JERSEY CITY, N.J., Oct. 31, 2018 /PRNewswire/ -- Mack-Cali
Realty Corporation (NYSE: CLI) today reported its results for the
third quarter 2018.
THIRD 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
$0.43 for the quarter and
$1.38 for the nine months 2018;
- Leased 833,840 sq. ft. of office space (389,042 sq. ft. on the
Waterfront);
- Grew Core portfolio office rental rates by 9.9% on a cash basis
and 30.9% on a GAAP basis;
- Leases signed in the third quarter in our Core Office portfolio
(excluding Flex) had cash starting rents of $34.93 per square foot;
- Core office portfolio was 84.2% leased and the Class A Suburban
Portfolio was 94.8%, Flex was 93.3%, Suburban 84.3% and Waterfront
73.2% leased at September 30,
2018;
- Completed the sales of three (non-core) office buildings for an
aggregate sales price of approximately $32
million;
- Major waterfront office leases signed:
A 132,000 sq. ft. office lease renewal at Harborside 2, including
26,000 sq. ft. of expansion space with E-Trade;
A 111,000 sq. ft. office lease renewal at Harborside 2, including
36,000 sq. ft. of expansion space with Sumitomo; and
An 80,000 sq. ft. office lease renewal at 101 Hudson St., including
32,000 sq. ft. of expansion space with First Data;
- Roseland's multifamily
stabilized portfolio was 96.4% leased at September 30, 2018;
- Roseland's 1,212 unit lease-up
portfolio, all from 2018 deliveries, was 74.4% leased at
October 29, 2018; in July, the
Company commenced leasing activities at RiverHouse 11, a 295-unit
project in our Port Imperial master-planned community; the property
experienced unprecedented velocity having achieved stabilization
and is currently 95.6% leased;
- Roseland commenced
construction on two residential developments, Building 9 at Port
Imperial, a 313-unit project adjacent to the successful RiverHouse
11 and Chase III, a 326-unit project representing the next phase of
the Overlook Ridge master planned community and adjacent to 1,386
stabilized Roseland
apartments;
- Roseland acquired Prudential's
membership interest in Marbella, thereby converting its subordinate
interest into a controlling interest for approximately $65.6 million. The acquisition closed on
August 2nd; and
- Declared $0.20 per share
quarterly common stock dividend.
"We had an excellent quarter on all fronts but especially
waterfront leasing. The team signed over 830,000 square feet with
over 46 percent of that leased at the Waterfront," commented
Michael J. DeMarco, Chief Executive
Officer. "The substantial capital improvements that have been
completed are getting tenants to our projects and we are pleased to
see conversion coming from the consistent rise in traffic that has
been building throughout the year. In our residential portfolio,
the leasing pace is brisk, with strong interest represented by
quarter end occupancy of 96 percent. The fourth quarter is looking
excellent. We expect 2018 to be a solid year."
FINANCIAL HIGHLIGHTS
* All per share amounts presented below are on a diluted
basis.
Net income (loss) available to common shareholders for the
quarter ended September 30, 2018
amounted to $(1.5) million, or
$(0.05) per share, as compared to
$38.1 million, or $0.39 per share, for the quarter ended
September 30, 2017. For the nine
months ended September 30, 2018, net
income to common shareholders equaled $40.3
million, or $0.35 per share,
as compared to $20.6 million, or
$0.06 per share, for the same period
last year.
Funds from operations (FFO) for the quarter ended September 30, 2018 amounted to $42.7 million, or $0.42 per share, as compared to $57.8 million, or $0.57 per share, for the quarter ended
September 30, 2017. For the nine
months ended September 30, 2018, FFO
equaled $121.4 million, or
$1.21 per share, as compared to
$174.1 million, or $1.73 per share, for the same period last
year.
For the third quarter 2018, Core FFO was $0.43 per share, as compared to $0.57 for the same period last year.
OPERATING HIGHLIGHTS
Office
Mack-Cali's
consolidated Core office properties were 84.2 percent leased at
September 30, 2018, as compared to
83.2 percent leased at June 30,
2018.
Third quarter 2018 same store GAAP revenues for the office
portfolio declined by 9.3 percent while same store GAAP NOI fell by
13.3 percent. Third quarter 2018 same store cash revenues for the
office portfolio declined by 4.8 percent while same store cash NOI
fell by 6.5 percent. Same store cash revenues and same store
cash NOI excludes straight-line rent and FAS 141 adjustments.
For the quarter ended September 30,
2018, the Company executed 52 leases at its consolidated
in-service commercial portfolio totaling 833,840 square feet. Of
these totals, 15 leases for 189,342 square feet (23 percent) were
for new leases and 37 leases for 644,498 square feet (77 percent)
were lease renewals and other tenant retention transactions.
Of the 389,000 square feet of Waterfront leases signed in the
quarter, 94,000 square feet represent expansions associated with
early renewals, 249,000 square feet represents early renewals of
existing tenants, 43,000 square feet represent new deals, and 3,000
square feet represent expansions of existing space.
Rental rate roll up for the Core portfolio for third quarter
2018 transactions was 9.9 percent on a cash basis and 30.9 percent
on a GAAP basis. Rental rate roll up in third quarter 2018 for new
transactions was 6.5 percent on a cash basis and 20.9 percent on a
GAAP basis; and for renewals and other tenant retention
transactions was 10.6 percent on a cash basis and 33.6 percent on a
GAAP basis. Same store cash revenues and same store cash NOI
excludes straight-line rent and FAS 141 adjustments.
The Company completed the sales of three office buildings in two
transactions during the third quarter of 2018 at a weighted average
cash cap rate of 7.8 percent. 600 Horizon Drive, a 95,000
square-foot single tenant building in Hamilton, New Jersey, was sold for a gross
price of $15.8 million. 1 & 3
Barker, two buildings in White Plains,
New York, totaling 133,300 square feet, was sold for a gross
price of $15.9 million.
Multifamily
Roseland's stabilized operating portfolio was
96.4 percent leased at September 30,
2018. Same store net operating income increased by 1.2
percent for the third quarter. With the 2018 delivery of 1,212
units coupled with its construction portfolio of over 1,794 units
and keys, we envision continued growth in the Company's residential
portfolio and cash flow contribution. The lease-up portfolio
is currently 74.4 percent leased.
BALANCE SHEET/CAPITAL MARKETS
As of September 30, 2018, the
Company had a debt-to-undepreciated assets ratio of 45.8 percent
compared to 44.6 percent at June 30,
2018 and 46.2 percent at September
30, 2017. Net debt to adjusted EBITDA for the quarter ended
September 30, 2018 was 10.0x compared
to 9.7x for the quarter ended June
30, 2018. The Company's interest coverage ratio was
3.3x for the quarter ended September 30,
2018, compared to 3.4x for the quarter ended September 30, 2017.
DIVIDEND
In September 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 third quarter 2018, which was paid on October 12, 2018 to shareholders of record as of
October 2, 2018. The Company's Core
FFO dividend payout ratio for the quarter was 46.5 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
|
$
|
0.27
|
-
|
$
|
0.31
|
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
|
|
|
(0.50)
|
|
|
Loss from
extinguishment of debt, net
|
|
|
0.10
|
|
|
Severance/separation
costs on management restructuring
|
|
|
0.07
|
|
|
Core
FFO
|
$
|
1.81
|
-
|
$
|
1.85
|
|
|
2018 Guidance
Assumptions
|
($ in
millions)
|
|
Revised
|
Assumptions:
|
Low
|
|
High
|
Office Occupancy
(year-end % leased)
|
84%
|
|
86%
|
Office Same Store
GAAP NOI Growth
|
(16)%
|
|
(13)%
|
Office Same Store
Cash NOI Growth
|
(14)%
|
|
(11)%
|
Multifamily Same
Store NOI Growth
|
0%
|
|
2%
|
Straight-Line Rent
Adjustment
|
$5
|
|
$8
|
FAS 141
Mark-to-Market Rent Adjustment
|
$5
|
|
$6
|
Dispositions
|
$300
|
|
$375
|
Base Building
Capex
|
$6
|
|
$10
|
Leasing
Capex
|
$60
|
|
$75
|
G&A (Net of
Severance Costs)
|
$46
|
|
$48
|
Interest
Expense
|
$82
|
|
$84
|
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
November 1, 2018 at 10:00 a.m. Eastern Time, which will be broadcast
live via the Internet at:
https://edge.media-server.com/m6/p/rttkrycp
The live conference call is also accessible by calling (323)
994-2082 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
November 1, 2018.
A replay of the call will also be accessible November 1, 2018 through November 7, 2018 by calling (719) 457-0820 and
using the pass code, 6066630.
Copies of Mack-Cali's Form 10-Q
and Supplemental Operating and Financial Data are available on
Mack-Cali's website, as
follows:
Third Quarter 2018 Form 10-Q:
http://investors.mack-cali.com/sec-filings
Third 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 (including both acquisitions and dispositions), 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 property transactions 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
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
REVENUES
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Base rents
|
$
|
107,239
|
|
$
|
128,643
|
|
$
|
323,725
|
|
$
|
382,915
|
Escalations and
recoveries from tenants
|
|
12,656
|
|
|
16,385
|
|
|
35,748
|
|
|
47,455
|
Real estate
services
|
|
4,432
|
|
|
5,748
|
|
|
13,167
|
|
|
17,980
|
Parking
income
|
|
5,499
|
|
|
5,766
|
|
|
16,583
|
|
|
15,047
|
Other
income
|
|
2,288
|
|
|
3,476
|
|
|
8,447
|
|
|
9,274
|
Total revenues
|
|
132,114
|
|
|
160,018
|
|
|
397,670
|
|
|
472,671
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
Real estate
taxes
|
|
15,680
|
|
|
21,300
|
|
|
52,007
|
|
|
63,609
|
Utilities
|
|
9,990
|
|
|
11,480
|
|
|
30,049
|
|
|
33,251
|
Operating
services
|
|
27,107
|
|
|
26,312
|
|
|
75,664
|
|
|
80,495
|
Real estate services
expenses
|
|
4,400
|
|
|
6,207
|
|
|
13,696
|
|
|
18,376
|
General and
administrative
|
|
11,620
|
|
|
13,140
|
|
|
41,160
|
|
|
37,223
|
Depreciation and
amortization
|
|
45,813
|
|
|
52,375
|
|
|
128,523
|
|
|
157,768
|
Total expenses
|
|
114,610
|
|
|
130,814
|
|
|
341,099
|
|
|
390,722
|
Operating
income
|
|
17,504
|
|
|
29,204
|
|
|
56,571
|
|
|
81,949
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER (EXPENSE)
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(21,094)
|
|
|
(25,634)
|
|
|
(60,168)
|
|
|
(70,898)
|
Interest and other
investment income (loss)
|
|
851
|
|
|
762
|
|
|
2,620
|
|
|
1,358
|
Equity in earnings
(loss) of unconsolidated joint ventures
|
|
(687)
|
|
|
(1,533)
|
|
|
833
|
|
|
(4,882)
|
Gain on change of
control of interests
|
|
14,217
|
|
|
-
|
|
|
14,217
|
|
|
-
|
Realized gains
(losses) and unrealized losses on disposition of rental
property, net
|
|
(9,102)
|
|
|
31,336
|
|
|
50,094
|
|
|
(2,112)
|
Gain on sale of
investment in unconsolidated joint venture
|
|
-
|
|
|
10,568
|
|
|
-
|
|
|
23,131
|
Loss from
extinguishment of debt, net
|
|
-
|
|
|
-
|
|
|
(10,289)
|
|
|
(239)
|
Total other income (expense)
|
|
(15,815)
|
|
|
15,499
|
|
|
(2,693)
|
|
|
(53,642)
|
Net income
|
|
1,689
|
|
|
44,703
|
|
|
53,878
|
|
|
28,307
|
Noncontrolling
interest in consolidated joint ventures
|
|
451
|
|
|
447
|
|
|
576
|
|
|
865
|
Noncontrolling
interest in Operating Partnership
|
|
167
|
|
|
(4,413)
|
|
|
(4,574)
|
|
|
(2,412)
|
Redeemable
noncontrolling interest
|
|
(3,785)
|
|
|
(2,683)
|
|
|
(9,573)
|
|
|
(6,157)
|
Net income (loss)
available to common shareholders
|
$
|
(1,478)
|
|
$
|
38,054
|
|
$
|
40,307
|
|
$
|
20,603
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
available to common shareholders
|
$
|
(0.05)
|
|
$
|
0.39
|
|
$
|
0.35
|
|
$
|
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per common share:
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
available to common shareholders
|
$
|
(0.05)
|
|
$
|
0.39
|
|
$
|
0.35
|
|
$
|
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
|
90,468
|
|
|
90,023
|
|
|
90,355
|
|
|
89,997
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
100,712
|
|
|
100,727
|
|
|
100,684
|
|
|
100,701
|
Mack-Cali Realty
Corporation
Statements of
Funds from Operations
(in thousands,
except per share/unit amounts) (unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
|
2018
|
|
|
|
2017
|
|
|
|
2018
|
|
|
|
2017
|
|
Net income (loss)
available to common shareholders
|
$
|
(1,478)
|
|
|
$
|
38,054
|
|
|
$
|
40,307
|
|
|
$
|
20,603
|
|
Add (deduct):
Noncontrolling interest in Operating Partnership
|
|
(167)
|
|
|
|
4,413
|
|
|
|
4,574
|
|
|
|
2,412
|
|
Real estate-related
depreciation and amortization on continuing
operations (a)
|
|
49,433
|
|
|
|
57,231
|
|
|
|
140,816
|
|
|
|
172,144
|
|
Gain on change of
control of interests
|
|
(14,217)
|
|
|
|
-
|
|
|
|
(14,217)
|
|
|
|
-
|
|
Gain on sale of
investment in unconsolidated joint venture
|
|
-
|
|
|
|
(10,568)
|
|
|
|
-
|
|
|
|
(23,131)
|
|
Realized
(gains)/losses and unrealized losses on disposition of
rental property, net
|
|
9,102
|
|
|
|
(31,336)
|
|
|
|
(50,094)
|
|
|
|
2,112
|
|
Funds from
operations (b)
|
$
|
42,673
|
|
|
$
|
57,794
|
|
|
$
|
121,386
|
|
|
$
|
174,140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add/(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
extinguishment of debt, net
|
|
-
|
|
|
|
-
|
|
|
|
10,289
|
|
|
|
239
|
|
Severance/separation
costs on management restructuring
|
|
640
|
|
|
|
-
|
|
|
|
7,487
|
|
|
|
-
|
|
Core
FFO
|
$
|
43,313
|
|
|
$
|
57,794
|
|
|
$
|
139,162
|
|
|
$
|
174,379
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares/units outstanding (c)
|
|
100,712
|
|
|
|
100,727
|
|
|
|
100,684
|
|
|
|
100,701
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations
per share/unit-diluted
|
$
|
0.42
|
|
|
$
|
0.57
|
|
|
$
|
1.21
|
|
|
$
|
1.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core funds from
operations per share/unit diluted
|
$
|
0.43
|
|
|
$
|
0.57
|
|
|
$
|
1.38
|
|
|
$
|
1.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
0.60
|
|
|
$
|
0.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend payout
ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Funds from
operations-diluted
|
|
46.50
|
%
|
|
|
34.86
|
%
|
|
|
43.41
|
%
|
|
|
31.76
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-incremental
revenue generating capital expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building
improvements
|
$
|
2,208
|
|
|
$
|
1,664
|
|
|
$
|
4,597
|
|
|
$
|
9,936
|
|
Tenant improvements &
leasing commissions (d)
|
$
|
4,467
|
|
|
$
|
5,110
|
|
|
$
|
26,874
|
|
|
$
|
17,225
|
|
Tenant improvements
& leasing commissions on space vacant for
more than a year
|
$
|
7,782
|
|
|
$
|
6,667
|
|
|
$
|
22,328
|
|
|
$
|
18,783
|
|
Straight-line rent
adjustments (e)
|
$
|
1,901
|
|
|
$
|
6,360
|
|
|
$
|
4,394
|
|
|
$
|
12,613
|
|
Amortization of
(above)/below market lease intangibles, net (f)
|
$
|
892
|
|
|
$
|
2,254
|
|
|
$
|
4,335
|
|
|
$
|
6,018
|
|
Amortization of stock
compensation
|
$
|
1,897
|
|
|
$
|
2,291
|
|
|
$
|
5,337
|
|
|
$
|
5,626
|
|
Amortization of lease
inducements
|
$
|
214
|
|
|
$
|
535
|
|
|
$
|
766
|
|
|
$
|
1,259
|
|
Non real estate
depreciation and amortization
|
$
|
535
|
|
|
$
|
505
|
|
|
$
|
1,582
|
|
|
$
|
1,231
|
|
Amortization of
deferred financing costs
|
$
|
1,302
|
|
|
$
|
1,184
|
|
|
$
|
3,543
|
|
|
$
|
3,462
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes the
Company's share from unconsolidated joint ventures of $4,155 and
$5,362 for the three months ended September 30, 2018 and 2017,
respectively, and $13,873 and $15,607 for the nine months ended
September 30, 2018 and 2017, respectively. Excludes non-real
estate-related depreciation and amortization of $535 and $505 for
the three months ended September 30, 2018 and 2017, respectively,
and $1,582 and $1,231 for the nine months ended September 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 (10,189 and
10,439 shares for the three months ended September 30, 2018 and
2017, respectively, and 10,214 and 10,394 for the nine months ended
September 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
$3,643 and $8,748 for the three months ended September 30, 2018 and
2017, respectively, and $12,117 and $21,874 for the nine months
ended September 30, 2018 and 2017, respectively. Also,
includes the Company's share from unconsolidated joint ventures of
$(96) and $673 for the three months ended September 30, 2018 and
2017, respectively, and $(790) and $968 for the nine months ended
September 30, 2018 and 2017, respectively.
|
(f)
|
Includes the
Company's share from unconsolidated joint ventures of $0 and $81
for the three months ended September 30, 2018 and 2017,
respectively, and $107 and $256 for the nine months ended September
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
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Net income (loss)
available to common shareholders
|
$
|
(0.05)
|
|
$
|
0.39
|
|
$
|
0.35
|
|
$
|
0.06
|
Add (deduct): Real
estate-related depreciation and amortization on
continuing operations (a)
|
|
0.49
|
|
|
0.57
|
|
|
1.40
|
|
|
1.71
|
Redemption value
adjustment to redeemable noncontrolling interests
|
|
0.03
|
|
|
0.03
|
|
|
0.10
|
|
|
0.17
|
Gain on change of
control of interests
|
|
(0.14)
|
|
|
-
|
|
|
(0.14)
|
|
|
-
|
Gain on sale of
investment in unconsolidated joint venture
|
|
-
|
|
|
(0.10)
|
|
|
-
|
|
|
(0.23)
|
Realized (gains)
losses and unrealized losses on disposition of rental
property, net
|
|
0.09
|
|
|
(0.31)
|
|
|
(0.50)
|
|
|
0.02
|
Noncontrolling
interest/rounding adjustment
|
|
-
|
|
|
(0.01)
|
|
|
-
|
|
|
-
|
Funds from
operations (b)
|
$
|
0.42
|
|
$
|
0.57
|
|
$
|
1.21
|
|
$
|
1.73
|
|
|
|
|
|
|
|
|
|
|
|
|
Add/(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
extinguishment of debt, net
|
|
-
|
|
|
-
|
|
|
0.10
|
|
|
-
|
Severance/separation
costs on management restructuring
|
|
0.01
|
|
|
-
|
|
|
0.07
|
|
|
-
|
Core
FFO
|
$
|
0.43
|
|
$
|
0.57
|
|
$
|
1.38
|
|
$
|
1.73
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares/units outstanding (c)
|
|
100,712
|
|
|
100,727
|
|
|
100,684
|
|
|
100,701
|
|
|
(a)
|
Includes the
Company's share from unconsolidated joint ventures of $0.05 and
$0.06 for the three months ended September 30, 2018 and 2017,
respectively, and $0.15 and $0.16 for the nine months ended
September 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 (10,189 and
10,439 shares for the three months ended September 30, 2018 and
2017, respectively, and 10,214 and 10,394 for the nine months ended
September 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)
|
|
|
|
September
30,
|
|
|
December
31,
|
Assets
|
|
2018
|
|
|
2017
|
Rental
property
|
|
|
|
|
|
Land and
leasehold interests
|
$
|
820,953
|
|
$
|
786,789
|
Buildings and
improvements
|
|
4,144,911
|
|
|
3,955,122
|
Tenant
improvements
|
|
333,304
|
|
|
330,686
|
Furniture,
fixtures and equipment
|
|
41,059
|
|
|
30,247
|
|
|
5,340,227
|
|
|
5,102,844
|
Less – accumulated
depreciation and amortization
|
|
(1,086,215)
|
|
|
(1,087,083)
|
|
|
4,254,012
|
|
|
4,015,761
|
Rental property held
for sale, net
|
|
83,152
|
|
|
171,578
|
Net investment in
rental property
|
|
4,337,164
|
|
|
4,187,339
|
Cash and cash
equivalents
|
|
10,823
|
|
|
28,180
|
Restricted
cash
|
|
20,119
|
|
|
39,792
|
Investments in
unconsolidated joint ventures
|
|
230,614
|
|
|
252,626
|
Unbilled rents
receivable, net
|
|
99,320
|
|
|
100,842
|
Deferred charges,
goodwill and other assets, net
|
|
340,957
|
|
|
342,320
|
Accounts receivable,
net of allowance for doubtful accounts of $537 and
$1,138
|
|
7,197
|
|
|
6,786
|
|
|
|
|
|
|
Total
assets
|
$
|
5,046,194
|
|
$
|
4,957,885
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Senior unsecured
notes, net
|
$
|
570,022
|
|
$
|
569,145
|
Unsecured revolving
credit facility and term loans
|
|
870,313
|
|
|
822,288
|
Mortgages, loans
payable and other obligations, net
|
|
1,367,383
|
|
|
1,418,135
|
Dividends and
distributions payable
|
|
21,691
|
|
|
21,158
|
Accounts payable,
accrued expenses and other liabilities
|
|
179,487
|
|
|
192,716
|
Rents received in
advance and security deposits
|
|
38,840
|
|
|
43,993
|
Accrued interest
payable
|
|
14,377
|
|
|
9,519
|
Total
liabilities
|
|
3,062,113
|
|
|
3,076,954
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
307,415
|
|
|
212,208
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Mack-Cali Realty
Corporation stockholders' equity:
|
|
|
|
|
|
Common stock, $0.01
par value, 190,000,000 shares authorized,
|
|
|
|
|
|
90,307,280 and
89,914,113 shares outstanding
|
|
903
|
|
|
899
|
Additional paid-in
capital
|
|
2,563,165
|
|
|
2,565,136
|
Dividends in excess
of net earnings
|
|
(1,110,258)
|
|
|
(1,096,429)
|
Accumulated other
comprehensive income (loss)
|
|
13,234
|
|
|
6,689
|
Total
Mack-Cali Realty Corporation stockholders' equity
|
|
1,467,044
|
|
|
1,476,295
|
|
|
|
|
|
|
Noncontrolling
interests in subsidiaries:
|
|
|
|
|
|
Operating
Partnership
|
|
166,379
|
|
|
171,395
|
Consolidated joint
ventures
|
|
43,243
|
|
|
21,033
|
Total noncontrolling
interests in subsidiaries
|
|
209,622
|
|
|
192,428
|
|
|
|
|
|
|
Total
equity
|
|
1,676,666
|
|
|
1,668,723
|
|
|
|
|
|
|
Total liabilities
and equity
|
$
|
5,046,194
|
|
$
|
4,957,885
|
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SOURCE Mack-Cali Realty Corporation