JERSEY CITY, N.J., Oct. 20, 2016 /PRNewswire/ -- Mack-Cali
Realty Corporation (NYSE: CLI) today announced an update on its
dispositions as part of its previously announced strategic plan.
The Company has sold approximately $465
million of assets year to date. Currently, Mack-Cali has
contracts out for an additional $265
million of dispositions, on which it expects to close in the
fourth quarter. The Company anticipates 2016 dispositions to total
approximately $730 million which will
be comprised of 27 office buildings totaling 4.5 million square
feet and one residential building with a GAAP NOI yield of
approximately 5.5 percent overall. At this time, the Company is
also providing details on recent financing activity.
The proceeds from these dispositions are expected to be used to
pay down debt, fund development, and purchase suitable acquisitions
if available.
During the third quarter, the Company acquired 111 River Street
in Hoboken, New Jersey for
$235 million. This premier asset is
566,215 square feet and sits directly on the Hudson River
Waterfront, offering breathtaking views and superior transportation
options. Additionally, the Company is under contract to acquire a
$27 million portfolio adjacent to an
existing office campus.
"As we look to refine our plan for 2017, we anticipate
disposition activity in the $500 to $600
million range depending on market conditions," said
Michael J. DeMarco, Mack-Cali President. "We continue to be focused
on strengthening our balance sheet and possibly increasing our
holdings in waterfront and transit-based locations that will return
significant value to shareholders."
In September 2015, the Company
outlined a new strategic plan that coincided with the naming of a
new leadership team. The plan, dubbed 20 / 15, called for a focus
on Hudson River Waterfront properties in Jersey City, Weehawken, Hoboken, and West
New York. This focus includes both office properties and
multi-family communities.
The new strategic plan also provided that the Company would seek
to lengthen its debt maturity profile and reduce its average cost
of debt. In furtherance of the plan, 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, New Jersey. The loan
has a 10-year term, interest only and has an effective annual
interest rate of 3.12 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, New Jersey. The loan has a
10-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 redeemed $114.9
million of its 7.75 percent unsecured bonds scheduled to
mature in 2019 paying 115.977 percent of the principal, 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.
"The steps we've taken this quarter and throughout 2016 clearly
demonstrate the lending community's continued confidence in
Mack-Cali, and have meaningfully
reduced our interest cost and lengthened our debt maturity profile,
as we have planned." said Tony Krug,
Chief Financial Officer of Mack-Cali. Mr. Krug continued "We plan
to continue our strategic balance sheet plan going into 2017,
including extending our unsecured credit facility which is
scheduled to mature in July 2017,
obtaining additional secured and unsecured financings on favorable
terms and utilizing proceeds from planned property sales to reduce
our debt levels."
About Mack-Cali Realty Corporation
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.
Statements made in this press release may be forward-looking
statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended. 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. Such
forward-looking statements are inherently subject to certain risks,
trends and uncertainties, many of which the Company cannot predict
with accuracy and some of which the Company might not even
anticipate, and involve factors that may cause actual results to
differ materially from those projected or suggested. 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 Reports 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.
Contacts:
|
Anthony
Krug
Mack-Cali Realty
Corporation
Chief Financial
Officer
(732)
590-1030
tkrug@mack-cali.com
|
Ilene
Jablonski
Mack-Cali Realty
Corporation
Vice President of
Marketing
(732)
590-1528
ijablonski@mack-cali.com
|
Deidre
Crockett
Mack-Cali Realty
Corporation
Director of Investor
Relations
(732)
590-1025
dcrockett@mack-cali.com
|
|
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SOURCE Mack-Cali Realty Corporation