JERSEY CITY, N.J., Oct. 25, 2016 /PRNewswire/ -- Mack-Cali Realty
Corporation (NYSE: CLI) today reported its results for the third
quarter 2016.
Recent highlights include:
- Net income (loss) of $(0.10) per
diluted share for the quarter;
- Funds from Operations (FFO) per diluted share increased 17.6%
to $0.60; with Core FFO growth of
16.7% to $0.56 for the quarter;
- Increased rental rates by 9.1% on a GAAP basis and 2.3% on a
cash basis;
- Overall portfolio 87.7% leased at quarter end; a 2.2%
improvement over third quarter 2015;
- Core/Waterfront/Flex properties 90.3% leased at quarter
end;
- 664,000 square feet leased in third quarter;
- Acquired 111 River Street, a 566,000 square-foot office
property in Hoboken, NJ for
$235 million;
- Completed $465 million in
property sales year-to-date;
- Purchased $114.9 million of its
7.75% bonds due August 2019;
- Declared $0.15 per share
quarterly common stock dividend;
- Increased 2016 Core FFO guidance of $2.14 to $2.16; and
- Introduced 2017 FFO guidance of $2.25 to
$2.40 per diluted share.
Michael J. DeMarco, president,
commented "We continue to successfully execute against our
strategic initiatives making meaningful strides across all aspects
of the enterprise including improvements in our operations,
portfolio composition and capital structure. The progress completed
to date gives us the confidence to introduce preliminary 2017
guidance that would again represent meaningful year-over-year
growth. While we have made great progress, there are many
additional opportunities to extract value. Our singular focus is to
position Mack-Cali for improved
cash flow and growth over the long term."
FINANCIAL HIGHLIGHTS
* All per share amounts presented below are on a diluted
basis.
Net income (loss) available to common shareholders for the
quarter ended September 30, 2016
amounted to $(8.5) million, or
$(0.10) per share, as compared to
$(126.9) million, or $(1.42) per share, for the quarter ended
September 30, 2015. For the
nine months ended September 30, 2016,
net income (loss) available to common shareholders equaled
$102.0 million, or $1.13 per share, as compared to $(94.0) million, or $(1.05) per share, for the same period last
year. Included in net income (loss) for the quarter ended
September 30, 2016 was $17.1 million of a net loss from property-related
transactions, and net loss from extinguishment of debt of
$19.3 million, which were partially
offset by $21.7 million of equity in
earnings from refinancing proceeds received from a joint
venture. The total net non-controlling interests for these
items was $1.6 million.
Funds from operations (FFO) for the quarter ended September 30, 2016 amounted to $59.9 million, or $0.60 per share, as compared to $51.5 million, or $0.51 per share, for the quarter ended
September 30, 2015. For the nine
months ended September 30, 2016, FFO
equaled $172.2 million, or
$1.71 per share, as compared to
$141.1 million, or $1.41 per share, for the same period last
year.
For the third quarter 2016, Core FFO was $0.56 per share after adjusting for certain
items, primarily $21.7 million from a
joint venture loan refinancing, and a $19.3
million loss from extinguishment of debt. The quarter's Core
FFO per share of $0.56 increased 16.7
percent from the same quarter last year primarily due to increased
base rents in 2016.
OPERATING HIGHLIGHTS
Mack-Cali's consolidated
commercial in-service portfolio was 87.7 percent leased at
September 30, 2016, as compared to
86.7 percent leased at June 30, 2016
and 85.8 percent leased at September 30,
2015.
For the quarter ended September 30,
2016, the Company executed 62 leases at its consolidated
in-service commercial portfolio totaling 664,490 square feet. Of
these totals, 289,991 square feet were for new leases and 374,499
square feet were for lease renewals and other tenant retention
transactions. Lease transactions included 216,205 square feet in
Core properties, 150,454 square feet in Waterfront properties,
241,634 square feet in Flex properties and 56,197 square feet in
Non-Core properties. Lease spreads on a GAAP basis were 16.2
percent for new leases and 8.3 percent for renewed or retained
leases, for an average of 9.1 percent for the quarter.
Mitchell E. Rudin, chief
executive officer, commented "Mack-Cali's repositioning efforts are well
underway. Interest in our properties are strong as evidenced by our
occupancy gains and lease success year-to-date. We remain
keenly focused on 2017 expirations and feel confident in our
ability to minimize exposure to potential vacancies."
RECENT TRANSACTIONS
In July, the Company purchased a 566,000 square-foot class A
office asset on the Hudson River waterfront in Hoboken, NJ, for approximately $235 million.
The Company sold approximately $465
million of assets for year to date 2016. Currently,
Mack-Cali has contracts out for an
additional $265 million of office
sales.
BALANCE SHEET/CAPITAL MARKETS
In furtherance of its plan to lengthen its debt maturity profile
and reduce its average cost of debt, the Company completed the
following financing activity in the quarter:
Closed on a $250 million mortgage
loan secured by 101 Hudson Street, its 1.2 million-square-foot
Class A office building located on the Hudson River waterfront in
Jersey City, NJ. The loan has a
ten-year term, interest only and has an effective annual interest
rate of 3.197 percent;
Closed on a $59 million mortgage
loan secured by Portside 7, its 175-unit, luxury multi-family
community located on the Boston Harbor waterfront. The loan has a
seven-year term, interest only and has an effective annual interest
rate of 3.569 percent;
The Company's joint venture with Hyatt Corporation completed a
$100 million mortgage loan
refinancing, secured by the venture's 350-room Hyatt Regency on the
Hudson in Jersey City, NJ. The loan has a ten-year term,
interest only and has an effective annual interest rate of 3.668
percent. At the closing, the Company received a distribution from
the venture of approximately $18
million representing its share of the excess proceeds of the
refinancing;
Proceeds from the completed financing activity were used
primarily to repay outstanding secured and unsecured debt;
In September, the Company purchased $114.9 million of its 7.75 percent unsecured
bonds scheduled to mature in 2019 paying 115.977 percent of the
face amount of the notes, plus accrued and unpaid interest.
As a result of the successful execution of these highlighted
financing activities, at quarter end, the Company's $2.5 billion of total debt had a weighted average
interest rate of 4.48 percent, down from 4.79 percent at
June 30. Additionally, at quarter
end, the weighted average maturity of its indebtedness was 3.93
years, up from 3.38 years at June 30. As of September 30, 2016, the Company had a
debt-to-undepreciated assets ratio of 42.4 percent and an interest
coverage ratio of 3.3 times for the quarter ended September 30, 2016.
DIVIDENDS
In September, 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 third quarter 2016, which was paid on
October 14, 2016 to shareholders of
records as of October 5, 2016.
GUIDANCE/OUTLOOK
Based on recent results the Company is updating its guidance on
net income, FFO and Core FFO per diluted share for the full year
2016 and providing initial 2017 guidance, as follows:
|
|
Full
Year
|
|
|
Full
Year
|
|
|
2016
Range
|
|
|
2017
Range
|
Net income available
to common shareholders
|
$
|
1.18
|
-
|
$
|
1.20
|
|
$
|
0.30
|
-
|
$
|
0.45
|
Add
(deduct):
|
|
|
|
Real estate-related
depreciation and amortization on continuing operations
|
1.97
|
|
1.95
|
Gain on change of
control of interests
|
(0.15)
|
|
-
|
Realized (gains)
losses and unrealized losses on disposition of rental property,
net
|
(0.68)
|
|
-
|
Gain on sale of
investment in unconsolidated joint ventures
|
(0.06)
|
|
-
|
Funds from
operations
|
$
|
2.26
|
-
|
$
|
2.28
|
|
$
|
2.25
|
-
|
$
|
2.40
|
Add:
|
|
|
|
Acquisition-related
costs
|
$0.03
|
|
-
|
Dead deal
costs
|
0.01
|
|
-
|
Deduct/Add:
|
|
|
|
Net real estate tax
appeal proceeds
|
(0.01)
|
|
-
|
Equity in earnings
from joint venture refinancing proceeds
|
(0.22)
|
|
-
|
Net (gain) loss from
extinguishment of debt
|
0.07
|
|
-
|
Core funds from
operations
|
$
|
2.14
|
-
|
$
|
2.16
|
|
$
|
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
October 26, 2016 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=5239346
The live conference call is also accessible by calling (719)
325-2444 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
October 26, 2016 through
November 2, 2016.
A replay of the call will also be accessible during the same
time period by calling (719) 457-0820 and using the pass code,
9056063.
Copies of Mack-Cali's Form 10-Q
and Supplemental Operating and Financial Data are available on
Mack‑Cali's website, as follows:
Third Quarter 2016 Form 10-Q:
https://www.mack-cali.com/media/975382/3rdquarter10q16.pdf
Third Quarter 2016 Supplemental Operating and Financial
Data:
https://www.mack-cali.com/media/975385/3rdquartersp16.pdf
Third Quarter 2016 Supplemental Operating and Financial Data for
Roseland Residential Platform:
https://www.mack-cali.com/media/975388/3rdquartersp16Roseland.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 Quarterly
Report on Form 10-Q (the "10-Q") filed by the Company for the same
period with the Securities and Exchange Commission (the "SEC") and
all of the Company's other public filings with the SEC (the "Public
Filings"). In particular, the financial information contained
herein is subject to and qualified by reference to the financial
statements contained in the 10-Q, the footnotes thereto and the
limitations set forth therein. Investors may not rely on the press
release without reference to the 10-Q and the Public Filings.
We consider portions of this report, including the documents
incorporated by reference, to be forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of
1934, as amended. We intend such forward-looking statements
to be covered by the safe harbor provisions for forward-looking
statements contained in Section 21E of such act. Such
forward-looking statements relate to, without limitation, our
future economic performance, plans and objectives for future
operations and projections of revenue and other financial
items. Forward-looking statements can be identified by the
use of words such as "may," "will," "plan," "potential,"
"projected," "should," "expect," "anticipate," "estimate,"
"target," "continue" or comparable terminology.
Forward-looking statements are inherently subject to risks and
uncertainties, many of which we cannot predict with accuracy and
some of which we might not even anticipate. Although we
believe that the expectations reflected in such forward-looking
statements are based upon reasonable assumptions at the time made,
we can give no assurance that such expectations will be
achieved. Future events and actual results, financial and
otherwise, may differ materially from the results discussed in the
forward-looking statements. Readers are cautioned not to
place undue reliance on these forward-looking statements.
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
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
REVENUES
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
Base rents
|
$
|
129,523
|
|
$
|
119,707
|
|
$
|
380,133
|
|
$
|
364,746
|
Escalations and
recoveries from tenants
|
|
16,177
|
|
|
15,050
|
|
|
45,248
|
|
|
49,291
|
Real estate
services
|
|
6,650
|
|
|
7,510
|
|
|
19,931
|
|
|
22,555
|
Parking
income
|
|
3,443
|
|
|
2,749
|
|
|
10,131
|
|
|
8,141
|
Other
income
|
|
1,724
|
|
|
1,142
|
|
|
4,224
|
|
|
3,707
|
Total revenues
|
|
157,517
|
|
|
146,158
|
|
|
459,667
|
|
|
448,440
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
Real estate
taxes
|
|
20,606
|
|
|
19,143
|
|
|
66,250
|
|
|
63,005
|
Utilities
|
|
14,127
|
|
|
13,172
|
|
|
38,658
|
|
|
44,146
|
Operating
services
|
|
25,553
|
|
|
24,535
|
|
|
76,309
|
|
|
78,607
|
Real estate services
expenses
|
|
6,361
|
|
|
6,673
|
|
|
19,418
|
|
|
19,520
|
General and
administrative
|
|
14,007
|
|
|
13,670
|
|
|
39,011
|
|
|
36,558
|
Acquisition-related
costs
|
|
815
|
|
|
-
|
|
|
2,854
|
|
|
111
|
Depreciation and
amortization
|
|
48,117
|
|
|
44,099
|
|
|
134,639
|
|
|
127,266
|
Impairments
|
|
-
|
|
|
164,176
|
|
|
-
|
|
|
164,176
|
Total expenses
|
|
129,586
|
|
|
285,468
|
|
|
377,139
|
|
|
533,389
|
Operating income
(loss)
|
|
27,931
|
|
|
(139,310)
|
|
|
82,528
|
|
|
(84,949)
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER (EXPENSE)
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(24,233)
|
|
|
(24,689)
|
|
|
(72,158)
|
|
|
(78,677)
|
Interest and other
investment income (loss)
|
|
1,262
|
|
|
5
|
|
|
739
|
|
|
563
|
Equity in earnings
(loss) of unconsolidated joint ventures
|
|
21,790
|
|
|
3,135
|
|
|
19,622
|
|
|
(2,723)
|
Gain on change of
control of interests
|
|
-
|
|
|
-
|
|
|
15,347
|
|
|
-
|
Realized gains
(losses) and unrealized losses on disposition of
rental property, net
|
|
(17,053)
|
|
|
18,718
|
|
|
68,664
|
|
|
53,261
|
Gain on sale of
investment in unconsolidated joint venture
|
|
-
|
|
|
-
|
|
|
5,670
|
|
|
6,448
|
Loss from
extinguishment of debt, net
|
|
(19,302)
|
|
|
-
|
|
|
(6,882)
|
|
|
-
|
Total other income (expense)
|
|
(37,536)
|
|
|
(2,831)
|
|
|
31,002
|
|
|
(21,128)
|
Net income
(loss)
|
|
(9,605)
|
|
|
(142,141)
|
|
|
113,530
|
|
|
(106,077)
|
Noncontrolling
interest in consolidated joint ventures
|
|
65
|
|
|
(281)
|
|
|
460
|
|
|
582
|
Noncontrolling
interest in Operating Partnership
|
|
999
|
|
|
15,530
|
|
|
(11,947)
|
|
|
11,461
|
Net income (loss)
available to common shareholders
|
$
|
(8,541)
|
|
$
|
(126,892)
|
|
$
|
102,043
|
|
$
|
(94,034)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
available to common shareholders
|
$
|
(0.10)
|
|
$
|
(1.42)
|
|
$
|
1.14
|
|
$
|
(1.05)
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per common share:
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
available to common shareholders
|
$
|
(0.10)
|
|
$
|
(1.42)
|
|
$
|
1.13
|
|
$
|
(1.05)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
|
89,755
|
|
|
89,249
|
|
|
89,739
|
|
|
89,229
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
100,253
|
|
|
100,172
|
|
|
100,486
|
|
|
100,236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mack-Cali Realty
Corporation
|
Statements of
Funds from Operations
|
(in thousands,
except per share/unit amounts) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
|
2016
|
|
|
|
2015
|
|
|
|
2016
|
|
|
|
2015
|
|
Net income (loss)
available to common shareholders
|
$
|
(8,541)
|
|
|
$
|
(126,892)
|
|
|
$
|
102,043
|
|
|
$
|
(94,034)
|
|
Add (deduct):
Noncontrolling interest in Operating Partnership
|
|
(999)
|
|
|
|
(15,530)
|
|
|
|
11,947
|
|
|
|
(11,461)
|
|
Real estate-related
depreciation and amortization on continuing operations
(a)
|
|
52,371
|
|
|
|
48,503
|
|
|
|
147,872
|
|
|
|
142,168
|
|
Impairments
|
|
-
|
|
|
|
164,176
|
|
|
|
-
|
|
|
|
164,176
|
|
Gain on change of
control of interests
|
|
-
|
|
|
|
-
|
|
|
|
(15,347)
|
|
|
|
-
|
|
Realized (gains)
losses and unrealized losses on disposition of rental property,
net
|
|
17,053
|
|
|
|
(18,718)
|
|
|
|
(68,664)
|
|
|
|
(53,261)
|
|
Gain on sale of
investment in unconsolidated joint venture
|
|
-
|
|
|
|
-
|
|
|
|
(5,670)
|
|
|
|
(6,448)
|
|
Funds from
operations (b)
|
$
|
59,884
|
|
|
$
|
51,539
|
|
|
$
|
172,181
|
|
|
$
|
141,140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares/units outstanding (c)
|
|
100,253
|
|
|
|
100,172
|
|
|
|
100,486
|
|
|
|
100,236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations
per share/unit-diluted
|
$
|
0.60
|
|
|
$
|
0.51
|
|
|
$
|
1.71
|
|
|
$
|
1.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share
|
$
|
0.15
|
|
|
$
|
0.15
|
|
|
$
|
0.45
|
|
|
$
|
0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend payout
ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from
operations-diluted
|
|
25.11
|
%
|
|
|
29.15
|
%
|
|
|
26.26
|
%
|
|
|
31.96
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-incremental
revenue generating capital expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building
improvements
|
$
|
5,883
|
|
|
$
|
5,631
|
|
|
$
|
14,389
|
|
|
$
|
20,193
|
|
Tenant improvements &
leasing commissions (d)
|
$
|
8,208
|
|
|
$
|
7,808
|
|
|
$
|
35,017
|
|
|
$
|
19,217
|
|
Tenant improvements
& leasing commissions on space vacant for more than a
year
|
$
|
20,456
|
|
|
$
|
7,475
|
|
|
$
|
50,387
|
|
|
$
|
24,799
|
|
Straight-line rent
adjustments (e)
|
$
|
4,378
|
|
|
$
|
1,419
|
|
|
$
|
11,331
|
|
|
$
|
1,336
|
|
Amortization of
(above)/below market lease intangibles, net (f)
|
$
|
1,043
|
|
|
$
|
127
|
|
|
$
|
1,488
|
|
|
$
|
552
|
|
Non real estate
depreciation and amortization
|
$
|
305
|
|
|
$
|
236
|
|
|
$
|
717
|
|
|
$
|
722
|
|
Amortization of
deferred financing costs
|
$
|
1,234
|
|
|
$
|
945
|
|
|
$
|
3,583
|
|
|
$
|
2,846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes the
Company's share from unconsolidated joint ventures of $4,559 and
$4,845 for the three months ended September 30, 2016 and 2015,
respectively, and $13,948 and $15,828 for the nine months ended
September 30, 2016 and 2015, respectively. Excludes non-real
estate-related depreciation and amortization of $305 and $236 for
the three months ended September 30, 2016 and 2015, respectively,
and $717 and $722 for the nine months ended September 30, 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 September 30, 2016 and
2015, respectively, and $335 and $453 for the nine months ended
September 30, 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 (10,498 and
10,923 shares for the three months ended September 30, 2016 and
2015, respectively, and 10,502 and 11,008 shares for the nine
months ended September 30, 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 $362 and $138
for the three months ended September 30, 2016 and 2015,
respectively, and $511 and $676 for the nine months ended September
30, 2016 and 2015, respetively.
|
(f)
|
Includes the
Company's share from unconsolidated joint ventures of $95 and $95
for the three months ended September 30, 2016 and 2015,
respectively, and $285 and $333 for the nine months ended September
30, 2016 and 2015, respetively.
|
Mack-Cali Realty
Corporation
|
Statements of
Funds from Operations (FFO) and Core FFO per Diluted
Share
|
(amounts are per
diluted share, except share counts in thousands)
(unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
Net income (loss)
available to common shareholders
|
$
|
(0.10)
|
|
$
|
(1.42)
|
|
$
|
1.13
|
|
$
|
(1.05)
|
Add (deduct): Real
estate-related depreciation and amortization on
continuing operations (a)
|
|
0.52
|
|
|
0.48
|
|
|
1.47
|
|
|
1.42
|
Impairments
|
|
-
|
|
|
1.64
|
|
|
-
|
|
|
1.64
|
Gain on change of
control of interests
|
|
-
|
|
|
-
|
|
|
(0.15)
|
|
|
-
|
Realized (gains)
losses and unrealized losses on disposition of rental
property, net
|
|
0.17
|
|
|
(0.19)
|
|
|
(0.68)
|
|
|
(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)
|
$
|
0.60
|
|
$
|
0.51
|
|
$
|
1.71
|
|
$
|
1.41
|
|
|
|
|
|
|
|
|
|
|
|
|
Add/(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
costs
|
$
|
0.01
|
|
|
-
|
|
$
|
0.03
|
|
|
-
|
Dead deal
costs
|
|
-
|
|
|
-
|
|
|
0.01
|
|
|
-
|
Severance/separation
costs
|
|
-
|
|
$
|
0.02
|
|
|
-
|
|
$
|
0.02
|
Mark-to-market
interest rate swap
|
|
(0.01)
|
|
|
-
|
|
|
-
|
|
|
-
|
Net real estate tax
proceeds
|
|
(0.01)
|
|
|
(0.02)
|
|
|
(0.01)
|
|
|
(0.04)
|
Equity in earnings
from joint venture refinancing proceeds
|
|
(0.22)
|
|
|
(0.04)
|
|
|
(0.22)
|
|
|
(0.04)
|
Loss from
extinguishment of debt, net
|
|
0.19
|
|
|
-
|
|
|
0.07
|
|
|
-
|
Noncontrolling
interest/rounding adjustment
|
|
-
|
|
|
0.01
|
|
|
-
|
|
|
-
|
Core
FFO
|
$
|
0.56
|
|
$
|
0.48
|
|
$
|
1.59
|
|
$
|
1.35
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares/units outstanding (c)
|
|
100,253
|
|
|
100,172
|
|
|
100,486
|
|
|
100,236
|
|
(a)
|
Includes the
Company's share from unconsolidated joint ventures of $0.05 and
$0.05 for the three months ended September 30, 2016 and 2015,
respectively, and $0.14 and $0.16 for the nine months ended
September 30, 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 (10,498 and
10,923 shares for the three months ended September 30, 2016 and
2015, respectively, and 10,502 and 11,008 shares for the nine
months ended September 30, 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)
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
|
December
31,
|
Assets
|
|
2016
|
|
|
2015
|
Rental
property
|
|
|
|
|
|
Land and
leasehold interests
|
$
|
667,095
|
|
$
|
735,696
|
Buildings and
improvements
|
|
3,821,332
|
|
|
3,648,238
|
Tenant
improvements
|
|
361,301
|
|
|
408,617
|
Furniture,
fixtures and equipment
|
|
19,622
|
|
|
15,167
|
|
|
4,869,350
|
|
|
4,807,718
|
Less – accumulated
depreciation and amortization
|
|
(1,351,825)
|
|
|
(1,464,482)
|
|
|
3,517,525
|
|
|
3,343,236
|
Rental property held
for sale, net
|
|
102,798
|
|
|
-
|
Net investment in
rental property
|
|
3,620,323
|
|
|
3,343,236
|
Cash and cash
equivalents
|
|
21,555
|
|
|
37,077
|
Investments in
unconsolidated joint ventures
|
|
319,807
|
|
|
303,457
|
Unbilled rents
receivable, net
|
|
105,547
|
|
|
120,246
|
Deferred charges,
goodwill and other assets, net
|
|
303,654
|
|
|
203,850
|
Restricted
cash
|
|
54,784
|
|
|
35,343
|
Accounts receivable,
net of allowance for doubtful accounts of $1,308 and
$1,407
|
|
9,949
|
|
|
10,754
|
|
|
|
|
|
|
Total
assets
|
$
|
4,435,619
|
|
$
|
4,053,963
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Senior unsecured
notes
|
$
|
951,275
|
|
$
|
1,263,782
|
Unsecured term loan,
net
|
|
347,830
|
|
|
-
|
Revolving credit
facility
|
|
95,000
|
|
|
155,000
|
Mortgages, loans
payable and other obligations, net
|
|
1,061,204
|
|
|
726,611
|
Dividends and
distributions payable
|
|
15,233
|
|
|
15,582
|
Accounts payable,
accrued expenses and other liabilities
|
|
185,326
|
|
|
135,057
|
Rents received in
advance and security deposits
|
|
48,314
|
|
|
49,739
|
Accrued interest
payable
|
|
17,613
|
|
|
24,484
|
Total
liabilities
|
|
2,721,795
|
|
|
2,370,255
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Mack-Cali Realty
Corporation stockholders' equity:
|
|
|
|
|
|
Common stock, $0.01
par value, 190,000,000 shares authorized,
|
|
|
|
|
|
89,647,337 and
89,583,950 shares outstanding
|
|
897
|
|
|
896
|
Additional paid-in
capital
|
|
2,574,999
|
|
|
2,570,392
|
Dividends in excess
of net earnings
|
|
(1,053,910)
|
|
|
(1,115,612)
|
Accumulated other
comprehensive loss
|
|
(6,739)
|
|
|
-
|
Total
Mack-Cali Realty Corporation stockholders' equity
|
|
1,515,247
|
|
|
1,455,676
|
|
|
|
|
|
|
Noncontrolling
interests in subsidiaries:
|
|
|
|
|
|
Operating
Partnership
|
|
177,440
|
|
|
170,891
|
Consolidated joint
ventures
|
|
21,137
|
|
|
57,141
|
Total noncontrolling
interests in subsidiaries
|
|
198,577
|
|
|
228,032
|
|
|
|
|
|
|
Total
equity
|
|
1,713,824
|
|
|
1,683,708
|
|
|
|
|
|
|
Total liabilities
and equity
|
$
|
4,435,619
|
|
$
|
4,053,963
|
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SOURCE Mack-Cali Realty Corporation