BGB Securities Initiates Coverage on Mack-Cali Realty (CLI) with a Buy

June 22, 2009 11:04 AM EDT

BGB Securities initiates coverage on Mack-Cali Realty (NYSE: CLI) with a Buy. Price target $25.

BGB analyst says, "With one of the highest implied cap rate valuations and the lowest financial leverage among its office REIT peers, CLI presents a compelling opportunity for income oriented investors. CLI sells at a 10.9% implied cap rate (off most recent quarter GAAP NOI) while the rest of the office peer group sells at an average implied consolidated cap rate of 9.4%. CLI trades at a current dividend yield of 8.1%, while having the lowest consolidated net debt/undepreciated real estate book value (leverage ratio) among its peers. With no material speculative development commitments, a largely untapped $775 million credit line, and its ability to access new financings between 7-9% interest rates, the company is poised to not only survive the current downturn, but is also in a position to purchase quality real estate assets at distressed prices should such opportunities arise...The quality of CLI's office assets and strength of its reputation allows the company to solidly outperform the competition in the NJ markets."

To see more analyst ratings on CLI Click Here.

Mack-Cali Realty Corporation is a fully-integrated, self-administered and self-managed real estate investment trust (REIT) that owns and operates a real estate portfolio comprised of Class A office and office/flex properties.

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