VERIS RESIDENTIAL, INC. EDISON, N.J., April 23, 2015 /PRNewswire/ -- Mack-Cali Realty Corporation (NYSE: CLI) today reported its results for the first quarter 2015.
Recent highlights include:
-- Reported funds from operations for the quarter of $0.43 per diluted
share;
-- Reported net loss of $0.03 per diluted share;
-- Acquired developable land in Worcester, Massachusetts, for approximately
$3.1 million; and
-- Sold an office/flex property in West Deptford, New Jersey for net sales
proceeds of approximately $1.1 million.
FINANCIAL HIGHLIGHTS
Funds from operations (FFO) for the quarter ended March 31, 2015 amounted to $43.1 million, or $0.43 per share.
Net loss available to common shareholders for the first quarter 2015 equaled $2.5 million, or $0.03 per share.
All per share amounts presented above are on a diluted basis.
Mitchell E. Hersh, president and chief executive officer, commented, "During the first quarter of the year, Mack-Cali signed several significant office leases, demonstrating our ability to attract and retain high-quality tenants. We increased our office portfolio occupancy rate and continued to be the preferred provider of office space in most of the markets in which we operate, while we continued to execute on our multi-family residential development program."
Total revenues for the first quarter 2015 were $153.7 million.
The Company had 89,127,942 shares of common stock, and 11,036,898 common operating partnership units outstanding as of March 31, 2015. The Company had a total of 100,164,840 common shares/common units outstanding at March 31, 2015.
As of March 31, 2015, the Company had total indebtedness of approximately $2.1 billion, with a weighted average annual interest rate of 5.65 percent.
The Company had a debt-to-undepreciated assets ratio of 37.5 percent at March 31, 2015. The Company had an interest coverage ratio of 2.6 times for the quarter ended March 31, 2015.
RECENT TRANSACTIONS
In April, the Company acquired vacant land to accommodate the development of up to 370 multi-family residential units located in Worcester, Massachusetts (the "CitySquare Project") for a purchase price of $3.1 million with an additional $1.25 million to be paid, subject to certain conditions, in accordance with the terms of the purchase and sale agreement.
In January, the Company sold its 21,600 square-foot office/flex property located at 1451 Metropolitan Drive in West Deptford, New Jersey for net sales proceeds of approximately $1.1 million, with a gain of approximately $0.1 million from the sale.
LEASING INFORMATION
Mack-Cali's consolidated commercial in-service portfolio was 84.3 percent leased at March 31, 2015 as compared to 84.2 percent leased at December 31, 2014.
For the quarter ended March 31, 2015, the Company executed 123 leases at its consolidated in-service portfolio totaling 758,919 square feet, consisting of 539,721 square feet of office space, 209,898 square feet of office/flex space and 9,300 square feet of stand-alone retail space. Of these totals, 276,656 square feet were for new leases and 482,263 square feet were for lease renewals and other tenant retention transactions.
Highlights of the quarter's leasing transactions include:
NORTHERN NEW JERSEY:
-- Securitas Security Services USA, Inc., a knowledge leader in security,
signed a new lease for 81,282 square feet at 9 Campus Drive in
Parsippany. The 156,495 square-foot office building, located in
Mack-Cali Business Campus, is 89.2 percent leased.
-- The MI Group Ltd., a global relocation outsource company, signed a new
lease for 26,148 square feet at 5 Wood Hollow Road in Parsippany. The
317,040 square-foot office building is 68.8 percent leased.
-- Willis of New Jersey, Inc., a unit of Willis Group Holdings, the global
risk adviser, insurance and reinsurance broker, signed a new lease for
25,113 square feet at 150 JFK Parkway in Short Hills. The 247,476
square-foot office building is 78.1 percent leased.
-- First Data Corporation, a global leader in payment technology and
services solutions, signed an expansion lease for 24,221 square feet at
101 Hudson in Jersey City.
-- Also at 101 Hudson Street, QH Acquisition Sub, LLC, a digital patient
identification and engagement platform for health-focused companies and
organizations, signed transactions totaling 16,478 square feet,
consisting of a 12,437 square-foot renewal and a 4,041 square-foot
expansion. The 1,246,283 square-foot office building is 89.6 percent
leased.
-- Black & Veatch Corporation, an employee-owned, global leader in building
Critical Human Infrastructure(TM) in energy, water, telecommunications,
and government services, signed a renewal of 19,678 square feet at 650
From Road in Paramus. Mack-Cali Centre II is a 348,510 square-foot
office building that is 86.6 percent leased.
-- Eagle Pharmaceuticals Inc., a specialty pharmaceutical company, signed
transactions totaling 15,173 square feet at 50 Tice Boulevard in
Woodcliff Lake, consisting of a 9,906 square-foot renewal and a 5,267
square-foot expansion. The 235,000 square-foot office building is 91.3
percent leased.
CENTRAL NEW JERSEY:
-- Kleinfelder, Inc., an engineering, architecture, and science consulting
firm, signed a renewal for 15,896 square feet at 3 AAA Drive in
Hamilton. The 35,270 square-foot office building, located in Horizon
Center North, is 76.7 percent leased.
WESTCHESTER COUNTY, NEW YORK:
-- Fitness by Lifestyle, LLC, a fitness center, signed a new lease for
17,863 square feet at 150 Clearbrook Road in Elmsford. The 74,900
square-foot office/flex building, located in Cross Westchester Executive
Park, is 99.3 percent leased.
SOUTHERN NEW JERSEY:
-- McKesson Patient Care Solutions Inc., a healthcare services and
information technology company, signed a renewal for the entire 48,600
square-foot 2 Twosome Drive, located in Moorestown West Corporate
Center.
MARYLAND:
-- Global technology company Pitney Bowes Software Inc. signed a renewal
for 16,282 square feet at 4200 Parliament Place in Lanham. The 122,000
square-foot office building is 97.4 percent leased.
Included in the Company's Supplemental Operating and Financial Data for the first quarter 2015 are schedules highlighting the leasing statistics for both the Company's consolidated and joint venture properties.
The supplemental information is available on Mack-Cali's website, as follows:
https://www.mack-cali.com/media/714732/1stquartersp15.pdf
ADDITIONAL INFORMATION
The Company expressed comfort with net income and FFO per diluted share
for the full year 2015, as follows:
Full Year
2015 Range
----------
Net
income
available
to
common
shareholders $(0.08) - $0.04
Add: Real
estate-
related
depreciation
and
amortization 1.74
------------- ----
Funds
from
operations $1.66 - $1.78
========== ===== === =====
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.
An earnings conference call with management is scheduled for today, April 23, 2015 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=5190293
The live conference call is also accessible by calling (719) 325-2144 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 April 23, 2015 through April 30, 2015.
A replay of the call will also be accessible during the same time period by calling (719) 457-0820 and using the pass code 7300193.
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 2015 Form 10-Q:
https://www.mack-cali.com/media/714726/1stquarter10q15.pdf
First Quarter 2015 Supplemental Operating and Financial Data:
https://www.mack-cali.com/media/714732/1stquartersp15.pdf
In addition, these items are available upon request from:
Mack-Cali Investor Relations Department
343 Thornall Street, Edison, New Jersey 08837-2206
(732) 590-1000 ext. 1143
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 gains (or losses) from extraordinary items, sales 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.
ABOUT THE COMPANY
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 class A real estate portfolio. Mack-Cali owns or has interests in 284 properties, consisting of 263 office and office/flex properties totaling approximately 30.9 million square feet and 21 multi-family rental properties containing approximately 6,100 residential 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.
The information in this press release must be read in conjunction with, and is modified in its entirety by, the Quarterly Report on Form 10-Q (the "10-Q") filed by the Company for the same period with the Securities and Exchange Commission (the "SEC") and all of the Company's other public filings with the SEC (the "Public Filings"). In particular, the financial information contained herein is subject to and qualified by reference to the financial statements contained in the 10-Q, the footnotes thereto and the limitations set forth therein. Investors may not rely on the press release without reference to the 10-Q and the Public Filings.
Statements made in this press release may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by the use of words such as "may," "will," "plan," "potential," "should," "expect," "anticipate," "estimate," "continue," or comparable terminology. Such forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate, and involve factors that may cause actual results to differ materially from those projected or suggested. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together with the additional factors under the heading "Disclosure Regarding Forward-Looking Statements" and "Risk Factors" in the Company's Annual Reports on Form 10-K, as may be supplemented or amended by the Company's Quarterly Reports on Form 10-Q, which are incorporated herein by reference. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise.
Mack-Cali Realty Corporation
Consolidated Statements of Operations
(in thousands, except per share amounts) (unaudited)
Three Months Ended
March 31,
REVENUES 2015 2014
-------- ---- ----
Base rents $123,793 $134,051
Escalations and recoveries
from tenants 18,399 25,568
Real estate services 7,644 6,692
Parking income 2,542 2,114
Other income 1,337 1,171
------------ ----- -----
Total revenues 153,715 169,596
-------------- ------- -------
EXPENSES
--------
Real estate taxes 22,452 24,351
Utilities 17,575 28,281
Operating services 28,228 29,222
Real estate services expenses 6,639 6,709
General and administrative 11,011 22,881
Depreciation and amortization 40,802 44,985
----------------------------- ------ ------
Total expenses 126,707 156,429
-------------- ------- -------
Operating income 27,008 13,167
OTHER (EXPENSE) INCOME
----------------------
Interest expense (27,215) (29,946)
Interest and other investment
income 267 386
Equity in earnings (loss) of
unconsolidated joint
ventures (3,529) (1,235)
Realized gains (losses) on
disposition of rental
property, net 144 -
-------------------------- --- ---
Total other (expense) income (30,333) (30,795)
---------------------------- ------- -------
Net loss (3,325) (17,628)
Noncontrolling interest in
consolidated joint ventures 490 322
Noncontrolling interest in
Operating Partnership 314 2,008
-------------------------- --- -----
Net loss available
to common
shareholders $(2,521) $(15,298)
================== ======= ========
Basic earnings per common
share:
-------------------------
Net loss available
to common
shareholders $(0.03) $(0.17)
================== ====== ======
Diluted earnings per common
share:
---------------------------
Net loss available
to common
shareholders $(0.03) $(0.17)
================== ====== ======
Basic weighted average shares
outstanding 89,192 88,289
----------------------------- ------ ------
Diluted weighted average
shares outstanding 100,266 99,876
------------------------ ------- ------
Mack-Cali Realty Corporation
Statements of Funds from Operations
(in thousands, except per share/unit amounts) (unaudited)
Three Months Ended
March 31,
2015 2014
---- ----
Net loss available to
common shareholders $(2,521) $(15,298)
Add (deduct): Noncontrolling
interest in Operating Partnership (314) (2,008)
Real estate-related depreciation
and amortization on continuing
operations (a) 46,031 47,448
Deduct: Realized (gains) losses
and unrealized losses on
disposition of rental property,
net (144) -
-------------------------------- ---- ---
Funds from operations
available to common
shareholders (b) $43,052 $30,142
===================== ======= =======
Diluted weighted average shares/
units outstanding (c) 100,266 99,876
Funds from operations
per share/unit-
diluted $0.43 $0.30
Dividends declared per
common share $0.15 $0.30
Dividend payout ratio:
Funds from operations-diluted 34.93% 99.40%
Supplemental Information:
Non-incremental revenue
generating capital expenditures:
Building improvements $6,799 $2,469
Tenant improvements and
leasing commissions
(d) $5,221 $6,787
Straight-line rent
adjustments (e) $(139) $3,079
Amortization of
(above)/below market
lease intangibles, net
(f) $231 $268
Net effect of unusual electricity
rate spikes (g) - $4,845
Executives severance costs (h) - $11,044
(a) Includes the Company's share from
unconsolidated joint ventures of
$5,471 and $2,557 for the three
months ended March 31, 2015 and
2014, respectively. Excludes non-
real estate-related depreciation
and amortization of $243 and $93 for
the three months ended March 31,
2015 and 2014, respectively.
(b) Funds from operations is calculated
in accordance with the definition of
FFO of the National Association of
Real Estate Investment Trusts
(NAREIT). See "Information About
FFO" in this release.
(c) Calculated based on weighted average
common shares outstanding, assuming
redemption of Operating Partnership
common units into common shares
(11,074 and 11,587 shares for the
three months ended March 31, 2015
and 2014, respectively), plus
dilutive Common Stock Equivalents
(i.e. stock options).
(d) Excludes expenditures for tenant
spaces that have not been owned for
at least a year or were vacant for
more than a year.
(e) Includes the Company's share from
unconsolidated joint ventures of
$177 and $(52) for the three months
ended March 31, 2015 and 2014,
respectively.
(f) Includes the Company's share from
unconsolidated joint ventures of
$124 and $124 for the three months
ended March 31, 2015 and 2014,
respectively.
(g) Approximately $10 million in
utilities expense, net of
approximately $5 million in
escalations and recoveries from
tenants related to such costs.
(h) Included in general and
administrative expense.
Mack-Cali Realty Corporation
Statements of Funds from Operations per Diluted Share
(amounts are per diluted share, except share counts in thousands) (unaudited)
Three Months Ended
March 31,
2015 2014
---- ----
Net loss available to
common shareholders $(0.03) $(0.17)
Add: Real estate-related
depreciation and amortization on
continuing operations (a) 0.46 0.48
Noncontrolling interest/rounding
adjustment - (0.01)
-------------------------------- --- -----
Funds from operations (b) $0.43 $0.30
======================== ===== =====
Add: Net effect of
unusual electricity rate
spikes $ - 0.05
Executives severance costs - 0.11
-------------------------- --- ----
FFO excluding certain
items $0.43 $0.46
===================== ===== =====
Diluted weighted average shares/
units outstanding (c) 100,266 99,876
-------------------------------- ------- ------
(a) Includes the Company's share from
unconsolidated joint ventures of
$0.05 and $0.03 for the three months
ended March 31, 2015 and 2014,
respectively.
(b) Funds from operations is calculated
in accordance with the definition of
FFO of the National Association of
Real Estate Investment Trusts
(NAREIT). See "Information About
FFO" in this release.
(c) Calculated based on weighted average
common shares outstanding, assuming
redemption of Operating Partnership
common units into common shares
(11,074 and 11,587 shares for the
three months ended March 31, 2015
and 2014, respectively), plus
dilutive Common Stock Equivalents
(i.e. stock options).
Mack-Cali Realty Corporation
Consolidated Balance Sheets
(in thousands, except per share amounts) (unaudited)
March 31, December 31,
Assets 2015 2014
------ ---- ----
Rental property
Land
and
leasehold
interests $760,628 $760,855
Buildings and
improvements 3,769,787 3,753,300
Tenant
improvements 412,351 431,969
Furniture,
fixtures and
equipment 12,527 12,055
------------- ------ ------
4,955,293 4,958,179
Less -
accumulated
depreciation and
amortization (1,417,335) (1,414,305)
----------------- ---------- ----------
Net investment in
rental property 3,537,958 3,543,874
Cash and cash
equivalents 19,315 29,549
Investments in
unconsolidated
joint ventures 262,052 247,468
Unbilled rents
receivable, net 123,547 123,885
Deferred charges,
goodwill and
other assets,
net 210,760 204,650
Restricted cash 35,780 34,245
Accounts
receivable, net
of allowance for
doubtful
accounts
of $1,513 and
$2,584 9,442 8,576
------------- ----- -----
Total
assets $4,198,854 $4,192,247
======= ========== ==========
Liabilities and
Equity
---------------
Senior
unsecured
notes $1,268,018 $1,267,744
Revolving credit
facility 42,000 -
Mortgages, loans
payable and
other
obligations 797,554 820,910
Dividends and
distributions
payable 15,560 15,528
Accounts payable,
accrued expenses
and other
liabilities 134,462 126,971
Rents received in
advance and
security
deposits 47,429 52,146
Accrued interest
payable 29,608 26,937
---------------- ------ ------
Total liabilities 2,334,631 2,310,236
----------------- --------- ---------
Commitments and
contingencies
Equity:
Mack-Cali Realty
Corporation
stockholders'
equity:
Common stock,
$0.01 par value,
190,000,000
shares
authorized,
89,127,942 and
89,076,578
shares
outstanding 891 891
Additional paid-
in capital 2,561,463 2,560,183
Dividends in
excess of net
earnings (952,183) (936,293)
-------------- -------- --------
Total Mack-Cali
Realty
Corporation
stockholders'
equity 1,610,171 1,624,781
--------------- --------- ---------
Noncontrolling
interests in
subsidiaries:
Operating
Partnership 199,391 202,173
Consolidated
joint ventures 54,661 55,057
--------------- ------ ------
Total
noncontrolling
interests in
subsidiaries 254,052 257,230
--------------- ------- -------
Total equity 1,864,223 1,882,011
------------ --------- ---------
Total
liabilities
and
equity $4,198,854 $4,192,247
============ ========== ==========
Contact: Anthony Krug Ilene Jablonski
Chief Financial Officer Vice President of Marketing
Mack-Cali Realty Corporation Mack-Cali Realty Corporation
(732) 590-1000 (732) 590-1000
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/mack-cali-realty-corporation-announces-first-quarter-results-300070948.html
SOURCE Mack-Cali Realty Corporation
