JERSEY CITY, N.J., Feb. 28, 2017 /PRNewswire/ -- Mack-Cali
Realty Corporation (NYSE: CLI) today reported its results for the
fourth quarter 2016.
Recent highlights include:
- Net income of $0.17 per diluted
share for the quarter;
- Funds from Operations per diluted share of $0.33; with Core Funds from Operations growth of
19.1% to $0.56 for the quarter;
- Increased rental rates by 12.2% on a GAAP basis and 3.5% on a
cash basis at its Core/Waterfront/Flex properties;
- Core/Waterfront/Flex properties were 90.6% leased at quarter
end; a 1.5% improvement over fourth quarter 2015;
- 321,000 square feet leased in fourth quarter;
- Roseland multi-family
subsidiary signed $300 million equity
transaction;
- Completed $745 million in
property sales in 2016 through February
2017;
- Redeemed $135 million of 7.75%
bonds which were due August
2019;
- Declared $0.15 per share
quarterly common stock dividend; and
- Reaffirmed 2017 FFO guidance of $2.25 to
$2.40 per diluted share.
Michael J. DeMarco, president,
commented, "Our strong 2016 results are a reflection of the
progress made on the composition of our portfolio, our operational
efficiencies, and rental strategy. Our portfolio continues to
strengthen as we trim our non-core assets and the markets less
relevant to our strategy. Additionally, the investment by
Rockpoint in our Roseland
subsidiary validates and appropriately values its NAV and
development strategy. We believe we are delivering on our
corporate strategy and that the market will recognize that we are a
dual platform waterfront company with great potential and not a
suburban office company."
FINANCIAL HIGHLIGHTS
* All per share amounts presented below are on a diluted
basis.
Net income available to common shareholders for the quarter
ended December 31, 2016 amounted to
$15.2 million, or $0.17 per share, as compared to a net loss of
$31.7 million, or $0.35 per share, for the quarter ended
December 31, 2015. For the year ended
December 31, 2016, net income
available to common shareholders equaled $117.2 million, or $1.30 per share, as compared to a net loss of
$125.8 million, or $1.41 per share, for full year 2015.
Funds from operations (FFO) for the quarter ended December 31, 2016 amounted to $32.8 million, or $0.33 per share, as compared to $46.9 million, or $0.47 per share, for the quarter ended
December 31, 2015. For the year ended
December 31, 2016, FFO equaled
$205 million, or $2.04 per share, as compared to $188.1 million, or $1.88 per share, for full year 2015.
For the fourth quarter 2016, Core FFO was $0.56 per share after adjusting for certain
items, primarily a $23.7 million loss
from extinguishment of debt. The quarter's Core FFO per share of
$0.56 increased 19.1 percent from the
same quarter last year primarily due to increased base rents in
2016.
OPERATING HIGHLIGHTS
Mack-Cali's consolidated Core, Waterfront and Flex properties
were 90.6 percent leased at December 31,
2016, as compared to 90.3 percent leased at September 30, 2016 and 89.1 percent leased at
December 31, 2015.
For the quarter ended December 31,
2016, the Company executed 55 leases at its consolidated
in-service commercial portfolio totaling 320,605 square feet. Of
these totals, 45 percent were for new leases and 55 percent were
for lease renewals and other tenant retention transactions.
For the year ended December 31, 2016,
the Company executed 273 lease transactions totaling 2,769,608
square feet. Of these totals, 35 percent were for new leases
and 65 percent were for renewals and other tenant retention
transactions. Rental rate roll up for fourth quarter 2016
transactions in the Company's Core, Waterfront and Flex properties
was 3.5 percent on a cash basis and 12.2 percent on a GAAP
basis. Rental rate roll up for all 2016 transactions in the
Company's Core, Waterfront and Flex properties was 10.9 percent on
a cash basis and 20 percent on a GAAP basis.
Mitchell Rudin, Mack Cali's Chief Executive Officer stated,
"Mack-Cali's focus on improved broker relations, building amenities
and operating efficiencies has yielded impressive results. For
example our average tenant size has increased by 15.6%, while our
Waterfront office occupancy and signed average rents have risen by
888 basis points to 94.4% and by 25.0%, respectively. We have an
excellent product offering validated by our customers voting with
their dollars. We are excited by the prospects of improving
on these metrics as our repositioning cap-ex programs move from the
planning stage to completion in the next 12 months."
RECENT TRANSACTIONS
For the fourth quarter 2016 and through year-to-date 2017,
office dispositions totaled $280
million. The Company completed the strategic exit out
of the DC Metro area with the seven-building portfolio sale in
Greenbelt, Maryland, as well as
the exit out of multiple Central New
Jersey office sub-markets including Freehold, Roseland, and Cranford. Additionally,
included in the $280 million, the
Company sold subordinated/minority interests in numerous office
assets held with Keystone Property Group throughout the Tri-State
area.
For full year 2016 and through year-to-date 2017, the Company
disposed of 36 non-strategic and underperforming commercial office
assets totaling approximately five million square feet, and a
220-unit multi-family community, realizing gross proceeds of
approximately $745 million, exceeding
the Company's guidance, with a weighted average cap rate of
approximately 5.5 percent. In the same time period, Mack-Cali
redeployed more than $500 million in
capital to acquire properties that fit the Company's strategic plan
for growth.
The Company continues to build on the 2016 momentum of
dispositions and is trimming the next layer of assets that the
Company now deems to be non-core. It is currently exploring
the potential of up to $450 million
of additional property sales which it anticipates could close by
mid to late 2017. These dispositions include exiting out of
the Moorestown flex portfolio in
Southern New Jersey comprised of
26 buildings totaling approximately 1.3 million square feet and
nine buildings in Northern New
Jersey's Bergen County
submarket totaling 2.2 million square feet.
Through year-to-date February
2017, the Company acquired a three-building office portfolio
comprised of 280,000 square feet in Red
Bank, New Jersey for approximately $27 million. The portfolio is adjacent to
the Company's existing office holdings of 477,000 square feet now
totaling over one million square feet in the Monmouth County, New Jersey market. The
Company also entered into an agreement to purchase a prominent
portfolio including three buildings totaling 575,000 square feet in
Short Hills, New Jersey and three
buildings totaling 525,000 square feet in Madison, New Jersey. With the expected
completion of the acquisition, Mack-Cali will own virtually 100
percent of the class A office market in Short Hills, where the rents are the highest
in the state.
Regarding the multi-family side of the business, the Company
continues to streamline and build on its platform along the
Waterfront, starting with the purchase of the remaining 50 percent
joint venture interest a development site on the Jersey City
Waterfront known as Plaza 8/9 for $57.1
million funded with a combination of $14.2 million cash and the issuance of Preferred
Operating Units. With the ability to accommodate up to 1.2
million square feet of residential or office, this is the most
valuable and prestigious development site in Jersey City. Additionally, an agreement has
been reached to purchase its partners' 85 percent joint venture
interest in Monaco, a 523-unit
multi-family, high-rise community in Jersey City. This
purchase will be completed with the assumption of existing debt,
cash, and the issuance of Preferred Operating Units.
As Mack-Cali announced in detail yesterday, Roseland Residential
Trust ("Roseland"), its
multifamily subsidiary, entered into an investment agreement (the
"Investment Agreement") with affiliates of Rockpoint Group, L.L.C.
("Rockpoint"). The Investment Agreement provides for multiple
equity investments by Rockpoint in the Roseland subsidiary entity up to an aggregate
of $300 million of units of limited
partnership interests in Roseland
(the "Units"). The initial closing under the Investment
Agreement is expected to occur by mid-March
2017 for $150 million of
Units. Additional closings of Units to be issued to Rockpoint
per the Investment Agreement may occur in increments of not less
than $10 million, with the balance of
the full $300 million committed by
March 1, 2019.
Mack-Cali will have a participation right, where prior to
March 1, 2022 and following either
the full investment of $300 million
by Rockpoint or in certain other limited circumstances, Mack-Cali
may purchase up to $200 million of
Units on substantially the same terms as the Rockpoint's
Units. Mack-Cali will control governance of the entity, but
for limited events where Rockpoint consent is required, and will
receive contributed equity value at closing of $1.23 billion. Upon full Rockpoint and
Mack-Cali fundings completed, pro forma ownership of the entity
will be approximately 83 percent for Mack-Cali and 17 percent for
Rockpoint. See RRT NAV Summary - Adjustments Subsequent to
Quarter-End following in this press release.
BALANCE SHEET/CAPITAL MARKETS
As of December 31, 2016, the
Company had a debt-to-undepreciated assets ratio of 41.6 percent.
The Company had an interest coverage ratio of 3.5 times for the
quarter ended December 31, 2016.
In January 2017, the Company
closed on senior unsecured credit facilities totaling $925 million with a group of 13 lenders, with
Wells Fargo Securities, LLC; J.P. Morgan Chase Bank, N.A. and
Merrill Lynch, Pierce, Fenner & Smith Incorporated as joint
lead arrangers and joint bookrunners; and Capital One, National
Association and U.S. Bank National Association as joint lead
arrangers.
The credit facilities are comprised of a renewal and extension
of the Company's existing $600
million unsecured revolving facility and a new $325 million unsecured delayed-draw term loan.
The $600 million credit facility
carries an interest rate equal to LIBOR plus 120 basis points and a
facility fee of 25 basis points. The facility has a term of
four years with two six-month extension options. The new
$325 million delayed-draw term loan
can be drawn over time within 12 months of closing with no
requirement to be drawn in full. The loan carries an interest
rate equal to LIBOR plus 140 basis points and a ticking fee of 25
basis points on any undrawn balance during the first 12 months
after closing. The term loan matures in three years with two
one-year extension options. The interest rate on the
revolving credit facility and new term loan and the facility fee on
the revolving credit facility are subject to adjustment, on a
sliding scale, based upon the Company's unsecured debt ratings, or
at the Company's option, based on a defined leverage ratio.
The credit facilities also contain accordion features providing
for expansion of the facilities up to a total of $1.275 billion.
Also in January 2017, the Company
closed on a $100 million mortgage
loan, secured by Alterra at Overlook Ridge, its 722 unit
multi-family community located in Revere,
MA. The mortgage loan carries a fixed interest rate of 3.75
percent per annum and is interest only for its seven year term.
In December 2016, the Company
redeemed for cash all $135 million
outstanding principal amount of its 7.75 percent Notes due in
August 2019. The Notes were redeemed
on December 29, 2016. The redemption
price for the Notes, including a make-whole premium, was 115.3
percent of the principal amount of the Notes, plus any accrued and
unpaid interest.
Also during the fourth quarter 2016, the Company repaid mortgage
debt on nine assets aggregating $200
million that carried interest rates ranging from 6.3 percent
to 11.3 percent, The Company disposed of two of the assets
and seven became unencumbered.
Pro forma, with the execution of these financing activities, the
Company's $2.4 billion total debt
carries a weighted average interest rate of 3.8 percent.
Additionally, with remaining maturities of up to 12 years, the
weighted average maturity of its indebtedness is now 4.4
years.
DIVIDENDS
In December 2016, the Company's
Board of Directors declared a cash dividend of $0.15 per common share (indicating an annual rate
of $0.60 per common share) for the
fourth quarter 2016, which was paid on January 13, 2017 to shareholders of record as of
January 5, 2017. The Company's Core
FFO dividend payout ratio for the quarter was 26.9 percent.
GUIDANCE/OUTLOOK
The Company expressed comfort with net income and FFO per
diluted share for the full year 2017, as follows:
|
Full
Year
|
|
2017
Range
|
Net income available
to common shareholders
|
$
|
0.30
|
-
|
$
|
0.45
|
Add
(deduct):
|
|
Real estate-related
depreciation and amortization on continuing operations
|
1.95
|
Funds from
operations
|
$
|
2.25
|
-
|
$
|
2.40
|
These estimates reflect 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
March 1, 2017 at 9:30 a.m. Eastern Time, which will be broadcast
live via the Internet at:
http://phoenix.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=96021&eventID=5249873
The live conference call is also accessible by calling (719)
457-1513 and requesting the Mack-Cali conference call.
The conference call will be rebroadcast on Mack-Cali's website
at https://www.mack-cali.com/investors/events-presentations/
beginning at 2:00 p.m. Eastern Time
on March 1, 2017 through
March 8, 2017.
A replay of the call will also be accessible during the same
time period by calling (719) 457-0820 and using the pass code,
6318060.
Copies of Mack-Cali's Form 10-K and Supplemental Operating and
Financial Data are available on Mack‑Cali's website, as
follows:
2016 Form 10-K:
https://www.mack-cali.com/media/1002413/4thquarter10k16.pdf
Fourth Quarter 2016 Supplemental Operating and Financial
Data:
https://www.mack-cali.com/media/1002416/4thquartersp16.pdf
Fourth Quarter 2016 Supplemental Operating and Financial Data
for Roseland Residential Platform:
https://www.mack-cali.com/media/1002419/4thquartersp16Roseland.pdf
In addition, these items are available upon request from:
Mack-Cali Investor Relations Department - Deidre Crockett
Harborside 3, 210 Hudson St., Ste. 400, Jersey City, New Jersey 07311
(732) 590-1025
INFORMATION ABOUT FFO
Funds from operations ("FFO") is defined as net income (loss)
before noncontrolling interests of unitholders, computed in
accordance with generally accepted accounting principles ("GAAP"),
excluding gains or losses from depreciable rental property
transactions, and impairments related to depreciable rental
property, plus real estate-related depreciation and amortization.
The Company believes that FFO per share is helpful to investors as
one of several measures of the performance of an equity REIT. The
Company further believes that as FFO per share excludes the effect
of depreciation, gains (or losses) from sales of properties and
impairments related to depreciable rental property (all of which
are based on historical costs which may be of limited relevance in
evaluating current performance), FFO per share can facilitate
comparison of operating performance between equity REITs.
FFO per share should not be considered as an alternative to net
income available to common shareholders per share as an indication
of the Company's performance or to cash flows as a measure of
liquidity. FFO per share presented herein is not necessarily
comparable to FFO per share presented by other real estate
companies due to the fact that not all real estate companies use
the same definition. However, the Company's FFO per share is
comparable to the FFO per share of real estate companies that use
the current definition of the National Association of Real Estate
Investment Trusts ("NAREIT"). A reconciliation of net income per
share to FFO per share is included in the financial tables
accompanying this press release.
Core FFO is defined as FFO, as adjusted for certain items to
facilitate comparative measurement of the Company's performance
over time. Core FFO is presented solely as supplemental
disclosure that the Company's management believes provides useful
information to investors and analysts of its results, after
adjusting for certain items to facilitate comparability of its
performance from period to period. Core FFO is a non-GAAP financial
measure that is not intended to represent cash flow and is not
indicative of cash flows provided by operating activities as
determined in accordance with GAAP. As there is not a
generally accepted definition established for Core FFO, the
Company's measures of Core FFO may not be comparable to the Core
FFO reported by other REITs. A reconciliation of net income
per share to Core FFO in dollars and per share is included in the
financial tables accompanying this press release.
ABOUT THE COMPANY
Mack-Cali Realty Corporation is a fully integrated,
self-administered, self-managed real estate investment trust (REIT)
providing management, leasing, development, and other
tenant-related services for its two-platform operations of
waterfront and transit-based office and luxury multi-family assets.
Mack-Cali provides its tenants and residents with the most
innovative communities that empower them to re-imagine the way they
work and live.
Additional information on Mack-Cali Realty Corporation and the
commercial real estate properties and multi-family 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 Annual
Report on Form 10-K (the "10-K") 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-K, the footnotes thereto and the
limitations set forth therein. Investors may not rely on the press
release without reference to the 10-K 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.
Contact:
|
Michael J.
DeMarco
|
Anthony
Krug
|
Deidre
Crockett
|
|
President
|
Chief Financial
Officer
|
Director of Investor
Relations
|
|
(732)
590-1589
|
(732)
590-1030
|
(732)
590-1025
|
Mack-Cali Realty
Corporation
|
Consolidated
Statements of Operations
|
(In thousands,
except per share amounts) (unaudited)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
REVENUES
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
Base rents
|
$
|
126,744
|
|
$
|
122,295
|
|
$
|
506,877
|
|
$
|
487,041
|
Escalations and
recoveries from tenants
|
|
15,257
|
|
|
13,190
|
|
|
60,505
|
|
|
62,481
|
Real estate
services
|
|
6,658
|
|
|
7,065
|
|
|
26,589
|
|
|
29,620
|
Parking
income
|
|
3,499
|
|
|
2,983
|
|
|
13,630
|
|
|
11,124
|
Other
income
|
|
1,573
|
|
|
910
|
|
|
5,797
|
|
|
4,617
|
Total revenues
|
|
153,731
|
|
|
146,443
|
|
|
613,398
|
|
|
594,883
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
Real estate
taxes
|
|
21,129
|
|
|
19,683
|
|
|
87,379
|
|
|
82,688
|
Utilities
|
|
10,966
|
|
|
11,819
|
|
|
49,624
|
|
|
55,965
|
Operating
services
|
|
27,645
|
|
|
29,344
|
|
|
103,954
|
|
|
107,951
|
Real estate services
expenses
|
|
6,842
|
|
|
6,063
|
|
|
26,260
|
|
|
25,583
|
General and
administrative
|
|
12,968
|
|
|
12,589
|
|
|
51,979
|
|
|
49,147
|
Acquisition-related
costs
|
|
26
|
|
|
1,449
|
|
|
2,880
|
|
|
1,560
|
Depreciation and
amortization
|
|
52,045
|
|
|
43,136
|
|
|
186,684
|
|
|
170,402
|
Impairments
|
|
-
|
|
|
33,743
|
|
|
-
|
|
|
197,919
|
Total expenses
|
|
131,621
|
|
|
157,826
|
|
|
508,760
|
|
|
691,215
|
Operating income
(loss)
|
|
22,110
|
|
|
(11,383)
|
|
|
104,638
|
|
|
(96,332)
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER (EXPENSE)
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(22,731)
|
|
|
(24,374)
|
|
|
(94,889)
|
|
|
(103,051)
|
Interest and other
investment income
|
|
875
|
|
|
231
|
|
|
1,614
|
|
|
794
|
Equity in earnings
(loss) of unconsolidated joint ventures
|
|
(834)
|
|
|
(449)
|
|
|
18,788
|
|
|
(3,172)
|
Gain on change of
control of interests
|
|
-
|
|
|
-
|
|
|
15,347
|
|
|
-
|
Realized gains
(losses) and unrealized losses on disposition of
rental property, net
|
|
41,002
|
|
|
-
|
|
|
109,666
|
|
|
53,261
|
Gain on sale of
investment in unconsolidated joint venture
|
|
-
|
|
|
-
|
|
|
5,670
|
|
|
6,448
|
Loss from
extinguishment of debt, net
|
|
(23,658)
|
|
|
-
|
|
|
(30,540)
|
|
|
-
|
Total other income (expense)
|
|
(5,346)
|
|
|
(24,592)
|
|
|
25,656
|
|
|
(45,720)
|
Net income
(loss)
|
|
16,764
|
|
|
(35,975)
|
|
|
130,294
|
|
|
(142,052)
|
Noncontrolling
interest in consolidated joint ventures
|
|
191
|
|
|
462
|
|
|
651
|
|
|
1,044
|
Noncontrolling
interest in Operating Partnership
|
|
(1,774)
|
|
|
3,795
|
|
|
(13,721)
|
|
|
15,256
|
Net income (loss)
available to common shareholders
|
$
|
15,181
|
|
$
|
(31,718)
|
|
$
|
117,224
|
|
$
|
(125,752)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
available to common shareholders
|
$
|
0.17
|
|
$
|
(0.35)
|
|
$
|
1.31
|
|
$
|
(1.41)
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per common share:
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
available to common shareholders
|
$
|
0.17
|
|
$
|
(0.35)
|
|
$
|
1.30
|
|
$
|
(1.41)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
|
89,767
|
|
|
89,475
|
|
|
89,746
|
|
|
89,291
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
100,575
|
|
|
100,180
|
|
|
100,498
|
|
|
100,222
|
Mack-Cali Realty
Corporation
|
Statements of
Funds from Operations
|
(in thousands,
except per share/unit amounts) (unaudited)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
|
2016
|
|
|
|
2015
|
|
|
|
2016
|
|
|
|
2015
|
|
Net income (loss)
available to common shareholders
|
$
|
15,181
|
|
|
$
|
(31,718)
|
|
|
$
|
117,224
|
|
|
$
|
(125,752)
|
|
Add (deduct):
Noncontrolling interest in Operating Partnership
|
|
1,774
|
|
|
|
(3,795)
|
|
|
|
13,721
|
|
|
|
(15,256)
|
|
Real estate-related
depreciation and amortization on continuing
operations (a)
|
|
56,874
|
|
|
|
48,707
|
|
|
|
204,746
|
|
|
|
190,875
|
|
Impairments
|
|
-
|
|
|
|
33,743
|
|
|
|
-
|
|
|
|
197,919
|
|
Gain on change of
control of interests
|
|
-
|
|
|
|
-
|
|
|
|
(15,347)
|
|
|
|
-
|
|
Realized (gains)
losses and unrealized losses on disposition of
rental property, net
|
|
(41,002)
|
|
|
|
-
|
|
|
|
(109,666)
|
|
|
|
(53,261)
|
|
Gain on sale of
investment in unconsolidated joint venture
|
|
-
|
|
|
|
-
|
|
|
|
(5,670)
|
|
|
|
(6,448)
|
|
Funds from
operations (b)
|
$
|
32,827
|
|
|
$
|
46,937
|
|
|
$
|
205,008
|
|
|
$
|
188,077
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares/units outstanding (c)
|
|
100,575
|
|
|
|
100,180
|
|
|
|
100,498
|
|
|
|
100,222
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations
per share/unit-diluted
|
$
|
0.33
|
|
|
$
|
0.47
|
|
|
$
|
2.04
|
|
|
$
|
1.88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
$
|
0.15
|
|
|
$
|
0.15
|
|
|
$
|
0.60
|
|
|
$
|
0.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend payout
ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Funds from
operations-diluted
|
|
26.9
|
%
|
|
|
31.6
|
%
|
|
|
27.9
|
%
|
|
|
32.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-incremental
revenue generating capital expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building
improvements
|
$
|
8,975
|
|
|
$
|
8,954
|
|
|
$
|
23,364
|
|
|
$
|
29,147
|
|
Tenant improvements &
leasing commissions (d)
|
$
|
5,599
|
|
|
$
|
8,488
|
|
|
$
|
40,616
|
|
|
$
|
27,705
|
|
Tenant improvements
& leasing commissions on space vacant
for more than a year
|
$
|
14,522
|
|
|
$
|
10,928
|
|
|
$
|
64,909
|
|
|
$
|
35,727
|
|
Straight-line rent
adjustments (e)
|
$
|
3,792
|
|
|
$
|
3,256
|
|
|
$
|
15,123
|
|
|
$
|
4,592
|
|
Amortization of
(above)/below market lease intangibles, net (f)
|
$
|
772
|
|
|
$
|
35
|
|
|
$
|
2,260
|
|
|
$
|
587
|
|
Non real estate
depreciation and amortization
|
$
|
395
|
|
|
$
|
232
|
|
|
$
|
1,112
|
|
|
$
|
954
|
|
Amortization of
deferred financing costs
|
$
|
999
|
|
|
$
|
944
|
|
|
$
|
4,582
|
|
|
$
|
3,790
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes the
Company's share from unconsolidated joint ventures, and adjustments
for noncontrolling interests of $5,224 and $5,803 for the three
months ended December 31, 2016 and 2015, respectively, and $19,174
and $21,431 for the years ended December 31, 2016 and 2015,
respectively. Excludes non-real estate-related depreciation
and amortization of $315 and $81 for the three months ended
December 31, 2016 and 2015, respectively, and $696 and $350 for the
years ended December 31, 2016 and 2015, respectively, and
depreciation expense allocable to the Company's noncontrolling
interest in consolidated joint ventures of $80 and $151 for the
three months ended December 31, 2016 and 2015, respectively, and
$416 and $604 for the years ended December 31, 2016 and 2015,
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 (10,490 and
10,705 shares for the three months ended December 31, 2016 and
2015, respectively, and 10,499 and 10,931 shares for the years
ended December 31, 2016 and 2015, 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 the
Company's share from unconsolidated joint ventures of $280 and $585
for the three months ended December 31, 2016 and 2015,
respectively, and $791 and $1,261 for the years ended December 31,
2016 and 2015, respectively.
|
(f)
|
Includes the
Company's share from unconsolidated joint ventures of $96 and $95
for the three months ended December 31, 2016 and 2015,
respectively, and $381 and $429 for the years ended December 31,
2016 and 2015, 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
|
|
Years
Ended
|
|
December
31,
|
|
December
31,
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
Net income (loss)
available to common shareholders
|
$
|
0.17
|
|
$
|
(0.35)
|
|
$
|
1.30
|
|
$
|
(1.41)
|
Add (deduct): Real
estate-related depreciation and amortization on
continuing operations (a)
|
|
0.57
|
|
|
0.49
|
|
|
2.04
|
|
|
1.90
|
Impairments
|
|
-
|
|
|
0.34
|
|
|
-
|
|
|
1.97
|
Gain on change of
control of interests
|
|
-
|
|
|
-
|
|
|
(0.15)
|
|
|
-
|
Realized (gains)
losses and unrealized losses on disposition of rental
property, net
|
|
(0.41)
|
|
|
-
|
|
|
(1.09)
|
|
|
(0.53)
|
Gain on sale of
investment in unconsolidated joint venture
|
|
-
|
|
|
-
|
|
|
(0.06)
|
|
|
(0.06)
|
Noncontrolling
interest/rounding adjustment
|
|
-
|
|
|
(0.01)
|
|
|
-
|
|
|
0.01
|
Funds from
operations (b)
|
$
|
0.33
|
|
$
|
0.47
|
|
$
|
2.04
|
|
$
|
1.88
|
|
|
|
|
|
|
|
|
|
|
|
|
Add/(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
costs
|
|
-
|
|
$
|
0.01
|
|
$
|
0.03
|
|
$
|
0.02
|
Dead deal
costs
|
|
-
|
|
|
-
|
|
|
0.01
|
|
|
-
|
Severance/separation
costs
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.02
|
Mark-to-market
interest rate swap
|
$
|
(0.01)
|
|
|
-
|
|
|
(0.01)
|
|
|
-
|
Net real estate tax
proceeds
|
|
-
|
|
|
(0.01)
|
|
|
(0.01)
|
|
|
(0.05)
|
Equity in earnings
from joint venture refinancing proceeds
|
|
-
|
|
|
-
|
|
|
(0.22)
|
|
|
(0.04)
|
Loss from
extinguishment of debt, net
|
|
0.24
|
|
|
-
|
|
|
0.30
|
|
|
-
|
Noncontrolling
interest/rounding adjustment
|
|
-
|
|
|
-
|
|
|
0.01
|
|
|
-
|
Core
FFO
|
$
|
0.56
|
|
$
|
0.47
|
|
$
|
2.15
|
|
$
|
1.83
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares/units outstanding (c)
|
|
100,575
|
|
|
100,180
|
|
|
100,498
|
|
|
100,222
|
(a)
|
Includes the
Company's share from unconsolidated joint ventures of $0.05 and
$0.06 for the three months ended December 31, 2016 and 2015,
respectively, and $0.19 and $0.22 for the years ended December 31,
2016 and 2015, 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 (10,490 and
10,705 shares for the three months ended December 31, 2016 and
2015, respectively, and 10,499 and 10,931 shares for the years
ended December 31, 2016 and 2015, respectively), plus dilutive
Common Stock Equivalents (i.e. stock options).
|
Mack-Cali Realty
Corporation
|
Consolidated
Balance Sheets
|
(in thousands,
except per share amounts) (unaudited)
|
|
|
|
December
31,
|
Assets
|
|
2016
|
|
|
2015
|
Rental
property
|
|
|
|
|
|
Land and
leasehold interests
|
$
|
661,335
|
|
$
|
735,696
|
Buildings and
improvements
|
|
3,758,210
|
|
|
3,648,238
|
Tenant
improvements
|
|
364,092
|
|
|
408,617
|
Furniture,
fixtures and equipment
|
|
21,230
|
|
|
15,167
|
|
|
4,804,867
|
|
|
4,807,718
|
Less – accumulated
depreciation and amortization
|
|
(1,332,073)
|
|
|
(1,464,482)
|
|
|
3,472,794
|
|
|
3,343,236
|
Rental property held
for sale, net
|
|
39,743
|
|
|
-
|
Net investment in
rental property
|
|
3,512,537
|
|
|
3,343,236
|
Cash and cash
equivalents
|
|
31,611
|
|
|
37,077
|
Investments in
unconsolidated joint ventures
|
|
320,047
|
|
|
303,457
|
Unbilled rents
receivable, net
|
|
101,052
|
|
|
120,246
|
Deferred charges,
goodwill and other assets, net
|
|
267,950
|
|
|
203,850
|
Restricted
cash
|
|
53,952
|
|
|
35,343
|
Accounts receivable,
net of allowance for doubtful accounts of $1,335 and
$1,407
|
|
9,617
|
|
|
10,754
|
|
|
|
|
|
|
Total
assets
|
$
|
4,296,766
|
|
$
|
4,053,963
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Senior unsecured
notes
|
$
|
817,355
|
|
$
|
1,263,782
|
Unsecured revolving
credit facility and term loans
|
|
634,069
|
|
|
155,000
|
Mortgages, loans
payable and other obligations, net
|
|
888,585
|
|
|
726,611
|
Dividends and
distributions payable
|
|
15,327
|
|
|
15,582
|
Accounts payable,
accrued expenses and other liabilities
|
|
159,874
|
|
|
135,057
|
Rents received in
advance and security deposits
|
|
46,442
|
|
|
49,739
|
Accrued interest
payable
|
|
8,427
|
|
|
24,484
|
Total
liabilities
|
|
2,570,079
|
|
|
2,370,255
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Mack-Cali Realty
Corporation stockholders' equity:
|
|
|
|
|
|
Common stock, $0.01
par value, 190,000,000 shares authorized,
|
|
|
|
|
|
89,696,713 and
89,583,950 shares outstanding
|
|
897
|
|
|
896
|
Additional paid-in
capital
|
|
2,576,473
|
|
|
2,570,392
|
Dividends in excess
of net earnings
|
|
(1,052,184)
|
|
|
(1,115,612)
|
Accumulated other
comprehensive income (loss)
|
|
1,985
|
|
|
-
|
Total
Mack-Cali Realty Corporation stockholders' equity
|
|
1,527,171
|
|
|
1,455,676
|
|
|
|
|
|
|
Noncontrolling
interests in subsidiaries:
|
|
|
|
|
|
Operating
Partnership
|
|
178,570
|
|
|
170,891
|
Consolidated joint
ventures
|
|
20,946
|
|
|
57,141
|
Total noncontrolling
interests in subsidiaries
|
|
199,516
|
|
|
228,032
|
|
|
|
|
|
|
Total
equity
|
|
1,726,687
|
|
|
1,683,708
|
|
|
|
|
|
|
Total liabilities
and equity
|
$
|
4,296,766
|
|
$
|
4,053,963
|
RRT NAV Summary –
Adjustments Subsequent to Quarter-End
|
|
As reflected on in
the RRT Supplemental, Roseland had an approximate NAV of $1.35bn at
year-end 2016. As a result of a series of post year-end
activities, we estimate a current Roseland NAV before the announced
Rockpoint Transaction of $1.35bn.
|
|
|
|
|
|
|
(Dollars in
Millions)
|
|
|
|
|
Net Asset Value
(4Q 2016)
|
$1,352
|
|
|
|
Alterra
Financing
|
-100
|
(1)
|
|
|
Plaza 8/9
Acquisition
|
+57
|
(2)
|
|
|
Five repurposing
transfers
|
+32
|
(3)
|
|
|
Development
Capital
|
+11
|
(4)
|
|
|
Net Asset Value
(current)
|
$1,352
|
(5)
(6)
|
|
Notes:
|
|
(1)
|
In January, RRT
placed a $100mm mortgage on Alterra at Overlook Ridge (3.75%
interest only; seven-year term). Financing proceeds were
utilized to repay borrowings under Mack-Cali's credit
facility.
|
(2)
|
In February, RRT
acquired all joint venture partner interests in Plaza 8/9.
The acquisition converted RRT ownership on the valuable development
site on the Hudson Waterfront from 50 to 100 percent.
|
(3)
|
Roseland is
finalizing the transfer of five underperforming/land holdings of
Mack-Cali for residential repurposing use.
|
(4)
|
Represents
in-construction development capital expended by RRT in January and
February.
|
(5)
|
In conjunction with
the announced Rockpoint Transaction, Roseland will receive deemed
funded equity value of $1.23bn, representing a ~9% discount to
RRT's NAV estimate.
|
|
|
|
|
Net Asset Value
(current):
|
$1,352
|
|
|
|
Roseland Deemed
Funded
|
|
|
|
|
Equity Value
(Rockpoint Transaction):
|
$1,230
|
|
|
|
Discount:
|
$ 122
(9%)
|
|
|
|
|
|
|
(6)
|
Upon closing of the
Rockpoint Transaction, Rockpoint will fund $150mm into RRT.
RRT is under contract to acquire Monaco in Jersey City (equity
requirement of ~$140mm) and intends to use the Rockpoint proceeds
for said acquisition.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/mack-cali-realty-corporation-announces-fourth-quarter-2016-results-300415471.html
SOURCE Mack-Cali Realty Corporation