EDISON, NJ-Mack-Cali Realty Corp. says that its board intends to reduce the company's second quarter common stock dividend by 15 cents per share.
Mitchell E. Hersh, president and CEO, said in a release that the money will be invested in the REIT's current portfolio shift into multi-family property. “With the current demand for office space,” being low, Hersh said, “the dividend reduction represents a prudent step in retaining cash to invest in our multi-family residential platform along with use for general corporate purposes.”
The quarterly dividend will be cut from the current $0.45 per common share to $0.30 per common share – which means an annual rate of $1.20 per common share. Mack-Cali announced that the official declaration of the dividend will occur at its Board of Directors' May 15 meeting.
The Edison-based REIT owns or has interests in 279 properties, consisting of 270 office and office/flex properties totaling approximately 31.3 million square feet and nine multi-family rental properties with 3,300 residential units, all located in the Northeast.
Last fall, Mack-Cali acquired apartment developer Roseland Property for $134 million. In late 2011, it made its first move into the multi-family market, forming a joint venture with Ironstate Development to build two multi-family rental towers at its Harborside Financial Center site in Jersey City.
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