JERSEY CITY, N.J., July 28, 2021 /PRNewswire/ -- Mack-Cali
Realty Corporation (NYSE: CLI) today reported its results for the
second quarter 2021.
SECOND QUARTER 2021 HIGHLIGHTS
- Net income (loss) of $(0.81) per
share for the second quarter 2021, compared to $(0.41) for the second quarter 2020
- Core Funds from Operations ("Core FFO") per share of
$0.15 for the second quarter 2021,
compared to $0.28 for the second
quarter 2020
- Operating multifamily portfolio was 94.4% occupied as of
July 25, 2021, above pre-pandemic
levels and up from 89.7% as of March 31,
2021, resulting in a 1.4% increase in sequential Same Store
Net Operating Income ("NOI")
- Riverhouse 9, a 295-unit apartment building located in Port
Imperial, NJ opened in May 2021 and
was 59.7% leased as of July 25,
2021
- 51,600 square feet of new office leases and 23,900 square feet
of lease extensions signed during the quarter, contributing to rise
in Waterfront office occupancy to 75.4% as of June 30, 2021 from 74.2% as of March 31, 2021
- Suburban office disposition program substantially completed
following $387 million of disposals
in the quarter, resulting in $226
million of net cash proceeds
- Further strengthened the balance sheet through redemption of
$575 million unsecured corporate
bonds and repayment of the $150
million term loan subsequent to quarter end
- Expected up to $5 million of
annual run-rate cash expense savings from the end of 2021 as a
result of internal reorganization
"We are encouraged by the second quarter leasing activity and
believe the quality of our multifamily portfolio, coupled with the
live, work and play proposition of our office portfolio, makes us
well positioned to continue capturing leasing demand as the economy
reopens," said 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 second
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 June 30, 2021 was
$(72.1) million, or $(0.81) per share, compared to $(34.9) million, or $(0.41) per share, for the quarter ended
June 30, 2020.
FFO for the quarter ended June 30,
2021 was $(47.5) million, or
$(0.48) per share, compared to
$5.0 million, or $0.05 per share, for the quarter ended
June 30, 2020.
For the second quarter 2021, Core FFO was $15.3 million, or $0.15 per share, compared to $28.0 million, or $0.28 per share for the same period last year,
primarily due to the impacts of the pandemic on our hotel and
multifamily operations and the suburban asset disposals.
PORTFOLIO HIGHLIGHTS
As of June 30, 2021,
Mack-Cali's real estate portfolio
comprised of 5.3 million square feet of office space and 5,825
operating multifamily units.
Office Activity
As of June 30,
2021, the Company's consolidated office portfolio comprised
of nine operational properties across 5.3 million rentable square
feet and was 74.7% leased, up from 74.2% as of March 31, 2021, but below 80.3% as of
June 30, 2020. The Company executed
88,600 square feet of new leases or lease renewals/extensions
during the second quarter 2021.
The Waterfront office portfolio was 75.4% leased, up from 74.2%
as of March 31, 2021, reflecting
75,500 square feet of leases signed during the quarter, including
51,600 square feet of new leases.
For the office portfolio, second quarter 2021 Same Store
year-over-year revenue and NOI increased by 3.6% and 2.5%,
respectively, due to straight line rent adjustments in the current
and prior periods.
Multifamily Activity
The Company's multifamily
operating portfolio comprised of 5,825 units and was 94.4% occupied
as of July 25, 2021, up from 89.7% as
of March 31, 2021 and above
pre-pandemic occupancy.
The multifamily Same Store year-over-year NOI decreased by
12.7%, reflecting a 4.6% drop in revenues due to the lag between
leasing and occupancy at the beginning of the second quarter and an
8.5% increase in operating expenses mainly from higher maintenance
and marketing expenses.
The multifamily Same Store sequential quarter-over-quarter NOI
increased by 1.4%, driven primarily by a 1.5% rise in revenues.
During the quarter, the Company received its share of proceeds
from the sale of its URBY tax credit totaling $2.6 million, which was included in the Core
FFO.
TRANSACTION AND DEVELOPMENT ACTIVITY
Suburban New Jersey Office Dispositions
During the
second quarter 2021, the Company disposed $387 million (1.8 million square feet) of
suburban office assets.
- Short Hills, an 828,413 square
foot NJ office portfolio, sold for $255
million on April 20, 2021
- 50% interest in 12 Vreeland, a 139,750 square foot office
building in Florham Park, NJ, sold
for $2 million on April 29, 2021
- River Center, a 659,490 square foot office portfolio in
Red Bank, NJ sold for $84 million on June 11,
2021
- Retail Center in Hanover, NJ
comprising 151,500 square feet, sold for $46
million on June 30, 2021
In July 2021, the Company
completed the disposal of 7 Giralda Farms for $29 million, using the net proceeds of the sale
to fully retire the outstanding balance on the Company's term
loan.
Multifamily Development Activity
The Company commenced
lease-up of three buildings in 2021:
- The Capstone at Port Imperial, NJ comprising 360 units, was
launched in the first quarter 2021 and was 70.3% leased as of
July 25, 2021
- The Upton in Short Hills, NJ
comprising 193 units, was launched in the first quarter 2021 and
was 93.8% leased as of July 25,
2021
- Riverhouse 9 at Port Imperial, NJ comprising 313 units, was
launched in May 2021 and was 59.7%
leased as of July 25, 2021
At quarter end, 1,616 residential units were under construction
across four projects, including 866 units in the above
mentioned projects.
OPERATIONAL EFFICIENCIES
Management has implemented cost saving initiatives that are
expected to result in up to $5
million run-rate annual cash expense savings from the end of
2021, related primarily to a streamlined operational structure and
reduction of corporate costs.
BALANCE SHEET/CAPITAL MARKETS
As at June 30, 2021, the Company
had a debt-to-undepreciated assets ratio of 44.6% compared to 48.4%
at December 31, 2020 and 50.2% at June 30, 2020.
Net debt to Adjusted EBITDA for the quarter ended
June 30, 2021 was 15.1x compared to 13.0x for the quarter
ended June 30, 2020. The Company's interest coverage ratio was
2.3x for the quarter ended June 30,
2021, compared to 2.6x for the quarter ended
June 30, 2020.
On May 6, 2021, the Company
entered into a new $250 million
secured revolving credit facility and a $150
million secured term loan, which has now been fully retired.
Simultaneously, the Company fully satisfied its unsecured corporate
bonds.
CONFERENCE CALL/SUPPLEMENTAL INFORMATION
An earnings conference call with management is scheduled for
July 29, 2021 at 8:30 a.m. Eastern Time, which will be broadcast
live via the Internet at:
https://edge.media-server.com/mmc/p/j8qebjfp.
The live conference call is also accessible by calling (323)
794-2588 and requesting the Mack-Cali earnings conference call or passcode
3389870.
The conference call will be rebroadcast on Mack-Cali's website at
http://investors.mack-cali.com/corporate-overview beginning at
10:00 a.m. Eastern Time on
July 29, 2021.
A replay of the call will also be accessible July 29, 2021 through August 5, 2021 by calling (719) 457-0820 and
using the pass code, 3389870.
Copies of Mack-Cali's second
quarter 2021 Form 10-Q and Supplemental Operating and Financial
Data are available on Mack-Cali's
website, as follows:
Second Quarter 2021 Form 10-Q:
http://investors.mack-cali.com/sec-filings
Second 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 second 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 premier office and multifamily 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
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
REVENUES
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
Revenue from
leases
|
$
|
68,936
|
|
$
|
66,357
|
|
$
|
134,707
|
|
$
|
138,336
|
Real estate
services
|
|
2,593
|
|
|
2,755
|
|
|
5,120
|
|
|
5,748
|
Parking
income
|
|
3,484
|
|
|
3,034
|
|
|
6,570
|
|
|
8,299
|
Hotel
income
|
|
2,714
|
|
|
772
|
|
|
3,767
|
|
|
2,397
|
Other
income
|
|
3,520
|
|
|
1,279
|
|
|
7,176
|
|
|
3,021
|
Total revenues
|
|
81,247
|
|
|
74,197
|
|
|
157,340
|
|
|
157,801
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
Real estate
taxes
|
|
12,222
|
|
|
10,777
|
|
|
24,053
|
|
|
21,917
|
Utilities
|
|
3,151
|
|
|
3,113
|
|
|
7,243
|
|
|
6,966
|
Operating
services
|
|
19,090
|
|
|
15,842
|
|
|
34,540
|
|
|
32,063
|
Real estate services
expenses
|
|
3,213
|
|
|
3,085
|
|
|
6,531
|
|
|
6,807
|
General and
administrative
|
|
18,067
|
|
|
16,966
|
|
|
32,056
|
|
|
32,784
|
Dead deal and
transaction-related costs
|
|
2,745
|
|
|
277
|
|
|
2,745
|
|
|
277
|
Depreciation and
amortization
|
|
28,893
|
|
|
27,440
|
|
|
57,066
|
|
|
61,335
|
Property
impairments
|
|
6,041
|
|
|
-
|
|
|
6,041
|
|
|
-
|
Land and other
impairments
|
|
7,519
|
|
|
16,846
|
|
|
7,932
|
|
|
22,109
|
Total expenses
|
|
100,941
|
|
|
94,346
|
|
|
178,207
|
|
|
184,258
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER (EXPENSE)
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(16,554)
|
|
|
(20,611)
|
|
|
(34,164)
|
|
|
(41,529)
|
Interest and other
investment income (loss)
|
|
95
|
|
|
7
|
|
|
112
|
|
|
39
|
Equity in earnings
(loss) of unconsolidated joint ventures
|
|
349
|
|
|
(946)
|
|
|
(1,107)
|
|
|
(1,654)
|
Realized gains
(losses) and unrealized gains (losses) on disposition of
rental property, net
|
|
3,521
|
|
|
-
|
|
|
3,521
|
|
|
(7,915)
|
Gain (loss) on
disposition of developable land
|
|
111
|
|
|
-
|
|
|
111
|
|
|
4,813
|
Loss from
extinguishment of debt, net
|
|
(46,735)
|
|
|
-
|
|
|
(46,735)
|
|
|
-
|
Total other income (expense)
|
|
(59,213)
|
|
|
(21,550)
|
|
|
(78,262)
|
|
|
(46,246)
|
Income (loss) from
continuing operations
|
|
(78,907)
|
|
|
(41,699)
|
|
|
(99,129)
|
|
|
(72,703)
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
|
|
|
|
Income from
discontinued operations
|
|
2,796
|
|
|
20,694
|
|
|
13,758
|
|
|
41,600
|
Realized gains
(losses) and unrealized gains (losses) on disposition of rental property and impairments,
net
|
|
2,080
|
|
|
(11,929)
|
|
|
24,861
|
|
|
(39,675)
|
Total discontinued
operations, net
|
|
4,876
|
|
|
8,765
|
|
|
38,619
|
|
|
1,925
|
Net income
(loss)
|
|
(74,031)
|
|
|
(32,934)
|
|
|
(60,510)
|
|
|
(70,778)
|
Noncontrolling
interests in consolidated joint ventures
|
|
1,198
|
|
|
829
|
|
|
2,533
|
|
|
1,005
|
Noncontrolling
interest in Operating Partnership of income from continuing operations
|
|
7,669
|
|
|
4,527
|
|
|
9,974
|
|
|
8,089
|
Noncontrolling
interests in Operating Partnership in discontinued
operations
|
|
(444)
|
|
|
(838)
|
|
|
(3,511)
|
|
|
(185)
|
Redeemable
noncontrolling interests
|
|
(6,471)
|
|
|
(6,471)
|
|
|
(12,942)
|
|
|
(12,942)
|
Net income (loss)
available to common shareholders
|
$
|
(72,079)
|
|
$
|
(34,887)
|
|
$
|
(64,456)
|
|
$
|
(74,811)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
$
|
(0.86)
|
|
$
|
(0.50)
|
|
$
|
(1.13)
|
|
|
(0.90)
|
Discontinued
operations
|
|
0.05
|
|
|
0.09
|
|
|
0.38
|
|
|
0.02
|
Net income (loss)
available to common shareholders
|
$
|
(0.81)
|
|
$
|
(0.41)
|
|
$
|
(0.75)
|
|
$
|
(0.88)
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per common share:
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
$
|
(0.86)
|
|
$
|
(0.50)
|
|
$
|
(1.13)
|
|
$
|
(0.90)
|
Discontinued
operations
|
|
0.05
|
|
|
0.09
|
|
|
0.38
|
|
|
0.02
|
Net income (loss)
available to common shareholders
|
$
|
(0.81)
|
|
$
|
(0.41)
|
|
$
|
(0.75)
|
|
$
|
(0.88)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
|
90,774
|
|
|
90,629
|
|
|
90,733
|
|
|
90,622
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
99,873
|
|
|
100,213
|
|
|
99,817
|
|
|
100,198
|
Mack-Cali Realty
Corporation
|
Statements of
Funds from Operations and Core FFO
|
(in thousands,
except per share/unit amounts) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Six Months
Ended
|
|
June
30,
|
June
30,
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
Net income (loss)
available to common shareholders
|
$
|
(72,079)
|
|
$
|
(34,887)
|
|
$
|
(64,456)
|
|
$
|
(74,811)
|
Add (deduct):
Noncontrolling interests in Operating Partnership
|
|
(7,669)
|
|
|
(4,527)
|
|
|
(9,974)
|
|
|
(8,089)
|
Noncontrolling
interests in discontinued operations
|
|
444
|
|
|
838
|
|
|
3,511
|
|
|
185
|
Real estate-related
depreciation and amortization on
continuing operations (a)
|
|
31,097
|
|
|
30,297
|
|
|
61,219
|
|
|
67,092
|
Real estate-related
depreciation and amortization on
discontinued operations
|
|
252
|
|
|
1,354
|
|
|
911
|
|
|
2,708
|
Property impairments
on continuing operations
|
|
6,041
|
|
|
-
|
|
|
6,041
|
|
|
|
Impairment of
unconsolidated joint venture investment
|
|
(2)
|
|
|
-
|
|
|
(2)
|
|
|
|
Continuing
operations: Realized (gains) losses and unrealized (gains)
losses on disposition of rental
property, net
|
|
(3,521)
|
|
|
-
|
|
|
(3,521)
|
|
|
7,915
|
Discontinued
operations: Realized (gains) losses and unrealized (gains)
losses on disposition of rental
property, net
|
|
(2,080)
|
|
|
11,929
|
|
|
(24,861)
|
|
|
39,675
|
Funds from
operations (b)
|
$
|
(47,517)
|
|
$
|
5,004
|
|
$
|
(31,132)
|
|
$
|
34,675
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
(Gain) loss from
early extinguishment of debt, net
|
|
46,735
|
|
|
-
|
|
|
46,735
|
|
|
-
|
Land and other
impairments
|
|
7,519
|
|
|
16,846
|
|
|
7,932
|
|
|
22,109
|
(Gain) on disposition
of developable land
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(4,813)
|
Dead deal and
transaction-related costs
|
|
2,745
|
|
|
277
|
|
|
2,745
|
|
|
277
|
Severance/separation
costs on management restructuring
|
|
7,213
|
|
|
891
|
|
|
8,258
|
|
|
2,838
|
CEO and related
management change costs
|
|
-
|
|
|
-
|
|
|
2,089
|
|
|
-
|
Reporting systems
conversion costs
|
|
-
|
|
|
-
|
|
|
-
|
|
|
363
|
Proxy fight
costs
|
|
-
|
|
|
5,017
|
|
|
-
|
|
|
5,816
|
Dead deal and post
sales items in Other Income
|
|
(1,351)
|
|
|
-
|
|
|
(3,068)
|
|
|
-
|
Core
FFO
|
$
|
15,344
|
|
$
|
28,035
|
|
$
|
33,559
|
|
$
|
61,265
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares/units outstanding (c)
|
|
99,873
|
|
|
100,213
|
|
|
99,817
|
|
|
100,198
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations
per share/unit-diluted
|
$
|
(0.48)
|
|
$
|
0.05
|
|
$
|
(0.31)
|
|
$
|
0.35
|
|
|
|
|
|
|
|
|
|
|
|
|
Core funds from
operations per share/unit diluted
|
$
|
0.15
|
|
$
|
0.28
|
|
$
|
0.34
|
|
$
|
0.61
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
$
|
-
|
|
$
|
0.20
|
|
$
|
-
|
|
$
|
0.40
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Information:
|
|
|
|
|
|
|
|
|
|
|
|
Non-incremental
revenue generating capital expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
Building
improvements
|
$
|
2,662
|
|
$
|
1,103
|
|
$
|
5,355
|
|
$
|
4,350
|
Tenant improvements &
leasing commissions (d)
|
$
|
502
|
|
$
|
2,897
|
|
$
|
1,272
|
|
$
|
10,990
|
Tenant improvements
& leasing commissions on space
vacant for more than a year
|
$
|
6,354
|
|
$
|
6,068
|
|
$
|
9,156
|
|
$
|
9,026
|
Straight-line rent
adjustments (e)
|
$
|
2,255
|
|
$
|
(855)
|
|
$
|
3,534
|
|
$
|
1,277
|
Amortization of
(above)/below market lease intangibles, net (f)
|
$
|
620
|
|
$
|
857
|
|
$
|
1,652
|
|
$
|
1,803
|
Amortization of stock
compensation
|
$
|
2,609
|
|
$
|
2,496
|
|
$
|
5,210
|
|
$
|
5,108
|
Amortization of lease
inducements
|
$
|
5
|
|
$
|
59
|
|
$
|
(8)
|
|
$
|
116
|
Non real estate
depreciation and amortization
|
$
|
329
|
|
$
|
482
|
|
$
|
654
|
|
$
|
932
|
Amortization of
deferred financing costs
|
$
|
1,283
|
|
$
|
1,060
|
|
$
|
2,190
|
|
$
|
2,084
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes the
Company's share from unconsolidated joint ventures, and adjustments
for noncontrolling interests, of $2,533 and $3,340 for the three
months ended June 30, 2021 and 2020, respectively, and $4,808 and
$6,689 for the six months ended June 30, 2021 and 2020,
respectively. Excludes non-real estate-related depreciation
and amortization of $329 and $482 for the three months ended June
30, 2021 and 2020, respectively, and $654 and $932 for the six
months ended June 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 (8,765 and
9,395 shares for the three months ended June 30, 2021 and 2020,
respectively, and 8,784 and 9,419 for the six months ended June 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
$4,464 and $3,301 for the three months ended June 30, 2021 and
2020, respectively, and $8,189 and $6,257 for the six months ended
June 30, 2021 and 2020, respectively. Also, includes the Company's
share from unconsolidated joint ventures of $46 and $(11) for the
three months ended June 30, 2021 and 2020, respectively, and $134
and $17 for the six months ended June 30, 2021 and 2020,
respectively.
|
(f)
|
Includes the
Company's share from unconsolidated joint ventures of $0 and $0 for
the three months ended June 30, 2021 and 2020, respectively, and $0
and $0 for the six months ended June 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
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
Net income (loss)
available to common shareholders
|
$
|
(0.81)
|
|
$
|
(0.41)
|
|
$
|
(0.75)
|
|
$
|
(0.88)
|
Add (deduct): Real
estate-related depreciation and amortization on continuing operations (a)
|
|
0.31
|
|
|
0.30
|
|
|
0.61
|
|
|
0.67
|
Real estate-related
depreciation and amortization on
discontinued operations
|
|
-
|
|
|
0.01
|
|
|
0.01
|
|
|
0.03
|
Redemption value
adjustment to redeemable noncontrolling interests
|
|
0.02
|
|
|
0.03
|
|
|
0.04
|
|
|
0.06
|
Property impairments
on continuing operations
|
|
0.06
|
|
|
-
|
|
|
0.06
|
|
|
-
|
Continuing
operations: Realized (gains) losses and unrealized (gains)
losses on disposition of rental
property, net
|
|
(0.04)
|
|
|
-
|
|
|
(0.04)
|
|
|
0.08
|
Discontinued
operations: Realized (gains) losses and unrealized (gains)
losses on disposition of rental
property, net
|
|
(0.02)
|
|
|
0.12
|
|
|
(0.25)
|
|
|
0.40
|
Noncontrolling
interest/rounding adjustment
|
|
-
|
|
|
-
|
|
|
0.01
|
|
|
(0.01)
|
Funds from
operations (b)
|
$
|
(0.48)
|
|
$
|
0.05
|
|
$
|
(0.31)
|
|
$
|
0.35
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
(Gain) loss on
extinguishment of debt
|
|
0.47
|
|
|
-
|
|
|
0.47
|
|
|
-
|
Land and other
impairments
|
|
0.08
|
|
|
0.17
|
|
|
0.08
|
|
|
0.22
|
Dead deal and
transaction-related costs
|
|
0.03
|
|
|
-
|
|
|
0.03
|
|
|
-
|
(Gain) on disposition
of developable land
|
|
0.07
|
|
|
-
|
|
|
0.08
|
|
|
(0.05)
|
Severance/separation
costs on management restructuring
|
|
-
|
|
|
0.01
|
|
|
-
|
|
|
0.03
|
CEO and related
management change costs
|
|
-
|
|
|
-
|
|
|
0.02
|
|
|
-
|
Proxy fight
costs
|
|
-
|
|
|
0.05
|
|
|
-
|
|
|
0.06
|
Dead deal and post
sales items in Other Income
|
|
(0.01)
|
|
|
-
|
|
|
(0.03)
|
|
|
-
|
Noncontrolling
interest/rounding adjustment
|
|
(0.01)
|
|
|
-
|
|
|
-
|
|
|
-
|
Core
FFO
|
$
|
0.15
|
|
$
|
0.28
|
|
$
|
0.34
|
|
$
|
0.61
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares/units outstanding (c)
|
|
99,873
|
|
|
100,213
|
|
|
99,817
|
|
|
100,198
|
|
|
(a)
|
Includes the
Company's share from unconsolidated joint ventures of $0.03 and
$0.04 for the three months ended June 30, 2021 and 2020,
respectively, and $0.06 and $0.08 for the six months ended June 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 (8,765 and
9,395 shares for the three months ended June 30, 2021 and 2020,
respectively, and 8,784 and 9,419 for the six months ended June 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)
|
|
|
|
|
|
|
|
|
June
30,
|
|
|
December
31,
|
Assets
|
2021
|
|
2020
|
Rental
property
|
|
|
|
|
|
Land and
leasehold interests
|
$
|
632,292
|
|
$
|
639,636
|
Buildings and
improvements
|
|
3,854,494
|
|
|
3,743,831
|
Tenant
improvements
|
|
166,868
|
|
|
171,623
|
Furniture,
fixtures and equipment
|
|
90,082
|
|
|
83,553
|
|
|
4,743,736
|
|
|
4,638,643
|
Less – accumulated
depreciation and amortization
|
|
(693,868)
|
|
|
(656,331)
|
|
|
4,049,868
|
|
|
3,982,312
|
Rental property held
for sale, net
|
|
84,834
|
|
|
656,963
|
Net investment in
rental property
|
|
4,134,702
|
|
|
4,639,275
|
Cash and cash
equivalents
|
|
37,628
|
|
|
38,096
|
Restricted
cash
|
|
16,147
|
|
|
14,207
|
Investments in
unconsolidated joint ventures
|
|
154,914
|
|
|
162,382
|
Unbilled rents
receivable, net
|
|
70,786
|
|
|
84,907
|
Deferred charges,
goodwill and other assets, net
|
|
173,379
|
|
|
199,541
|
Accounts
receivable
|
|
3,921
|
|
|
9,378
|
|
|
|
|
|
|
Total
assets
|
$
|
4,591,477
|
|
$
|
5,147,786
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Senior unsecured
notes, net
|
$
|
-
|
|
$
|
572,653
|
Revolving credit
facility and term loans
|
|
189,000
|
|
|
25,000
|
Mortgages, loans
payable and other obligations, net
|
|
2,170,284
|
|
|
2,204,144
|
Dividends and
distributions payable
|
|
386
|
|
|
1,493
|
Accounts payable,
accrued expenses and other liabilities
|
|
171,321
|
|
|
194,717
|
Rents received in
advance and security deposits
|
|
27,406
|
|
|
34,101
|
Accrued interest
payable
|
|
5,775
|
|
|
10,001
|
Total
liabilities
|
|
2,564,172
|
|
|
3,042,109
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
516,972
|
|
|
513,297
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Mack-Cali Realty
Corporation stockholders' equity:
|
|
|
|
|
|
Common stock, $0.01
par value, 190,000,000 shares authorized,
|
|
|
|
|
|
90,947,154 and
90,712,417 shares outstanding
|
|
909
|
|
|
907
|
Additional paid-in
capital
|
|
2,529,050
|
|
|
2,528,187
|
Dividends in excess
of net earnings
|
|
(1,194,733)
|
|
|
(1,130,277)
|
Total
Mack-Cali Realty Corporation stockholders' equity
|
|
1,335,226
|
|
|
1,398,817
|
|
|
|
|
|
|
Noncontrolling
interests in subsidiaries:
|
|
|
|
|
|
Operating
Partnership
|
|
132,683
|
|
|
148,791
|
Consolidated joint
ventures
|
|
42,424
|
|
|
44,772
|
Total noncontrolling
interests in subsidiaries
|
|
175,107
|
|
|
193,563
|
|
|
|
|
|
|
Total
equity
|
|
1,510,333
|
|
|
1,592,380
|
|
|
|
|
|
|
Total liabilities
and equity
|
$
|
4,591,477
|
|
$
|
5,147,786
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/mack-cali-realty-corporation-reports-second-quarter-2021-results-301343733.html
SOURCE Mack-Cali Realty Corporation