Mack-Cali Realty Corp. CLI reported first-quarter 2016 core funds from operations (“FFO”) per share of 49 cents, up from 43 cents in the prior-year quarter. The Zacks Consensus Estimate was 50 cents. We expect the earnings release to lead to stock movement.The increase was a result of higher base rents and lower net property expenses.Total revenue declined 0.5% year over year to $152.9 million but surpassed the Zacks Consensus Estimate of $151 million.Quarter in DetailDuring the quarter, Mack-Cali executed 82 lease deals, spanning around 1.1 million square feet (up 48% over prior year), at its consolidated in-service commercial portfolio. This included 349,423 square feet of core properties, 551,674 square feet of Waterfront properties, 155,662 square feet of flex space and 67,381 square feet of non-core properties. Of the total leased space, 385,658 square feet pertained to new lease deals; while 738,482 square feet consisted of lease renewals and other tenant retention deals.As of Mar 31, 2016, the company’s consolidated commercial in-service portfolio was 87.2% leased, up from 86.2% at the end of the prior quarter.LiquidityMack-Cali exited first-quarter 2016 with cash and cash equivalents of $116.4 million, up from $37.1 million recorded at the end of the prior year. The company had total debt of around $2.3 billion as of Mar 31, 2016, with a weighted average annual interest rate of about 4.95%.2016 GuidanceMack-Cali has revised its 2016 guidance and expects FFO within $2.04–$2.10 per share instead of the prior guidance of $2.00–$2.10 per share. The Zacks Consensus Estimate for the same is currently pegged at $2.05.Our TakeGoing forward, Mack-Cali’s focus on the New Jersey Hudson River waterfront and transit-oriented office properties as well as luxury multi-family residential properties is expected to drive growth.As part of its portfolio repositioning efforts, Mack-Cali is aggressively disposing its assets. The company had earlier revealed its plan for non-core asset sales of $750 million. The company has already completed $300 million worth of dispositions. Another $65 million worth of sale is slated to close in 30 days and $70 million is under contract. While such dispositions are a strategic fit for the long term, the earnings-dilutive effects of huge asset sales cannot be bypassed.Mack-Cali currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the REIT industry include CubeSmart CUBE, Extra Space Storage Inc. EXR and Public Storage PSA. All these stocks hold a Zacks Rank #2 (Buy). Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PUBLIC STORAGE (PSA): Free Stock Analysis Report MACK CALI CORP (CLI): Free Stock Analysis Report EXTRA SPACE STG (EXR): Free Stock Analysis Report CUBESMART (CUBE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research