UPDATE: Citi Downgrades Mack-Cali Realty Corp to Hold (CLI)

Citi is out with its report today on Mack-Cali Realty Corp CLI, downgrading CLI from Buy to Hold. In a note to clients, Citi writes, "We are downgrading CLI shares to Hold from Buy and reducing our price target to $35 from $41. While relative valuation is still attractive, the shares lack a fundamental catalyst and the balance sheet has become overcapitalized. We came away from Citi's Global Property CEO Conference last week feeling that, not only are trends soft, but CLI does not see opportunities to deploy capital. We had previously viewed CLI's solid balance sheet as a positive. However, a recent equity offering has reduced leverage to ~33% (debt/GAV) from ~40%, which seems too low in the absence of an external growth story." Shares of CLI closed Wednesday at $32.87, down 1.35% from Tuesday's close.