Edison, NJ — Mack-Cali Realty Corporation announced a comprehensive three-year strategic initiative entitled 20/15 that represents a major step in the transformation of the company’s portfolio. The company’s new executive leadership, which took over operations just 100 days ago, will outline the directional shift at a meeting and webcast for investors and analysts, and in a detailed form 8-K. Under the direction of chief executive officer Mitchell Rudin, and president Michael DeMarco, Mack-Cali will transform itself into an owner of waterfront and transit-oriented office properties and a regional owner of luxury multi-family properties.
“Our team is committed to unlocking value for our stakeholders by refocusing the company to take advantage of our class A assets and expanding our luxury multi-family holdings,” said Mitch Rudin. “People today want to live, work, and play in the same area. They want transit options – how they get to work is almost as important as where they work. Changes we are making to our portfolio and improvements we are making in our efficiency will create a sleeker, more responsive company that is better able to achieve its long-term goals and meet the future needs of our tenants and residents.”
Mack-Cali plans to focus on “Gold Coast” waterfront properties in Jersey City, Weehawken, Hoboken, and West New York. As part of the process, the company has identified approximately $600 million to $800 million in assets that it will dispose to fund its capital plan.
“Our actions over the last 100 days are just the beginning of a company-wide overhaul designed to create value, while continuing to enhance transparency and disclosure for our investors,” said Mike DeMarco. “We will be disciplined in our approach to allocating capital and managing our balance sheet to ensure the maximum amount of earnings growth and drive our stock price to over NAV.”
Mack-Cali’s multi-family subsidiary Roseland will be transferred to a distinct subsidiary – Roseland Property Trust (RPT) – which will enable enhanced portfolio performance disclosure. RPT will execute development, construction, financing, and property management while building out and monetizing a geographically diverse portfolio. This will include the strategic repurposing of select Mack-Cali office holdings to multi-family use. The residential portfolio currently includes 6,826 units that are either operating or are “in-construction.” By 2018, the new plan calls for that number to more than double, to approximately 14,843 total residential units operating or “in-construction.”