JERSEY CITY, N.J., Aug. 1, 2018 /PRNewswire/ -- Mack-Cali
Realty Corporation (NYSE: CLI) today reported its results for the
second quarter 2018.
SECOND QUARTER 2018 HIGHLIGHTS
- Reported net income (loss) of $(0.05) per diluted share for the quarter;
- Achieved Core Funds from Operations per diluted share of
$0.45 for the quarter and
$0.95 for the six months 2018;
- Leased 453,337 sq. ft. of office space and an additional
271,000 sq. ft. subsequent to quarter end;
- Grew Core portfolio office rental rates by 7.5% on a cash basis
and 16.5% on a GAAP basis;
- Leases signed in the second quarter in our Core Office
portfolio (excluding Flex) had cash starting rents of $32.38 per square foot;
- Core office portfolio was 83.2% leased and the Class A Suburban
Portfolio was 94.5%, Flex was 92.1%, Suburban 82.6% and Waterfront
72.9% leased at June 30, 2018;
- Major office leases signed:
-
- 130,000 sq. ft. lease at 581 Main St. in Woodbridge, NJ with Plymouth Rock;
- Subsequent to quarter-end, a 132,000 sq. ft. office lease
renewal at Harborside 2 in Jersey City,
NJ, including 26,000 sq. ft. of expansion space with
E-Trade; and
- A 67,000 sq. ft. new lease at 100 Overlook in Princeton, NJ with The Trustees of
Princeton University;
- Roseland's multifamily
stabilized portfolio was 97.5% leased at June 30, 2018, up 20 basis points on a sequential
quarter basis;
- Roseland's 1,212 unit lease-up
portfolio, all from 2018 deliveries, was 51% leased at July 31, 2018, which includes the July delivery
of RiverHouse 11; in less than 4 weeks since opening, the community
has leased 173 apartments and is currently 58.6% leased;
- Roseland commenced
construction on Building 8/9 at Port Imperial, a 313-unit luxury
community adjacent to RiverHouse 11;
- Roseland entered into an
agreement to acquire Prudential's membership interest in Marbella,
thereby converting its subordinate interest into a controlling
interest for approximately $65.5
million, or approximately $37.5
million net of refinancing proceeds. The acquisition is
scheduled to close no later than August
11 with funding from a $131
million refinancing commitment and Rockpoint capital;
and
- Declared $0.20 per share
quarterly common stock dividend.
"Our team's leasing efforts resulted in good progress as we
signed over 453,000 square feet of leases in the quarter and an
additional 271,000 in the first month of the third quarter," stated
Michael J. DeMarco, Chief Executive
Officer. "Traffic and interest continue to be strong both in our
waterfront portfolio and our suburban assets; our pipeline of deals
has grown since last quarter. However, the pace of conversion from
prospect to signed lease continues to be a lengthy process. With
residential lease-ups in peak season, we are excited by the level
of interest which has translated into excellent absorption. With
non-core asset sales essentially complete, the team's focus remains
squarely on leasing, recognizing that as a critical catalyst to
drive results and value for our shareholders."
FINANCIAL HIGHLIGHTS
* All per share amounts presented below are on a diluted
basis.
Net income (loss) available to common shareholders for the
quarter ended June 30, 2018 amounted
to $(1.3) million, or $(0.05) per share, as compared to $(37.3) million, or $(0.44) per share, for the quarter ended
June 30, 2017. For the six months
ended June 30, 2018, net income to
common shareholders equaled $41.8
million, or $0.39 per share,
as compared to $(17.5) million, or
$(0.33) per share, for the same
period last year.
Funds from operations (FFO) for the quarter ended June 30, 2018 amounted to $43.4 million, or $0.43 per share, as compared to $60.5 million, or $0.60 per share, for the quarter ended
June 30, 2017. For the six months
ended June 30, 2018, FFO equaled
$78.7 million, or $0.78 per share, as compared to $116.3 million, or $1.16 per share, for the same period last
year.
For the second quarter 2018, Core FFO was $0.45 per share, as compared to $0.60 for the same period last year.
OPERATING HIGHLIGHTS
Office
Mack-Cali's consolidated Core
office properties were 83.2 percent leased at June 30, 2018, as compared to 85.2 percent leased
at March 31, 2018. The change in
percent leased is primarily due to 400,000 square feet of expected
move-outs in the Waterfront portfolio, partially offset by positive
net absorption in the Class A suburban and Suburban portfolios.
Second quarter 2018 same store GAAP revenues for the office
portfolio declined by 8.2 percent while same store GAAP NOI fell by
10.9 percent. Second quarter 2018 same store cash revenues for the
office portfolio declined by 4.9 percent while same store cash NOI
fell by 5.7 percent. Same store cash revenues and same store
cash NOI excludes straight-line rent and FAS 141 adjustments.
For the quarter ended June 30,
2018, the Company executed 51 leases at its consolidated
in-service commercial portfolio totaling 453,337 square feet. Of
these totals, 19 leases for 209,020 square feet (46 percent) were
for new leases and 32 leases for 244,317 square feet (54 percent)
were lease renewals and other tenant retention transactions.
Rental rate roll up for the Core portfolio for second quarter
2018 transactions was 7.5 percent on a cash basis and 16.5 percent
on a GAAP basis. Rental rate roll up in second quarter 2018 for new
transactions was 2.9 percent on a cash basis and 12.2 percent on a
GAAP basis; and for renewals and other tenant retention
transactions was 7.9 percent on a cash basis and 16.4 percent on a
GAAP basis. Same store cash revenues and same store cash NOI
excludes straight-line rent and FAS 141 adjustments.
Subsequent to quarter end, the Company signed a 132,000
square-foot lease at Harborside 2 in Jersey City, New Jersey, including 26,000
square feet of expansion space with E-Trade and signed a 67,000
square-foot lease at 100 Overlook in Princeton, New Jersey.
Multifamily
Roseland's operating portfolio was
97.5 percent leased at June 30, 2018,
increasing 20 basis points from March 31,
2018. Same store net operating income decreased by 1.2
percent for the second quarter. With the 2018 delivery of
1,212 units coupled with its construction portfolio of over 2,000
units and keys, we envision continued growth in the Company's
residential portfolio and cash flow contribution. The
lease-up portfolio is currently 51 percent leased.
BALANCE SHEET/CAPITAL MARKETS
As of June 30, 2018, the Company
had a debt-to-undepreciated assets ratio of 44.6 percent compared
to 44.5 percent at March 31, 2018 and
47.5 percent at June 30, 2017. Net
debt to adjusted EBITDA for the quarter ended June 30, 2018 was 9.7x compared to 8.8x for the
quarter ended March 31, 2018.
The Company's interest coverage ratio was 3.5x for the quarter
ended June 30, 2018, in line with the
quarter ended June 30, 2017.
DIVIDEND
In June 2018, the Company's Board
of Directors declared a quarterly cash dividend of $0.20 per common share (indicating an annual rate
of $0.80 per common share) for the
second quarter 2018, which was paid on July
13, 2018 to shareholders of record as of July 3, 2018. The Company's Core FFO dividend
payout ratio for the quarter was 44.5 percent.
GUIDANCE/OUTLOOK
The Company's projected net income and Core FFO per diluted
share guidance for full year 2018 is as follows:
|
|
Full
Year
|
|
|
|
2018
Range
|
|
Net income available
to common shareholders
|
$
|
0.35
|
-
|
$
|
0.41
|
|
Add
(deduct):
|
|
|
Real estate-related
depreciation and amortization on continuing operations
|
|
1.80
|
|
Redemption value
adjustment to redeemable noncontrolling interests
|
|
0.07
|
|
Realized (gains)
losses and unrealized losses on disposition of rental property,
net
|
|
(0.59)
|
|
Loss from
extinguishment of debt, net
|
|
0.10
|
|
Severance/separation
costs on management restructuring
|
|
0.07
|
|
Core
FFO
|
$
|
1.80
|
-
|
$
|
1.86
|
|
2018 Guidance
Assumptions
|
($ in
millions)
|
|
Revised
|
Assumptions:
|
Low
|
|
High
|
Office Occupancy
(year-end % leased)
|
84%
|
|
86%
|
Office Same Store
GAAP NOI Growth
|
(18)%
|
|
(16)%
|
Office Same Store
Cash NOI Growth
|
(15)%
|
|
(13)%
|
Multifamily Same
Store NOI Growth
|
0%
|
|
2%
|
Straight-Line Rent
Adjustment
|
$7
|
|
$11
|
FAS 141
Mark-to-Market Rent Adjustment
|
$5
|
|
$6
|
Dispositions
|
$375
|
|
$425
|
Base Building
CapEx
|
$8
|
|
$12
|
Leasing
CapEx
|
$60
|
|
$75
|
G&A
|
$46
|
|
$48
|
Interest
Expense
|
$83
|
|
$85
|
This guidance reflects management's view of current market
conditions and certain assumptions with regard to rental rates,
occupancy levels and other assumptions/projections. Actual results
could differ from these estimates.
CONFERENCE CALL/SUPPLEMENTAL INFORMATION
An earnings conference call with management is scheduled for
August 2, 2018 at 10:00 a.m. Eastern Time, which will be broadcast
live via the Internet at:
https://edge.media-server.com/m6/p/kbz368x9
The live conference call is also accessible by calling (323)
794-2590 and requesting the Mack-Cali conference call.
The conference call will be rebroadcast on Mack-Cali's website at
http://investors.mack-cali.com/corporate-profile beginning at
12:00 p.m. Eastern Time on
August 2, 2018.
A replay of the call will also be accessible August 2, 2018 through August 9, 2018 by calling (719) 457-0820 and
using the pass code, 9755293.
Copies of Mack-Cali's Form 10-Q
and Supplemental Operating and Financial Data are available on
Mack-Cali's website, as
follows:
Second Quarter 2018 Form 10-Q:
http://investors.mack-cali.com/sec-filings
Second Quarter 2018 Supplemental Operating and Financial
Data:
http://investors.mack-cali.com/quarterly-supplementals
In addition, these items are available upon request from:
Mack-Cali Investor Relations Department - Deidre Crockett
Harborside 3, 210 Hudson St., Ste. 400, Jersey City, New Jersey 07311
(732) 590-1025
INFORMATION ABOUT FFO
Funds from operations ("FFO") is defined as net income (loss)
before noncontrolling interests of unitholders, computed in
accordance with generally accepted accounting principles ("GAAP"),
excluding gains or losses from depreciable rental property
transactions, and impairments related to depreciable rental
property, plus real estate-related depreciation and amortization.
The Company believes that FFO per share is helpful to investors as
one of several measures of the performance of an equity REIT. The
Company further believes that as FFO per share excludes the effect
of depreciation, gains (or losses) from sales of properties and
impairments related to depreciable rental property (all of which
are based on historical costs which may be of limited relevance in
evaluating current performance), FFO per share can facilitate
comparison of operating performance between equity REITs.
FFO per share should not be considered as an alternative to net
income available to common shareholders per share as an indication
of the Company's performance or to cash flows as a measure of
liquidity. FFO per share presented herein is not necessarily
comparable to FFO per share presented by other real estate
companies due to the fact that not all real estate companies use
the same definition. However, the Company's FFO per share is
comparable to the FFO per share of real estate companies that use
the current definition of the National Association of Real Estate
Investment Trusts ("NAREIT"). A reconciliation of net income per
share to FFO per share is included in the financial tables
accompanying this press release.
Core FFO is defined as FFO, as adjusted for certain items to
facilitate comparative measurement of the Company's performance
over time. Core FFO is presented solely as supplemental
disclosure that the Company's management believes provides useful
information to investors and analysts of its results, after
adjusting for certain items to facilitate comparability of its
performance from period to period. Core FFO is a non-GAAP financial
measure that is not intended to represent cash flow and is not
indicative of cash flows provided by operating activities as
determined in accordance with GAAP. As there is not a
generally accepted definition established for Core FFO, the
Company's measures of Core FFO may not be comparable to the Core
FFO reported by other REITs. A reconciliation of net income
per share to Core FFO in dollars and per share is included in the
financial tables accompanying this press release.
ABOUT THE COMPANY
One of the country's leading real estate investment trusts
(REITs), Mack-Cali Realty Corporation is an owner, manager and
developer of premier office and multifamily properties in select
waterfront and transit-oriented markets throughout the Northeast.
Mack-Cali is headquartered in
Jersey City, New Jersey, and is
the visionary behind the city's flourishing waterfront, where the
company is leading development, improvement and place-making
initiatives for Harborside, a master-planned destination comprised
of class A office, luxury apartments, diverse retail and
restaurants, and public spaces.
A fully-integrated and self-managed company, Mack-Cali has provided world-class management,
leasing, and development services throughout New Jersey and the surrounding region for two
decades. By regularly investing in its properties and innovative
lifestyle amenity packages, Mack-Cali creates environments that empower tenants
and residents to reimagine the way they work and live.
For more information on Mack-Cali Realty Corporation and its
properties, visit www.mack-cali.com.
The information in this press release must be read in
conjunction with, and is modified in its entirety by, the Quarterly
Report on Form 10-Q (the "10-Q") filed by the Company for the same
period with the Securities and Exchange Commission (the "SEC") and
all of the Company's other public filings with the SEC (the "Public
Filings"). In particular, the financial information contained
herein is subject to and qualified by reference to the financial
statements contained in the 10-Q, the footnotes thereto and the
limitations set forth therein. Investors may not rely on the press
release without reference to the 10-Q and the Public Filings.
We consider portions of this report, including the documents
incorporated by reference, to be forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of
1934, as amended. We intend such forward-looking statements
to be covered by the safe harbor provisions for forward-looking
statements contained in Section 21E of such act. Such
forward-looking statements relate to, without limitation, our
future economic performance, plans and objectives for future
operations and projections of revenue and other financial
items. Forward-looking statements can be identified by the
use of words such as "may," "will," "plan," "potential,"
"projected," "should," "expect," "anticipate," "estimate,"
"target," "continue" or comparable terminology.
Forward-looking statements are inherently subject to risks and
uncertainties, many of which we cannot predict with accuracy and
some of which we might not even anticipate. Although we
believe that the expectations reflected in such forward-looking
statements are based upon reasonable assumptions at the time made,
we can give no assurance that such expectations will be
achieved. Future events and actual results, financial and
otherwise, may differ materially from the results discussed in the
forward-looking statements. Readers are cautioned not to
place undue reliance on these forward-looking statements.
Contacts:
|
Michael J.
DeMarco
|
David
Smetana
|
Deidre
Crockett
|
|
Mack-Cali Realty
Corporation
|
Mack-Cali Realty
Corporation
|
Mack-Cali Realty
Corporation
|
|
Chief Executive
Officer
|
Chief Financial
Officer
|
Senior Vice
President, Corporate Communications
|
|
(732)
590-1589
|
(732)
590-1035
|
and Investor
Relations
|
|
mdemarco@mack-cali.com
|
dsmetana@mack-cali.com
|
(732)
590-1025
|
|
|
|
investorrelations@mack-cali.com
|
Mack-Cali Realty
Corporation
Consolidated
Statements of Operations
(In thousands,
except per share amounts) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
REVENUES
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Base rents
|
$
|
103,584
|
|
$
|
133,017
|
|
$
|
216,486
|
|
$
|
254,272
|
Escalations and
recoveries from tenants
|
|
10,301
|
|
|
15,951
|
|
|
23,092
|
|
|
31,070
|
Real estate
services
|
|
4,074
|
|
|
5,767
|
|
|
8,735
|
|
|
12,232
|
Parking
income
|
|
5,757
|
|
|
5,052
|
|
|
11,084
|
|
|
9,281
|
Other
income
|
|
2,873
|
|
|
2,979
|
|
|
6,159
|
|
|
5,798
|
Total revenues
|
|
126,589
|
|
|
162,766
|
|
|
265,556
|
|
|
312,653
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
Real estate
taxes
|
|
17,966
|
|
|
21,217
|
|
|
36,327
|
|
|
42,309
|
Utilities
|
|
7,555
|
|
|
10,357
|
|
|
20,059
|
|
|
21,771
|
Operating
services
|
|
22,939
|
|
|
27,092
|
|
|
48,557
|
|
|
54,183
|
Real estate services
expenses
|
|
4,360
|
|
|
5,899
|
|
|
9,296
|
|
|
12,169
|
General and
administrative
|
|
13,455
|
|
|
12,491
|
|
|
29,540
|
|
|
24,083
|
Depreciation and
amortization
|
|
41,413
|
|
|
57,762
|
|
|
82,710
|
|
|
105,393
|
Total expenses
|
|
107,688
|
|
|
134,818
|
|
|
226,489
|
|
|
259,908
|
Operating
income
|
|
18,901
|
|
|
27,948
|
|
|
39,067
|
|
|
52,745
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER (EXPENSE)
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(18,999)
|
|
|
(24,943)
|
|
|
(39,074)
|
|
|
(45,264)
|
Interest and other
investment income (loss)
|
|
641
|
|
|
122
|
|
|
1,769
|
|
|
596
|
Equity in earnings
(loss) of unconsolidated joint ventures
|
|
(52)
|
|
|
(3,298)
|
|
|
1,520
|
|
|
(3,349)
|
Realized gains
(losses) and unrealized losses on disposition of rental
property, net
|
|
1,010
|
|
|
(38,954)
|
|
|
59,196
|
|
|
(33,448)
|
Gain on sale of
investment in unconsolidated joint venture
|
|
-
|
|
|
-
|
|
|
-
|
|
|
12,563
|
Loss from
extinguishment of debt, net
|
|
-
|
|
|
-
|
|
|
(10,289)
|
|
|
(239)
|
Total other income (expense)
|
|
(17,400)
|
|
|
(67,073)
|
|
|
13,122
|
|
|
(69,141)
|
Net income
(loss)
|
|
1,501
|
|
|
(39,125)
|
|
|
52,189
|
|
|
(16,396)
|
Noncontrolling
interest in consolidated joint ventures
|
|
95
|
|
|
181
|
|
|
125
|
|
|
418
|
Noncontrolling
interest in Operating Partnership
|
|
142
|
|
|
4,296
|
|
|
(4,741)
|
|
|
2,001
|
Redeemable
noncontrolling interest
|
|
(2,989)
|
|
|
(2,682)
|
|
|
(5,788)
|
|
|
(3,474)
|
Net income (loss)
available to common shareholders
|
$
|
(1,251)
|
|
$
|
(37,330)
|
|
$
|
41,785
|
|
$
|
(17,451)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
available to common shareholders
|
$
|
(0.05)
|
|
$
|
(0.44)
|
|
$
|
0.39
|
|
$
|
(0.33)
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per common share:
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
available to common shareholders
|
$
|
(0.05)
|
|
$
|
(0.44)
|
|
$
|
0.39
|
|
$
|
(0.33)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
|
90,330
|
|
|
90,011
|
|
|
90,297
|
|
|
89,983
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
100,598
|
|
|
100,370
|
|
|
100,607
|
|
|
100,354
|
Mack-Cali Realty
Corporation
Statements of
Funds from Operations
(in thousands,
except per share/unit amounts) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
|
2018
|
|
|
|
2017
|
|
|
|
2018
|
|
|
|
2017
|
|
Net income (loss)
available to common shareholders
|
$
|
(1,251)
|
|
|
$
|
(37,330)
|
|
|
$
|
41,785
|
|
|
$
|
(17,451)
|
|
Add (deduct):
Noncontrolling interest in Operating Partnership
|
|
(142)
|
|
|
|
(4,296)
|
|
|
|
4,741
|
|
|
|
(2,001)
|
|
Real estate-related
depreciation and amortization on continuing
operations (a)
|
|
45,781
|
|
|
|
63,156
|
|
|
|
91,383
|
|
|
|
114,913
|
|
Gain on sale of
investment in unconsolidated joint venture
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(12,563)
|
|
Realized
(gains)/losses and unrealized losses on disposition of
rental property, net
|
|
(1,010)
|
|
|
|
38,954
|
|
|
|
(59,196)
|
|
|
|
33,448
|
|
Funds from
operations (b)
|
$
|
43,378
|
|
|
$
|
60,484
|
|
|
$
|
78,713
|
|
|
$
|
116,346
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add/(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
extinguishment of debt, net
|
|
-
|
|
|
|
-
|
|
|
|
10,289
|
|
|
|
239
|
|
Severance/separation
costs on management restructuring
|
|
1,795
|
|
|
|
-
|
|
|
|
6,847
|
|
|
|
-
|
|
Core
FFO
|
$
|
45,173
|
|
|
$
|
60,484
|
|
|
$
|
95,849
|
|
|
$
|
116,585
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares/units outstanding (c)
|
|
100,598
|
|
|
|
100,370
|
|
|
|
100,607
|
|
|
|
100,354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations
per share/unit-diluted
|
$
|
0.43
|
|
|
$
|
0.60
|
|
|
$
|
0.78
|
|
|
$
|
1.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core funds from
operations per share/unit diluted
|
$
|
0.45
|
|
|
$
|
0.60
|
|
|
$
|
0.95
|
|
|
$
|
1.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
0.40
|
|
|
$
|
0.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend payout
ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Funds from
operations-diluted
|
|
44.54
|
%
|
|
|
33.19
|
%
|
|
|
41.99
|
%
|
|
|
30.13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-incremental
revenue generating capital expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building
improvements
|
$
|
723
|
|
|
$
|
3,303
|
|
|
$
|
2,389
|
|
|
$
|
8,272
|
|
Tenant improvements &
leasing commissions (d)
|
$
|
17,939
|
|
|
$
|
8,150
|
|
|
$
|
22,407
|
|
|
$
|
12,115
|
|
Tenant improvements
& leasing commissions on space vacant for
more than a year
|
$
|
6,851
|
|
|
$
|
4,956
|
|
|
$
|
14,546
|
|
|
$
|
12,116
|
|
Straight-line rent
adjustments (e)
|
$
|
(249)
|
|
|
$
|
3,240
|
|
|
$
|
2,493
|
|
|
$
|
6,253
|
|
Amortization of
(above)/below market lease intangibles, net (f)
|
$
|
1,313
|
|
|
$
|
2,187
|
|
|
$
|
3,443
|
|
|
$
|
3,764
|
|
Amortization of stock
compensation
|
$
|
783
|
|
|
$
|
2,167
|
|
|
$
|
3,440
|
|
|
$
|
3,335
|
|
Amortization of lease
inducements
|
$
|
258
|
|
|
$
|
446
|
|
|
$
|
552
|
|
|
$
|
724
|
|
Non real estate
depreciation and amortization
|
$
|
536
|
|
|
$
|
349
|
|
|
$
|
1,047
|
|
|
$
|
726
|
|
Amortization of
deferred financing costs
|
$
|
1,145
|
|
|
$
|
1,175
|
|
|
$
|
2,241
|
|
|
$
|
2,278
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes the
Company's share from unconsolidated joint ventures of $4,903 and
$5,742 for the three months ended June 30, 2018 and 2017,
respectively, and $9,718 and $10,245 for the six months ended June
30, 2018 and 2017, respectively. Excludes non-real estate-related
depreciation and amortization of $535 and $349 for the three months
ended June 30, 2018 and 2017, respectively, and $1,046 and $726 for
the six months ended June 30, 2018 and 2017,
respectively.
|
(b)
|
Funds from operations
is calculated in accordance with the definition of FFO of the
National Association of Real Estate Investment Trusts (NAREIT). See
"Information About FFO" in this release.
|
(c)
|
Calculated based on
weighted average common shares outstanding, assuming redemption of
Operating Partnership common units into common shares (10,213 and
10,359 shares for the three months ended June 30, 2018 and 2017,
respectively, and 10,227 and 10,371 for the six months ended June
30, 2018 and 2017, respectively ), plus dilutive Common Stock
Equivalents (i.e. stock options).
|
(d)
|
Excludes expenditures
for tenant spaces that have not been owned for at least a
year.
|
(e)
|
Includes free rent of
$2,099 and $6,473 for the three months ended June 30, 2018 and
2017, respectively, and $8,474 and $13,126 for the six months ended
June 30, 2018 and 2017, respectively. Also, includes the
Company's share from unconsolidated joint ventures of $(256) and
$307 for the three months ended June 30, 2018 and 2017,
respectively, and $(694) and $295 for the six months ended June 30,
2018 and 2017, respectively.
|
(f)
|
Includes the
Company's share from unconsolidated joint ventures of $27 and $80
for the three months ended June 30, 2018 and 2017, respectively,
and $107 and $175 for the six months ended June 30, 2018 and 2017,
respectively.
|
Mack-Cali Realty
Corporation
Statements of
Funds from Operations (FFO) and Core FFO per Diluted
Share
(amounts are per
diluted share, except share counts in thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Net income (loss)
available to common shareholders
|
$
|
(0.05)
|
|
$
|
(0.44)
|
|
$
|
0.39
|
|
$
|
(0.33)
|
Add (deduct): Real
estate-related depreciation and amortization on
continuing operations (a)
|
|
0.46
|
|
|
0.63
|
|
|
0.91
|
|
|
1.15
|
Redemption value
adjustment to redeemable noncontrolling interests
|
|
0.04
|
|
|
0.03
|
|
|
0.07
|
|
|
0.14
|
Gain on sale of
investment in unconsolidated joint venture
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(0.13)
|
Realized (gains)
losses and unrealized losses on disposition of rental
property, net
|
|
(0.01)
|
|
|
0.39
|
|
|
(0.59)
|
|
|
0.33
|
Noncontrolling
interest/rounding adjustment
|
|
(0.01)
|
|
|
(0.01)
|
|
|
-
|
|
|
-
|
Funds from
operations (b)
|
$
|
0.43
|
|
$
|
0.60
|
|
$
|
0.78
|
|
$
|
1.16
|
|
|
|
|
|
|
|
|
|
|
|
|
Add/(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
extinguishment of debt, net
|
|
-
|
|
|
-
|
|
|
0.10
|
|
|
-
|
Severance/separation
costs on management restructuring
|
|
0.02
|
|
|
-
|
|
|
0.07
|
|
|
-
|
Core
FFO
|
$
|
0.45
|
|
$
|
0.60
|
|
$
|
0.95
|
|
$
|
1.16
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares/units outstanding (c)
|
|
100,598
|
|
|
100,370
|
|
|
100,607
|
|
|
100,354
|
(a)
|
Includes the
Company's share from unconsolidated joint ventures of $0.05 and
$0.06 for the three months ended June 30, 2018 and 2017,
respectively, and $0.10 and $0.10 for the six months ended June 30,
2018 and 2017, respectively.
|
(b)
|
Funds from operations
is calculated in accordance with the definition of FFO of the
National Association of Real Estate Investment Trusts (NAREIT). See
"Information About FFO" in this release.
|
(c)
|
Calculated based on
weighted average common shares outstanding, assuming redemption of
Operating Partnership common units into common shares (10,213 and
10,359 shares for the three months ended June 30, 2018 and 2017,
respectively, and 10,227 and 10,371 for the six months ended June
30, 2018 and 2017, respectively ), plus dilutive Common Stock
Equivalents (i.e. stock options).
|
Mack-Cali Realty
Corporation
Consolidated
Balance Sheets
(in thousands,
except per share amounts) (unaudited)
|
|
|
|
|
|
|
|
|
June
30,
|
|
|
December
31,
|
Assets
|
|
2018
|
|
|
2017
|
Rental
property
|
|
|
|
|
|
Land and
leasehold interests
|
$
|
782,990
|
|
$
|
786,789
|
Buildings and
improvements
|
|
4,012,029
|
|
|
3,955,122
|
Tenant
improvements
|
|
327,731
|
|
|
330,686
|
Furniture,
fixtures and equipment
|
|
36,993
|
|
|
30,247
|
|
|
5,159,743
|
|
|
5,102,844
|
Less – accumulated
depreciation and amortization
|
|
(1,072,029)
|
|
|
(1,087,083)
|
|
|
4,087,714
|
|
|
4,015,761
|
Rental property held
for sale, net
|
|
56,419
|
|
|
171,578
|
Net investment in
rental property
|
|
4,144,133
|
|
|
4,187,339
|
Cash and cash
equivalents
|
|
29,664
|
|
|
28,180
|
Restricted
cash
|
|
22,121
|
|
|
39,792
|
Investments in
unconsolidated joint ventures
|
|
247,607
|
|
|
252,626
|
Unbilled rents
receivable, net
|
|
98,252
|
|
|
100,842
|
Deferred charges,
goodwill and other assets, net
|
|
310,118
|
|
|
342,320
|
Accounts receivable,
net of allowance for doubtful accounts of $329 and
$1,138
|
|
6,389
|
|
|
6,786
|
|
|
|
|
|
|
Total
assets
|
$
|
4,858,284
|
|
$
|
4,957,885
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Senior unsecured
notes, net
|
$
|
569,730
|
|
$
|
569,145
|
Unsecured revolving
credit facility and term loans
|
|
856,188
|
|
|
822,288
|
Mortgages, loans
payable and other obligations, net
|
|
1,220,519
|
|
|
1,418,135
|
Dividends and
distributions payable
|
|
21,407
|
|
|
21,158
|
Accounts payable,
accrued expenses and other liabilities
|
|
180,941
|
|
|
192,716
|
Rents received in
advance and security deposits
|
|
39,450
|
|
|
43,993
|
Accrued interest
payable
|
|
8,518
|
|
|
9,519
|
Total
liabilities
|
|
2,896,753
|
|
|
3,076,954
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
284,215
|
|
|
212,208
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Mack-Cali Realty
Corporation stockholders' equity:
|
|
|
|
|
|
Common stock, $0.01
par value, 190,000,000 shares authorized,
|
|
|
|
|
|
90,286,268 and
89,914,113 shares outstanding
|
|
902
|
|
|
899
|
Additional paid-in
capital
|
|
2,564,153
|
|
|
2,565,136
|
Dividends in excess
of net earnings
|
|
(1,090,724)
|
|
|
(1,096,429)
|
Accumulated other
comprehensive income (loss)
|
|
12,916
|
|
|
6,689
|
Total
Mack-Cali Realty Corporation stockholders' equity
|
|
1,487,247
|
|
|
1,476,295
|
|
|
|
|
|
|
Noncontrolling
interests in subsidiaries:
|
|
|
|
|
|
Operating
Partnership
|
|
169,110
|
|
|
171,395
|
Consolidated joint
ventures
|
|
20,959
|
|
|
21,033
|
Total noncontrolling
interests in subsidiaries
|
|
190,069
|
|
|
192,428
|
|
|
|
|
|
|
Total
equity
|
|
1,677,316
|
|
|
1,668,723
|
|
|
|
|
|
|
Total liabilities
and equity
|
$
|
4,858,284
|
|
$
|
4,957,885
|
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SOURCE Mack-Cali Realty Corporation