Enterprising Investor
7 years ago
Mack-Cali Celebrates Grand Opening Of The Lutze Biergarten On Jersey City's Hudson River Waterfront (5/05/17)
The Lutze is Jersey City's first outdoor biergarten to open on the Hudson River Waterfront in Jersey City, providing guests with incredible views of the Manhattan skyline
JERSEY CITY, N.J., May 5, 2017 /PRNewswire/ -- Mack-Cali Realty Corporation (NYSE: CLI) yesterday celebrated the grand opening of the Lutze Biergarten, Jersey City's first outdoor biergarten along the Hudson River Waterfront. The new biergarten is adjacent to Harborside, the Company's premier, mixed-use asset in Jersey City. Jersey City Mayor Steven Fulop joined Mack-Cali Chief Executive Officer Michael J. DeMarco at the ribbon cutting ceremony to celebrate the newest addition to the Jersey City waterfront.
"We are thrilled to open the doors of the Lutze to Jersey City as the Hudson Waterfront continues to develop itself into a vibrant destination for the entire community to enjoy," said DeMarco. "Just in time for the spring and summer season, the Lutze will provide guests with a one-of-a-kind experience featuring spectacular views of New York City's iconic skyline."
Mayor Fulop said that Mack-Cali's latest investment in Jersey City will support the growth and development of the City, combined with the city's new Exchange Place Alliance Special Improvement District, which aims to improve the Jersey City Waterfront while promoting economic revitalization and social growth across the Exchange Place district.
"Thanks to their commitment and faith in our community, the Lutze expects to provide nearly 100 job opportunities to the local community and will be donating a substantial portion of their profits to local charities and political causes that benefit thousands of residents across our city," said Mayor Steven M. Fulop.
The Lutze, a 23,000-square-foot outdoor biergarten featuring three unique seating areas, offers guests a variety of craft beers, cider, wine, and sangria, as well as delicious food from Jake's Downtown and Bacon Me Crazy. Throughout the biergarten, customers have access to a variety of seating and lounge areas with several fire pits, games, and an event stage, situated in the heart of the biergarten, will welcome local live entertainment. The family- and pet-friendly Lutze is open daily, from May through October.
Owned by Mack-Cali, the Lutze is part of the Company's initiative to activate the Jersey City Waterfront and further create a destination where residents, tenants, and visitors can have a true live-work-play experience.
The ribbon cutting ceremony was part of the biergarten's Grand Opening Celebration, which featured over 70 vendors, along with a variety of food trucks, drinks and games, children's face painting, and a stunning fireworks display.
Mack-Cali is currently engaged in a transformation and re-imagination of its Harborside property, inspired by the complex's industrial past. The transformed Harborside will feature high-end dining and shopping experiences in an open layout, with easy access to the Waterfront Esplanade and magnificent views of the Hudson River and Manhattan skyline.
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.
http://www.prnewswire.com/news-releases/mack-cali-celebrates-grand-opening-of-the-lutze-biergarten-on-jersey-citys-hudson-river-waterfront-300452343.html
Enterprising Investor
7 years ago
Mack-Cali Announces First Quarter Leasing Results (5/04/17)
First Quarter Ends with Core, Waterfront, and Flex Properties Over 90 Percent Leased
11.4 Percent GAAP Rollup for the First Quarter Transactions
JERSEY CITY, N.J., May 4, 2017 /PRNewswire/ -- Mack-Cali Realty Corporation (NYSE: CLI) today announced that during the first quarter of 2017, it completed a total of 54 lease transactions aggregating 362,075 square feet in its consolidated commercial portfolio. Of these totals, 15 percent were for new leases and 85 percent were for renewals and other tenant transactions. With these transactions, the Company finished the quarter with a percentage leased of 90.4 in its Core, Waterfront, and Flex properties, compared to 90.6 percent at year-end 2016.
For the balance of 2017, expirations in the Company's Core, Waterfront, and Flex portfolio total 1.4 million square feet or 7.6 percent of the portfolio. These expirations are heavily weighted towards the end of the year. On the Hudson River Waterfront, where the Company feels the market is the healthiest, the Company expects a substantial rollup in rent at today's market levels versus expiring rent.
Rents on the first quarter transactions rolled up 11.4 percent on a GAAP basis in Mack-Cali's Core, Waterfront, and Flex portfolio and 1.2 percent on a cash basis.
In April, the Company signed a lease with 24 Hour Fitness for a state of the art fitness facility to be built in the Mack-Cali Business Campus in Parsippany, New Jersey. The project further enhances the amenities in the campus and will be located adjacent to the Wegman's shopping center scheduled to open this July. The 24 Hour Fitness lease is subject to standard contingencies and is expected to open in approximately 24 months.
"The first quarter was a workmanlike quarter where we continued to execute on our plan of leasing our key markets and locations. The market remained steady from a demand perspective with ongoing showings and interest throughout the portfolio, with growing interest in our waterfront properties. Specifically, tours have picked up significantly and a number of tenants are applying for the incentive packages offered by the state of New Jersey prior to choosing a location," said Michael J. DeMarco, chief executive officer.
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.
http://www.prnewswire.com/news-releases/mack-cali-announces-first-quarter-leasing-results-300451475.html
Enterprising Investor
7 years ago
Roseland Residential Trust, Mack-Cali's Multi-Family Subsidiary, Announces First Quarter Activity (5/03/17)
JERSEY CITY, N.J., May 3, 2017 /PRNewswire/ -- Mack-Cali Realty Corporation (NYSE: CLI) today announced that Roseland Residential Trust ("Roseland" or "RRT"), Mack-Cali's multi-family subsidiary, culminated a quarter of significant achievements.
Recent Roseland highlights include:
•Roseland's stabilized portfolio at quarter-end was 97.5 percent leased as compared to 96.1 percent leased at year end 2016.
•Roseland closed on a $300 million equity transaction with the Rockpoint Group; $150 million was drawn at closing and outstanding at quarter-end.
•Roseland acquired its partners' interest in Plaza 8 & 9, thereby converting this premier waterfront development site from 50 percent to 100 percent ownership. This site could contain up to 2,000 units and is directly adjacent to Urby.
•Subsequent to quarter-end, Roseland acquired Monaco, a 523-unit luxury community along the Jersey City waterfront, thereby converting its 15 percent subordinate interest to 100 percent ownership.
•Roseland made progress on leasing its recent marketplace deliveries representing 1,162 units in three communities. As of April 30, Quarry Place at Tuckahoe was 41 percent leased and Chase II was 55 percent leased. Additionally, Roseland commenced leasing activities on the iconic, 69-story Jersey City Urby. Since its opening on March 1, Jersey City Urby has leased 286 apartments, representing 38% of the 762-unit tower while reducing concessions and raising rents.
Regarding the health of the Hudson River Waterfront/ Jersey City residential market:
"Over the past year, we have put into service M2 at 311 units in May of 2016 and Urby at 762 units in March of 2017," said Michael J. DeMarco, chief executive officer. "In that one year time frame we have significantly reduced concessions during lease up and increased rent at M2 five times. We absorbed that project at 50 units per month stabilizing in just six months. Now, Urby is averaging close to 140 units per month and achieved 38 percent leased on 286 units in just two months. We have raised rents three times so far at Urby and are averaging over $55 per square foot. This leasing activity is balanced out by our operating portfolio at Marbella and Monaco's combined 935 units achieving an average leasing percentage over the last year of 96.8 percent amidst the adjacent M2 and Urby lease-ups. We strongly believe that the Hudson River Waterfront/ Jersey City will continue to absorb the remaining inventory and deliveries for 2017."
About Roseland Residential Trust
Roseland Residential Trust ("Roseland or RRT"), a subsidiary of Mack-Cali Realty Corporation (NYSE: CLI) was recently formed to own, manage, and develop Mack-Cali's luxury multi-family residential portfolio. Roseland is a premier, full-service residential and mixed-use owner and developer in the Northeast with an industry leading reputation for successful completion, execution, and management of class A residential developments. Roseland's scalable and integrated business platform oversees the Company's operating and in-construction assets, geographically desirable land portfolio, sourcing of new development and acquisition opportunities, and repurposing activities on Mack-Cali's office holdings.
The Company is a recognized leader in multi-family innovation, carefully integrating each development with its surrounding cultural context to enhance the beauty, economic vitality, and energy of its environment. From thoughtfully designed residences to distinctive amenity offerings, Roseland has earned a reputation for providing residents with the most visionary communities that empower them to re-imagine the way they live.
The Company is the master developer for several nationally recognized mixed-use destinations, including Port Imperial, a $3 billion, 200-acre, mixed-use community on the Hudson River Waterfront facing Midtown Manhattan; Portside at East Pier in East Boston, where Roseland is redeveloping one-half mile of Boston Harbor into a premier luxury mixed-use community; and Overlook Ridge, a 92-acre masterplanned community north of Boston.
Additional information on Roseland is available on the Company's website at www.roselandres.com.
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.
http://www.prnewswire.com/news-releases/roseland-residential-trust-mack-calis-multi-family-subsidiary-announces-first-quarter-activity-300450625.html
Enterprising Investor
7 years ago
Mack-Cali Realty Corporation Announces Fourth Quarter 2016 Results (2/28/17)
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.
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.
http://www.prnewswire.com/news-releases/mack-cali-realty-corporation-announces-fourth-quarter-2016-results-300415471.html
Enterprising Investor
7 years ago
Roseland Subsidiary Announces Recent Activities (2/27/17)
$300 Million Equity Raise with Rockpoint Group
JERSEY CITY, N.J., Feb. 27, 2017 /PRNewswire/ -- Mack-Cali Realty Corporation (NYSE: CLI) today announced that Roseland Residential Trust ("Roseland" or "RRT"), Mack-Cali's multi-family subsidiary, culminated a year of major achievements, including the signing today of a $300 million equity raise with affiliates of Rockpoint Group, L.L.C. ("Rockpoint"), opening of Jersey City Urby, and strategic acquisition activities.
Roseland's stabilized residential portfolio was 96.3 percent leased at year-end 2016. Inclusive of the opening tomorrow of the 762-apartment, 69-story Jersey City Urby, Roseland has delivered 1,163 luxury apartments to the marketplace since the beginning of the fourth quarter 2016.
Select leasing highlights for the year include:
•M2 at Marbella, Jersey City, New Jersey: The 311-apartment asset achieved stabilization in November, having absorbed at approximately 50 apartments per month during its lease-up. It ended the year at 95.5 percent leased.
•Quarry Place, Tuckahoe, New York: Roseland commenced leasing activities on this majority-owned, 108-apartment community in Westchester. At quarter-end, the community was 12 percent leased; as of today it is over 25 percent leased.
•Chase II at Overlook Ridge, Malden, Massachusetts: Roseland commenced leasing activities on this wholly-owned, 292-apartment community to be operated in conjunction with the adjacent Chase I. At quarter-end, the community was 11 percent leased; as of today it is over 30 percent leased.
•Jersey City Urby (formerly URL® Harborside), Jersey City, New Jersey: Tomorrow, Roseland will commence leasing activities on this majority-owned, 762-apartment community on the Hudson Waterfront.
ACQUISITIONS:
Subsequent to year-end, Roseland executed significant acquisitions in accordance with its strategic geographic and ownership objectives. The execution of these transactions, coupled with multiple acquisitions throughout 2016, will reduce Roseland's residential subordinate interest to just two communities, including the valuable Marbella in Jersey City, New Jersey.
•Plaza 8/9, Jersey City, New Jersey: Roseland acquired all joint venture partner interests on the parking lot parcel along the Hudson Waterfront, thereby converting its ownership on the valuable development site from 50 to 100 percent. The purchase price was $57,100,000. The site is planned for future residential development and is directly adjacent to Harborside.
•Monaco, Jersey City, New Jersey: Roseland reached an agreement to acquire all joint venture partner interests in the 523-apartment, two-tower, stabilized community completed in 2011. The transaction will convert Roseland's non-cash flowing 15 percent subordinate interest to 100 percent. The Monaco transaction, valued at $315 million or $602,000/unit, represents a capitalization rate of 4.66 percent on a trailing 12-month basis. As Roseland harvested its in-place promoted equity value, the Company's effective capitalization rate was 4.81 percent. Roseland anticipates a closing in 2Q 2017.
•2 Campus Drive, Parsippany, New Jersey: Also in the fourth quarter, the Company acquired 2 Campus Drive in Mack-Cali's Business Campus for approximately $5.5 million. The strategic acquisition will pave the way for the execution of the mixed-use master plan for the Campus in Parsippany.
•Estuary, Weehawken, New Jersey: Roseland disposed of its 7.5 percent minority interest in the community for approximately $5.1 million.
CONSTRUCTION STARTS:
At year-end, the Company had 3,063 units (2,691 apartments; 372 hotel keys) under construction, representing nearly $1.1 billion of activity, with stabilized net operating income forecasted at $75.8 million. This activity included the following fourth quarter starts from Roseland's successful repurposing program:
•233 Canoe Brook Road, Short Hills, New Jersey: Roseland commenced site-work on the 200-apartment community, adjacent to a future hotel development site and Mack-Cali's 150 JFK Parkway office asset.
•150 Monument Road, Bala Cynwyd, Pennsylvania: The Company commenced garage construction activities on this 206-apartment community, a successful repurposing of a former Mack-Cali office asset.
CAPITAL MARKETS ACTIVITY:
In the fourth quarter and subsequent to year-end, Roseland executed on approximately $850 million of capital markets activities.
Today, Roseland is pleased to announce the signing of the Rockpoint transaction – a $300 million equity investment that will provide capital to further execute on the objectives of Roseland's residential business plan. Highlights of the Rockpoint transaction (see Mack-Cali's 2016 annual report on Form 10K when filed) include:
Equity Commitment:
•Rockpoint will commit to fund $300 million of equity into RRT over the next two years, with $150 million funded at closing.
•Mack-Cali will have the option to fund up to $200 million of equity into RRT after Rockpoint's commitment is fully funded.
•RRT will receive a deemed funded existing equity value at closing of $1.23 billion.
•Upon full Rockpoint and Mack-Cali funding, pro forma ownership would be approximately 83 percent Mack-Cali and 17 percent Rockpoint.
Waterfall:
•6 percent annual dividend on funded equity (Rockpoint and RRT).
•6 percent annual return on RRT existing equity, with Rockpoint receiving an additional 5 percent of the amount distributed to RRT.
•Pro rata based on funded equity and RRT existing equity.
•RRT Promote: Upon a capital event, Rockpoint's pro-rata distribution shall reduce by 50 percent after achieving an 11 percent annual IRR.
Other Key Provisions:
•RRT and Rockpoint will have the right to cause redemption of the Rockpoint equity after the fifth anniversary of the closing date without penalty.
•RRT will control governance of the company, but for limited events where Rockpoint consent is required.
•Mack-Cali will have the right to spinout its interests in RRT or otherwise create a public listing for RRT at anytime.
Other capital market highlights included:
•RiverTrace at Port Imperial, West New York, New Jersey: In the fourth quarter, the Company refinanced the existing 6.00 percent mortgage, to a 10-year, interest only rate of 3.21 percent – with no penalty.
•Alterra at Overlook Ridge, Malden and Revere, Massachusetts: Subsequent to year-end, the Company placed a seven-year, $100 million mortgage on the community at an interest only rate of 3.75 percent.
"I am very pleased with the Roseland team's great performance in 2016 led by Marshall Tycher and Andrew Marshall who created a great platform of current assets and a superb pipeline of new developments," said Michael J. DeMarco, Mack-Cali President. "That excellence has led us to Rockpoint becoming our strategic partner. I have worked with Rockpoint before when I was at Vornado and they are a class act in everything they do and a superb fiduciary for their fund. We look forward to having great success in the upcoming years with them as our partner."
Mack-Cali will release its fourth quarter 2016 earnings results after the market close on Tuesday, February 28, 2017 and will host is fourth quarter conference call with management on Wednesday, March 1, 2017 at 9:30 a.m., Eastern Time.
About Roseland Residential Trust
Roseland Residential Trust ("Roseland or RRT"), a subsidiary of Mack-Cali Realty Corporation (NYSE: CLI) was recently formed to own, manage, and develop Mack-Cali's luxury multi-family residential portfolio. Roseland is a premier, full-service residential and mixed-use owner and developer in the Northeast with an industry leading reputation for successful completion, execution, and management of class A residential developments. Roseland's scalable and integrated business platform oversees the Company's operating and in-construction assets, geographically desirable land portfolio, sourcing of new development and acquisition opportunities, and repurposing activities on Mack-Cali's office holdings.
The Company is a recognized leader in multi-family innovation, carefully integrating each development with its surrounding cultural context to enhance the beauty, economic vitality, and energy of its environment. From thoughtfully designed residences to distinctive amenity offerings, Roseland has earned a reputation for providing residents with the most visionary communities that empower them to re-imagine the way they live.
The Company is the master developer for several nationally recognized mixed-use destinations, including Port Imperial, a $3 billion, 200-acre, mixed-use community on the Hudson River Waterfront facing Midtown Manhattan; Portside at East Pier in East Boston, where Roseland is redeveloping one-half mile of Boston Harbor into a premier luxury mixed-use community; and Overlook Ridge, a 92-acre masterplanned community north of Boston.
Additional information on Roseland is available on the Company's website at www.roselandres.com.
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.
About Rockpoint Group, L.L.C.
Rockpoint Group, L.L.C. is a real estate private equity firm headquartered in Boston, with additional primary offices in Dallas and San Francisco. Since 1994, Rockpoint's founding Managing Members with others have sponsored thirteen commingled funds and related co-investment vehicles, raising over $18 billion in capital commitments and investing approximately $14 billion of equity in over 380 transactions with a total capitalization of approximately $50 billion. Rockpoint employs a fundamental value approach to investing in both its opportunistic and lower-risk strategies and focuses on select product types and geographic regions, with a primary emphasis on opportunities in major coastal markets in the United States.
http://www.prnewswire.com/news-releases/roseland-subsidiary-announces-recent-activities-300414368.html
Enterprising Investor
7 years ago
Mack-Cali Makes Substantial Progress In Transforming Its Portfolio (2/14/17)
JERSEY CITY, N.J., Feb. 14, 2017 /PRNewswire/ -- Mack-Cali Realty Corporation (NYSE: CLI) today announced its 2016 and year-to-date 2017 capital markets results. 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 our 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.
For the fourth quarter 2016 and 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.
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.
The Company's acquisitions to date have been primarily focused on transit-based locations including Metropark and the waterfront markets encompassing Jersey City, Hoboken, and Weehawken/West New York. The yield on these acquisitions will be accretive to earnings net of dispositions with the ability to further increase earnings with the roll up of rents and lease-up of vacant space in our value-add acquisitions.
In the first quarter of 2017, the Company closed on the acquisition of a three-building 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 holdings of 477,000 square feet now totaling over one million square feet in the Monmouth County market. The Company also entered into an agreement to purchase a prominent portfolio including three buildings totaling 575,000 square feet in the high-demand, affluent market of Short Hills, New Jersey and three buildings totaling 525,000 square feet in the prestigious Giralda Farms campus in Madison, New Jersey. With the expected completion of this 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. The Giralda Farms properties present a value-add opportunity to reposition high-quality assets to meet the demands of today's significant corporate users. The Morris County office market has been the number one choice for corporate users establishing new state-of-the-art headquarters facilities and the Campus has attracted large, multi-national pharmaceutical and other Fortune 500 companies.
"As a result of refining our office portfolio, consistent with our earnings and debt range, we continue to increase our profit margins by creating operating efficiencies with reduced expenses, higher rents, and increased occupancy," said Michael J. DeMarco, Mack-Cali President. "This positions us to better focus on our high-growth markets and reposition these assets by introducing robust amenity programs that will drive demand and produce higher rents. We believe we are well on our way to owning a totally class A portfolio."
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. Furthermore, the Company is finalizing terms to sell its minority interest in the Estuary located in Weehawken, New Jersey.
"The net result of these activities increases our development potential and stable cash flow from our multi-family platform," said Michael J. DeMarco, "We also continue to simplify our NAV and balance sheet by reducing our minority and subordinated joint venture interests which have decreased from eleven positions to two."
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.
http://www.prnewswire.com/news-releases/mack-cali-makes-substantial-progress-in-transforming-its-portfolio-300407159.html
Enterprising Investor
7 years ago
Crystal House Dazzles with Renovations; Dynamic Amenities (1/04/17)
From Sky Deck to Salt Water Pool, an Iconic Crystal City Community Reaches New Heights
ARLINGTON, Va., Jan. 4, 2017 /PRNewswire/ -- Roseland Residential Trust, an industry leader in high-end residential communities, has completed the first phase of extensive renovations for Crystal House, a two-building, 825-apartment home community ideally located at 1900 S. Eads Street in the heart of Crystal City in Arlington, VA. Crystal House was a cornerstone in the first planned developments in Crystal City and in fact, Crystal City derived its name from Crystal House* and the large crystal chandelier that once graced its lobby. Purchased by Roseland, a subsidiary of Mack-Cali Realty Corporation in 2013, Crystal House has been completely updated and designed to appeal to residents seeking unusually large one-, two-, and three-bedroom floor plans and quality construction in an established property with highly contemporary finishes, thoughtfully designed amenity areas and aspirational lifestyle touches. Just steps from the Crystal City Metro station, Pentagon City, Reagan National Airport, as well as the bustling retail and restaurants of 23rd Street, Crystal House now offers its residents prestigious amenities and residences in a highly convenient location (video).
Crystal House residences feature:
Largest and open floorplans in Crystal City
Spectacular views
Spa-inspired bathrooms
Huge windows with abundant natural light
Wood-style flooring
42-inch cabinetry
Gourmet kitchens with stainless steel appliances, granite countertops
In-unit new washer/dryers
Many apartments with balconies
Pet friendly
For additional information on this community, visit the website at www.crystalhouseva.com or view the video at .
Roseland Residential Trust is a premier real estate development and management company with a reputation for visionary excellence and exceptional customer service. Its communities – from Massachusetts and Manhattan to Washington, DC and Northern VA -- deliver a lifestyle experience unrivaled in the marketplace. Roseland specializes in architecturally elegant communities, from townhomes and brownstones to vibrant mixed-use apartments.
Roseland Residential Trust is a recognized leader in multi-family innovation, carefully integrating each development with its surrounding cultural context to enhance the beauty, economic vitality, and energy of its environment. From thoughtfully designed residences to distinctive amenity offerings, Roseland has earned a reputation for providing residents with the most visionary communities that empower them to re-imagine the way they live.
The Company is the master developer for several nationally recognized mixed-use destinations, including Port Imperial, a $3 billion, 200-acre, mixed-use community on the Hudson River Waterfront facing Midtown Manhattan; The Highlands at Morristown Station, NJ TRANSIT's first Transit Village project which, along with Roseland's 40 Park/Epstein's redevelopment, have spearheaded the revitalization of downtown Morristown; and Portside at East Pier in East Boston, where Roseland Residential Trust is redeveloping one-half mile of Boston Harbor into a premier luxury mixed-use community.
A subsidiary of Mack-Cali Realty Corporation (NYSE: CLI), Roseland Residential Trust benefits from Mack-Cali's financial strength and stability, along with its unsurpassed expertise in the commercial office sector. Additional information on Roseland is available on the Company's website at www.roselandres.com.
http://www.prnewswire.com/news-releases/crystal-house-dazzles-with-renovations-dynamic-amenities-300385318.html#continue-jump
Enterprising Investor
7 years ago
Mack-Cali Announces Redemption Of $135,136,000 Of 7.750% Notes Due 2019 (11/29/16)
JERSEY CITY, N.J., Nov. 29, 2016 /PRNewswire/ -- Mack-Cali Realty Corporation (the "Company") (NYSE: CLI) today announced that its operating partnership, Mack-Cali Realty, L.P. (the "Operating Partnership"), will redeem for cash all $135,136,000 outstanding principal amount of the Operating Partnership's 7.750% Notes due 2019 (the "Notes"). The Notes shall be redeemed on December 29, 2016 (the "Redemption Date"). The redemption price for the Notes, including a make-whole premium, will be 115.3136579% of the principal amount of the Notes, plus any accrued and unpaid interest up to, but not including, the Redemption Date.
The Notes are to be surrendered to Wilmington Trust Company, as trustee and paying agent, in exchange for payment of the applicable redemption price. Questions relating to, and requests for additional copies of, the notice of redemption for the Notes should be directed to Wilmington Trust Company, Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890-0001, Attn: Corporate Trust Administration, (203) 453-4130.
This announcement is for information purposes only and is not an offer to purchase or redeem nor a solicitation of an offer to purchase or redeem with respect to any of the Notes.
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.
http://www.prnewswire.com/news-releases/mack-cali-announces-redemption-of-135136000-of-7750-notes-due-2019-300369767.html
Enterprising Investor
7 years ago
Mack-Cali Announces Third Quarter Leasing Results (10/24/16)
Company Leases Over 664,000 Square Feet During the Third Quarter; Announces Plan to Build Harborside 4 on the Hudson River Waterfront
JERSEY CITY, N.J., Oct. 24, 2016 /PRNewswire/ -- Mack-Cali Realty Corporation (NYSE: CLI) today announced that it executed 62 leases totaling 664,490 square feet for its office and flex commercial real estate properties during the quarter ending September 30, 2016. Of the square feet leased, 289,991 square feet (44 percent) were for new leases and 374,499 square feet (56 percent) were for lease renewals and other tenant transactions. At quarter end, Mack-Cali's Core, Flex, and Waterfront properties, totaling 19.8 million square feet, achieved 90.3 percent leased. The overall percentage leased when Non-Core assets are included is 87.7 percent, up 100 basis points from last quarter's 86.7 percent. The third quarter leases had a direct impact on the Company's 2017 expirations, reducing the total by almost 100,000 square feet to 2.9 million square feet.
"We are pleased with the significant leasing momentum we're seeing across our portfolio, particularly along the Hudson River Waterfront where occupancy achieved 95 percent," said Mitchell E. Rudin, Mack-Cali Chief Executive Officer. "This quarter we produced GAAP roll up of 9.1 percent and cash roll up of 2.3 percent. We continue to be focused on core markets and key properties with an eye toward transforming these assets with first-class amenity packages. Over the first nine months of this year, we have executed 218 leases totaling 2.5 million square feet. These results include 830,000 square feet of new leases, and over 1.6 million square feet of renewal and other tenant transactions. Of the 160 transactions for renewals and space vacant less than a year, 139 produced GAAP rent roll ups, while four were net neutral and 17 were roll downs. Year to date our rents have rolled up 10.5 percent on a cash basis and 19.3 percent on a GAAP basis."
"As some may have noticed today we ran an ad in the Wall Street Journal thanking our colleagues in the leasing business for helping us achieve 95 percent occupancy across our Waterfront portfolio," said Michael DeMarco, Mack-Cali President. "We also ran an ad announcing our previously discussed joint venture with SJP Properties to design, lease, and build Harborside 4, a 1.2 million-square-foot office tower. We chose SJP, who will be an equity partner in the proposed venture, because Steve Pozycki, the founder, is a master builder with an unmatched record of building iconic structures on time and on budget. The project only gets built if we achieve substantial preleasing at our desired rates. We believe tenant demand is there today as is our ability to finance and add an additional equity partner, if necessary. The Harborside 4 site is an existing parking lot that we own free and clear of debt for over 20 years."
Large block transactions of over 20,000 square feet during the quarter total 400,000 square feet and include the following deals:
HUDSON RIVER WATERFRONT
Omnicom, a global leader in marketing communications, signed a new lease for 79,771 square feet at Harborside 2 in Jersey City.
Zurich American Insurance, a commercial insurance provider, signed a new lease for 64,414 square feet also at Harborside 2 in Jersey City.
CORE NEW JERSEY SUBURBAN MARKETS
PBF Holding Company LLC, a petroleum refinery operator, has signed a lease renewal and expansion totaling 57,721 square feet at 1 Sylvan Way at Mack-Cali Business Campus in Parsippany.
Maser Consulting P.A., a consulting engineering firm, has signed a lease renewal and an expansion totaling 54,538 square feet in One River Centre, 331 Newman Springs Road, in Red Bank.
Regus, the world's largest provider of flexible workplaces, signed a lease renewal at Princeton Overlook I, 100 Overlook Center in Princeton for 38,930 square feet.
Continental Casualty Insurance, an insurance provider, singed a new lease for 27,366 square feet at 500 College Road East in Princeton.
RSM Maintenance LLC, a facility maintenance provider, signed a lease renewal and expansion totaling 21,540 square feet at Mack-Cali Centre VI, 461 From Road in Paramus.
NEW JERSEY FLEX MARKETS
Hill-Rom Company, Inc., a global medical technology company, signed a new lease for 38,400 square feet at 202 Commerce Drive at Moorestown West Corporate Center in Moorestown.
Community Behavioral Health, a subsidiary of AmeriHealth Mercy Family of Companies, signed a lease renewal for 21,063 square feet at 300 Horizon Drive at Horizon Center Business Park in Hamilton.
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.
http://www.prnewswire.com/news-releases/mack-cali-announces-third-quarter-leasing-results-300349756.html
Enterprising Investor
7 years ago
Mack-Cali Updates Capital Markets Activity (10/20/16)
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.
http://www.prnewswire.com/news-releases/mack-cali-updates-capital-markets-activity-300348677.html
Enterprising Investor
7 years ago
Roseland, Mack-Cali's Multi-Family Subsidiary, Announces Key Investment Activity During Third Quarter (10/20/16)
JERSEY CITY, N.J., Oct. 20, 2016 /PRNewswire/ -- Mack-Cali Realty Corporation (NYSE: CLI) today announced that Roseland Residential Trust ("Roseland"), in the third quarter of 2016, exited a non-core market, broke ground on several key luxury rental communities, and completed financing on several other projects. More recently the Company closed on two impactful transactions at RiverTrace at Port Imperial in West New York, New Jersey.
ACQUISTIONS AND FINANCING:
After acquiring its partners' interests in Portside 7 in East Boston, Roseland closed in the third quarter on long-term financing of approximately $59 million at a rate of 3.44 percent. Also in the third quarter, the Company closed on construction financing for the adjacent Portside 5/6 in East Boston for $73 million.
Subsequent to quarter-end, Roseland closed on two transactions on RiverTrace, the 316-apartment home community located at Port Imperial in West New York. The transactions include: (i) the refinancing of the outstanding permanent loan with a rate of six percent to a 10-year, interest only loan at 3.21 percent; and (ii) the conversion of its subordinate 50 percent ownership interest to a heads up 22.8 percent ownership, with no remaining preferred capital. The Company projects these transactions will generate over $1 million of cash flow in year one of its converted ownership.
CONSTRUCTION STARTS:
The Company commenced construction on the following projects:
•Conshohocken, Pennsylvania (51 Washington): Broke ground on a wholly owned, 310-apartment home, luxury community.
•Morristown, New Jersey (Lofts at 40 Park): Broke ground on a 59-apartment home, joint venture community adjacent to Roseland's Metropolitan at 40 Park.
•Worcester, Massachusetts (145 Front Street at City Square): Broke ground on the second phase of City Square, a 128-apartment home, luxury community in downtown Worcester.
LEASING HIGHLIGHT:
Roseland is pleased with initial leasing activity at its newest property, M2 at Marbella in Jersey City. The Company began leasing in May 2016 and at quarter end was 76 percent leased.
DISPOSITION ACTIVITY:
During the third quarter, Roseland sold its 100 percent interest in the non-strategic, 220-apartment home Andover Place in Andover, Massachusetts for approximately $40.4 million.
"Roseland continues to move the needle forward with respect to our ownership structure in our multi-family assets. RiverTrace is a perfect example where we've been able to achieve greater ownership and cash flow participation in a premier waterfront asset," said Andrew Marshall, President and Chief Operating Officer of Roseland.
"We are seeing continued growth and vitality in the market, and Roseland is responding to meet that demand," said Michael J. DeMarco, President of Mack-Cali. "As we continue to grow our multi-family portfolio with an eye toward increasing our presence in the market, we are looking toward breaking future ground and bringing new luxury inventory to the markets as they continue to emerge and expand."
About Roseland Residential Trust
Roseland Residential Trust (Roseland), a subsidiary of Mack-Cali Realty Corporation (NYSE: CLI) was recently formed to own, manage, and develop Mack-Cali's luxury multi-family residential portfolio. Roseland is a premier, full-service residential and mixed-use owner and developer in the Northeast with an industry leading reputation for successful completion, execution, and management of class A residential developments. Roseland's scalable and integrated business platform oversees the Company's operating and in-construction assets, geographically desirable land portfolio, sourcing of new development and acquisition opportunities, and repurposing activities on Mack-Cali's office holdings.
The Company is a recognized leader in multi-family innovation, carefully integrating each development with its surrounding cultural context to enhance the beauty, economic vitality, and energy of its environment. From thoughtfully designed residences to distinctive amenity offerings, Roseland has earned a reputation for providing residents with the most visionary communities that empower them to re-imagine the way they live.
The Company is the master developer for several nationally recognized mixed-use destinations, including Port Imperial, a $3 billion, 200-acre, mixed-use community on the Hudson River Waterfront facing Midtown Manhattan; Portside at East Pier in East Boston, where Roseland is redeveloping one-half mile of Boston Harbor into a premier luxury mixed-use community; and Overlook Ridge, a 92-acre masterplanned community north of Boston.
Additional information on Roseland is available on the Company's website at www.roselandres.com.
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.
http://www.prnewswire.com/news-releases/roseland-mack-calis-multi-family-subsidiary-announces-key-investment-activity-during-third-quarter-300348556.html
Enterprising Investor
8 years ago
Mack-Cali Announces Goals And Accomplishments As Part Of Strategic Plan Update (9/12/16)
JERSEY CITY, N.J., Sept. 12, 2016 /PRNewswire/ -- Mack-Cali Realty Corporation (NYSE: CLI) announced today that it has published an investor presentation highlighting the substantial progress made toward achieving the objectives laid out last year in its "20 / 15" strategic plan. The Company's executive leadership also will detail today their successes and future plans at the Company's previously announced meeting and webcast for investors and analysts scheduled for 11:00 a.m. Eastern Time today. The presentation illustrates how Mack-Cali is continuing to redefine itself through an aggressive plan to focus on Waterfront and transit-based office holdings in the Northeast, grow its luxury multi-family portfolio, focus only on key markets while exiting others, and undertake dramatic capital improvements to key assets, including to its signature Harborside complex on the Jersey City Waterfront.
"Our leadership team will continue to set ambitious yet achievable goals with a laser-like focus on driving our operating performance," said Michael J. DeMarco, President of Mack-Cali Realty Corporation. "We are pleased with the success we've achieved over the course of our first year – and look forward as we continue on the path to returning a premium relative to NAV and providing significant value to our shareholders."
During this year's meeting with investors, the Company will outline plans to strengthen its balance sheet, launch a strategic capital improvement plan, and create long-term cash flow. The Company expects to further reduce expenses in office operations and reduce credit costs through refinancing opportunities in 2016 and 2017. Leadership is targeting an increased leased percentage of the office portfolio to 90 percent by year-end 2016, and to 93 percent in 2017.
Roseland Residential Trust, the Company's wholly-owned multi-family subsidiary, was created last year to increase transparency. Roseland is currently operating 5,434 multi-family units with a leased percentage of 97 percent. There are an additional 2,560 units under construction with a pipeline of 11,600 units to be developed. Roseland continues to build out and monetize its geographically desirable land portfolio while assessing strategic repurposings of Mack-Cali office holdings. Roseland's ownership percentage of operating and in-construction projects has increased to 61 percent currently from 38 percent in 2012. It also projects further reductions in the number of projects in which it owns subordinated interests to three by year-end 2016, compared to nine at year-end 2014.
"The Roseland platform is well-positioned for material NAV and cash flow growth," said Marshall Tycher, Chairman of Roseland Residential Trust. "Our synergy with Mack-Cali is presenting exciting opportunities through the repositioning of under-utilized office assets where we plan significant future growth/development."
The work to reshape the existing office portfolio through capital improvements is continuing. Over the next 12 to 18 months Mack-Cali plans to upgrade existing amenities and enhance offerings with six major capital investment programs. The most prominent among these projects is the approximate $50 to $75 million transformation and reimagination of Harborside. The new design is inspired by the complex's industrial past. The transformed Harborside will feature high-end dining and shopping experiences in an open layout with easy access to the Waterfront Esplanade and spectacular views of the Hudson River and Manhattan skyline.
"Our evolving office portfolio is continuing to attract substantial tenant interest – especially in our core Hudson Waterfront holdings where our office and multi-family holdings continue to propel growth," said Mitchell E. Rudin, Chief Executive Officer of Mack-Cali. "We are committed to implementing operating initiatives that deliver real results and strengthen our balance sheet."
The materials presented today are included in a Form 8-K furnished by the Company with the Securities and Exchange Commission today are available on the Company's website at https://www.mack-cali.com/investors/company-filings-reports/. A replay of the webcast will be available for 30 days at www.mack-cali.com/investors/events-presentations.
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.
http://www.prnewswire.com/news-releases/mack-cali-announces-goals-and-accomplishments-as-part-of-strategic-plan-update-300326094.html
Enterprising Investor
8 years ago
Mack-Cali Announces Tender Offer for Any and All of Its 7.750% Senior Unsecured Notes Due August 15, 2019 (9/12/16)
JERSEY CITY, N.J., Sept. 12, 2016 /PRNewswire/ -- Mack-Cali Realty Corporation (NYSE: CLI) (the "Company") today announced that its operating partnership, Mack-Cali Realty, L.P. (the "Operating Partnership"), has commenced a tender offer (the "Tender Offer") to purchase for cash any and all of the Operating Partnership's outstanding 7.750% Senior Unsecured Notes due August 15, 2019 listed in the table below (the "Notes").
7.750% senior unsecured notes due 2019 (1)
55448QAP1
$250,000,000
0.750% UST due 08/15/19
FIT1
+115 bps
$1,159.16
(1) Issuer: Mack-Cali Realty, L.P.
(2) Per $1,000 principal amount.
(3) Hypothetical Tender Offer Consideration calculated on the basis of pricing for the U.S. Treasury Reference Security as of 11:00 a.m., New York City time, on September 9, 2016 and a Settlement Date (as defined below) on September 19, 2016. The actual Tender Offer Consideration (as defined below) payable pursuant to the Tender Offer will be calculated and determined as set forth in the Tender Offer Documents.
The Tender Offer consists of an offer on the terms and conditions set forth in the offer to purchase, dated September 12, 2016, and the related letter of transmittal and notice of guaranteed delivery (as they may each be amended or supplemented from time to time, the "Tender Offer Documents"), to purchase for cash any and all of the Notes. The Company refers investors to the Tender Offer Documents for the complete terms and conditions of the Tender Offer.
The Tender Offer will expire at 5:00 p.m., New York City time, on September 16, 2016, unless extended or earlier terminated (such time and date, as the same may be extended, the "Expiration Date"). Holders of Notes must validly tender and not validly withdraw their Notes prior to or at the Expiration Date to be eligible to receive the Tender Offer Consideration.
Notes may be validly withdrawn at any time prior to or at 5:00 p.m., New York City time, on September 16, 2016, unless such date and time is extended or earlier terminated by the Company, but not thereafter.
The "Tender Offer Consideration" for each $1,000 principal amount of Notes validly tendered and accepted for purchase pursuant to the Tender Offer will be determined in the manner described in the Tender Offer Documents by reference to a fixed spread specified for the Notes (the "Fixed Spread") specified in the table above plus the yield based on the bid-side price of the U.S. Treasury Reference Security specified in the table above at 2:00 p.m., New York City time, on September 16, 2016, unless extended or earlier terminated.
Holders will also receive accrued and unpaid interest on Notes validly tendered and accepted for purchase from the last interest payment date up to, but not including, the date the Company initially makes payment for such Notes, which date is anticipated to be September 19, 2016 (the "Settlement Date").
The Tender Offer is subject to the satisfaction or waiver of certain conditions specified in the Tender Offer Documents, but the Tender Offer is not subject to minimum tender conditions.
Information Relating to the Tender Offer
The Tender Offer Documents for the Notes are being distributed to holders beginning today. Citigroup Global Markets Inc. is the dealer manager for the Tender Offer. Investors with questions regarding the Tender Offer may contact Citigroup Global Markets Inc. at (800) 558-3745 (toll-free) or (212) 723-6106 (collect). Global Bondholder Services Corporation is the depositary and information agent for the Tender Offer and can be contacted at (866) 807-2200 (toll-free) or (212) 430-3774 (collect).
None of the Company or its affiliates, their respective boards of directors, the dealer manager, the depositary and information agent or the trustee with respect to the Notes is making any recommendation as to whether holders should tender any Notes in response to the Tender Offer, and neither the Company nor any such other person has authorized any person to make any such recommendation. Holders must make their own decision as to whether to tender any of their Notes, and, if so, the principal amount of Notes to tender.
This press release is for informational purposes only and is not an offer to buy, or the solicitation of an offer to sell, any of the Notes and the Tender Offer does not constitute an offer to buy or the solicitation of an offer to sell Notes in any jurisdiction or in any circumstances in which such offer or solicitation are unlawful. The full details of the Tender Offer, including complete instructions on how to tender Notes, are included in the Tender Offer Documents. Holders are strongly encouraged to read carefully the Tender Offer Documents, including materials incorporated by reference therein, because they will contain important information. The Tender Offer Documents may be downloaded from Global Bondholder Services Corporation's website at http://www.gbsc-usa.com/Mack-Cali or obtained from Global Bondholder Services Corporation, free of charge, by calling toll-free at (866) 807-2200 (bankers and brokers can call collect at (212) 430-3774).
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 http://www.mack-cali.com.
http://www.prnewswire.com/news-releases/mack-cali-announces-tender-offer-for-any-and-all-of-its-7750-senior-unsecured-notes-due-august-15-2019-300326077.html
Enterprising Investor
8 years ago
Roseland Holds Ceremonial Ground Breaking For Signature Place At Morris Plains (8/04/16)
197-Unit Luxury Residential Community Will Represent First Strategic Repositioning of Mack-Cali Office Asset to Multi-Family Community
EDISON, N.J., Aug. 4, 2016 /PRNewswire/ -- Roseland Residential Trust, a wholly owned subsidiary of Mack-Cali Realty Corporation (NYSE: CLI), today held a ceremonial ground breaking for its newest luxury residential community, Signature Place at Morris Plains, in Morris Plains, New Jersey. The new multi-family community will feature 197 luxury apartment homes and is scheduled to be completed in the fourth quarter of 2017. This site was previously a vacant Mack-Cali office building that is being repurposed into a multi-family residential community.
The repositioning of select Mack-Cali office buildings into multi-family communities was a key part of the company's strategic plan announced last year. The repurposing of certain assets will create significant value and is designed to ensure the highest and best use of those selected properties. Mack-Cali and Roseland are in the process of repositioning several of its underperforming, obsolete assets and continue to evaluate the portfolio for additional repositioning opportunities.
"Today marks a significant milestone for the Mack-Cali and Roseland team as we move forward with another of the cornerstone initiatives we laid out in our strategic plan," said Michael J. DeMarco, President and Chief Operating Officer of Mack-Cali Realty Corporation. "In order to provide the highest rate of return for our investors, we know that we must optimize the value of each and every property in our portfolio. Creating Signature Place at Morris Plains will accomplish exactly that for this site."
"This is an incredibly attractive location for a luxury residential community – with excellent transit options and a vibrant surrounding area," said Andrew Marshall, President and Chief Operating Officer of Roseland Residential Trust. "Bringing 197 apartment homes to Morris Plains is a win-win for both our company and the borough, and we look forward to our continued partnership."
This new community is located at 250 Johnson Road in a park-like setting with lake views. Signature Place at Morris Plains is ideally situated in the heart of Morris County, in close proximity to numerous recreational, dining, and shopping destinations along Route 10. It also features a number of convenient options for commuters including indoor/outdoor parking, NJ TRANSIT's Morris Plains train station with hourly service to New York Penn Station, and access to Interstates 287 and 80.
Each of the 197 luxury apartment homes will feature a high-end living experience designed to attract a wide range of residents from young professionals to empty-nesters looking to downsize from their current residence. The property includes one- and two-bedroom units, all with state-of-the-art appliances and finishes. Signature Place will also provide residents with access to a wide range of amenities, including a state-of-the-art fitness center, dog run with dog-washing station, resort-style, outdoor swimming pool with sun deck, barbecue grills, tennis court, golf simulator, resident clubroom with billiards, and conference room.
"Roseland and Mack-Cali are excellent partners and this exciting development will bring tremendous benefits to our already wonderful borough," said Morris Plains Mayor Frank J. Druetzler. "We look forward to coming back here for a ribbon cutting ceremony to celebrate the opening of what I know will be a first-class residential community."
About Roseland Residential Trust
Roseland Residential Trust (Roseland), a subsidiary of Mack-Cali Realty Corporation (NYSE: CLI) was recently formed to own, manage, and develop Mack-Cali's luxury multi-family residential portfolio. Roseland is a premier, full-service residential and mixed-use owner and developer in the Northeast with an industry-leading reputation for successful completion, execution, and management of class A residential developments. Roseland's scalable and integrated business platform oversees the Company's operating and in-construction assets, geographically desirable land portfolio, sourcing of new development and acquisition opportunities, and repurposing activities on Mack-Cali's office holdings.
The Company is a recognized leader in multi-family innovation, carefully integrating each development with its surrounding cultural context to enhance the beauty, economic vitality, and energy of its environment. From thoughtfully designed residences to distinctive amenity offerings, Roseland has earned a reputation for providing residents with the most visionary communities that empower them to re-imagine the way they live.
The Company is the master developer for several nationally recognized mixed-use destinations, including Port Imperial, a $3 billion, 200-acre, mixed-use community on the Hudson River Waterfront facing Midtown Manhattan; The Highlands at Morristown Station, NJ TRANSIT's first Transit Village project which, along with Roseland's 40 Park/Epstein's redevelopment, have spearheaded the revitalization of downtown Morristown; and Portside at East Pier in East Boston, where Roseland is redeveloping one-half mile of Boston Harbor into a premier luxury mixed-use community.
Additional information on Roseland is available on the Company's website at www.roselandres.com.
http://www.prnewswire.com/news-releases/roseland-holds-ceremonial-ground-breaking-for-signature-place-at-morris-plains-300309415.html
Enterprising Investor
8 years ago
Mack-Cali Realty Corporation Announces Second Quarter 2016 Results (8/02/16)
EDISON, N.J., Aug. 2, 2016 /PRNewswire/ -- Mack-Cali Realty Corporation (NYSE: CLI) today reported its results for the second quarter 2016.
Recent highlights include:
•Net income of $0.54 per diluted share;
•Funds from Operations per diluted share of $0.64; and Core Funds from Operations of $0.55 for the quarter;
•Raised 2016 Core FFO per share guidance to a range of $2.07 - $2.13;
•Increased rental rates by 27.3% on a GAAP basis and 17.2% on a cash basis;
•86.7% leased at quarter end; a 4.4% improvement over second quarter 2015;
•89.8% leased at quarter end for Core/Waterfront/Flex properties;
•660,000 square feet leased in second quarter;
•Acquired 101 Wood Avenue in Metropark, Iselin, New Jersey;
•Acquired remaining interest in a 175-unit, multi-family community in East Boston, Massachusetts;
•Sold three properties for $276 million; and
•Declared $0.15 per share quarterly common stock dividend.
Michael J. DeMarco, president, commented "Mack-Cali has made great strides in its realignment plans over the last 12 months and our progress is starting to flow through to our quarterly results. We have made substantial progress on our disposition program and have selectively acquired other properties that have strengthened our positioning in the Waterfront and Metropark submarkets. We are encouraged with our progress and excited by the opportunities in both our office and multi-family portfolios to extract additional value for our shareholders."
FINANCIAL HIGHLIGHTS
* All per share amounts presented below are on a diluted basis.
Net income available to common shareholders for the quarter ended June 30, 2016 amounted to $48.4 million, or $0.54 per share, as compared to $35.4 million, or $0.40 per share, for the quarter ended June 30, 2015. For the six months ended June 30, 2016, net income to common shareholders equaled $110.6 million, or $1.23 per share, as compared to $32.9 million, or $0.37 per share, for the same period last year. Included in net income for the quarter ended June 30, 2016 was $45.1 million of net gains from property and debt-related transactions (net of noncontrolling interests in Operating Partnership of $5.3 million). All per share amounts presented above are on a diluted basis.
Funds from operations (FFO) for the quarter ended June 30, 2016 amounted to $64.1 million, or $0.64 per share, as compared to $46.5 million, or $0.46 per share, for the quarter ended June 30, 2015. For the six months ended June 30, 2016, FFO equaled $112.3 million, or $1.12 per share, as compared to $89.6 million, or $0.89 per share, for the same period last year.
For the second quarter 2016, Core FFO was $0.55 per share after adjusting for a $12 million gain from extinguishment of debt, $2 million in acquisition costs and $0.8 million of dead deal costs, as compared to $0.45 per share for the quarter ended June 30, 2015. The quarter's Core FFO per share of $0.55 increased 22.2 percent from the same quarter last year primarily due to increased base rents and lower net property expenses.
OPERATING HIGHLIGHTS
Mack-Cali's consolidated commercial in-service portfolio was 86.7 percent leased at June 30, 2016, as compared to 87.2 percent leased at March 31, 2016 and an increase of 4.4 percent as compared to June 30, 2015.
For the quarter ended June 30, 2016, the Company executed 74 leases at its consolidated in-service commercial portfolio totaling 660,373 square feet. Of these totals, 154,069 square feet were for new leases and 506,304 square feet were for lease renewals and other tenant retention transactions. Lease transactions included 270,199 square feet in Core properties, 127,745 square feet in Waterfront properties, 150,786 square feet in Flex properties and 111,643 square feet in Non-Core properties. Lease spreads on a GAAP basis were 2.2 percent for new leases and 29.9 percent for renewed or retained leases, for an average of 27.3 percent for the quarter.
Mitchell E. Rudin, chief executive officer, commented "Our leasing pace is encouraging. During the quarter, we addressed over 275,000 square feet of our 2017 expirations and anticipate additional progress. As we embark on repositioning Harborside, we continue to attract technology, media and financial services users to this premier waterfront, mixed-use complex, as evidenced by our recent announcement of new leases with Omnicom and Zurich Insurance. These recent leases, along with our previously announced acquisition of 111 River Street in Hoboken, bring our current waterfront presence of 4.9 million square feet to 94.7 percent leased – strongly outperforming the Hudson Waterfront submarket."
RECENT TRANSACTIONS
In July, the Company announced a series of transactions in the redeployment of disposition proceeds as part of its announced strategic plan. The Company has sold approximately $400 million of assets year to date. Currently, Mack-Cali has contracts out for an additional $250 million of dispositions, $200 million of which it expects to close in the third quarter or early fourth quarter, with the remainder in early 2017. In addition, the Company is currently marketing for sale $200 million in assets for total potential sale proceeds of $850 million. The proceeds from these dispositions is expected to be used to pay down debt, fund development, and purchase suitable acquisitions.
The Company has purchased two class A office assets for approximately $317 million in Hoboken, and Metropark, NJ, totaling approximately 830,000 square feet. Earlier this year, Mack-Cali also acquired three smaller assets for approximately $34 million.
The Company's acquisitions and dispositions are part of Mack-Cali's broad-based portfolio realignment announced as part of their strategic plan last September on balance sheet management while focusing on increasing holdings in waterfront and transit-based locations. To achieve this realignment, the Company has set a goal of $750 million in dispositions to help raise capital for reduction in debt, development funding, and key acquisitions.
Also in July, the Company announced that Roseland Residential Trust ("Roseland"), in the second quarter, completed the acquisition of various partners' interests in Port Imperial on the Hudson River Waterfront and in East Boston, as well as disposition of its subordinated ownership in two Port Imperial communities. In addition, Roseland entered into an agreement to sell Andover Place in Andover, Massachusetts.
BALANCE SHEET/CAPITAL MARKETS
In January 2016, the Company obtained a new $350 million unsecured term loan, which matures in January 2019 with two one-year extension options. The interest rate for the new term loan is currently 140 basis points over LIBOR, subject to adjustment on a sliding scale based on the Company's unsecured debt ratings, or at the Company's option, a defined leverage ratio. Mack-Cali entered into interest rate swap arrangements to fix LIBOR for the duration of the term loan. Including costs, the loan provides for a current all-in fixed rate of 3.13 percent. There is no premium or penalty associated with full or partial prepayment of the term loan.
Proceeds from the unsecured term loan were used primarily to repay outstanding borrowings on its $600 million unsecured revolving credit facility, and to repay the Company's $200 million, 5.8 percent senior unsecured notes that matured on January 15, 2016.
As of June 30, 2016, the Company had total indebtedness of approximately $2.3 billion, with a weighted average annual interest rate of approximately 4.79 percent and a debt-to-undepreciated assets ratio of 40.3 percent. The Company had an interest coverage ratio of 3.4 times for the quarter ended June 30, 2016.
DIVIDENDS
In June, 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 second quarter 2016, which was paid on July 15, 2016 to shareholders of records as of July 6, 2016.
CONFERENCE CALL/SUPPLEMENTAL INFORMATION
An earnings conference call with management is scheduled for August 3, 2016 at 10:00 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=5232618
The live conference call is also accessible by calling (719) 325-2463 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 August 3, 2016 through August 10, 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 6464818.
Copies of Mack-Cali's Form 10-Q and Supplemental Operating and Financial Data are available on Mack-Cali's website, as follows:
Second Quarter 2016 Form 10-Q:
https://www.mack-cali.com/media/944543/2ndquarter10q16.pdf
Second Quarter 2016 Supplemental Operating and Financial Data:
https://www.mack-cali.com/media/944546/2ndquartersp16.pdf
Second Quarter 2016 Supplemental Operating and Financial Data for Roseland Residential Platform:
https://www.mack-cali.com/media/944549/2ndquartersp16Roseland.pdf
In addition, these items are available upon request from:
Mack-Cali Investor Relations Department - Deidre Crockett
343 Thornall Street, Edison, New Jersey 08837-2206
(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 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.
http://www.prnewswire.com/news-releases/mack-cali-realty-corporation-announces-second-quarter-2016-results-300308150.html
Enterprising Investor
8 years ago
Roseland, Mack-Cali's Multi-Family Subsidiary, Announces Key Investment Activity On The Hudson River Waterfront And Boston Markets During Second Quarter (7/29/16)
EDISON, N.J., July 29, 2016 /PRNewswire/ -- Mack-Cali Realty Corporation (NYSE: CLI) today announced that Roseland Residential Trust ("Roseland"), in the second quarter of 2016, completed the acquisition of various partners' interests in Port Imperial on the Hudson River Waterfront and in East Boston, as well as the disposition of its subordinated ownership in two Port Imperial communities. In addition, Roseland entered into an agreement to sell Andover Place in Andover, Massachusetts.
Roseland closed on the following acquisitions:
Port Imperial, Weehawken, New Jersey:
•The buyout of its partner's interests in five Port Imperial waterfront development parcels, inclusive of RiverHouse 11, currently in construction.
•The buyout of its partner's interests in Port Imperial South 4/5 Garage and Retail, increasing Roseland's ownership to 70 percent.
The cost of the Weehawken transactions was approximately $36 million.
East Boston, Massachusetts:
•Acquired its majority partner's interest in the 175-apartment Portside at East Pier 7 on the East Boston Waterfront, thereby increasing Roseland's interest to 85 percent. Subsequently, the Company acquired its historical joint venture partners' interest in East Pier 7, as well as the remaining Portside development parcels. As such, Roseland is now the 100 percent owner of the operating East Pier 7 (175 apartment homes), Portside 5/6 (296 apartment homes currently in construction), and the future rights of Portside 1- 4 (160 apartment homes). The cost of the combined acquisitions was approximately $39 million.
Roseland closed on or agreed to the following dispositions:
•Weehawken, New Jersey: Sale of the Company's subordinate interest in RiversEdge at Port Imperial (236 apartment homes) and RiverParc at Port Imperial (280 apartment homes) for a total of approximately $6.4 million.
•Andover, Massachusetts: Entered into a contract to sell the 220-apartment home Andover Place for approximately $40.5 million. The Company anticipates closing the disposition in August.
In addition, the Company marked recent activities through the following events:
•Morris Plains, New Jersey: Closed on a $42.5 million construction loan for the development of Signature Place at Morris Plains.
•Jersey City, New Jersey: Officially cut the ribbon on M2 at Marbella, the latest addition to Marbella on the Hudson River Waterfront. M2 features 311 luxury apartment homes and the latest state-of-the-art amenities.
•Weehawken, New Jersey: Held ceremonial groundbreaking for RiverHouse 11 at Port Imperial, the 10-story, 295-apartment home luxury residential community, which is the latest addition to Port Imperial.
•Worcester, Massachusetts: Held ceremonial groundbreaking for 145 Front Street at City Square, the 237-apartment home community in the burgeoning Worcester market.
Next week, Roseland will proudly host the ceremonial groundbreaking for Signature Place at Morris Plains, marking a Mack-Cali/Roseland milestone-the first office to luxury multi-family repositioning.
"Through strategic acquisitions, we continue to strengthen our portfolio with smart investments in valuable properties. Our position in core markets like the Hudson River Waterfront and East Boston will lead to strong returns for our investors," said Andrew Marshall, President and Chief Operating Officer of Roseland. "We are particularly excited to take a major step forward in realizing the strategic benefits of the Mack-Cali/Roseland partnership through our Morris Plains repositioning-a template we look forward to replicating elsewhere in our portfolio."
"The multi-family portfolio is projected to grow to over 13,000 operating or in-construction apartments by year-end 2018," said Michael J. DeMarco, President of Mack-Cali. "Regarding the Roseland equity raise, we have made significant progress in identifying investors and look forward to completing that process by early fall on terms beneficial to us. However, we believe that we have sufficient capital to complete all of our 2016 and 2017 projects either through capital on hand or previously invested sums."
About Roseland Residential Trust
Roseland Residential Trust (Roseland), a subsidiary of Mack-Cali Realty Corporation (NYSE: CLI) was recently formed to own, manage, and develop Mack-Cali's luxury multi-family residential portfolio. Roseland is a premier, full-service residential and mixed-use owner and developer in the Northeast with an industry leading reputation for successful completion, execution, and management of class A residential developments. Roseland's scalable and integrated business platform oversees the Company's operating and in-construction assets, geographically desirable land portfolio, sourcing of new development and acquisition opportunities, and repurposing activities on Mack-Cali's office holdings.
The Company is a recognized leader in multi-family innovation, carefully integrating each development with its surrounding cultural context to enhance the beauty, economic vitality, and energy of its environment. From thoughtfully designed residences to distinctive amenity offerings, Roseland has earned a reputation for providing residents with the most visionary communities that empower them to re-imagine the way they live.
The Company is the master developer for several nationally recognized mixed-use destinations, including Port Imperial, a $3 billion, 200-acre, mixed-use community on the Hudson River Waterfront facing Midtown Manhattan; The Highlands at Morristown Station, NJ TRANSIT's first Transit Village project which, along with Roseland's 40 Park/Epstein's redevelopment, have spearheaded the revitalization of downtown Morristown; and Portside at East Pier in East Boston, where Roseland is redeveloping one-half mile of Boston Harbor into a premier luxury mixed-use community.
Additional information on Roseland is available on the Company's website at http://www.roselandres.com/.
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.
http://www.prnewswire.com/news-releases/roseland-mack-calis-multi-family-subsidiary-announces-key-investment-activity-on-the-hudson-river-waterfront-and-boston-markets-during-second-quarter-300306200.html
Enterprising Investor
8 years ago
Mack-Cali Announces Second Quarter Leasing Results (7/28/16)
Company Leases Over 660,000 Square Feet During the Second Quarter; Shows Progress Toward Mitigation of 2017 Lease Expirations
EDISON, N.J., July 28, 2016 /PRNewswire/ -- Mack-Cali Realty Corporation (NYSE: CLI) today announced that it executed 74 leases totaling 660,373 square feet for its office and flex commercial real estate properties during the quarter ending June 30, 2016. Of the 660,373 square feet leased, 154,069 square feet (22.8 percent) were for new leases and 506,304 square feet (77.2 percent) were for lease renewals and other tenant transactions. At quarter end, Mack-Cali's Core, Flex, and Waterfront properties achieved 89.8 percent leased, while its Non-Core properties were 72.8 percent leased. The total percentage leased for the Company is 86.7 percent, up 440 basis points from the same quarter last year, and down slightly from the first quarter's 87.2 percent. The second quarter leases had a direct impact on the Company's 2017 expirations, reducing the total by over 275,000 square feet.
Additionally, just after quarter end, our newest tenant took advantage of the Grow New Jersey Tax Incentives and signed a lease at Harborside Plaza 2 on the Jersey City Waterfront. Omnicom, a global leader in marketing communications, signed a new lease for 79,771 square feet. The Omnicom lease, and the July 1 acquisition of 111 River Street in Hoboken, New Jersey, would increase our June 30 percentage leased from 89.8 percent to 90.4 percent at our Core, Flex, and Waterfront properties, and from 86.7 percent to 87.3 percent overall.
With the new Omnicom lease, Mack-Cali's Waterfront portfolio is projected to be approximately 94 percent leased as of September 30, 2016.
"We are proud of the significant leasing momentum across our portfolio, particularly along the Hudson River Waterfront," said Mitchell E. Rudin, chief executive officer of Mack-Cali. This quarter we produced GAAP roll up in excess of 27 percent and cash roll up of more than 17 percent. Over the last year, we've repositioned Mack-Cali-refocusing on core markets and key properties with an eye toward transforming these assets with first-class amenity packages. Over the first six months of this year, we have executed 156 leases totaling 1.8 million square feet (8 percent of our core portfolio) with 98 leases having GAAP rent roll up, one lease flat and 16 leases down for a total GAAP rollup of 22.2 percent.
Large block transactions of over 20,000 square feet were represented by the following deals, totaling approximately 270,000 square feet:
HUDSON RIVER WATERFRONT
•Deutsche Bank, a financial service provider, extended its lease for 125,916 square feet at Harborside Plaza 1 in Jersey City, New Jersey. The tenant's lease was originally set to expire in 2017.
CORE NEW JERSEY SUBURBAN MARKETS
•Verizon New Jersey, a unit of Verizon Communications, has signed a lease renewal at 600 Horizon Drive at Horizon Center Business Park in Hamilton. Verizon leases the entire 95,000-square-foot office building, and also represents mitigation of a 2017 expiration.
•Coram Alternate Site Services Inc., a provider of home health care services, has signed a lease renewal at 11 Commerce Way at Mack-Cali Commercenter in Totowa for 26,125 square feet.
•Medical technologies firm Stryker Corporation signed a new lease for 22,081 square feet at 10 Mountainview Road in Upper Saddle River.
NEW YORK
•Wells Fargo Bank, N.A., a financial services firm, signed a lease renewal for 22,500 square feet at 50 Main Street at Westchester Financial Center in White Plains.
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.
http://www.prnewswire.com/news-releases/mack-cali-announces-second-quarter-leasing-results-300305968.html
Enterprising Investor
8 years ago
Roseland Residential Trust Hosts Ribbon Cutting Ceremony For Newest Luxury Development, M2 At Marbella (6/23/16)
Jersey City Mayor Steven Fulop Joins Roseland to Commemorate Completion of New Luxury Residential Community
EDISON, N.J., June 23, 2016 /PRNewswire/ -- Roseland Residential Trust, a subsidiary of Mack-Cali Realty Corporation (NYSE: CLI), today marked the grand opening for M2 at Marbella, the newest luxury residential building located in downtown Jersey City. Jersey City Mayor Steven Fulop joined municipal and company officials to celebrate Roseland's newest addition to the Jersey City market.
The 39-story luxury residential community, located at 401 Washington Boulevard, features 311 studios, one-, two-, and three-bedroom apartment homes, and joins Roseland's existing Marbella community where residents will benefit from shared amenities, including a shared parking garage.
Fulop said the newest apartment community to open is yet another example of Jersey City's emergence as a city where professionals come to enjoy a true live-work-play environment.
"Mack-Cali and its Roseland subsidiary have invested tremendous resources in both commercial and residential properties throughout Jersey City, including Mack-Cali's own corporate headquarters, and we are grateful for that," said Mayor Steven M. Fulop. "But more importantly, their investment in our neighborhoods and our communities speaks volumes about Mack-Cali's faith that Jersey City can look forward to continued prosperity, continued development, and continued growth."
As the newest addition to the Jersey City skyline, M2 at Marbella will provide residents with remarkable views of New York City and the Hudson Waterfront from the individual apartment homes as well as from the 800-square-foot rooftop terrace. The building features a wide variety of state-of-the-art amenities, including a 1,200-square-foot event room, as well as a sky lounge on the top floor of the building, a 1,700-square-foot club room with a lounge and billiard table, a conference room, two fitness centers with a yoga studio, a children's playroom, an on-site concierge, an on-site dog run, and bike storage.
Andrew Marshall, president and chief operating officer of Roseland Residential Trust, shared his excitement for the addition of M2 to the luxury multi-family rental market in Jersey City.
"We are thrilled to have M2 at Marbella open its doors and add to Jersey City's flourishing community," said Marshall. "The community offers residents unrivaled views of New York City's iconic skyline as well as proximity to numerous transit options. The host of amenities offered will provide enjoyment for every resident throughout the year."
M2 is connected to Roseland's existing residential community, Marbella, by a 16,000-square-foot landscaped roof deck with a pool, which will be accessible to residents of both luxury residential communities. In addition to the pool, the deck will provide residents with a variety of outdoor amenities to enjoy throughout the year, including a fireplace, fire pit, and outdoor grilling stations.
M2 is ideal for commuters due to its close proximity to various mass transportation services. The Hudson-Bergen Light Rail is located on-site and provides commuters with access to Hoboken and Bayonne. Additionally, a NJ TRANSIT bus stop is directly across the street from the new residential community and the Newport PATH station, which provides commuters with train service to Manhattan and is less than ¼ mile north of the property. Convenient highway access from M2 is available to residents, and Newark Liberty International Airport is located approximately 10 miles away. Additionally, a wide variety of recreational activities, dining options, and shops, including the Newport Centre Mall, are all located within walking distance of M2, making this one of the most walkable neighborhoods in Jersey City.
About Roseland Residential Trust
Roseland Residential Trust (Roseland), a subsidiary of Mack-Cali Realty Corporation (NYSE: CLI) was recently formed to own, manage, and develop Mack-Cali's luxury multi-family residential portfolio. Roseland is a premier, full-service residential and mixed-use owner and developer in the Northeast with an industry leading reputation for successful completion, execution, and management of class A residential developments. Roseland's scalable and integrated business platform oversees the Company's operating and in-construction assets, geographically desirable land portfolio, sourcing of new development and acquisition opportunities, and repurposing activities on Mack-Cali's office holdings.
The Company is a recognized leader in multi-family innovation, carefully integrating each development with its surrounding cultural context to enhance the beauty, economic vitality, and energy of its environment. From thoughtfully designed residences to distinctive amenity offerings, Roseland has earned a reputation for providing residents with the most visionary communities that empower them to re-imagine the way they live.
The Company is the master developer for several nationally recognized mixed-use destinations, including Port Imperial, a $3 billion, 200-acre, mixed-use community on the Hudson River Waterfront facing Midtown Manhattan; The Highlands at Morristown Station, NJ TRANSIT's first Transit Village project which, along with Roseland's 40 Park/Epstein's redevelopment, have spearheaded the revitalization of downtown Morristown; and Portside at East Pier in East Boston, where Roseland is redeveloping one-half mile of Boston Harbor into a premier luxury mixed-use community.
Additional information on Roseland is available on the Company's website at www.roselandres.com.
http://www.prnewswire.com/news-releases/roseland-residential-trust-hosts-ribbon-cutting-ceremony-for-newest-luxury-development-m2-at-marbella-300289573.html
Enterprising Investor
8 years ago
Downtown Worcester Renaissance Continues As Roseland Officially Breaks Ground On 145 Front Street At City Square (6/23/16)
237-unit Luxury Residential Community Featuring World-Class Amenities is a Part of Dramatic Transformation
EDISON, N.J., June 23, 2016 /PRNewswire/ -- Roseland Residential Trust, a wholly owned subsidiary of Mack-Cali Realty Corporation (NYSE: CLI), yesterday held a groundbreaking ceremony with public officials for 145 Front Street at City Square in Worcester, Massachusetts. This project is the first of two phases, when complete it will be comprised of 365 apartment homes, phase one includes 237-apartment homes. It is a key component of the master-planned, mixed-use development that is revitalizing the city's downtown. Roseland anticipates a third quarter 2017 completion of this community.
The luxury residential community will be a draw for the many young professionals flocking to the revitalized Worcester, New England's second largest city. The property will feature studio, one-, and two-bedroom units, with a wide range of state-of-the-art amenities, including a stunning outdoor swimming pool with a sundeck, a courtyard with fire pit, barbecue grills, a dog run, and more. The building will also have a full-time concierge, a fitness center with on-demand yoga and spinning services, and a clubroom with billiards, computers, a lounge area, and a game room. Additionally, there will be 10,000 square feet of retail space at 145 Front Street.
The full mixed-use project includes a new hotel, public parking garage, and significant additional retail space. Downtown Worcester is ideally located steps from the Worcester Common and the new transportation hub at Worcester's Union Station offering multiple transport options, including Massachusetts Bay Transportation Authority (MBTA) trains, Amtrak, and bus service. The MBTA offers service to Boston's South Station in approximately 90 minutes.
"Creating a vibrant downtown residential community gives our growing workforce the high-quality homes they need, and today marks a major milestone in Worcester's continuing renaissance," said Worcester Mayor Joseph M. Petty. "Downtown's transformation is made possible by partners like Roseland who are committed to making projects like this one a reality, and we look forward to continuing to work together for years to come."
"This development brings a new dimension in luxury living to the rapidly growing downtown Worcester area – an unrivaled set of amenities, convenience, and a high-end lifestyle," said Andrew Marshall, president and chief operating officer of Roseland Residential Trust. "This property and the entire development will make Worcester the quintessential urban live-work-play environment, and we are thrilled to be a part of it."
This property is expected to be especially attractive to Worcester's growing workforce in advanced manufacturing, information technology, biotechnology, and healthcare. There are a number of significant private and public sector employers in Worcester, including St. Vincent Hospital, UMass Memorial Medical Center, and the Massachusetts College of Pharmacy and Health Sciences. The area is home to 12 colleges and universities with more than 35,000 students.
"The momentum of Downtown Worcester is plain to see, and the addition of Roseland's high-quality, market rate housing will only build on that energy," said City Manager Edward M. Augustus, Jr. "This is a great example of smart growth, bringing hundreds of people downtown to live near our intermodal transit hub, where they can take a bus across the city or an express train into Boston. As we continue to build density and downtown increasingly becomes a genuine neighborhood, I see even more great things on the horizon."
Roseland's focus on developing in downtown areas is readily apparent elsewhere in Massachusetts as well. The company is building Portside at East Pier in East Boston where it is redeveloping a stretch of waterfront property on Boston Harbor. Portside at East Pier is comprised of 181 apartment homes that are fully occupied, 296 that are currently under construction, and an additional future phase which will likely include a mix of apartment homes, condos, a hotel, and multiple public amenities. Roseland is also constructing The Chase II at Overlook Ridge five miles north of Boston. Chase II is a 292-apartment home community and part of a master-planned community, currently comprised of 1,400 apartment homes, and approved for a total of approximately 2,800 apartment homes.
About Roseland Residential Trust
Roseland Residential Trust (Roseland), a subsidiary of Mack-Cali Realty Corporation (NYSE: CLI) was recently formed to own, manage, and develop Mack-Cali's luxury multi-family residential portfolio. Roseland is a premier, full-service residential and mixed-use owner and developer in the Northeast with an industry-leading reputation for successful completion, execution, and management of class A residential developments. Roseland's scalable and integrated business platform oversees the Company's operating and in-construction assets, geographically desirable land portfolio, sourcing of new development and acquisition opportunities, and repurposing activities on Mack-Cali's office holdings.
The Company is a recognized leader in multi-family innovation, carefully integrating each development with its surrounding cultural context to enhance the beauty, economic vitality, and energy of its environment. From thoughtfully designed residences to distinctive amenity offerings, Roseland has earned a reputation for providing residents with the most visionary communities that empower them to re-imagine the way they live.
The Company is the master developer for several nationally recognized mixed-use destinations, including Port Imperial, a $3 billion, 200-acre, mixed-use community on the Hudson River Waterfront facing Midtown Manhattan; The Highlands at Morristown Station, NJ TRANSIT's first Transit Village project which, along with Roseland's 40 Park/Epstein's redevelopment, have spearheaded the revitalization of downtown Morristown; and Portside at East Pier in East Boston, where Roseland is redeveloping one-half mile of Boston Harbor into a premier luxury mixed-use community.
Additional information on Roseland is available on the Company's website at www.roselandres.com.
http://www.prnewswire.com/news-releases/downtown-worcester-renaissance-continues-as-roseland-officially-breaks-ground-on-145-front-street-at-city-square-300289285.html
Enterprising Investor
8 years ago
Mack-Cali Realty Corporation Announces First Quarter 2016 Results (4/27/16)
Core FFO per Diluted Share of $0.49
-Executed Over One Million Square Feet of Leases-
EDISON, N.J., April 27, 2016 /PRNewswire/ -- Mack-Cali Realty Corporation (NYSE: CLI) today reported its results for the first quarter 2016.
Recent highlights include:
- Core FFO per diluted share of $0.49; and Funds from operations (FFO) of $0.48 for the quarter;
- Revised FFO per share guidance of $2.04 to $2.10 for full year 2016;
- FFO per share guidance of $0.52 to $0.54 for the second quarter 2016;
- Net income of $0.69 per diluted share;
- 87.2% leased at quarter end; 1% higher than fourth quarter 2015 and a 2.9% improvement over first quarter 2015;
- 1.1 Million square feet leased in first quarter; a 48% increase over prior year;
- Increased rental rates by 18.4% on a GAAP basis and 9.5% on a cash basis;
- Acquired remaining 50% interest in a 371-unit multi-family property in Malden, Massachusetts;
- Sold or signed contracts to sell four properties for $370 million; and
- Declared $0.15 per share quarterly common stock dividend.
Michael J. DeMarco, president, commented "Regarding dispositions we are ahead of schedule and achieving planned results regarding our outlined non-core asset sales of $750 million. To date, we have closed on $300 million, $65 million closing in 30 days, with another $70 million under contract. For acquisitions, we have agreed to purchase 111 River Street in Hoboken and 101 Wood Avenue South in Metropark for a combined $317 million which falls in line with our goal of acquiring exceptional class A, Hudson River Waterfront and transit based assets. We have achieved great things here at Mack-Cali in just under a year at the helm. We expect that we will arrive at all our goals in the foreseeable future."
FINANCIAL HIGHLIGHTS
* All per share amounts presented below are on a diluted basis.
For the first quarter 2016, Core FFO was $0.49 per share after adjusting for a $913,000 valuation charge at quarter end for mark-to-market of unhedged interest rate swaps, as compared to $0.43 per share for the quarter ended March 31, 2015. The quarter's Core FFO per share of $0.49 grew 13.9 percent from the same quarter last year primarily due to increased base rents and lower net property expenses.
Funds from operations (FFO) for the quarter ended March 31, 2016 totaled $48.2 million, or $0.48 per share, as compared to $43.1 million, or $0.43 per share, for the quarter ended March 31, 2015.
Net income (loss) available to common shareholders for the quarter ended March 31, 2016 amounted to $62.2 million, or $0.69 per share, as compared to $(2.5) million, or $(0.03) per share, for the quarter ended March 31, 2015. Included in net income for the quarter ended March 31, 2016 was $61.5 million of net gains from property-related transactions (net of noncontrolling interests in Operating Partnership of $7.2 million).
OPERATING HIGHLIGHTS
Mack-Cali's consolidated commercial in-service portfolio was 87.2 percent leased at March 31, 2016, as compared to 86.2 percent leased at December 31, 2015. The increase in percentage leased is primarily due to positive absorption through leasing activity of 0.8 percent and 0.2 percent as a result of sold properties.
For the quarter ended March 31, 2016, the Company executed 82 leases at its consolidated in-service commercial portfolio totaling 1,124,140 square feet. Of these totals, 385,658 square feet were for new leases and 738,482 square feet were for lease renewals and other tenant retention transactions. Lease transactions included 349,423 square feet in Core properties, 551,674 square feet in Waterfront properties, 155,662 square feet in Flex properties and 67,381 square feet in Non-Core properties. Lease spreads on a GAAP basis were 9.7 percent for new leases and 18.9 percent for renewed or retained leases.
Mitchell E. Rudin, chief executive officer, commented "Looking at the markets, the activity in the Waterfront, Metropark, and Parsippany markets continues to be very strong. On the Waterfront, in addition to the transactions that we have signed, we have almost 1.3 million square feet of leases out or are in active discussions. Jersey City is on a roll and is on its way to becoming New Jersey's largest city and is one of the best mid-sized cities in the US. Not a week goes by without a favorable news piece on why Jersey City is the new hotspot for people to live, work, and play. We are certainly benefiting from this positive change in perception."
RECENT TRANSACTIONS
On January 5, 2016, the Company, which held a 50 percent subordinated interest in the unconsolidated Overlook Ridge Apartment Investors LLC, 371-unit multi-family operating property located in Malden, Massachusetts, acquired the remaining interest for $39.8 million in cash plus the assumption of a first mortgage loan secured by the property with a principal balance of $52.7 million. The cash portion of the acquisition was funded primarily through borrowings under the Company's unsecured revolving credit facility.
In March, the Company sold its 169,549 square-foot commercial office property located at 1201 Connecticut Avenue, NW in Washington D.C. for approximately $93 million and realized a gain of approximately $58.8 million on this transaction. Additionally in March, the Company sold its 67,401 square-foot commercial office property located at 2 Independence Way in Princeton, New Jersey for approximately $4.4 million and realized a loss of approximately $0.2 million on this transaction.
The Company recently announced that it reached an agreement to sell its remaining asset in Washington, D.C. at 1400 L Street for approximately $70.5 million, and on April 26, 2016, it completed the sale of 125 Broad Street, for approximately $202 million, exiting the New York City market. The Company expects to complete the 1400 L Street sale by May 2016.
BALANCE SHEET/CAPITAL MARKETS
In January 2016, the Company obtained a new $350 million unsecured term loan, which matures in January 2019 with two one-year extension options. The interest rate for the new term loan is currently 140 basis points over LIBOR, subject to adjustment on a sliding scale based on the Company's unsecured debt ratings, or at the Company's option, a defined leverage ratio. Mack-Cali entered into interest rate swap arrangements to fix LIBOR for the duration of the term loan. Including costs, the loan provides for a current all-in fixed rate of 3.13 percent. There is no premium or penalty associated with full or partial prepayment of the term loan.
Proceeds from the unsecured term loan were used primarily to repay outstanding borrowings on its $600 million unsecured revolving credit facility, and to repay the Company's $200 million, 5.8 percent senior unsecured notes that matured on January 15, 2016.
As of March 31, 2016, the Company had total indebtedness of approximately $2.3 billion, with a weighted average annual interest rate of approximately 4.95 percent and a debt-to-undepreciated assets ratio of 40.4 percent. The Company had an interest coverage ratio of 2.9 times for the quarter ended March 31, 2016.
DIVIDENDS
In March, 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 first quarter 2016, which was paid on April 15, 2016 to shareholders of records as of April 5, 2016.
GUIDANCE/OUTLOOK
The Company expressed comfort with net income and FFO per diluted share for the full year 2016, as follows:
Full Year
2016 Range
Net income available to common shareholders
$0.82-$0.88
Add: Real estate-related depreciation and amortization on continuing operations
1.90
Deduct: Gain on change of control of interests
(0.10)
Realized (gains) losses and unrealized losses on disposition of rental property, net
(0.58)
Funds from operations
$2.04-$2.10
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 April 28, 2016 at 10:00 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=5224168
The live conference call is also accessible by calling (719) 457-1035 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 April 28, 2016 through May 5, 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 5538104.
Copies of Mack-Cali's Form 10-Q and Supplemental Operating and Financial Data are available on Mack-Cali's website, as follows:
First Quarter 2016 Form 10-Q:
https://www.mack-cali.com/media/913089/1stquarter10q16.pdf
First Quarter 2016 Supplemental Operating and Financial Data:
https://www.mack-cali.com/media/913093/1stquartersp16.pdf
First Quarter 2016 Supplemental Operating and Financial Data for Roseland Residential Platform:
https://www.mack-cali.com/media/913096/1stquartersp16Roseland.pdf
In addition, these items are available upon request from:
Mack-Cali Investor Relations Department - Deidre Crockett
343 Thornall Street, Edison, New Jersey 08837-2206
(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.
http://www.prnewswire.com/news-releases/mack-cali-realty-corporation-announces-first-quarter-2016-results-300258960.html
Enterprising Investor
8 years ago
Mack-Cali Updates Capital Markets Activity (4/26/16)
EDISON, N.J., April 26, 2016 /PRNewswire/ -- Mack-Cali Realty Corporation (NYSE: CLI) today announced a series of transactions in the redeployment of disposition proceeds as part of its announced strategic plan. The Company has sold approximately $300 million of assets year to date. By May 18, the Company anticipates closing on an additional approximately $70 million in dispositions, has reached agreement on another $63 million of sales, and is currently marketing an additional $230 million in assets. The proceeds from these dispositions will be used to pay down debt, fund development, and purchase suitable acquisitions.
The year to date sales include 1201 Connecticut Avenue, NW in Washington, D.C., for $93 million and 125 Broad Street in Downtown Manhattan, which the Company closed on today for approximately $202 million, in a move to exit both the Manhattan and D.C. markets.
The Company has also reached an agreement with the lender on a $63.3 million mortgage secured by four New Jersey office properties. The loan had been accruing interest at a rate of 10.26 percent. The loan was recently repaid at a substantial discount using sale proceeds.
The Company has agreed to purchase two class A office assets for approximately $317 million in Hoboken, N.J., and Metropark in Edison, N.J., totaling approximately 800,000 square feet. Mack-Cali has also acquired three smaller assets for approximately $34 million. The acquisitions and repayment of debt total approximately $414 million.
The acquisitions include:
•111 River Street in Hoboken, N.J., will be purchased for $235 million. The 566,215-square-foot office property is Mack-Cali's first acquisition in the successful, high barrier-to-entry Hoboken market. With this acquisition, Mack-Cali will own approximately 25% of the Hudson River Waterfront class A office market. The acquisition is anticipated to close in June.
•101 Wood Avenue South in Metropark in Edison, N.J., will be purchased for $82.3 million. This 10-story, 262,835-square-foot class A office building is located in the highly successful Metropark class A submarket. This is Mack-Cali's second acquisition in Metropark and with this purchase will own approximately 20% of the Metropark submarket. The acquisition is expected to close in May.
Additionally, the Borough of Upper Saddle River has agreed to amend its zoning to provide for the development of for-sale residential homes on Mack-Cali's One Lake Street property. As a result, the Company has entered into an agreement to sell the bulk of the property – approximately 38 acres – to a major home developer, which will construct both market rate and affordable housing units. The remainder of the 47-acre property will be sold to the borough for the future construction of municipal offices and sports fields. The sales price aggregates to approximately $43 million. This transaction will likely be completed in early 2017.
"The sum total of this activity demonstrates clear progress toward achieving the strategic objectives we laid out for the Company," said Michael J. DeMarco, Mack-Cali president. "These moves reflect our disciplined approach to capital allocation and balance sheet maintenance while ensuring maximum earnings growth and pushing our stock price to over our NAV. The net effect of these transactions is estimated to be 9 cents of earnings accretion for a full year on a GAAP basis and 3 cents on a cash basis."
"Acquiring properties that meet with the Company's strategic plan's goals of creating a portfolio with long-term growth is one of our continuing goals. Both 111 River Street and 101 Wood Avenue will be among the top five office buildings we own," said DeMarco. "Both buildings are in key markets where we have seen rents rising in the short term and believe will continue to rise over the long term and have in-place rents that are substantially below market."
The acquisitions/dispositions and debt repayment are part of Mack-Cali's broad-based portfolio realignment announced as part of their strategic plan last September on balance sheet management while focusing on increasing holdings in waterfront and transit-based locations. To achieve this realignment, the Company has set a goal of $750 million in dispositions to help raise capital for reduction in debt, fund development, and key acquisitions.
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.
http://www.prnewswire.com/news-releases/mack-cali-updates-capital-markets-activity-300257950.html
Enterprising Investor
8 years ago
Mack-Cali's Multi-Family Subsidiary, Roseland Residential Trust, Announces Key Investment Activity In The Hudson River Waterfront And Boston Markets (4/18/16)
EDISON, N.J., April 18, 2016 /PRNewswire/ -- Mack-Cali Realty Corporation (NYSE: CLI) today announced Roseland Residential Trust ("Roseland") reached an agreement or completed the acquisition of various partners' interests in Port Imperial on the New Jersey Waterfront and in East Boston. In addition, Roseland is actively marketing for sale Andover Place in Andover, Massachusetts.
Roseland Residential Trust was formed January 1 to own, manage, and develop Mack-Cali's luxury multi-family residential portfolio. As part of the formation, Marshall Tycher became chairman and Andrew Marshall became president and chief operating officer. The multi-family portfolio is projected to more than double in size from approximately 7,000 apartment homes either operating or in construction to over 14,000 apartments by year-end 2018.
Roseland agreed to:
Port Imperial:
• Weehawken, New Jersey: The buyout of its partner's interests in five Port Imperial waterfront development parcels. Concurrent with the acquisition, Roseland commenced construction on one of the acquired parcels, RiverHouse, a 100 percent wholly owned 295-apartment home community.
• Weehawken: The buyout of its partner's interests in Port Imperial South 4/5 Garage and Retail, thereby increasing Roseland's ownership to 70 percent.
• Weehawken: Parcel 2 (potential condo parcel) will be transferred to a new entity with Roseland and its joint venture partner each holding a 50 percent ownership stake.
The cost of the Weehawken transactions is approximately $36 million.
• West New York, New Jersey: The buyout of its partner's 25 percent subordinate interest in RiverTrace, a 316-apartment community. Roseland now holds a 50 percent subordinate interest in the joint venture with UBS. The cost of the acquisition was approximately $11.3 million.
East Boston:
• East Boston, Massachusetts: Acquired its majority partner's interest in the 175-apartment Portside at East Pier 7 on the East Boston Waterfront, thereby increasing Roseland's interest to 85 percent. The cost of the acquisition was approximately $38.1 million. Roseland is currently building the adjacent 296-apartment project, Portside 5/6, also 85 percent owned by Roseland.
"The acquisitions outlined above provide Roseland with greater ownership along one of New Jersey's most valuable remaining waterfront areas, in addition to our waterfront presence in East Boston. It enables us to achieve one of our primary strategic objectives—to be the premier waterfront developer and owner in New Jersey and other Core markets," said Marshall Tycher, chairman of Roseland. "We were able to reach this goal at very attractive valuations, while at the same time greatly simplifying the ownership of our holdings."
These transactions result in Roseland acquiring 100 percent interests in land holdings in five valuable Port Imperial waterfront parcels with development potential for approximately 900 apartment homes and 300,000 square feet of office space, in addition to greater ownership interests of 175 apartment homes in the master-planned Portside at East Pier community. Additionally, Roseland increased its participation to an 85 percent interest in Portside 5/6—a 296-apartment home project currently under construction, as well as Portside 1-4—a planned mixed-use project, all at Portside at East Pier facing downtown Boston.
In addition, Roseland has begun marketing for sale the 220-apartment home Andover Place in Andover, Massachusetts. The Company is seeing strong interest and anticipates entering into a contract within the next 30 days.
About Roseland Residential Trust
Roseland Residential Trust (Roseland), a subsidiary of Mack-Cali Realty Corporation (NYSE: CLI) was recently formed to own, manage, and develop Mack-Cali's luxury multi-family residential portfolio. Roseland is a premier, full-service residential and mixed-use owner and developer in the Northeast with an industry leading reputation for successful completion, execution, and management of class A residential developments. Roseland's scalable and integrated business platform oversees the Company's operating and in-construction assets, geographically desirable land portfolio, sourcing of new development and acquisition opportunities, and repurposing activities on Mack-Cali's office holdings.
The Company is a recognized leader in multi-family innovation, carefully integrating each development with its surrounding cultural context to enhance the beauty, economic vitality, and energy of its environment. From thoughtfully designed residences to distinctive amenity offerings, Roseland has earned a reputation for providing residents with the most visionary communities that empower them to re-imagine the way they live.
The Company is the master developer for several nationally recognized mixed-use destinations, including Port Imperial, a $3 billion, 200-acre, mixed-use community on the Hudson River Waterfront facing Midtown Manhattan; The Highlands at Morristown Station, NJ TRANSIT's first Transit Village project which, along with Roseland's 40 Park/Epstein's redevelopment, have spearheaded the revitalization of downtown Morristown; and Portside at East Pier in East Boston, where Roseland is redeveloping one-half mile of Boston Harbor into a premier luxury mixed-use community.
Additional information on Roseland is available on the Company's website at http://www.roselandres.com/.
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.
http://www.prnewswire.com/news-releases/mack-calis-multi-family-subsidiary-roseland-residential-trust-announces-key-investment-activity-in-the-hudson-river-waterfront-and-boston-markets-300252878.html
Enterprising Investor
8 years ago
Mack-Cali Leases 1.1 Million Square Feet During The First Quarter (4/07/16)
EDISON, N.J., April 7, 2016 /PRNewswire/ -- Mack-Cali Realty Corporation (NYSE: CLI) today announced that it executed 82 leases totaling 1.1 million square feet for its office and flex commercial real estate properties during the quarter ended March 31, 2106. This represents a 45 percent increase over the 758,919-square-foot activity for the same period last year. Of the 1.1 million square feet leased, 386,000 square feet (35 percent) were for new leases and 740,000 square feet (65 percent) were for lease renewals and other tenant transactions. At quarter end, Mack-Cali's Core, Flex, and Waterfront properties achieved 90.3 percent leased, while its Non-Core properties were 75.7 percent leased. The total percentage leased for the Company is 87.2 percent, up 100 basis points from year-end 2015. The first quarter leases had a direct impact on the Company's 2017 expirations, reducing the total by 330,000 square feet.
"Our portfolio performed strongly this quarter with significant new leases and renewals. We estimate the GAAP roll up for this quarter to be in excess of 18 percent and cash roll up to be approximately 10 percent," said Mitchell E. Rudin, chief executive officer. "The momentum we are seeing, as exemplified by these leases, is due to real improvement in our key core markets, as well as our continuing focus on providing tenants superior amenities and ideally situated properties with convenient transit options."
Large block transactions of over 25,000 square feet were represented by the following 13 deals totaling over 845,000 square feet:
JERSEY CITY WATERFRONT
•Bank of America Merrill Lynch signed a 10-year lease renewal for 334,835 square feet while expanding by an additional 53,372 square feet at 101 Hudson Street in Jersey City, N.J. The tenant's lease was originally set to expire in 2017. The tenant was represented in the transaction by Robert Alexander, Ryan Alexander, Emily Jones, Ramneek Rikhy, Brett Shannon, and Conor Denihan, all of CBRE.
•GBT, a corporate travel and meetings program management provider, signed a new lease for 49,563 square feet at 101 Hudson Street in Jersey City. The tenant was represented in the transaction by Carl Eriksen and Nicholas Hilton, both of CBRE.
•World Business Lenders LLC, a provider of working capital to small businesses, signed a new lease for 35,040 square feet at 101 Hudson Street in Jersey City. The tenant was represented by John A. Johnson, Jr. and Brad M. Wolk, both of Savills Studley.
•United States Fire Insurance, a subsidiary of Crum & Forster Holdings Corp., is a provider of non-life insurance and underwriting services. The tenant signed a new lease for 35,040 square feet at 101 Hudson Street in Jersey City. The tenant was represented in the transaction by Rémy P. DeVarenne, Jr. of CBRE.
•Print experts C2 Imaging, LLC, a Vomela Affiliated Company, signed a new lease for 34,307 square feet at Harborside Plaza 2 in Jersey City. The tenant was represented in the transaction by Stuart J. Siegel, Matthew Bergey, Kevin Dudley, and Brett Kaye, all of CBRE.
NEW JERSEY
•Hackensack University Health Network Inc./Meridian Health Systems, Inc. signed a new lease for 61,068 square feet at Metroview, 343 Thornall Street in Edison. The tenant was represented in the transaction by Paul Giannone, Kevin Carton, and Todd Elfand, all of Cushman & Wakefield.
•Ferrero U.S.A., Inc., a global chocolate and confectionery producer, signed a new lease for 50,069 square feet at 7 Sylvan Way in Mack-Cali Business Campus, Parsippany. The tenant was represented in the transaction by Edward DaCosta of CBRE.
•B&G Foods Inc., a manufacturer, seller, and distributer of high-quality, branded shelf-stable foods, signed a lease renewal for 32,024 square feet and took an additional 14,419 square feet at 4 Gatehall Drive in Mack-Cali Business Campus, Parsippany. The tenant was represented in the transaction by David Opper and Nicole Steimel, both of CBRE.
•Untracht Early LLC, a provider of accounting, assurance, tax, consulting, and family office services, signed a transaction totaling 30,765 square feet consisting of a 26,513-square-foot renewal and a 4,252-square-foot expansion at 325 Columbia Turnpike in Florham Park. The tenant was represented in the transaction by James Sousa of Weichert Commercial Brokerage, Inc.
•Trinitas Regional Medical Center signed a new, 26,315-square-foot lease at 12 Commerce Drive in Cranford Business Park, Cranford. The tenant was represented in the transaction by George Paras of Paras & Paras.
WESTCHESTER COUNTY, NY
•Securitas Electronic Security, a provider of security solutions, signed a 32,250-square-foot lease renewal at 3 Westchester Plaza in Cross Westchester Executive Park, Elmsford. The tenant was represented in the transaction by William V. Cuddy, Jr. and Timothy C. Donohue, both of CBRE.
•Montefiore Medical Center signed a 28,430-square-foot lease renewal at 4 Executive Plaza in South Westchester Executive Park, Yonkers. The tenant was represented in the transaction by Glenn Walsh and Gregory V. Frisoli, both of Newmark Grubb Knight Frank.
•Law firm Traub Lieberman Straus & Shrewsberry LLP signed a 28,007-square-foot lease renewal at 7 Skyline Drive in Mid-Westchester Executive Park, Hawthorne. The tenant was represented in the transaction by Howard Greenberg of Howard Properties Ltd.
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 strives to provide 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.
http://www.prnewswire.com/news-releases/mack-cali-leases-11-million-square-feet-during-the-first-quarter-300248130.html
Enterprising Investor
8 years ago
Mack-Cali Announces $365.5 Million In Property Disposition Agreements During First Quarter (3/15/16)
EDISON, N.J., March 15, 2016 /PRNewswire/ -- Mack-Cali Realty Corporation (NYSE: CLI) today announced that during the first quarter of this year the Company has reached agreements to sell assets in Washington, D.C. and Manhattan for approximately $365.5 million. The sales are part of the $750 million goal for dispositions outlined last year in the Company's strategic plan and represent the Company's exit out of these markets. Mack-Cali is exiting non-core markets in order to pay down debt, fund capital expenditures, and increase holdings in waterfront and transit-based locations, if available, as well as renovate and reposition existing assets.
"These deals bring us halfway to our goal of $750 million in dispositions. We are proud to have made this much progress so early in the year," said Michael J. DeMarco, Mack-Cali president. "With these sales the Company is well positioned to push ahead with our strategic plan and ultimately to return significant value for our investors."
The disposition agreements consist of:
• 125 Broad Street, New York, N.Y.: Mack-Cali signed a contract to sell the Company's ownership in the building for approximately $202 million.
• 1201 Connecticut Avenue, NW, Washington, D.C.: The Company signed a contract to sell the building for approximately $93 million.
• 1400 L Street, NW, Washington, D.C.: Mack-Cali signed an agreement to sell this property for approximately $70.5 million.
These dispositions are not yet finalized, subject to closing conditions and covenants; however, the Company expects $400 million in total sales to close by June 2016, while an additional $350 million in sales are expected to be completed by October 2016.
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 owns or has interests in 274 properties, consisting of 146 office and 109 flex properties totaling approximately 30 million square feet and 19 multi-family rental properties containing approximately 5,700 residential units and a pipeline of approximately 11,000 units, all located in the Northeast. Mack-Cali strives to provide 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.
http://www.prnewswire.com/news-releases/mack-cali-announces-3655-million-in-property-disposition-agreements-during-first-quarter-300236145.html
Enterprising Investor
8 years ago
Mack-Cali Realty Corporation Announces Fourth Quarter Results (2/24/16)
Core FFO Per Diluted Share was $0.47 for The Quarter
EDISON, N.J., Feb. 24, 2016 /PRNewswire/ -- Mack-Cali Realty Corporation (NYSE: CLI) today reported its results for the fourth quarter 2015.
Recent highlights include:
• Funds from operations (FFO) per diluted share of $0.47 for the quarter and $1.88 for the full year 2015;
• 86.2 percent leased at quarter end, an increase of 0.4 percent over third quarter and 200 basis points higher than year end 2014;
• Net loss of $0.35 per diluted share;
• Closed on remaining 50 percent interest in a 371-unit multi-family property in Malden, Massachusetts;
• Obtained $350 million five-year unsecured term loan fixed at 3.125 percent; and
• Declared $0.15 per share quarterly common stock dividend.
"We believe that we have made the correct adjustments to our corporate strategy in light of the evolving market conditions and valuation dislocation. To that point, our results represent another excellent quarter of progress and that our team's initial hard work is taking root as we move quickly and effectively on our ongoing transformation. While this is a long process, we believe that we are making meaningful changes that will be beneficial in both the near and long-term," said Michael J. DeMarco, president.
FINANCIAL HIGHLIGHTS
* All per share amounts presented below are on a diluted basis.
Funds from operations (FFO) for the quarter ended December 31, 2015 totaled $46.9 million, or $0.47 per share, as compared to $34.1 million, or $0.34 per share, for the quarter ended December 31, 2014. For the year ended December 31, 2015, FFO equaled $188.1 million, or $1.88 per share, as compared to $162.7 million, or $1.63 per share, for the same period last year.
For the current quarter compared to the fourth quarter last year, the increase in FFO per share resulted primarily from severance costs of $0.13 in 2014. This results in Core FFO per diluted share for the current quarter of $0.47 versus $0.47 for the prior year period.
Net income (loss) available to common shareholders for the quarter ended December 31, 2015 amounted to $(31.7) million, or $(0.35) per share, as compared to $(9.2) million, or $(0.10) per share, for the quarter ended December 31, 2014.
For the year ended December 31, 2015, net income (loss) available to common shareholders equaled $(125.8) million, or $(1.41) per share, as compared to $28.6 million, or $0.32 per share, for the same period last year. Included in net loss for the quarter and year ended December 31, 2015 was an impairment charge taken on properties the Company intends to sell as part of its recently-announced strategic initiative of $33.7 million and $197.9 million, respectively.
Total revenues for the fourth quarter 2015 were $146.4 million, as compared to $151.4 million for the fourth quarter 2014. For the year ended December 31, 2015, total revenues amounted to $594.9 million, as compared to $636.8 million for the same period last year.
OPERATING HIGHLIGHTS
Mack-Cali's consolidated commercial in-service portfolio was 86.2 percent leased at December 31, 2015, as compared to 85.8 percent leased at September 30, 2015.
For the quarter ended December 31, 2015, the Company executed 88 leases at its consolidated in-service commercial portfolio totaling 898,507 square feet. Of these totals, 179,240 square feet were for new leases and 719,267 square feet were for lease renewals and other tenant retention transactions. Lease transactions included 712,677 square feet in Core properties, 11,064 square feet in Waterfront properties, 122,673 square feet in Flex properties and 52,093 square feet in Non-Core properties.
Mitchell E. Rudin, chief executive officer, commented, "The New Jersey market has been very receptive to the announced changes to our properties. The activity on both the waterfront and Parsippany has been and continues to appear very strong. We anticipate reaching 90 percent leased for the Waterfront by the end of the first quarter and the mid-eighties for Parsippany by year end 2016. Our other important markets– Short Hills, Metropark, Princeton, and Monmouth are also demonstrating leasing strength with occupancy at approximately 90 percent or higher."
RECENT TRANSACTIONS
In January 2016, the Company, acquired the remaining 50 percent interest in Overlook Ridge Apartment Investors, LLC, located in Malden, Massachusetts for $39.8 million, and the assumption of $52.7 million in mortgage debt. The property is now wholly owned by Mack-Cali.
In December, the Company acquired 3 Sylvan Way, a vacant 147,241-square-foot, three-story, class A office building located in Parsippany, New Jersey for $10.3 million. This acquisition enhances the company's holdings at the 600-acre Mack-Cali Business Campus, which includes 15 class A office properties totaling approximately 2.1 million square feet of space.
In November, the Company acquired 333 Thornall Street in Edison, New Jersey, a 196,128-square-foot class A office building located in Metropark, a major transit hub. The purchase price was approximately $53.1 million. The property is approximately 96 percent leased.
BALANCE SHEET/CAPITAL MARKETS
As of December 31, 2015, the Company had total indebtedness of approximately $2.2 billion, with a weighted average annual interest rate of approximately 5.22 percent and a debt-to-undepreciated assets ratio of 39.0 percent. The Company had an interest coverage ratio of 2.9 times and 2.8 times for the quarter and year ended December 31, 2015, respectively.
On January 7, 2016, the Company obtained a new $350 million unsecured term loan, which matures in January 2019 with two one-year extension options. The interest rate for the new term loan is currently 140 basis points over LIBOR, subject to adjustment on a sliding scale based on the Company's unsecured debt ratings, or defined leverage ratio at the Company's option. Mack-Cali entered into interest rate swap arrangements to fix LIBOR for the duration of the term loan resulting in a current all-in fixed rate of 3.12 percent.
Proceeds from the term loan were used primarily to repay outstanding borrowings on its $600 million unsecured revolving credit facility, and to repay the Company's $200 million, 5.8 percent senior unsecured notes that matured on January 15, 2016.
Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan Securities, LLC, and Wells Fargo Securities, LLC served as the joint lead arrangers for the term loan. Bank of America, N.A. served as administrative agent; JPMorgan Chase Bank, N.A., Wells Fargo Bank, N.A., and Capital One, National Association served as syndication agents; and US Bank National Association served as documentation agent. Other participants in the loan were PNC Bank, National Association and Citibank, N.A.
DIVIDENDS
In December, 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 2015, which was paid on January 15, 2016 to shareholders of record as of January 6, 2016.
GUIDANCE/OUTLOOK
The Company expressed comfort with net income and FFO per diluted share for the full year 2016, as follows:
Full Year 2016 Range
Net income available to common shareholders: $0.06-$0.16
Real estate-related depreciation and amortization: $1.94
Funds from operations: $2.00-$2.10
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 February 25, 2016 at 10:00 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=5219164
The live conference call is also accessible by calling (719) 325-2361 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 beginning at 2:00 p.m. Eastern Time on February 25, 2016 through March 3, 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 326536.
Copies of Mack-Cali's Form 10-K and Supplemental Operating and Financial Data are available on Mack-Cali's website, as follows:
2015 Form 10-K:
https://www.mack-cali.com/media/859771/4thquarter10k15.pdf
Fourth Quarter 2015 Supplemental Operating and Financial Data:
https://www.mack-cali.com/media/859774/4thquartersp15.pdf
Fourth Quarter 2015 Supplemental Operating and Financial Data for Roseland Residential Platform:
https://www.mack-cali.com/media/859777/4thquartersp15Roseland.pdf
In addition, these items are available upon request from:
Mack-Cali Investor Relations Department - Deidre Crockett
343 Thornall Street, Edison, New Jersey 08837-2206
(732) 590-1025
INFORMATION ABOUT FFO
Funds from operations ("FFO") is defined as net income (loss) before noncontrolling interest of unitholders, computed in accordance with generally accepted accounting principles ("GAAP"), excluding sales or disposals of depreciable rental property, 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 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. Core FFO is presented solely as supplemental disclosure that the Company's management believes provides useful information regarding the Company's operating performance and its ability to fund its dividends. There is not a generally accepted definition established for Core FFO. Therefore, 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 owns or has interests in 275 properties, consisting of 147 office and 109 flex properties totaling approximately 29.9 million square feet and 19 multi-family rental properties containing approximately 5,700 residential units and a pipeline of approximately 11,300 units, all located in the Northeast. Mack-Cali strives to provide 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.
http://www.prnewswire.com/news-releases/mack-cali-realty-corporation-announces-fourth-quarter-results-300225920.html
Enterprising Investor
8 years ago
Mack-Cali Announces New 43,534-Square-Foot Lease With Ascensia Diabetes Care US, Inc. (1/29/16)
Global Leader in Blood Glucose Monitoring and Diabetes Care Solutions will Open U.S. Headquarters in Parsippany, NJ
EDISON, N.J., Jan. 29, 2016 /PRNewswire/ -- Mack-Cali Realty Corporation (NYSE: CLI) today announced that Ascensia Diabetes Care US, Inc., a leader in blood glucose monitoring that is owned by Panasonic Healthcare Holdings Co., Ltd. and leading global investment firm KKR, will bring their U.S. headquarters to 5 Wood Hollow Road in Parsippany, New Jersey. Ascensia signed a lease for 43,534 square feet for over 10 years. The award-winning Mack-Cali property is a 317,040-square-foot, three-story, class A office building in Morris County with easy highway access, a sophisticated infrastructure, and outstanding amenities. Ascensia joins AIG, Coyne PR, Groupe SEB, The MI Group, and Decision Resources to bring this trophy asset to 98.6 percent leased.
"This building is the ideal home for Ascensia's U.S. headquarters, providing all the conveniences and services a company of this significance needs," said Christopher DeLorenzo, Mack-Cali executive vice president of leasing. "Mack-Cali's strategic plan focuses on our core properties like 5 Wood Hollow Road that bring together premier office space, ideal transportation options, and the amenities to create workplaces where employees want to work."
Strategically located and beautifully renovated, 5 Wood Hollow Road is LEED Gold certified by the U.S. Green Building Council. It is located at the nexus of I-287 and I-80, with I-280, and routes 202, 46, and 10 all nearby, giving tenants easy commuting access.
The building boasts a range of amenities including a contemporary, three-story renovated atrium lobby, an on-site, full-service cafeteria with indoor and outdoor seating, complimentary Wi-Fi available in the cafeteria and its adjacent public meeting rooms, as well as on-site property management. The building is wired with fiber optics for high-speed connectivity and features a recently upgraded high-efficiency HVAC system. In addition, further 2016 planned upgrades include a new, state-of-the-art fitness center and renovated cafe and conference center.
"Bringing a company like Ascensia to our township is validation of the business-friendly environment we are cultivating here that brings a significant and positive economic impact," said Parsippany Mayor James R. Barberio. "We welcome the new jobs and look forward to Ascensia calling Parsippany home for a long time to come."
Ascensia was represented in the transaction by Roby Bull and Steven Rotter, both of Jones Lang LaSalle. Mack-Cali was represented in-house by Brian Decillis, vice president of leasing.
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 owns or has interests in 276 properties, consisting of 148 office and 109 flex properties totaling approximately 30 million square feet and 19 multi-family rental properties containing approximately 5,700 residential units and a pipeline of 10,000 units, all located in the Northeast. Mack-Cali strives to provide 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.
http://www.prnewswire.com/news-releases/mack-cali-announces-new-43534-square-foot-lease-with-ascensia-diabetes-care-us-inc-300212157.html
Enterprising Investor
8 years ago
Roseland Announces Acquisition Of Joint Venture Partner Interest In The Chase At Overlook Ridge (1/14/16)
EDISON, N.J., Jan. 14, 2016 /PRNewswire/ -- Roseland, a subsidiary of Mack-Cali Realty Corporation (NYSE: CLI), announced the acquisition of a former joint venture partner's interest in The Chase at Overlook Ridge, a 371-unit luxury residential building located in Malden, Massachusetts, just six miles outside Boston. The Chase, completed in early 2014, is currently more than 96 percent leased and is the most recent completion in Roseland's Overlook Ridge community. Roseland had been a joint venture partner in the community. The conversion of ownership from a joint venture to wholly owned asset will immediately and significantly increase Roseland's return on investment.
The building features studios, one- and two-bedrooms, and two bedrooms-plus-den units, as well as a host of high-end community amenities, including two state-of-the-art fitness centers, yoga studio, clubhouse with fireplace and billiards table, dog washing station, a screening and gaming room, fire pits, outdoor swimming pool, playground, and tennis courts.
"The Chase acquisition allows Roseland to further expand our ownership and financial presence in our Overlook Ridge master planned community adjacent to the recent construction start of The Chase II," said Andy Marshall, chief operating officer of Roseland.
In November 2015, Roseland commenced construction on The Chase II at Overlook Ridge, which will include 292 luxury residential units. When completed, the new development will be operated as part of a combined 663-unit community together with The Chase. As a result, The Chase I and II tenants will benefit from access to all communal amenities and financial performance will benefit from shared operations, resulting in lower expenses for each community. Roseland owns development rights to approximately 800 additional units at Overlook Ridge and owns the 722-unit Alterra community.
The community's location provides easy access to a wide range of transportation options, including Route 1 and complimentary shuttle service to nearby T stations. It is also a quick trip to Logan International Airport and just minutes away from Revere Beach.
About Roseland
A subsidiary of Mack-Cali Realty Corporation (NYSE: CLI), Roseland is a premier, full-service residential and mixed-use developer in the Northeast with a scalable and integrated business platform and an industry-leading reputation for successful development and management of class A residential communities. Roseland's geographically desirable land portfolio, sourcing of new development and acquisition opportunities, and repositioning activities on Mack-Cali's office holdings make it unique in the multi-family industry. Roseland is a recognized leader in residential innovation, carefully integrating each development seamlessly into its surroundings. From thoughtfully designed residences to distinctive amenity offerings, Roseland has earned a reputation for providing residents with state-of-the-art living environments. With its concentration on urban waterfront and transit-oriented locales, Roseland has truly mastered the concept of live-work-play.
Roseland is the master developer for several significant regional communities, including Port Imperial, a 200-acre, mixed-use community on the Hudson River Waterfront facing Midtown Manhattan; multiple class A towers along the Jersey City Waterfront; Overlook Ridge, a 92-acre, master-planned community five miles north of Boston; and Portside at East Pier in East Boston, where Roseland is redeveloping one-half mile of the Boston Harbor Waterfront into a premier luxury mixed-use community.
Additional information on Roseland is available on its website at http://www.roselandproperty.com.
http://www.prnewswire.com/news-releases/roseland-announces-acquisition-of-joint-venture-partner-interest-in-the-chase-at-overlook-ridge-300204503.html
Enterprising Investor
8 years ago
Mack-Cali Announces Acquisition Of 3 Sylvan Way Office Property in Parsippany (1/07/16)
EDISON, N.J., Jan. 7, 2016 /PRNewswire/ -- Mack-Cali Realty Corporation (NYSE: CLI) today announced the acquisition 3 Sylvan Way, an empty 147,241-square-foot, three-story, class A office building located in Parsippany, New Jersey. This acquisition enhances the company's holdings at the 600-acre Mack-Cali Business Campus, which includes 15 class A office properties totaling approximately 2.1 million square feet of space.
3 Sylvan Way features 50,000-square-foot floor plates with a saw-tooth design and large, open spaces providing great natural light. Along with One and 5 Sylvan Way, the buildings share a connected, below-grade parking structure which acts as a protected walkway and provides easy access for tenants to utilize amenities across the complex.
The buildings will be repositioned as an interconnected three-building mini campus, as part of the overall Campus. The buildings will undergo significant renovations to bring tenants important upgrades. The capital investment plan includes lobby renovations, the creation of a full-service fitness center with yoga rooms and a golf simulator, an upgraded business-class conference center, and numerous dining options, including a full-service cafe and coffee bar.
"This acquisition is an example of how Mack-Cali is making it a priority to focus on our core holdings, like the Business Campus, that offer state-of-the-art office spaces with first-class amenities," said Mack-Cali president Michael DeMarco. "We are looking forward to making considerable investments in the entire Mack-Cali Business Campus to continue strengthening its position as a leading office location."
"Adding 3 Sylvan Way to our portfolio will allow us to join our properties in a way that will bring incredible value to both our portfolio and tenants," said Ricardo Cardoso, Mack-Cali executive vice president and chief investment officer. "Our renovation plans will allow Mack-Cali to command more attractive leasing rates."
Mack-Cali Business Campus is ideally located at the nexus of I-287 and routes 10 and 202, and offers shuttle service to the nearby Morris Plains train station.
Among the improvements that Mack-Cali Business Campus is slated to undergo are the introduction of multiple new amenities including:
•Interconnected pathways/walking jogging trails
•Enhanced dining options, including new on-campus restaurant pad sites
•Wegmans supermarket, scheduled to open in 2017
•The introduction of a "food truck park" in the center of the Campus
•Improved outdoor community spaces
•New and expanded fitness centers and conference facilities
•Renovated building lobbies
•New signage and branding
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 owns or has interests in 276 properties, consisting of 148 office and 109 flex properties totaling approximately 30 million square feet and 19 multi-family rental properties containing approximately 5,700 residential units and a pipeline of 10,000 units, all located in the Northeast. Mack-Cali strives to provide 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.
http://www.prnewswire.com/news-releases/mack-cali-announces-acquisition-of-3-sylvan-way-office-property-in-parsippany-300200946.html
Enterprising Investor
8 years ago
Mack-Cali Announces Acquisition Of Metropark Property In Edison (11/16/15)
Property to Be Renovated and Integrated With Existing Property to Form Corporate Campus
EDISON, N.J., Nov. 16, 2015 /PRNewswire/ -- Mack-Cali Realty Corporation (NYSE: CLI) today announced the purchase of 333 Thornall Street in Edison, New Jersey, a class A office building located in Metropark, a major transit hub. The purchase price was approximately $53.1 million.
Known as Metroview, the property is approximately 96 percent leased and includes 196,000 square feet of office space. The building is located adjacent to Mack-Cali's 343 Thornall Street.
"Metroview is a great complement to our existing 195,700-square-foot asset next door and is another in a series of moves designed to refocus our holdings toward transit-based office assets," said Mack-Cali president Michael DeMarco. "This market is known for its strong rental demands and high occupancies, owing in part to its location just down the road from the nearby transit hub, making it an ideal example of what we are striving to accomplish with our new strategy."
333 Thornall Street is a LEED(R) Silver certified building with easy access to routes 287, 1, and 27, as well as the New Jersey Turnpike and Garden State Parkway. The nearby transit hub offers both NJ TRANSIT and Amtrak service and is within walking distance of the complex. Major hotels, dining, and retail are also located in close proximity.
The company plans to integrate its existing building with the new acquisition through the construction of an interconnected, landscaped walkway providing access to the shared amenities, as well as terraced, outdoor seating and various exercise components creating an approximately 400,000-square-foot campus.
"While the buildings are already attractive because of their outstanding location, we plan to add to the existing amenities to make it an even more appealing option for central New Jersey businesses," said Ricardo Cardoso, executive vice president and chief investment officer. "The addition of a new fitness center, conference rooms, Wi-Fi, and multiple dining options will transform the space into an outstanding class A office campus."
The acquisition of 333 Thornall Street is part of Mack-Cali's strategy to focus resources on transit-based real estate, as well as waterfront properties. The purchase of 333 Thornall Street is one of the new leadership team's high profile moves in that direction.
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, construction and other tenant-related services for its two-platform operations of waterfront and transit-based office and luxury multi-family. Mack-Cali owns or has interests in 275 properties, consisting of 147 office and 109 flex properties totaling approximately 29.9 million square feet and 19 multi-family rental properties containing approximately 5,700 residential units and a pipeline of 10,000 units, all located in the Northeast. The properties enable the Company to provide a full complement of real estate opportunities to its diverse base of commercial and residential tenants.
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.
http://www.prnewswire.com/news-releases/mack-cali-announces-acquisition-of-metropark-property-in-edison-300179303.html
Enterprising Investor
8 years ago
Roseland Announces Construction Commencement At Two Key Massachusetts Residential Communities (11/10/15)
The Chase II at Overlook Ridge and 145 Front @ City Square
Urban, Transit-Oriented Communities with Access to Downtown Areas
EDISON, N.J., Nov. 10, 2015 /PRNewswire/ -- Roseland, a subsidiary of Mack-Cali Realty Corporation (NYSE: CLI), today announced that it started construction on two luxury multi-family communities—The Chase II at Overlook Ridge and 145 Front @ City Square. Consistent with parent company Mack-Cali's strategic plan, each of these communities will give residents access to outstanding regional transit options, easy access to downtown areas, and urban live-work-play environments. Roseland's multi-family assets in the Overlook Ridge submarket comprise approximately 1,400 units, making the Company one of the region's largest owners.
"These two properties are signature developments of Roseland and will reinforce our position as a premier developer, owner, and operator of multi-family residential units in the region," said Marshall Tycher, president of Roseland. "These two communities are perfectly reflective of the priorities embedded in our strategic plan; we are creating best-in-class urban residences with every amenity and convenience residents desire."
The Chase II at Overlook Ridge is located just five miles north of Boston in Malden. It will feature units with stainless steel appliances, hardwood flooring, and granite countertops. Community amenities will include a fitness center with state-of-the-art cardio and weight training equipment, yoga room, club room with billiards table, media room equipped with a gaming system, and an outdoor swimming pool. In addition, residents will have access to the amenities recently opened in the adjacent Chase I property.
Like the rest of Overlook Ridge, The Chase II's location provides easy access to a wide range of transportation options, including Route 1 and complimentary shuttle service to nearby T stations. It is also a quick trip to Logan International Airport and just minutes away from Revere Beach.
Overlook Ridge is a 92-acre, master-planned community comprised of Roseland's Alterra I and II developments, with 722 stabilized apartments. When completed, The Chase II's 292 units will operate as part of a combined 663-unit community, together with the recently stabilized Chase I. Further, Roseland owns development rights at Overlook Ridge for approximately 800 additional units. The company is finalizing a $48 million construction loan facility on which it plans to close within the next several weeks.
145 Front @ City Square is a 237-unit luxury apartment community that is the first of a two-phased residential development which is part of the redevelopment and revitalization of downtown Worcester, New England's second largest city. The project will include a parking garage to accommodate this phase as well as the to-be-developed Phase II, which will include an additional 128 residential units. It is only steps from Worcester Common, and across the street from the new transportation hub at Worcester's Union Station with Massachusetts Bay Transportation Authority (MBTA), Amtrak, and bus service. The MBTA offers service to Boston's South Station in approximately 90 minutes. Additionally, the site has access to the entire region from major roads with highway proximity to I-290, I-90 (Mass Pike), I-495, and local routes 9 and 146, putting downtown Boston less than a one hour's drive away.
The project is part of a 12-acre, master-planned community that will include an under construction 150-key hotel, a recently completed 65,000-square-foot St. Vincent Hospital medical facility, and a recently completed 214,000-square-foot office tower occupied by Unum Insurance. The master plan also calls for the development of parking garages, additional office space, and street level retail to be developed by the seller, CitySquare II Development Corporation LLC (an affiliate of Hanover Insurance Group) or prospective buyers of the various components.
This property will be especially attractive to the area workforce in Worcester's booming advanced manufacturing, information technology, biotechnology, and healthcare sectors. Major employers with a Worcester presence include the Hanover Insurance Group, Saint-Gobain North America, Sunovion Pharmaceuticals, Polar Beverages, and JTX Companies. Worcester's healthcare sector includes St. Vincent Hospital, UMass Memorial Medical Center, and the Massachusetts College of Pharmacy and Health Sciences. The area is also home to 12 colleges and universities with more than 35,000 students.
"This exciting project will capitalize on the incredible growth and revival of downtown Worcester, giving tenants convenient access to work and entertainment only steps away from their home," said Andrew Marshall, executive vice president and chief operating officer of Roseland. "Given this project's unparalleled access to highways and public transportation, we also expect it to draw residents from a wider geographic area, including nearby towns like Marlborough, Westborough, and Framingham—making this a true regional residential destination."
Roseland is finalizing a $41.5 million construction loan facility to support the build-out of this project.
About Roseland
A subsidiary of Mack-Cali Realty Corporation (NYSE: CLI), Roseland is a premier, full-service residential and mixed-use developer in the Northeast with a scalable and integrated business platform and an industry-leading reputation for successful development and management of class A residential communities. Roseland's geographically desirable land portfolio, sourcing of new development and acquisition opportunities, and repositioning activities on Mack-Cali's office holdings make it unique in the multi-family industry. Roseland is a recognized leader in residential innovation, carefully integrating each development seamlessly into its surroundings. From thoughtfully designed residences to distinctive amenity offerings, Roseland has earned a reputation for providing residents with state-of-the-art living environments. With its concentration on urban waterfront and transit-oriented locales, Roseland has truly mastered the concept of live-work-play.
Roseland is the master developer for several significant regional communities, including Port Imperial, a 200-acre, mixed-use community on the Hudson River Waterfront facing Midtown Manhattan; multiple class A towers along the Jersey City Waterfront; Overlook Ridge, a 92-acre, master-planned community five miles north of Boston; and Portside at East Pier in East Boston, where Roseland is redeveloping one-half mile of the Boston Harbor Waterfront into a premier luxury mixed-use community.
Additional information on Roseland is available on its website at http://www.roselandproperty.com.
http://www.prnewswire.com/news-releases/roseland-announces-construction-commencement-at-two-key-massachusetts-residential-communities-300175807.html
Enterprising Investor
8 years ago
Mack-Cali's Roseland Subsidiary Announces Financing And Commencement Of Port Imperial Hotel Project (11/09/15)
EDISON, N.J., Nov. 9, 2015 /PRNewswire/ -- Roseland, a subsidiary of Mack-Cali Realty Corporation (NYSE: CLI), today announced that it is moving forward with its project to build dual branded Marriott hotels at Port Imperial, the company's flagship $3 billion mixed-use, master-planned, waterfront development. Roseland and its partner XSS Hotels secured approximately $94 million in financing for a syndicated construction loan led by Fifth Third Bank, with additional syndicated lending institutions including Santandar and Investors Savings Bank.
The project includes a full-service, 210-key Renaissance hotel and a 154-key Residence Inn. The complex will feature extensive meeting and function space for 450 guests and a 15,000-square-foot deck off the sixth floor sky lobby with unobstructed direct views of Midtown Manhattan. Once completed, this will represent the only Marriott branded full-service and extended-stay product along New Jersey's Gold Coast.
"The boom of interest in the Weehawken waterfront is a testament to the appeal of urban mixed-use communities that offer superior transit options," said Marshall Tycher, president of Roseland. "These hotels will be the signature amenity for Port Imperial and the entire waterfront, and will signal the continued growth of all sectors in this prime market."
Roseland's Port Imperial development spans two-and-a-half miles and includes a waterfront walkway with parks, providing recreation to visitors and residents. It is a vital part of parent company Mack-Cali's recently announced three-year strategic plan to focus on high-end waterfront and transit-oriented properties. Roseland has transformed the urban site into a significant residential, commercial, and transportation center that is home to an inter-modal transportation hub with ferry, bus, and light rail service.
The Renaissance will be a full-service hotel with luxury guest rooms, a lounge, and breakfast space. The Residence Inn will cater to "extended stay" guests, typically those spending an average of four or five nights. It will feature guest rooms with 400+ square feet of space and a fully-equipped, en-suite kitchen, as well as free hot breakfast served daily.
The hotels will be built on top of the 850-space Port Imperial parking garage with 17,000 square feet of ground-level retail space next to the NY Waterway ferry terminal. Each hotel will have its own ground-level entrance and lobby, with a connection on the sixth floor to provide guests with shared access to the outdoor terrace, function space, pool, fitness center, and high-end restaurant.
The two hotels are expected to create more than 100 permanent full-time jobs in Weehawken and are expected to be completed by the end of 2017.
"These hotels are a crowning achievement for the Port Imperial project and we are excited that it is moving forward," said Richard Turner, mayor of Weehawken. "From permanent jobs to world-class amenities these hotels will provide lasting benefits for the people of Weehawken."
About Roseland
A subsidiary of Mack-Cali Realty Corporation (NYSE: CLI), Roseland is a premier, full-service residential and mixed-use developer in the Northeast with a scalable and integrated business platform and an industry-leading reputation for successful development and management of class A residential communities. Roseland's geographically desirable land portfolio, sourcing of new development and acquisition opportunities, and repositioning activities on Mack-Cali's office holdings make it unique in the multi-family industry. Roseland is a recognized leader in residential innovation, carefully integrating each development seamlessly into its surroundings. From thoughtfully designed residences to distinctive amenity offerings, Roseland has earned a reputation for providing residents with state-of-the-art living environments. With its concentration on urban waterfront and transit-oriented locales, Roseland has truly mastered the concept of live-work-play.
Roseland is the master developer for several significant regional communities, including Port Imperial, a 200-acre, mixed-use community on the Hudson River Waterfront facing Midtown Manhattan; multiple class A towers along the Jersey City Waterfront; Overlook Ridge, a 92-acre, master-planned community five miles north of Boston; and Portside at East Pier in East Boston, where Roseland is redeveloping one-half mile of the Boston Harbor Waterfront into a premier luxury mixed-use community.
Additional information on Roseland is available on its website at http://www.roselandproperty.com.
http://www.prnewswire.com/news-releases/mack-calis-roseland-subsidiary-announces-financing-and-commencement-of-port-imperial-hotel-project-300174771.html
Enterprising Investor
8 years ago
Mack-Cali Realty Corporation Announces Third Quarter Results (10/28/15)
- Core FFO Per Diluted Share, Which Excludes Certain Items, was $0.48 for The Quarter
- Company Increases Guidance For 2015 and Provides Preliminary 2016 Outlook
EDISON, N.J., Oct. 28, 2015 /PRNewswire/ -- Mack-Cali Realty Corporation (NYSE: CLI) today reported its results for the third quarter 2015.
Recent highlights include:
•Funds from operations (FFO) per diluted share of $0.51 for the quarter and $1.41 for the nine months 2015;
•Reported 85.8 percent leased at quarter end, an increase of 3.5 percent over second quarter;
•Reported net loss of $1.42 per diluted share due to impairment charge for contemplated sales;
•Topped off URL® Harborside Tower 1, a 763-unit apartment building, with expected lease up by year end 2016;
•Commenced the disposition activities of $700 to $800 million of asset sales;
•Signed definitive agreements to acquire two properties in New Jersey a 196,000 square-foot office building located in Edison and a 147,000 square-foot office building located in Parsippany:
•Raised full year 2015 guidance range to $1.83 to $1.87 per diluted share;
•Introduced preliminary 2016 guidance of $2.00 - $2.10 per diluted share;
•Declared $0.15 per share quarterly common stock dividend; and
•Engaged Eastdil Secured to explore raising common equity for the to be formed Roseland Residential Trust.
"We continue to make progress on our ongoing repositioning efforts as we work to transform Mack-Cali. In our third quarter we put in place our plans to divest between $700 to $800 million of non-core assets, while selectively adding complimentary assets that we expect will contribute to earnings as we move ahead. The Company is reenergized by the numerous opportunities to enhance our office portfolio and to profitably expand our multi-family platform. While this will take time we are excited that process is underway and that our team's efforts should result in the creation of sustained cash-flow and earnings in the coming years as we look to build additional value for our shareholders," said Michael J. DeMarco, president.
FINANCIAL HIGHLIGHTS
* All per share amounts presented below are on a diluted basis.
Funds from operations (FFO) for the quarter ended September 30, 2015 totaled $51.5 million, or $0.51 per share, as compared to $48.0 million, or $0.48 per share, for the quarter ended September 30, 2014. For the nine months ended September 30, 2015, FFO equaled $141.1 million, or $1.41 per share, as compared to $128.5 million, or $1.29 per share, for the same period last year.
For the current quarter compared to the prior year, the increase in FFO per share resulted primarily from $0.03 of equity in earnings from refinancing proceeds received from a joint venture; increased net real estate tax appeal proceeds of $0.02; partially offset by $0.02 in increased general and administrative expense due to separation costs in the current quarter. This results in Core FFO per diluted share for the current quarter of $0.48 versus $0.48 for the prior year period.
Net income (loss) available to common shareholders for the quarter ended September 30, 2015 amounted to $(126.9) million, or $(1.42) per share, as compared to $2.0 million, or $0.02 per share, for the quarter ended September 30, 2014.
For the nine months ended September 30, 2015, net income (loss) available to common shareholders equaled $(94.0) million, or $(1.05) per share, as compared to $37.8 million, or $0.43 per share, for the same period last year. Included in net loss for the quarter and nine months ended September 30, 2015 was $164.2 million of impairment charges taken during the third quarter on properties the Company intends to sell as part of its recently-announced strategic initiative.
Total revenues for the third quarter 2015 were $146.2 million, as compared to $155.5 million for the third quarter 2014. For the nine months ended September 30, 2015, total revenues amounted to $448.4 million, as compared to $485.4 million for the same period last year.
OPERATING HIGHLIGHTS
Mack-Cali's consolidated commercial in-service portfolio was 85.8 percent leased at September 30, 2015, as compared to 82.3 percent leased at June 30, 2015.
For the quarter ended September 30, 2015, the Company executed 94 leases at its consolidated in-service commercial portfolio totaling 955,570 square feet. Of these totals, 361,000 square feet were for new leases and 594,570 square feet were for lease renewals and other tenant retention transactions. Lease transactions included 345,905 square feet in Core properties, 222,824 square feet in Waterfront properties, 177,820 square feet in Flex properties and 209,021 square feet in Non-Core properties.
Mitchell E. Rudin, chief executive officer, commented, "Operationally, we had an excellent quarter and have launched a number of value-creating initiatives. This quarter marks the beginning of a long-term effort to deliver enhanced and sustained returns for our shareholders."
RECENT TRANSACTIONS
In September, the Company announced the topping out of URL® Harborside 1 at 713 feet, making the new multi-family tower on the Jersey City waterfront the tallest residential building in New Jersey. URL® Harborside 1 is a uniquely-designed, 69-story residential tower that will add 763 contemporary rental residences to Mack-Cali's Harborside on the Jersey City waterfront.
On October 23, 2015, the Company signed an agreement to acquire a 196,000 square-foot office property located in Edison, New Jersey, for approximately $53.1 million, subject to certain conditions. The acquisition is expected to be completed in the fourth quarter of 2015.
The Company is also in discussions to acquire a 147,000 square-foot office building located in Parsippany, New Jersey, as well its partner's interest in a 371-unit multi-family residential property located in Malden, Massachusetts.
DISPOSITIONS
In September 2015, the Company announced a comprehensive three-year strategic initiative to transform the Company into dual-platform owner of waterfront and transit-oriented office properties and a regional owner of luxury multi-family properties. As part of its increased focus on "Gold Coast" waterfront properties in Jersey City Weehawken, Hoboken, and West New York, the Company identified approximately $700 million to $800 million of non-core assets that it intends to sell to help fund its capital plan and transformation.
During the three months ended September 30, 2015, the Company transferred the deeds for two of its office properties to the lender in satisfaction of its mortgage loan obligations. In the three and nine months ended September 30, 2015, the Company recorded gains on the disposal of office properties of $18.7 million and $28.4 million, respectively.
As a result of identifying the non-core assets for sale, the Company evaluated the recoverability of the carrying values of these properties, and determined that due to the shortening of the expected periods of ownership, it was necessary to reduce the carrying values of 22 rental properties to their estimated fair values. Accordingly, the Company recorded an impairment charge of $158.6 million at September 30, 2015.
In addition, the Company estimated that the carrying value of three mortgaged properties, aggregating 479,877 square feet and located in Roseland and Parsippany, New Jersey, may not be recoverable over their anticipated holding periods and recorded impairment charges of $5.6 million at September 30, 2015.
BALANCE SHEET/CAPITAL MARKETS
As of September 30, 2015, the Company had total indebtedness of approximately $2.0 billion, with a weighted average annual interest rate of approximately 5.4 percent and a debt-to-undepreciated assets ratio of 37.6 percent. The Company had an interest coverage ratio of 3.1 times and 2.8 times for the quarter and nine months ended September 30, 2015, respectively.
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 2015, which was paid on October 15, 2015 to shareholders of records as of October 5, 2015.
GUIDANCE/OUTLOOK
Based on recent results and recently announced strategic initiatives, the Company is revising its guidance on net income and FFO per diluted share for the full year 2015 and providing preliminary 2016 guidance, as follows:
2015
$1.83 - $1.87
2016
$2.00 - $2.10
http://www.prnewswire.com/news-releases/mack-cali-realty-corporation-announces-third-quarter-results-300168359.html
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