NEW YORK (TheStreet) -- Shares of Mack-Cali Realty (CLI) rose 5.7% to $19.65 in afternoon trading Tuesday after the real estate investment trust announced CEO Mitchell E. Hersh would step down as CEO and president in May 2015 and would not seek re-election to the board.
The board will assemble a search committee to succeed the 17-year veteran.
"It has been a privilege to lead the finest employees in the industry, whose commitment and hard work never ceases to impress me," Hersh said in a company statement.
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Mack-Cali, which has interest in 282 properties in the Northeast, has been struggling to recover from the economic crisis. The company sliced its quarterly dividend in half in May to 15 cents.
Separately, TheStreet Ratings team rates MACK-CALI REALTY CORP as a "sell" with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate MACK-CALI REALTY CORP (CLI) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself."