NEW YORK, February 10 (FinanceEnquiry.com) - Analyst Royal Shepard of S&P Capital IQ reiterates his BUY rating on the shares of Mack Cali Realty (NYSE: CLI), while reducing his estimates for the company. The target price is set to $32.

In a research note published yesterday, the analyst mentions that the company has reported Q4 FFO of $0.68, vs. $0.69, inline with the estimate. Although office leasing activity is steady in Mack Cali Realty’ markets, a modestly lower rent on new leases is expected in 2012, the analyst says. S&P Capital IQ expects new developing activities, including planned residential units to contribute positively to the company’s earnings in 2013. Yielding 6.2% at the current price, we consider CLI's $1.80 annual payout secure and adding to the total return potential, the analyst adds. The FFO estimate for 2012 has been reduced from $2.75, to $2.70, while for 2013 it is maintained at $2.90.