JERSEY CITY, N.J., Nov. 3, 2021 /PRNewswire/ -- Mack-Cali Realty
Corporation (NYSE: CLI) today reported its results for the third
quarter 2021.
THIRD QUARTER 2021 HIGHLIGHTS
- Net income (loss) of $(0.33) per share for the third quarter 2021
- Core Funds from Operations ("Core FFO") per share
of $0.17 for the third quarter
2021
- Two Waterfront office assets, totaling
approximately 1.8 million square feet, are under contract for a
combined sales price of $590 million,
a further step towards simplifying and transitioning the business
to a pure-play multifamily REIT
- The operating multifamily portfolio was 96.5%
occupied, 2.7% above pre-pandemic levels, and the three lease-up
properties launched earlier this year were above 95% leased as of
October 24, 2021
- Multifamily sequential Same Store Net Operating
Income ("NOI") increased by 4.0%, reflecting higher occupancy,
higher net effective rents and increasing market rents
- The Waterfront office portfolio was 73.3% leased
compared to 75.4% as of June 30,
2021, driven largely by the anticipated Natixis departure /
move-out in Harborside 5
"I am pleased to announce another active quarter during which we
further simplified the business, continued to enhance our
operational platform and capitalized on the continued strength in
multifamily leasing demand. We continue to see strong interest in
our high quality assets, with occupancy in our multifamily
portfolio now above pre-Covid levels" stated Mahbod Nia, Mack-Cali's Chief Executive Officer.
FINANCIAL HIGHLIGHTS
For more information and a reconciliation of FFO, Core FFO,
Adjusted EBITDA and NOI to net income (loss) attributable to common
shareholders, please refer to the following pages and the Company's
Supplemental Operating and Financial Data package for the third
quarter 2021. Please note that all presented per share amounts are
on a diluted basis.
Net income (loss) available to common shareholders for the
quarter ended September 30, 2021 was
$(28.3) million, or $(0.33) per share, compared to $(42.2) million, or $(0.49) per share, for the quarter ended
September 30, 2020.
FFO for the quarter ended September
30, 2021 was $4.8 million, or
$0.05 per share, compared to
$10.1 million, or $0.10 per share, for the quarter ended
September 30, 2020.
For the third quarter 2021, Core FFO was $17.5 million, or $0.17 per share, compared to $29.9 million, or $0.30 per share for the same period last year,
primarily due to the impacts of the pandemic on our hotel and
multifamily operations as well as the suburban asset disposals.
MULTIFAMILY PORTFOLIO HIGHLIGHTS
The Company's operating multifamily portfolio was comprised of
5,825 units and was 96.5% occupied as of October 24, 2021, 2.7% above pre-pandemic levels
and up from 92.3% as of June 30,
2021.
The Same Store multifamily portfolio was comprised of 5,499
units. The multifamily Same Store year-over-year NOI increased by
6.5%, reflecting higher revenue from recovering leasing activity
driving lower vacancy and higher in-place rents.
The multifamily Same Store sequential quarter-over-quarter NOI
increased by 4.0%, reflecting higher occupancy, higher net
effective rents and increasing market rents.
Multifamily Development
The Company commenced lease-up of three buildings in 2021:
- The Capstone at Port Imperial, NJ comprised of 360 units, was
launched in the first quarter 2021 and was 96.4% leased as of
October 24, 2021
- The Upton in Short Hills, NJ
comprised of 193 units, was launched in the first quarter 2021 and
was 99.5% leased as of October 24,
2021
- Riverhouse 9 at Port Imperial, NJ comprised of 313 units, was
launched in May 2021 and was 95.8%
leased as of October 24, 2021
Haus 25, previously known as The Charlotte, a 750 unit asset
located at 25 Christopher Columbus in Jersey City, NJ, is the only property
currently under construction.
OFFICE PORTFOLIO ACTIVITY
As of September 30, 2021, the
Company's consolidated office portfolio was comprised of eight
operational properties across 5.1 million rentable square feet and
was 73.5% leased compared to 74.7% as of June 30, 2021.
The Waterfront office portfolio was 73.3% leased compared to
75.4% as of June 30, 2021, driven
primarily by the anticipated Natixis departure / move-out at
Harborside 5 (101,000 square feet). The Company signed 8,600 square
feet of new leases during the third quarter, totaling 176,100
square feet of new leases or renewals / extensions signed in
2021.
For the office portfolio, third quarter 2021 Same Store
year-over-year revenue decreased by 2.1% and Same Store
year-over-year NOI increased by 3.4%, driven by savings in
operating expenses.
TRANSACTION ACTIVITY
Waterfront Office Dispositions
During the third quarter 2021, the Company entered into separate
definitive agreements to sell two of its office properties located
in Jersey City and Hoboken, NJ totaling approximately 1.8 million
square feet, for a combined sales price of $590 million.
Suburban Office Dispositions
During the third quarter 2021, the Company completed the
disposal of its joint venture interest in the Crystal Lake office
property for $1.9 million and 7
Giralda Farms for $29 million, using
the net proceeds of the sales to fully retire the outstanding
balance on the Company's term loan.
In October 2021, the Company
completed the disposal of 4 Gatehall Drive for $25.3 million, using the net proceeds of the sale
to paydown the corporate debt.
BALANCE SHEET/CAPITAL MARKETS
As at September 30, 2021, the
Company had a debt-to-undepreciated assets ratio of 46.3% compared
to 48.4% at December 31, 2020 and 49.8% at September 30, 2020.
Net debt to Adjusted EBITDA for the quarter ended
September 30, 2021 was 15.2x compared to 12.1x for the
quarter ended September 30, 2020. The Company's interest
coverage ratio was 2.5x for the quarter ended September 30, 2021, compared to 2.7x for the
quarter ended September 30, 2020.
On October 27, 2021, following the
successful lease-up of The Upton in Short
Hills, the Company closed on the refinancing of the
$62 million construction loan with a
5-year $75 million floating-rate
facility at an interest margin of 1.4% over 1-month LIBOR. The
Company simultaneously purchased a 3-year LIBOR cap at a strike
rate of 1.0%.
CONFERENCE CALL/SUPPLEMENTAL INFORMATION
An earnings conference call with management is scheduled for
November 4, 2021 at 8:30 a.m. Eastern Time, which will be broadcast
live via the Internet at:
https://edge.media-server.com/mmc/p/wggqebkt.
The live conference call is also accessible by calling (323)
794-2598 and requesting the Mack-Cali earnings conference call or passcode
5487368.
The conference call will be rebroadcast on Mack-Cali's website at
http://investors.mack-cali.com/corporate-overview beginning at
10:30 a.m. Eastern Time on
November 4, 2021.
A replay of the call will also be accessible November 4, 2021 through November 11, 2021 by calling (719) 457-0820 and
using the pass code, 5487368.
Copies of Mack-Cali's third
quarter 2021 Form 10-Q and Supplemental Operating and Financial
Data are available on Mack-Cali's
website, as follows:
Third Quarter 2021 Form 10-Q:
http://investors.mack-cali.com/sec-filings
Third Quarter 2021 Supplemental Operating and Financial
Data:
http://investors.mack-cali.com/quarterly-supplementals
In addition, once filed, these items will be available upon
request from:
Mack-Cali Investor Relations Department
Harborside 3, 210 Hudson St., Ste. 400, Jersey City, New Jersey 07311
NON-GAAP FINANCIAL MEASURES
Included in this press release are Funds from Operations, or
FFO, Core Funds from Operations, or Core FFO, net operating income,
or NOI and Adjusted Earnings Before Interest, Taxes, Depreciation,
and Amortization, or Adjusted EBITDA, each a "non-GAAP financial
measure", measuring Mack-Cali's
historical or future financial performance that is different from
measures calculated and presented in accordance with generally
accepted accounting principles ("U.S. GAAP"), within the meaning of
the applicable Securities and Exchange Commission rules.
Mack-Cali believes these metrics
can be a useful measure of its performance which is further defined
below.
For reconciliation of FFO and Core FFO to Net Income (Loss),
please refer to the following pages. For reconciliation of NOI, and
Adjusted EBITDA to Net Income (Loss), please refer to the Company's
disclosure in the Quarterly Financial and Operating Data package
for the third quarter 2021.
FFO
FFO is defined as net income (loss) before
noncontrolling interests in Operating Partnership, computed in
accordance with U.S. 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
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.
NOI and Same Store NOI
NOI represents total
revenues less total operating expenses, as reconciled to net income
above. The Company considers NOI to be a meaningful non-GAAP
financial measure for making decisions and assessing unlevered
performance of its property types and markets, as it relates to
total return on assets, as opposed to levered return on equity. As
properties are considered for sale and acquisition based on NOI
estimates and projections, the Company utilizes this measure to
make investment decisions, as well as compare the performance of
its assets to those of its peers. NOI should not be considered a
substitute for net income, and the Company's use of NOI may not be
comparable to similarly titled measures used by other companies.
The Company calculates NOI before any allocations to noncontrolling
interests, as those interests do not effect the overall performance
of the individual assets being measured and assessed.
Same Store NOI is presented for the same store portfolio, which
comprises all properties that were owned by the Company throughout
both of the reporting periods.
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 multifamily and premier office properties in select
waterfront and transit-oriented markets throughout New Jersey.
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 over
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.
Additional information on Mack-Cali Realty Corporation and the
commercial real estate properties and multifamily residential
communities available for lease can be found on the Company's
website at 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 certain risks, trends 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 and are advised to consider the factors
listed above together with the additional factors under the heading
"Disclosure Regarding Forward-Looking Statements" and "Risk
Factors" in the Company's Annual Report on Form 10-K, as may be
supplemented or amended by the Company's Quarterly Reports on Form
10-Q, which are incorporated herein by reference. The Company
assumes no obligation to update or supplement forward-looking
statements that become untrue because of subsequent events, new
information or otherwise, except as required under applicable
law.
In addition, the extent to which the ongoing COVID-19 pandemic
impacts us and our tenants will depend on future developments,
which are highly uncertain and cannot be predicted with confidence,
including the scope, severity and duration of the pandemic, the
actions taken to contain the pandemic or mitigate its impact, and
the direct and indirect economic effects of the pandemic and
containment measures, among others.
Investor Contact:
Amanda
Klein/Grace Cartwright
Gasthalter & Co.
212-257-4170
Mack-Cali@gasthalter.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
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
Revenue from
leases
|
$
|
72,243
|
|
$
|
67,396
|
|
$
|
206,950
|
|
$
|
205,732
|
Real estate
services
|
|
2,628
|
|
|
2,876
|
|
|
7,748
|
|
|
8,624
|
Parking
income
|
|
3,950
|
|
|
4,033
|
|
|
10,520
|
|
|
12,332
|
Hotel
income
|
|
3,018
|
|
|
893
|
|
|
6,785
|
|
|
3,290
|
Other
income
|
|
1,905
|
|
|
3,999
|
|
|
9,081
|
|
|
7,021
|
Total revenues
|
|
83,744
|
|
|
79,197
|
|
|
241,084
|
|
|
236,999
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
Real estate
taxes
|
|
11,905
|
|
|
11,004
|
|
|
35,958
|
|
|
32,920
|
Utilities
|
|
3,573
|
|
|
3,598
|
|
|
10,816
|
|
|
10,564
|
Operating
services
|
|
17,291
|
|
|
19,116
|
|
|
51,831
|
|
|
51,179
|
Real estate services
expenses
|
|
3,307
|
|
|
3,299
|
|
|
9,838
|
|
|
10,107
|
General and
administrative
|
|
11,292
|
|
|
26,361
|
|
|
43,347
|
|
|
59,423
|
Dead deal and
transaction-related costs
|
|
3,671
|
|
|
2,583
|
|
|
6,416
|
|
|
2,583
|
Depreciation and
amortization
|
|
29,344
|
|
|
31,769
|
|
|
86,410
|
|
|
93,104
|
Property
impairments
|
|
-
|
|
|
36,582
|
|
|
6,041
|
|
|
36,582
|
Land and other
impairments
|
|
3,401
|
|
|
1,292
|
|
|
11,333
|
|
|
23,401
|
Total expenses
|
|
83,784
|
|
|
135,604
|
|
|
261,990
|
|
|
319,863
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER (EXPENSE)
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(15,200)
|
|
|
(20,265)
|
|
|
(49,364)
|
|
|
(61,794)
|
Interest and other
investment income (loss)
|
|
(4,731)
|
|
|
3
|
|
|
(4,620)
|
|
|
42
|
Equity in earnings
(loss) of unconsolidated joint ventures
|
|
(1,724)
|
|
|
1,373
|
|
|
(2,831)
|
|
|
(281)
|
Realized gains
(losses) and unrealized gains (losses) on disposition of
rental property, net
|
|
(3,000)
|
|
|
-
|
|
|
521
|
|
|
(7,915)
|
Gain on disposition
of developable land
|
|
-
|
|
|
-
|
|
|
111
|
|
|
4,813
|
Gain (loss) on sale
of unconsolidated joint ventures
|
|
(1,886)
|
|
|
-
|
|
|
(1,886)
|
|
|
-
|
Loss from
extinguishment of debt, net
|
|
-
|
|
|
-
|
|
|
(46,735)
|
|
|
-
|
Total other income (expense)
|
|
(26,541)
|
|
|
(18,889)
|
|
|
(104,804)
|
|
|
(65,135)
|
Income (loss) from
continuing operations
|
|
(26,581)
|
|
|
(75,296)
|
|
|
(125,710)
|
|
|
(147,999)
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
|
|
|
|
Income from
discontinued operations
|
|
180
|
|
|
18,403
|
|
|
13,939
|
|
|
60,004
|
Realized gains
(losses) and unrealized gains (losses) on disposition of
rental property and impairments, net
|
|
609
|
|
|
15,775
|
|
|
25,469
|
|
|
(23,901)
|
Total discontinued
operations, net
|
|
789
|
|
|
34,178
|
|
|
39,408
|
|
|
36,103
|
Net income
(loss)
|
|
(25,792)
|
|
|
(41,118)
|
|
|
(86,302)
|
|
|
(111,896)
|
Noncontrolling
interests in consolidated joint ventures
|
|
1,137
|
|
|
895
|
|
|
3,670
|
|
|
1,900
|
Noncontrolling
interest in Operating Partnership of income from continuing
operations
|
|
2,884
|
|
|
7,769
|
|
|
12,858
|
|
|
15,859
|
Noncontrolling
interests in Operating Partnership in discontinued
operations
|
|
(72)
|
|
|
(3,283)
|
|
|
(3,583)
|
|
|
(3,469)
|
Redeemable
noncontrolling interests
|
|
(6,471)
|
|
|
(6,471)
|
|
|
(19,413)
|
|
|
(19,413)
|
Net income (loss)
available to common shareholders
|
$
|
(28,314)
|
|
$
|
(42,208)
|
|
$
|
(92,770)
|
|
$
|
(117,019)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
$
|
(0.34)
|
|
$
|
(0.83)
|
|
$
|
(1.47)
|
|
$
|
(1.73)
|
Discontinued
operations
|
|
0.01
|
|
|
0.34
|
|
|
0.39
|
|
|
0.36
|
Net income (loss)
available to common shareholders
|
$
|
(0.33)
|
|
$
|
(0.49)
|
|
$
|
(1.08)
|
|
$
|
(1.37)
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per common share:
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
$
|
(0.34)
|
|
$
|
(0.83)
|
|
$
|
(1.47)
|
|
$
|
(1.73)
|
Discontinued
operations
|
|
0.01
|
|
|
0.34
|
|
|
0.39
|
|
|
0.36
|
Net income (loss)
available to common shareholders
|
$
|
(0.33)
|
|
$
|
(0.49)
|
|
$
|
(1.08)
|
|
$
|
(1.37)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
|
90,941
|
|
|
90,671
|
|
|
90,803
|
|
|
90,639
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
99,975
|
|
|
100,307
|
|
|
99,870
|
|
|
100,235
|
Mack-Cali Realty
Corporation
|
Statements of
Funds from Operations and Core FFO
|
(in thousands,
except per share/unit amounts) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Nine Months
Ended
|
|
September
30,
|
September
30,
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
Net income (loss)
available to common shareholders
|
$
|
(28,314)
|
|
$
|
(42,208)
|
|
$
|
(92,770)
|
|
$
|
(117,019)
|
Add (deduct):
Noncontrolling interests in Operating Partnership
|
|
(2,884)
|
|
|
(7,769)
|
|
|
(12,858)
|
|
|
(15,859)
|
Noncontrolling
interests in discontinued operations
|
|
72
|
|
|
3,283
|
|
|
3,583
|
|
|
3,469
|
Real estate-related
depreciation and amortization on continuing operations
(a)
|
|
31,624
|
|
|
34,764
|
|
|
92,842
|
|
|
101,856
|
Real estate-related
depreciation and amortization on discontinued operations
|
|
53
|
|
|
1,267
|
|
|
965
|
|
|
3,974
|
Property Impairments
on continuing operations
|
|
-
|
|
|
36,582
|
|
|
-
|
|
|
36,582
|
Property Impairments
on discontinued operations
|
|
-
|
|
|
-
|
|
|
6,041
|
|
|
-
|
Impairment of
unconsolidated joint venture investment
|
|
-
|
|
|
-
|
|
|
(2)
|
|
|
-
|
Gain on sale from
unconsolidated joint ventures
|
|
1,886
|
|
|
-
|
|
|
1,886
|
|
|
-
|
Continuing
operations: Realized (gains) losses and unrealized
(gains)
losses on disposition of rental property, net
|
|
3,000
|
|
|
-
|
|
|
(521)
|
|
|
7,915
|
Discontinued
operations: Realized (gains) losses and unrealized (gains)
losses on disposition of rental property, net
|
|
(609)
|
|
|
(15,775)
|
|
|
(25,469)
|
|
|
23,901
|
Funds from
operations (b)
|
$
|
4,828
|
|
$
|
10,144
|
|
$
|
(26,303)
|
|
$
|
44,819
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
(Gain) loss from
early extinguishment of debt, net
|
|
-
|
|
|
-
|
|
|
46,735
|
|
|
-
|
Dead deal and post
sales items in Other Income
|
|
-
|
|
|
-
|
|
|
(3,068)
|
|
|
-
|
Dead deal and
transaction-related costs
|
|
3,671
|
|
|
2,583
|
|
|
6,416
|
|
|
2,860
|
Land and other
impairments
|
|
3,401
|
|
|
1,292
|
|
|
11,333
|
|
|
23,401
|
Loan receivable loss
allowance
|
|
5,152
|
|
|
-
|
|
|
5,152
|
|
|
-
|
(Gain) on disposition
of developable land
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(4,813)
|
CEO and related
management change costs
|
|
-
|
|
|
-
|
|
|
2,089
|
|
|
-
|
Severance/separation
costs on management restructuring
|
|
438
|
|
|
8,900
|
|
|
8,696
|
|
|
11,738
|
Reporting system
conversion costs
|
|
-
|
|
|
-
|
|
|
-
|
|
|
363
|
Proxy fight
costs
|
|
-
|
|
|
6,954
|
|
|
-
|
|
|
12,770
|
Core
FFO
|
$
|
17,490
|
|
$
|
29,873
|
|
$
|
51,050
|
|
$
|
91,138
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares/units outstanding (c)
|
|
99,975
|
|
|
100,307
|
|
|
99,870
|
|
|
100,235
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations
per share/unit-diluted
|
$
|
0.05
|
|
$
|
0.10
|
|
$
|
(0.26)
|
|
$
|
0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
Core funds from
operations per share/unit diluted
|
$
|
0.17
|
|
$
|
0.30
|
|
$
|
0.51
|
|
$
|
0.91
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
0.40
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Information:
|
|
|
|
|
|
|
|
|
|
|
|
Non-incremental
revenue generating capital expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
Building
improvements
|
$
|
(5,651)
|
|
$
|
(2,975)
|
|
$
|
(11,006)
|
|
$
|
(7,325)
|
Tenant improvements &
leasing commissions (d)
|
$
|
(1,136)
|
|
$
|
(4,057)
|
|
$
|
(2,408)
|
|
$
|
(15,052)
|
Tenant improvements
& leasing commissions on space vacant for more than a
year
|
$
|
(5,479)
|
|
$
|
(1,627)
|
|
$
|
(14,635)
|
|
$
|
(10,652)
|
Straight-line rent
adjustments (e)
|
$
|
(4,316)
|
|
$
|
(467)
|
|
$
|
(7,850)
|
|
$
|
(1,744)
|
Amortization of
(above)/below market lease intangibles, net (f)
|
$
|
(536)
|
|
$
|
(858)
|
|
$
|
(2,187)
|
|
$
|
(2,661)
|
Amortization of stock
compensation
|
$
|
2,784
|
|
$
|
799
|
|
$
|
7,994
|
|
$
|
5,907
|
Amortization of lease
inducements
|
$
|
(18)
|
|
$
|
(40)
|
|
$
|
(27)
|
|
$
|
76
|
Non real estate
depreciation and amortization
|
$
|
325
|
|
$
|
336
|
|
$
|
979
|
|
$
|
1,268
|
Amortization of
deferred financing costs
|
$
|
1,179
|
|
$
|
1,074
|
|
$
|
3,369
|
|
$
|
3,158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes the
Company's share from unconsolidated joint ventures, and adjustments
for noncontrolling interests, of $2,605 and $3,331 for the three
months ended September 30, 2021 and 2020, respectively, and $7,413
and $10,020 for the nine months ended September 30, 2021 and 2020,
respectively. Excludes non-real estate-related depreciation
and amortization of $325 and $336 for the three months ended
September 30, 2021 and 2020, respectively, and $979 and $1,268 for
the nine months ended September 30, 2020 and 2021,
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 (8,758 and
9,411 shares for the three months ended September 30, 2021 and
2020, respectively, and 8,708 and 9,397 for the nine months ended
September 30, 2021 and 2020, 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
$6,642 and $3,930 for the three months ended September 30, 2021 and
2020, respectively, and $14,831 and $10,187 for the nine months
ended September 30, 2021 and 2020, respectively. Also, includes the
Company's share from unconsolidated joint ventures of $687 and $52
for the three months ended September 30, 2021 and 2020,
respectively, and $821 and $69 for the nine months ended September
30, 2021 and 2020, respectively.
|
(f)
|
Includes the
Company's share from unconsolidated joint ventures of $0 and $0 for
the three months ended September 30, 2021 and 2020, respectively,
and $0 and $0 for the nine months ended September 30, 2021 and
2020, respectively.
|
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,
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
Net income (loss)
available to common shareholders
|
$
|
(0.33)
|
|
$
|
(0.49)
|
|
$
|
(1.08)
|
|
$
|
(1.37)
|
Add (deduct): Real
estate-related depreciation and amortization on continuing
operations (a)
|
|
0.32
|
|
|
0.35
|
|
|
0.93
|
|
|
1.02
|
Real estate-related
depreciation and amortization on discontinued
operations
|
|
-
|
|
|
0.01
|
|
|
0.01
|
|
|
0.04
|
Redemption value
adjustment to redeemable noncontrolling interests
|
|
0.02
|
|
|
0.02
|
|
|
0.05
|
|
|
0.08
|
Property impairments
on continuing operations
|
|
-
|
|
|
0.36
|
|
|
-
|
|
|
0.36
|
Property Impairments
on discontinued operations
|
|
-
|
|
|
-
|
|
|
0.06
|
|
|
-
|
Gain on sale from
unconsolidated joint ventures
|
|
0.02
|
|
|
-
|
|
|
0.02
|
|
|
-
|
Continuing
operations: Realized (gains) losses and unrealized (gains)
losses
on disposition of rental property, net
|
|
0.03
|
|
|
-
|
|
|
(0.01)
|
|
|
0.08
|
Discontinued
operations: Realized (gains) losses and unrealized (gains)
losses
on disposition of rental property, net
|
|
(0.01)
|
|
|
(0.16)
|
|
|
(0.26)
|
|
|
0.24
|
Noncontrolling
interest/rounding adjustment
|
|
-
|
|
|
0.01
|
|
|
0.02
|
|
|
-
|
Funds from
operations (b)
|
$
|
0.05
|
|
$
|
0.10
|
|
$
|
(0.26)
|
|
$
|
0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
(Gain) loss on
extinguishment of debt
|
|
-
|
|
|
-
|
|
|
0.47
|
|
|
-
|
Land and other
impairments
|
|
0.03
|
|
|
0.01
|
|
|
0.11
|
|
|
0.23
|
Dead deal and
transaction-related costs
|
|
0.04
|
|
|
0.03
|
|
|
0.06
|
|
|
0.03
|
Loan receivable loss
allowance
|
|
0.05
|
|
|
-
|
|
|
0.05
|
|
|
-
|
(Gain) on disposition
of developable land
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(0.05)
|
Severance/separation
costs on management restructuring
|
|
-
|
|
|
0.09
|
|
|
0.09
|
|
|
0.12
|
CEO and related
management change costs
|
|
-
|
|
|
-
|
|
|
0.02
|
|
|
-
|
Proxy fight
costs
|
|
-
|
|
|
0.07
|
|
|
-
|
|
|
0.13
|
Dead deal and post
sales items in Other Income
|
|
-
|
|
|
-
|
|
|
(0.03)
|
|
|
-
|
Noncontrolling
interest/rounding adjustment
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Core
FFO
|
$
|
0.17
|
|
$
|
0.30
|
|
$
|
0.51
|
|
$
|
0.91
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares/units outstanding (c)
|
|
99,975
|
|
|
100,307
|
|
|
99,870
|
|
|
100,235
|
|
|
(a)
|
Includes the
Company's share from unconsolidated joint ventures of $0.03 and
$0.04 for the three months ended September 30, 2021 and 2020,
respectively, and $0.09 and $0.12 for the nine months ended
September 30, 2020 and 2021, 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 (8,758 and
9,411 shares for the three months ended September 30, 2021 and
2020, respectively, and 8,708 and 9,397 for the nine months ended
September 30, 2021 and 2020, 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
|
2021
|
|
2020
|
Rental
property
|
|
|
|
|
|
Land and
leasehold interests
|
$
|
571,672
|
|
$
|
639,636
|
Buildings and
improvements
|
|
3,424,804
|
|
|
3,743,831
|
Tenant
improvements
|
|
105,531
|
|
|
171,623
|
Furniture,
fixtures and equipment
|
|
96,968
|
|
|
83,553
|
|
|
4,198,975
|
|
|
4,638,643
|
Less – accumulated
depreciation and amortization
|
|
(561,240)
|
|
|
(656,331)
|
|
|
3,637,735
|
|
|
3,982,312
|
Rental property held
for sale, net
|
|
497,832
|
|
|
656,963
|
Net investment in
rental property
|
|
4,135,567
|
|
|
4,639,275
|
Cash and cash
equivalents
|
|
23,308
|
|
|
38,096
|
Restricted
cash
|
|
19,809
|
|
|
14,207
|
Investments in
unconsolidated joint ventures
|
|
148,507
|
|
|
162,382
|
Unbilled rents
receivable, net
|
|
72,951
|
|
|
84,907
|
Deferred charges,
goodwill and other assets, net
|
|
163,183
|
|
|
199,541
|
Accounts
receivable
|
|
3,842
|
|
|
9,378
|
|
|
|
|
|
|
Total
assets
|
$
|
4,567,167
|
|
$
|
5,147,786
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Senior unsecured
notes, net
|
$
|
-
|
|
$
|
572,653
|
Revolving credit
facility and term loans
|
|
174,000
|
|
|
25,000
|
Mortgages, loans
payable and other obligations, net
|
|
2,200,947
|
|
|
2,204,144
|
Dividends and
distributions payable
|
|
385
|
|
|
1,493
|
Accounts payable,
accrued expenses and other liabilities
|
|
160,397
|
|
|
194,717
|
Rents received in
advance and security deposits
|
|
27,938
|
|
|
34,101
|
Accrued interest
payable
|
|
5,739
|
|
|
10,001
|
Total
liabilities
|
|
2,569,406
|
|
|
3,042,109
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
518,689
|
|
|
513,297
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Mack-Cali Realty
Corporation stockholders' equity:
|
|
|
|
|
|
Common stock, $0.01
par value, 190,000,000 shares authorized, 90,947,387 and
90,712,417 shares outstanding
|
|
909
|
|
|
907
|
Additional paid-in
capital
|
|
2,530,163
|
|
|
2,528,187
|
Dividends in excess
of net earnings
|
|
(1,223,047)
|
|
|
(1,130,277)
|
Total
Mack-Cali Realty Corporation stockholders' equity
|
|
1,308,025
|
|
|
1,398,817
|
|
|
|
|
|
|
Noncontrolling
interests in subsidiaries:
|
|
|
|
|
|
Operating
Partnership
|
|
129,748
|
|
|
148,791
|
Consolidated joint
ventures
|
|
41,299
|
|
|
44,772
|
Total noncontrolling
interests in subsidiaries
|
|
171,047
|
|
|
193,563
|
|
|
|
|
|
|
Total
equity
|
|
1,479,072
|
|
|
1,592,380
|
|
|
|
|
|
|
Total liabilities
and equity
|
$
|
4,567,167
|
|
$
|
5,147,786
|
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SOURCE Mack-Cali Realty Corporation