UPDATE: Deutsche Bank Downgrades Mack-Cali Realty to Hold on Announced Dividend Cut

In a report published Tuesday, Deutsche Bank analyst Vin Chao downgraded the rating on Mack-Cali Realty Corp. (NYSE: CLI) from Buy to Hold, and slightly lowered the price target from $29.00 to $28.00.In the report, Chao noted, “While the cut itself may not have been entirely surprising, in light of the FAD payout ratio, we think it highlights the challenges facing CLI as current office trends push more demand into CBD markets and away from the suburbs, where CLI has most of its exposure. Though a pullback in the shares on tonight's news could provide a potential buying opportunity for long-term investors, with cont'd fundamental deterioration expected in CLI's core office portfolio in 2013 and upside from the co's recently-acquired apartment development pipeline not expected to add meaningfully to earnings until the late 2014 time frame, we see few near-term catalysts and would look to revisit the story as we gain more confidence in the fundamental recovery.”Mack-Cali Realty Corp. closed on Monday at $28.14.