assets, is poised to beat the blues with a strong presence in the high barrier-to-entry markets and cater to growing demand for highly-amenitized office assets. Also, focus on multi-family assets acts as a tailwind.

Mack-Cali’s redevelopment efforts and investments in the high barrier-to-entry Hudson River waterfront assets are a strategic fit as such measures will enhance the quality of its office offering and help capture the demand surge for the highly-amenitized office space in business districts outside Manhattan. During the third quarter, CLI signed 8,600 square feet of new leases.

However, Mack-Cali has a substantially leveraged balance sheet. This limits CLI’s strength to withstand any credit crisis and the unexpected negative externalities in the future.