Mack-Cali Realty Corporation Announces Fourth Quarter Results
EDISON, N.J.--(BUSINESS WIRE)--
Mack-Cali Realty Corporation (NYSE: CLI) today reported its results for the fourth quarter 2006.
Recent highlights include:
-- Reported net income per diluted share of $1.07;
-- Reported funds from operations per diluted share of $0.87;
-- Sold remaining portfolio of assets in suburban Denver and
Colorado Springs for approximately $194.3 million;
-- Sold remaining two office properties in San Francisco for
approximately $126 million
-- Completed the sale of substantially all of its 50-percent
ownership interest in Convention Plaza, located in San
Francisco for approximately $16.3 million;
-- Completed redemption of entire interest in the
entertainment/retail component of the Meadowlands Xanadu
development project in East Rutherford, New Jersey for $25
million;
-- Declared $0.64 per share quarterly common stock dividend; and
-- Completed offering of 4,650,000 shares of common stock on
February 7, 2007.
FINANCIAL HIGHLIGHTS
Net income available to common shareholders for the fourth quarter 2006 equaled $67.4 million, or $1.07 per share, versus $14.4 million, or $0.23 per share, for the same quarter last year. For the year ended December 31, 2006, net income available to common shareholders equaled $142.7 million, or $2.28 per share, versus $93.5 million, or $1.51 per share, for the same period last year.
Funds from operations (FFO) available to common shareholders for the quarter ended December 31, 2006 amounted to $68.2 million, or $0.87 per share, versus $65.1 million, or $0.86 per share, for the quarter ended December 31, 2005. For the year ended December 31, 2006, FFO available to common shareholders amounted to $290.5 million, or $3.73 per share, versus $270.3 million, or $3.57 per share, for the same period last year.
Total revenues for the fourth quarter 2006 increased 29.5 percent to $198.2 million as compared to $153.1 million for the same quarter last year. For the year ended December 31, 2006, total revenues amounted to $740.3 million, an increase of 23.4 percent over total revenues of $600.1 million, for the same period last year.
All per share amounts presented above are on a diluted basis.
The Company had 62,925,191 shares of common stock, 10,000 shares of 8 percent Series C cumulative redeemable perpetual preferred stock ($25,000 liquidation value per share), and 15,342,283 common operating partnership units outstanding as of December 31, 2006.
The Company had a total of 78,267,474 common shares/common units outstanding at December 31, 2006.
As of December 31, 2006, the Company had total indebtedness of approximately $2.2 billion, with a weighted average annual interest rate of 6.11 percent. The Company had a total market capitalization of $6.2 billion and a debt-to-undepreciated assets ratio of 41.4 percent at December 31, 2006. The Company had an interest coverage ratio of 2.9 times for the quarter ended December 31, 2006.
Mitchell E. Hersh, president and chief executive officer, commented, "Having completed the exit of our western markets during the fourth quarter, we enter 2007 fully focused on our core Northeast markets, well positioned to capitalize on strategic growth opportunities."
The following is a summary of the Company's recent transactions:
PROPERTY SALES
In November, the Company completed the sale of its remaining property and land portfolio in suburban Denver and Colorado Springs. The portfolio, which consists of 19 office buildings totaling approximately 1.4 million square feet, plus 7.1 acres of vacant land and 1.6 acres of land dedicated to a parking facility, was sold for approximately $194.3 million.
Also in November, the Company completed the sale of substantially all of its 50-percent ownership interest in Convention Plaza, a 12-story, 305,618 square-foot class A building located at 201 Third Street in San Francisco, for approximately $16.3 million. The building is 83.9 percent leased.
Also in November, the Company completed the redemption of its entire interest in the entertainment/retail component of the Meadowlands Xanadu development project in East Rutherford, New Jersey. The Company retained its options to develop the office and hotel components of the project. The Company agreed to relinquish its interest in the entertainment/retail component for $25 million. The Company received $22.5 million at closing, with the remaining $2.5 million due when the Company exercises the first of its options to develop the office or hotel components of the project. Upon exercise of any such development option, and the receipt of the additional $2.5 million, the Company's interests in the office and hotel components will be 75 percent.
In December, the Company completed the sale of its remaining two office properties in San Francisco. The sales marked the exit of the Company from its western markets in accordance with its capital recycling program and portfolio strategy. The Company completed the sale of 760 Market Street and 795 Folsom Street for an aggregate price of $126 million. 760 Market Street is an 11-story, 267,446 square-foot class A office building that is 78.0 percent leased; and 795 Folsom Street is a six-story, 183,445 square-foot class A office building that is 78.8 percent leased.
DIVIDENDS
In December, the Company's Board of Directors declared a cash dividend of $0.64 per common share (indicating an annual rate of $2.56 per common share) for the fourth quarter 2006, which was paid on January 12, 2007 to shareholders of record as of January 4, 2007.
The Board also declared a cash dividend on its 8 percent Series C cumulative redeemable perpetual preferred stock ($25 liquidation value per depositary share, each representing 1/100th of a share of preferred stock) equal to $0.50 per depositary share for the period October 15, 2006 through January 14, 2007. The dividend was paid on January 16, 2007 to shareholders of record as of January 4, 2007.
EQUITY OFFERING
On February 7, 2007, the Company completed an underwritten public offering of 4,650,000 shares of common stock for net proceeds of approximately $252 million. Morgan Stanley & Co. Incorporated and Goldman, Sachs & Co. were the underwriters for the offering. The net proceeds were used for repayment of debt and for general corporate purposes.
LEASING INFORMATION
Mack-Cali's consolidated in-service portfolio was 92.0 percent leased at December 31, 2006, as compared to 91.4 percent leased at September 30, 2006 and 91.0 percent leased at December 31, 2005.
For the quarter ended December 31, 2006, the Company executed 167 leases totaling 1,491,516 square feet, consisting of 1,277,796 square feet of office space and 213,720 square feet of office/flex space. Of these totals, 587,117 square feet were for new leases and 904,399 square feet were for lease renewals and other tenant retention transactions.
For the year ended December 31, 2006, the Company executed 676 leases totaling 4,476,910 square feet, consisting of 3,666,770 square feet of office space, 808,790 square feet of office/flex space and 1,350 square feet of industrial/warehouse space. Of these totals, 1,691,613 square feet were for new leases and 2,785,297 square feet were for lease renewals and other tenant retention transactions.
Highlights of the quarter's leasing transactions include:
IN NORTHERN NEW JERSEY:
-- Merrill Lynch signed a transaction totaling 236,350 square
feet at 101 Hudson Street in Jersey City, New Jersey,
representing a long-term expansion of 57,839 square feet and a
renewal of 178,511 square feet. 101 Hudson Street is a 1.25
million square-foot office building that is 100 percent
leased.
-- The Louis Berger Group, Inc., a provider of engineering
consulting services, signed a new, 20-year lease to move its
New Jersey headquarters to 108,332 square feet at Kemble Plaza
II. Kemble Plaza II, located at 412 Mt. Kemble Avenue in
Morris Township, New Jersey is a 475,100 square-foot office
building and is 33.5 percent leased.
-- Also at 412 Mt. Kemble Avenue, United States Fire Insurance
Company, an affiliate of Crum & Forster, signed a new,
five-year and two-month lease for 18,736 square feet.
-- E*Trade Financial Corporation, a financial services provider,
signed a new lease for 106,573 square feet at Harborside
Financial Center, Plaza 2 for 15 years and seven months.
Harborside Plaza 2 is a 761,200 square- foot office building
in Jersey City, New Jersey and is 100 percent leased.
-- Accounting firm KPMG, LLP renewed its lease of 33,397 square
feet for three years at 530 Chestnut Ridge Road in Woodcliff
Lake, New Jersey. 530 Chestnut Ridge Road is a 57,204
square-foot office building and is 100 percent leased.
-- Drug-maker Ferring Pharmaceuticals, Inc. signed a new, 12-year
and six month lease for 30,121 square feet at 4 Gatehall Drive
in Parsippany, New Jersey. 4 Gatehall Drive is a 248,480
square-foot office building and is 85.4 percent leased.
-- HQ Global Workplaces, LLC, a provider of temporary office
suites, signed a new, 11-year and six-month lease for 19,485
square feet at One Bridge Plaza. One Bridge Plaza is a 200,000
square-foot office building located in Fort Lee, New Jersey,
and is 54.4 percent leased. HQ Global Workplaces also signed a
new, 11-year and six-month lease for 14,160 square feet at 500
West Putnam Avenue in Greenwich, Connecticut. The 121,250
square-foot office building is 96.3 percent leased.
-- IXIS North America, Inc., part of the US capital markets arm
of France's Ixis Corporate & Investment Bank, expanded its
presence at Harborside Financial Center Plaza 5 by 18,226
square feet for a term of 14 years and eight months.
Harborside Plaza 5 is a 977,225 square-foot office building in
Jersey City, New Jersey and is 97.5 percent leased.
-- High Point Safety and Insurance Management Corporation, an
auto-insurance provider, signed a new lease for 17,850 square
feet for a term of 13 years and four months at 600 Parsippany
Road in Parsippany, New Jersey. The 96,000 square-foot office
building is 94.7 percent leased.
IN CENTRAL NEW JERSEY:
-- High Point Safety and Insurance Management Corporation also
signed a transaction totaling 98,508 square feet at One River
Centre, Building 3 in Middletown, New Jersey, consisting of a
renewal of 88,237 square feet for five years and an expansion
of 10,271 square feet for 13 years. One River Centre, Building
3 is a 194,518 square-foot office building and is 100 percent
leased.
-- Norris McLaughlin & Marcus, P.A., a law firm, signed for a
total of 86,913 square feet at Mack-Cali Bridgewater,
representing an expansion of 5,702 square feet for nine years
and 10 months and an extension of 81,211 square feet for two
years. Mack-Cali Bridgewater is a 192,741 square-foot office
building, located at 721 Route 202/206 in Bridgewater, New
Jersey, and is 97 percent leased.
-- Also at Mack-Cali Bridgewater, Allstate Insurance Company
signed a renewal of 53,983 square feet for 10 years.
-- Right Answers, Inc., a help desk software developer, signed a
new five-year lease for 13,145 square feet at 11 Commerce
Drive in Cranford, New Jersey. 11 Commerce Drive is a 90,000
square-foot office building and is 92.7 percent leased.
IN WESTCHESTER COUNTY, NEW YORK:
-- Singer Holding Corporation, a home heating oil supplier,
renewed its lease of 15,000 square feet for two years at 500
Executive Boulevard in Elmsford, New York. 500 Executive
Boulevard is a 41,600 square foot office/flex building and is
100 percent leased.
-- Matrix Absence Management, Inc., a provider of customized
management of employers' disability, workers' compensation and
family leave programs, renewed its lease of 14,126 square feet
at 7 Skyline Drive in Hawthorne, New York for three years and
two months. 7 Skyline Drive is a 109,000 square-foot office
building and is 95.3 percent leased.
-- Konica Minolta Business Solutions USA, Inc., a document
imaging products provider, signed a new 10-year lease for
11,650 square feet at 200 White Plains Road in Tarrytown, New
York. The 89,000 square foot office building is 97.9 percent
leased.
-- Starwood Hotel & Resorts signed a two-year renewal of its
lease for 10,275 square feet at 5 Skyline Drive in Hawthorne,
New York. 5 Skyline Drive is a 124,022 square-foot office/flex
building and is 100 percent leased.
IN SUBURBAN PHILADELPHIA:
-- Otis Elevator Company, a subsidiary of United Technologies
Corporation, relocated within Moorestown West Corporate
Center, leasing 16,600 square feet at 30 Twosome Drive in
Moorestown, New Jersey for 10 years. 30 Twosome Drive is a
39,675 square foot office/flex building which is 100 percent
leased.
-- Morison Cogen, LLP, an accounting and business consulting
firm, renewed its lease for 13,750 square feet at 150 Monument
Road in Bala Cynwyd, Pennsylvania for seven years and eight
months. 150 Monument Road is a 125,783 square-foot office
building which is 98.4 percent leased.
Included in the Company's Supplemental Operating and Financial Data for the fourth quarter 2006 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:
http://www.mack-cali.com/graphics/shareholders/pdfs/4th.quarter.
sp.06.pdf (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)
ADDITIONAL INFORMATION
The Company expressed comfort with net income and FFO per diluted
share for the full year 2007, as follows:
Full Year
2007 Range
----------------------------------------------------------------------
Net income available to common shareholders $1.10 - $1.26
Add: Real estate-related depreciation and amortization 2.28
----------------------------------------------------------------------
Funds from operations available to common shareholders $3.38 - $3.54
======================================================================
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, February 22, 2007 at 11:00 a.m. Eastern Time, which will be broadcast live via the Internet at:
http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=CLI&script=
1010&item_id=1460519 (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)
The live conference call is also accessible by calling (719) 457-2617 and requesting the Mack-Cali conference call.
The conference call will be rebroadcast on Mack-Cali's website at http://www.mack-cali.com beginning at 2:00 p.m. Eastern Time on February 22, 2007 through March 1, 2007.
A replay of the call will also be accessible during the same time period by calling (719) 457-0820 and using the pass code 2334004.
Copies of Mack-Cali's 2006 Form 10-K and Fourth Quarter 2006 Supplemental Operating and Financial Data are available on Mack-Cali's website, as follows:
2006 Form 10-K:
http://www.mack-cali.com/graphics/shareholders/pdfs/10k.06.pdf
Fourth Quarter 2006 Supplemental Operating and Financial Data:
http://www.mack-cali.com/graphics/shareholders/pdfs/4th.quarter.
sp.06.pdf (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)
In addition, these items are available upon request from:
Mack-Cali Investor Relations Dept.
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 minority interest of unitholders, computed in accordance with generally accepted accounting principles ("GAAP"), excluding gains (or losses) from extraordinary items and sales of depreciable rental property (which the Company believes includes unrealized losses on properties held for sale), 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 by excluding the effect of depreciation and gains (or losses) from sales of properties (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 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 300 properties, primarily office and office/flex buildings located in the Northeast, totaling approximately 34.3 million square feet. The properties enable the Company to provide a full complement of real estate opportunities to its diverse base of over 2,200 tenants.
Additional information on Mack-Cali Realty Corporation is available on the Company's website at http://www.mack-cali.com.
The information in this press release must be read in conjunction with, and is modified in its entirety by, the Annual Report on Form 10-K (the "10-K") filed by the Company for the same period with the Securities and Exchange Commission (the "SEC") and all of the Company's other public filings with the SEC (the "Public Filings"). In particular, the financial information contained herein is subject to and qualified by reference to the financial statements contained in the 10-K, the footnotes thereto and the limitations set forth therein. Investors may not rely on the press release without reference to the 10-K and the Public Filings.
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," "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)
Quarter Ended
December 31,
Revenues 2006 2005
----------------------------------------------------------------------
Base rents $137,881 $127,943
Escalations and recoveries from tenants 21,182 20,773
Construction services 19,939 --
Real estate services 12,030 805
Other income 7,140 3,538
----------------------------------------------------------------------
Total revenues 198,172 153,059
----------------------------------------------------------------------
Expenses
----------------------------------------------------------------------
Real estate taxes 21,721 20,362
Utilities 13,699 13,753
Operating services 24,673 21,017
Direct construction costs 18,454 --
Real estate services salaries, wages and other costs 7,780 --
General and administrative 16,280 8,991
Depreciation and amortization 43,879 37,527
----------------------------------------------------------------------
Total expenses 146,486 101,650
----------------------------------------------------------------------
Operating Income 51,686 51,409
Other (Expense) Income
----------------------------------------------------------------------
Interest expense (35,737) (30,418)
Interest and other investment income 696 364
Equity in earnings (loss) of unconsolidated joint
ventures (200) (304)
Minority interest in consolidated joint ventures 75 --
Gain on sale of investment in unconsolidated joint
ventures 10,831 --
Gain / (loss) of land and other assets (416) --
----------------------------------------------------------------------
Total other (expense) income (24,751) (30,358)
----------------------------------------------------------------------
Income from continuing operations before
Minority interest in Operating Partnership 26,935 21,051
Minority interest in Operating Partnership (5,270) (3,732)
----------------------------------------------------------------------
Income from continuing operations 21,665 17,319
Discontinued operations (net of minority interest):
Income from discontinued operations 2,465 2,129
Realized gains (losses) and unrealized losses on
disposition of rental property, net 43,794 (4,547)
----------------------------------------------------------------------
Total discontinued operations, net 46,259 (2,418)
----------------------------------------------------------------------
Net income 67,924 14,901
Preferred stock dividends (500) (500)
----------------------------------------------------------------------
Net income available to common shareholders $ 67,424 $ 14,401
======================================================================
PER SHARE DATA:
----------------------------------------------------------------------
Basic earnings per common share $ 1.08 $ 0.23
Diluted earnings per common share $ 1.07 $ 0.23
Dividends declared per common share $ 0.64 $ 0.63
----------------------------------------------------------------------
Basic weighted average shares outstanding 62,471 61,715
----------------------------------------------------------------------
Diluted weighted average shares outstanding 78,410 75,799
----------------------------------------------------------------------
Mack-Cali Realty Corporation
Consolidated Statements of Operations
(in thousands, except per share amounts) (unaudited)
Year Ended
December 31,
Revenues 2006 2005
----------------------------------------------------------------------
Base rents $ 544,870 $ 508,227
Escalations and recoveries from tenants 91,044 77,900
Construction services 56,225 --
Real estate services 31,045 2,917
Other income 17,125 11,087
----------------------------------------------------------------------
Total revenues 740,309 600,131
----------------------------------------------------------------------
Expenses
----------------------------------------------------------------------
Real estate taxes 86,612 77,252
Utilities 60,487 52,401
Operating services 91,013 80,820
Direct construction costs 53,602 --
Real estate services salaries, wages and other
costs 18,600 --
General and administrative 49,077 32,441
Depreciation and amortization 160,859 143,593
----------------------------------------------------------------------
Total expenses 520,250 386,507
----------------------------------------------------------------------
Operating Income 220,059 213,624
Other (Expense) Income
----------------------------------------------------------------------
Interest expense (136,357) (119,337)
Interest and other investment income 3,054 856
Equity in earnings (loss) of unconsolidated joint
ventures (5,556) 248
Minority interest in consolidated joint ventures 218 (74)
Gain on sale of investment in marketable
securities 15,060 --
Gain on sale of investment in unconsolidated joint
ventures 10,831 35
Gain / (loss) on sale of land and other assets (416) --
----------------------------------------------------------------------
Total other (expense) income (113,166) (118,272)
----------------------------------------------------------------------
Income from continuing operations before
Minority interest in Operating Partnership 106,893 95,352
Minority interest in Operating Partnership (20,533) (18,758)
----------------------------------------------------------------------
Income from continuing operations 86,360 76,594
Discontinued operations (net of minority
interest):
Income from discontinued operations 10,591 14,468
Realized gains (losses) and unrealized losses on
disposition of rental property, net 47,715 4,426
----------------------------------------------------------------------
Total discontinued operations, net 58,306 18,894
----------------------------------------------------------------------
Net income 144,666 95,488
Preferred stock dividends (2,000) (2,000)
----------------------------------------------------------------------
Net income available to common shareholders $ 142,666 $ 93,488
======================================================================
PER SHARE DATA:
----------------------------------------------------------------------
Basic earnings per common share $ 2.29 $ 1.52
Diluted earnings per common share $ 2.28 $ 1.51
Dividends declared per common share $ 2.54 $ 2.52
----------------------------------------------------------------------
Basic weighted average shares outstanding 62,237 61,477
----------------------------------------------------------------------
Diluted weighted average shares outstanding 77,901 74,189
----------------------------------------------------------------------
Mack-Cali Realty Corporation
Statements of Funds from Operations
(in thousands, except per share/unit amounts) (unaudited)
Quarter Ended
December 31,
2006 2005
----------------------------------------------------------------------
Net income available to common shareholders $ 67,424 $ 14,401
Add: Minority interest in Operating Partnership 5,270 3,732
Minority interest in discontinued operations 11,520 (536)
Real estate-related depreciation and
amortization on continuing operations (1) 49,517 38,898
Real estate-related depreciation and
amortization on discontinued operations 2 3,085
Deduct: Gain on sale of investment in
unconsolidated joint venture (10,831) --
Discontinued operations - Realized gains
(losses) and unrealized losses on
disposition of rental property, net (54,700) 5,555
----------------------------------------------------------------------
Funds from operations available to common
shareholders (2) $ 68,202 $ 65,135
======================================================================
Diluted weighted average shares/units outstanding
(3) 78,410 75,799
Funds from operations per share/unit - diluted $ 0.87 $ 0.86
Dividends declared per common share $ 0.64 $ 0.63
Dividend payout ratio:
Funds from operations-diluted 73.58% 73.31%
Supplemental Information:
Non-incremental revenue generating capital
expenditures:
Building improvements $ 4,890 $ 2,564
Tenant improvements and leasing commissions $ 22,132 $ 9,143
Straight-line rent adjustments (4) $ 2,794 $ 4,321
Amortization of (above)/below market lease
intangibles, net (5) $ 2,046 $ 994
(1) Includes the Company's share from unconsolidated joint ventures of
$5,776 and $1,524 for 2006 and 2005, respectively.
(2) Funds from operations for both periods are calculated in
accordance with the National Association of Real Estate Investment
Trusts (NAREIT) definition. For further discussion, see "Information
About FFO" in this release.
(3) Calculated based on weighted average common shares outstanding,
assuming redemption of Operating Partnership common and preferred
units into common shares, (15,556 shares in 2006 and 13,699 shares in
2005), plus dilutive Common Stock Equivalents (i.e. stock options).
(4) Includes the Company's share from unconsolidated joint ventures of
$1,019 and $223 for 2006 and 2005, respectively.
(5) Includes the Company's share from unconsolidated joint ventures of
$1,197 and $0 for 2006 and 2005, respectively
Mack-Cali Realty Corporation
Statements of Funds from Operations
(in thousands, except per share/unit amounts) (unaudited)
Year Ended December
31,
2006 2005
----------------------------------------------------------------------
Net income available to common shareholders $142,666 $ 93,488
Add: Minority interest in Operating Partnership 20,533 18,758
Minority interest in discontinued operations 14,493 3,873
Real estate-related depreciation and
amortization on continuing operations (1) 176,142 147,267
Real estate-related depreciation and
amortization on discontinued operations 7,090 12,506
Deduct: Gain on sale of investment in
unconsolidated joint venture (10,831) (35)
Add: Discontinued operations - Realized gains
(losses) and unrealized losses on disposition of
rental property, net (59,605) (5,523)
----------------------------------------------------------------------
Funds from operations available to common
shareholders (2) $290,488 $270,334
======================================================================
Diluted weighted average shares/units outstanding
(3) 77,901 75,719
Funds from operations per share/unit - diluted $ 3.73 $ 3.57
Dividends declared per common share $ 2.54 $ 2.52
Dividend payout ratio:
Funds from operations-diluted 68.12% 70.58%
Supplemental Information:
Non-incremental revenue generating capital
expenditures:
Building improvements $ 12,465 $ 6,532
Tenant improvements and leasing commissions $ 68,498 $ 41,044
Straight-line rent adjustments (4) $ 20,397 $ 14,194
Amortization of (above)/below market lease
intangibles, net (5) $ 3,305 $ 3,725
(1) Includes the Company's share from unconsolidated joint ventures of
$15,854 and $4,299 for 2006 and 2005, respectively.
(2) Funds from operations for both periods are calculated in
accordance with the National Association of Real Estate Investment
Trusts (NAREIT) definition. For further discussion, see "Information
About FFO" in this release.
(3) Calculated based on weighted average common shares outstanding,
assuming redemption of Operating Partnership common and preferred
units into common shares, (15,286 shares in 2006 and 13,782 shares in
2005), plus dilutive Common Stock Equivalents (i.e. stock options).
(4) Includes the Company's share from unconsolidated joint ventures of
$3,432 and $612 for 2006 and 2005, respectively.
(5) Includes the Company's share from unconsolidated joint ventures of
$1,197 and $0 for 2006 and 2005, respectively.
Mack-Cali Realty Corporation
Statements of Funds from Operations Per Diluted Share
(amounts are per diluted share, except share count in thousands)
(unaudited)
Quarter Ended
December 31,
2006 2005
----------------------------------------------------------------------
Net income available to common shareholders $ 1.07 $ 0.23
Add: Real estate-related depreciation and
amortization on continuing operations (1) 0.63 0.51
Real estate-related depreciation and
amortization on discontinued operations -- 0.04
Deduct: Gain on sale of unconsolidated joint ventures (0.14) --
Deduct/Add: Discontinued Operations - Realized gains
(losses) and unrealized losses on disposition of
rental property, net (0.70) 0.07
Minority interest/rounding adjustment 0.01 0.01
----------------------------------------------------------------------
Funds from operations available to common shareholders
(2) $ 0.87 $ 0.86
======================================================================
Diluted weighted average shares/units outstanding (3) 78,410 75,799
----------------------------------------------------------------------
(1) Includes the Company's share from unconsolidated joint ventures of
$0.07 and $0.02 for 2006 and 2005, respectively.
(2) Funds from operations for both periods are calculated in
accordance with the National Association of Real Estate Investment
Trusts (NAREIT) definition. For further discussion, see "Information
About FFO" in this release.
(3) Calculated based on weighted average common shares outstanding,
assuming redemption of Operating Partnership common and preferred
units into common shares (15,556 shares in 2006 and 13,699 shares in
2005), plus dilutive Common Stock Equivalents (i.e. stock options).
Mack-Cali Realty Corporation
Statements of Funds from Operations Per Diluted Share
(amounts are per diluted share, except share count in thousands)
(unaudited)
Year Ended
December 31,
2006 2005
----------------------------------------------------------------------
Net income available to common shareholders $ 2.28 $ 1.51
Add: Real estate-related depreciation and
amortization on continuing operations (1) 2.26 1.94
Real estate-related depreciation and
amortization on discontinued operations 0.09 0.17
Deduct: Gain (loss) on sale of unconsolidated joint
ventures (0.14) --
Realized gains (losses) and unrealized losses
on disposition of rental property, net (0.77) (0.07)
Minority interest/rounding adjustment 0.01 0.02
----------------------------------------------------------------------
Funds from operations available to common shareholders
(2) $ 3.73 $ 3.57
======================================================================
Diluted weighted average shares/units outstanding (3) 77,901 75,719
----------------------------------------------------------------------
(1) Includes the Company's share from unconsolidated joint ventures of
$0.20 and $0.06 for 2006 and 2005, respectively.
(2) Funds from operations for both periods are calculated in
accordance with the National Association of Real Estate Investment
Trusts (NAREIT) definition. For further discussion, see "Information
About FFO" in this release.
(3) Calculated based on weighted average common shares outstanding,
assuming redemption of Operating Partnership common and preferred
units into common shares 15,286 shares in 2006 and 13,782 shares in
2005), plus dilutive Common Stock Equivalents (i.e. stock options).
Mack-Cali Realty Corporation
Consolidated Balance Sheets
(in thousands, except share amounts) (unaudited)
December 31,
2006 2005
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ASSETS:
Rental property
Land and leasehold interests $ 659,169 $ 637,653
Buildings and improvements 3,549,699 3,539,003
Tenant improvements 356,495 307,664
Furniture, fixtures and equipment 8,224 7,432
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4,573,587 4,491,752
Less-accumulated deprec. & amort. (796,793) (722,980)
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Net investment in rental property 3,776,794 3,768,772
Cash and cash equivalents 101,223 60,397
Marketable securities available for sale at
fair value -- 50,847
Investments in unconsolidated joint ventures 160,301 62,138
Unbilled rents receivable, net 100,847 92,692
Deferred charges and other assets, net 240,637 197,634
Restricted cash 15,448 9,221
Accounts receivable, net 27,639 5,801
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Total assets $ 4,422,889 $4,247,502
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LIABILITIES AND STOCKHOLDERS' EQUITY:
Senior unsecured notes $ 1,631,482 $1,430,509
Revolving credit facility 145,000 227,000
Mortgages, loans payable and other obligations 383,477 468,672
Dividends and distributions payable 50,591 48,178
Accounts payable, accrued expenses and other
liabilities 122,134 85,481
Rents received in advance and security deposits 45,972 47,685
Accrued interest payable 34,106 27,871
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Total liabilities 2,412,762 2,335,396
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Minority interests:
Operating Partnership 480,103 400,819
Consolidated joint ventures 2,117 --
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Total minority interests 482,220 400,819
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Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value, 5,000,000
shares authorized, 10,000
and 10,000 shares outstanding, at liquidation
preference 25,000 25,000
Common stock, $0.01 par value, 190,000,000
shares authorized,
62,925,191 and 62,019,646 shares outstanding 629 620
Additional paid-in capital 1,708,053 1,682,141
Unamortized stock compensation -- (6,105)
Dividends in excess of net earnings (205,775) (189,579)
Accumulated other comprehensive loss -- (790)
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Total stockholders' equity 1,527,907 1,511,287
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Total liabilities and stockholders' equity $ 4,422,889 $4,247,502
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Source: Mack-Cali Realty Corporation
Released February 22, 2007