For
the quarterly period ended September 30,
2009
|
For
the transition period from
|
to
|
Commission
File Number:
|
1-13274
|
Mack-Cali
Realty Corporation
|
||
(Exact
name of registrant as specified in its
charter)
|
Maryland
|
22-3305147
|
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
|
343
Thornall Street, Edison, New Jersey
|
08837-2206
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
(732)
590-1000
|
||
(Registrant’s
telephone number, including area
code)
|
Not
Applicable
|
(Former
name, former address and former fiscal year, if changed since last
report)
|
Indicate by check mark whether
the registrant (1) has filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing requirements
for the past ninety (90) days. YES X
NO ___
|
Indicate by check mark whether
the registrant has submitted electronically and posted on its corporate
Web site, if any, every Interactive Data File required to be submitted and
posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter)
during the preceding 12 months (or for such shorter period that the
registrant was required to submit and post such files). Yes ___
No ___ (the Registrant is not yet required to submit Interactive
Data)
|
Indicate by check mark whether
the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated filer, or a smaller reporting company. See the definitions
of “large accelerated filer,” “accelerated filer” and “smaller reporting
company” in Rule 12b-2 of the Exchange Act.
Large
accelerated filer x Accelerated
filer ¨
Non-accelerated
filer ¨ (Do not check if
a smaller reporting
company) Smaller
reporting company ¨
|
Indicate by check mark whether
the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act). YES___ NO X
|
As of October 27, 2009, there
were 78,648,164 shares of the registrant’s Common Stock, par value
$0.01 per share, outstanding.
|
Part I
|
Financial Information
|
Page
|
|
Item
1.
|
Financial
Statements (unaudited):
|
||
Consolidated
Balance Sheets as of September 30, 2009
|
|||
and
December 31, 2008
|
4
|
||
Consolidated
Statements of Operations for the three and nine month
|
|||
periods
ended September 30, 2009 and 2008
|
5
|
||
Consolidated
Statement of Changes in Equity for the nine months
|
|||
ended
September 30, 2009
|
6
|
||
Consolidated
Statements of Cash Flows for the nine months ended
|
|||
September
30, 2009 and 2008
|
7
|
||
Notes
to Consolidated Financial Statements
|
8-39
|
||
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition
|
||
and
Results of Operations
|
40-59
|
||
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
59
|
|
Item
4.
|
Controls
and Procedures
|
59
|
|
Part II
|
Other Information
|
||
Item
1.
|
Legal
Proceedings
|
60
|
|
Item
1A.
|
Risk
Factors
|
60
|
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
61
|
|
Item
3.
|
Defaults
Upon Senior Securities
|
61
|
|
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
61
|
|
Item
5.
|
Other
Information
|
62
|
|
Item
6.
|
Exhibits
|
62
|
|
Signatures
|
63
|
||
Exhibit
Index
|
64-80
|
September
30,
|
December
31,
|
|||||||
ASSETS
|
2009
|
2008
|
||||||
Rental
property
|
||||||||
Land
and leasehold interests
|
$ | 774,155 | $ | 731,086 | ||||
Buildings
and improvements
|
3,954,619 | 3,792,186 | ||||||
Tenant
improvements
|
446,279 | 431,616 | ||||||
Furniture,
fixtures and equipment
|
9,358 | 8,892 | ||||||
5,184,411 | 4,963,780 | |||||||
Less
– accumulated depreciation and amortization
|
(1,113,034 | ) | (1,040,778 | ) | ||||
Net investment in rental
property
|
4,071,377 | 3,923,002 | ||||||
Cash
and cash equivalents
|
279,156 | 21,621 | ||||||
Investments
in unconsolidated joint ventures
|
32,969 | 138,495 | ||||||
Unbilled
rents receivable, net
|
117,069 | 112,524 | ||||||
Deferred
charges and other assets, net
|
225,645 | 212,422 | ||||||
Restricted
cash
|
20,720 | 12,719 | ||||||
Accounts
receivable, net of allowance for doubtful accounts
|
||||||||
of
$2,905 and $2,319
|
10,300 | 23,139 | ||||||
Total
assets
|
$ | 4,757,236 | $ | 4,443,922 | ||||
LIABILITIES
AND EQUITY
|
||||||||
Senior
unsecured notes
|
$ | 1,582,173 | $ | 1,533,349 | ||||
Revolving
credit facility
|
-- | 161,000 | ||||||
Mortgages,
loans payable and other obligations
|
755,702 | 531,126 | ||||||
Dividends
and distributions payable
|
42,070 | 52,249 | ||||||
Accounts
payable, accrued expenses and other liabilities
|
119,395 | 119,451 | ||||||
Rents
received in advance and security deposits
|
54,635 | 54,406 | ||||||
Accrued
interest payable
|
22,416 | 32,978 | ||||||
Total
liabilities
|
2,576,391 | 2,484,559 | ||||||
Commitments
and contingencies
|
||||||||
Equity:
|
||||||||
Mack-Cali
Realty Corporation 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,
|
||||||||
78,554,827
and 66,419,055 shares outstanding
|
785 | 664 | ||||||
Additional
paid-in capital
|
2,265,423 | 1,905,386 | ||||||
Dividends
in excess of net earnings
|
(435,517 | ) | (386,587 | ) | ||||
Total
Mack-Cali Realty Corporation stockholders’ equity
|
1,855,691 | 1,544,463 | ||||||
Noncontrolling
interests in subsidiaries:
|
||||||||
Operating
Partnership
|
322,111 | 414,114 | ||||||
Consolidated joint
ventures
|
3,043 | 786 | ||||||
Total noncontrolling interests in
subsidiaries
|
325,154 | 414,900 | ||||||
Total
equity
|
2,180,845 | 1,959,363 | ||||||
Total
liabilities and equity
|
$ | 4,757,236 | $ | 4,443,922 | ||||
The
accompanying notes are an integral part of these consolidated financial
statements.
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
REVENUES
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
Base
rents
|
$ | 155,532 | $ | 147,809 | $ | 458,943 | $ | 444,499 | ||||||||
Escalations
and recoveries from tenants
|
24,995 | 29,755 | 77,888 | 82,065 | ||||||||||||
Construction
services
|
7,761 | 12,268 | 16,466 | 36,334 | ||||||||||||
Real
estate services
|
1,808 | 3,347 | 6,450 | 10,016 | ||||||||||||
Other
income
|
3,521 | 11,184 | 9,874 | 18,955 | ||||||||||||
Total
revenues
|
193,617 | 204,363 | 569,621 | 591,869 | ||||||||||||
EXPENSES
|
||||||||||||||||
Real
estate taxes
|
23,557 | 23,361 | 70,522 | 71,522 | ||||||||||||
Utilities
|
18,122 | 24,706 | 55,090 | 65,794 | ||||||||||||
Operating
services
|
24,918 | 25,955 | 79,775 | 79,080 | ||||||||||||
Direct
construction costs
|
7,337 | 11,104 | 15,347 | 34,087 | ||||||||||||
General
and administrative
|
9,818 | 10,767 | 30,551 | 33,099 | ||||||||||||
Depreciation
and amortization
|
51,830 | 49,242 | 149,818 | 144,550 | ||||||||||||
Total
expenses
|
135,582 | 145,135 | 401,103 | 428,132 | ||||||||||||
Operating
income
|
58,035 | 59,228 | 168,518 | 163,737 | ||||||||||||
OTHER
(EXPENSE) INCOME
|
||||||||||||||||
Interest
expense
|
(36,048 | ) | (31,163 | ) | (102,350 | ) | (94,963 | ) | ||||||||
Interest
and other investment income
|
167 | 257 | 551 | 1,115 | ||||||||||||
Equity
in earnings (loss) of unconsolidated joint ventures
|
635 | (269 | ) | (6,401 | ) | (533 | ) | |||||||||
Gain
on reduction of other obligations
|
-- | -- | 1,693 | -- | ||||||||||||
Gain
on sale of investment in marketable securities
|
-- | -- | -- | 471 | ||||||||||||
Total
other (expense) income
|
(35,246 | ) | (31,175 | ) | (106,507 | ) | (93,910 | ) | ||||||||
Income
from continuing operations
|
22,789 | 28,053 | 62,011 | 69,827 | ||||||||||||
Net
income
|
22,789 | 28,053 | 62,011 | 69,827 | ||||||||||||
Noncontrolling
interest in consolidated joint ventures
|
213 | 147 | 980 | 286 | ||||||||||||
Noncontrolling
interest in Operating Partnership
|
(3,415 | ) | (5,131 | ) | (9,929 | ) | (12,751 | ) | ||||||||
Preferred
stock dividends
|
(500 | ) | (500 | ) | (1,500 | ) | (1,500 | ) | ||||||||
Net
income available to common shareholders
|
$ | 19,087 | $ | 22,569 | $ | 51,562 | $ | 55,862 | ||||||||
Basic
earnings per common share:
|
||||||||||||||||
Income
from continuing operations available to
|
||||||||||||||||
common
shareholders
|
$ | 0.24 | $ | 0.34 | $ | 0.71 | $ | 0.85 | ||||||||
Net
income available to common shareholders
|
$ | 0.24 | $ | 0.34 | $ | 0.71 | $ | 0.85 | ||||||||
Diluted
earnings per common share:
|
||||||||||||||||
Income
from continuing operations available to
|
||||||||||||||||
common
shareholders
|
$ | 0.24 | $ | 0.34 | $ | 0.71 | $ | 0.85 | ||||||||
Net
income available to common shareholders
|
$ | 0.24 | $ | 0.34 | $ | 0.71 | $ | 0.85 | ||||||||
Dividends
declared per common share
|
$ | 0.45 | $ | 0.64 | $ | 1.35 | $ | 1.92 | ||||||||
Basic
weighted average shares outstanding
|
78,151 | 65,519 | 72,889 | 65,438 | ||||||||||||
Diluted
weighted average shares outstanding
|
92,245 | 80,617 | 87,106 | 80,573 | ||||||||||||
The
accompanying notes are an integral part of these consolidated financial
statements.
|
Additional
|
Dividends
in
|
Noncontrolling
|
||||||
Preferred
Stock
|
Common
Stock
|
Paid-In
|
Excess
of
|
Interests
|
Total
|
|||
Shares
|
Amount
|
Shares
|
Par
Value
|
Capital
|
Net
Earnings
|
in
Subsidiaries
|
Equity
|
|
Balance
at January 1, 2009
|
10
|
$25,000
|
66,419
|
$664
|
$1,905,386
|
$(386,587)
|
$414,900
|
$1,959,363
|
Net income
|
--
|
--
|
--
|
--
|
--
|
53,062
|
8,949
|
62,011
|
Preferred stock
dividends
|
--
|
--
|
--
|
--
|
--
|
(1,500)
|
--
|
(1,500)
|
Common stock
dividends
|
--
|
--
|
--
|
--
|
--
|
(100,492)
|
--
|
(100,492)
|
Common unit
distributions
|
--
|
--
|
--
|
--
|
--
|
--
|
(19,027)
|
(19,027)
|
Common Stock
offering
|
--
|
--
|
11,500
|
115
|
274,711
|
--
|
--
|
274,826
|
Increase in
noncontrolling
|
||||||||
interests
|
--
|
--
|
--
|
--
|
--
|
--
|
3,237
|
3,237
|
Redemption of common
units
|
||||||||
for common
stock
|
--
|
--
|
616
|
6
|
16,498
|
--
|
(16,504)
|
--
|
Shares issued under
Dividend
|
||||||||
Reinvestment and
Stock
|
||||||||
Purchase
Plan
|
--
|
--
|
7
|
--
|
152
|
--
|
--
|
152
|
Stock Options
Exercised
|
--
|
--
|
16
|
--
|
421
|
--
|
--
|
421
|
Directors Deferred comp.
plan
|
--
|
--
|
--
|
--
|
303
|
--
|
--
|
303
|
Stock Compensation
|
--
|
--
|
--
|
--
|
1,700
|
--
|
--
|
1,700
|
Cancellation of
|
||||||||
Restricted
stock
|
--
|
--
|
(3)
|
--
|
(149)
|
--
|
--
|
(149)
|
Rebalancing of
ownership
|
||||||||
percent
between
|
||||||||
parent and
subsidiary
|
--
|
--
|
--
|
--
|
66,401
|
--
|
(66,401)
|
--
|
Balance
at September 30, 2009
|
10
|
$25,000
|
78,555
|
$785
|
$2,265,423
|
$(435,517)
|
$325,154
|
$2,180,845
|
The
accompanying notes are an integral part of these consolidated financial
statements.
|
Nine
Months Ended
|
||||||||
September
30,
|
||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
2009
|
2008
|
||||||
Net
income
|
$ | 62,011 | $ | 69,827 | ||||
Adjustments
to reconcile net income to net cash provided by
|
||||||||
operating
activities:
|
||||||||
Depreciation
and amortization, including related intangibles
|
146,177 | 140,154 | ||||||
Amortization
of stock compensation
|
1,700 | 2,165 | ||||||
Amortization
of deferred financing costs and debt discount
|
2,024 | 2,124 | ||||||
Equity
in (earnings) loss of unconsolidated joint ventures
|
6,401 | 533 | ||||||
Gain
on reduction of other obligations
|
(1,693 | ) | -- | |||||
Gain
on sale of investment in marketable securities
|
-- | (471 | ) | |||||
Distribution
of cumulative earnings from unconsolidated joint ventures
|
2,637 | 3,841 | ||||||
Changes
in operating assets and liabilities:
|
||||||||
Increase
in unbilled rents receivable, net
|
(4,487 | ) | (1,912 | ) | ||||
Increase
in deferred charges and other assets, net
|
(256 | ) | (17,339 | ) | ||||
Decrease
in accounts receivable, net
|
12,670 | 16,975 | ||||||
Increase
(decrease) in accounts payable, accrued expenses and other
liabilities
|
2,219 | (12,988 | ) | |||||
(Decrease)
increase in rents received in advance and security
deposits
|
(1,628 | ) | 1,397 | |||||
Decrease
in accrued interest payable
|
(11,209 | ) | (15,615 | ) | ||||
Net
cash provided by operating activities
|
$ | 216,566 | $ | 188,691 | ||||
CASH
FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Additions
to rental property and related intangibles
|
(57,308 | ) | (68,420 | ) | ||||
Repayments
of notes receivable
|
11,441 | 125 | ||||||
Investment
in unconsolidated joint ventures
|
(4,465 | ) | (6,584 | ) | ||||
Proceeds
from the sale of available for sale securities
|
-- | 5,355 | ||||||
Distribution
in excess of cumulative earnings from unconsolidated joint
ventures
|
518 | 3,274 | ||||||
(Increase)
decrease in restricted cash
|
(8,001 | ) | 1,424 | |||||
Net
cash used in investing activities
|
$ | (57,815 | ) | $ | (64,826 | ) | ||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Borrowings
from revolving credit facility
|
337,000 | 630,100 | ||||||
Repayment
of revolving credit facility
|
(498,000 | ) | (587,100 | ) | ||||
Proceeds
from mortgages
|
81,500 | -- | ||||||
Borrowings
from Money Market Loans
|
-- | 352,000 | ||||||
Repayments
of Money Market Loans
|
-- | (352,000 | ) | |||||
Repayment
of mortgages, loans payable and other obligations
|
(9,619 | ) | (24,570 | ) | ||||
Proceeds
from senior unsecured notes
|
246,238 | -- | ||||||
Repayments
of senior unsecured notes
|
(199,724 | ) | -- | |||||
Payment
of financing costs
|
(2,660 | ) | (79 | ) | ||||
Repurchase
of common stock
|
-- | (5,198 | ) | |||||
Proceeds
from offering of Common Stock
|
274,826 | -- | ||||||
Proceeds
from stock options exercised
|
421 | 2,311 | ||||||
Payment
of dividends and distributions
|
(131,198 | ) | (156,365 | ) | ||||
Net
cash provided by (used) in financing activities
|
$ | 98,784 | $ | (140,901 | ) | |||
Net
increase (decrease) in cash and cash equivalents
|
$ | 257,535 | $ | (17,036 | ) | |||
Cash
and cash equivalents, beginning of period
|
$ | 21,621 | $ | 24,716 | ||||
Cash
and cash equivalents, end of period
|
$ | 279,156 | $ | 7,680 | ||||
The
accompanying notes are an integral part of these consolidated financial
statements.
|
1.
|
ORGANIZATION AND BASIS
OF PRESENTATION
|
2.
|
SIGNIFICANT ACCOUNTING
POLICIES
|
Property
|
Rental
properties are stated at cost less accumulated depreciation and
amortization. Costs directly related to the acquisition,
development and construction of rental properties are
capitalized. Pursuant to the Company’s adoption of the
authoritative guidance on business combinations, effective January 1,
2009, acquisition-related costs are expensed as incurred. Capitalized
development and construction costs include pre-construction costs
essential to the development of the property, development and construction
costs, interest, property taxes, insurance, salaries and other project
costs incurred during the period of development. Included in
total rental property is construction, tenant improvement and development
in-progress of $105,134,000 and $143,010,000 (including land of
$72,649,000 and $70,709,000) as of September 30, 2009 and December 31,
2008, respectively. Ordinary repairs and maintenance are
expensed as incurred; major replacements and betterments, which improve or
extend the life of the asset, are capitalized and depreciated over their
estimated useful lives. Fully-depreciated assets are removed
from the accounts.
|
Leasehold
interests
|
Remaining
lease term
|
Buildings
and improvements
|
5
to 40 years
|
Tenant
improvements
|
The
shorter of the term of the
|
related
lease or useful life
|
|
Furniture,
fixtures and equipment
|
5
to 10 years
|
Rental
Property
|
|
Held
for Sale and
|
|
Discontinued
|
|
Operations
|
When
assets are identified by management as held for sale, the Company
discontinues depreciating the assets and estimates the sales price, net of
selling costs, of such assets. If, in management’s opinion, the
estimated net sales price of the assets which have been identified as held
for sale is less than the net book value of the assets, a valuation
allowance is established. Properties identified as held for
sale and/or sold are presented in discontinued operations for all periods
presented.
|
Joint
Ventures
|
The
Company accounts for its investments in unconsolidated joint ventures
under the equity method of accounting. The Company applies the
equity method by initially recording these investments at cost, as
Investments in Unconsolidated Joint Ventures, subsequently adjusted for
equity in earnings and cash contributions and
distributions.
|
|
The
authoritative guidance on consolidation provides guidance on the
identification of entities for which control is achieved through means
other than voting rights (“variable interest entities” or “VIEs”) and the
determination of which business enterprise, if any, should consolidate the
VIE (the “primary beneficiary”). Generally, the consideration
of whether an entity is a VIE applies when either (1) the equity investors
(if any) lack one or more of the essential characteristics of a
controlling financial interest, (2) the equity investment at risk is
insufficient to finance that entity’s activities without additional
subordinated financial support or (3) the equity investors have voting
rights that are not proportionate to their economic interests and the
activities of the entity involve or are conducted on behalf of an investor
with a disproportionately small voting
interest.
|
Cash
and Cash
|
|
Equivalents
|
All
highly liquid investments with a maturity of three months or less when
purchased are considered to be cash
equivalents.
|
Marketable
|
|
Securities
|
The
Company classifies its marketable securities (if any) among three
categories: held-to-maturity, trading and
available-for-sale. Unrealized holding gains and losses
relating to available-for-sale securities are excluded from earnings and
reported as other comprehensive income (loss) in equity until
realized. A decline in the market value of any marketable
security below cost that is deemed to be other than temporary results in a
reduction in the carrying amount to fair value. Any impairment
would be charged to earnings and a new cost basis for the security
established.
|
Financing
Costs
|
Costs
incurred in obtaining financing are capitalized and amortized on a
straight-line basis, which approximates the effective interest method,
over the term of the related indebtedness. Amortization of such
costs is included in interest expense and was $681,000 and $708,000 for
the three months ended September 30, 2009 and 2008, respectively, and
$2,024,000 and $2,124,000 for the nine months ended Sept 30, 2009 and
2008, respectively.
|
Deferred
|
|
Leasing
Costs
|
Costs
incurred in connection with leases are capitalized and amortized on a
straight-line basis over the terms of the related leases and included in
depreciation and amortization. Unamortized deferred leasing
costs are charged to amortization expense upon early termination of the
lease. Certain employees of the Company are compensated for
providing leasing services to the Properties. The portion of
such compensation, which is capitalized and amortized, approximated
$939,000 and $895,000 for the three months ended September 30, 2009 and
2008, respectively, and $2,739,000 and $2,549,000 for the nine months
ended September 30, 2009 and 2008,
respectively.
|
Instruments
|
The
Company measures derivative instruments (if any), including certain
derivative instruments embedded in other contracts, at fair value and
records them as an asset or liability, depending on the Company’s rights
or obligations under the applicable derivative contract. For
derivatives designated and qualifying as fair value hedges, the changes in
the fair value of both the derivative instrument and the hedged item are
recorded in earnings. For derivatives designated as cash flow
hedges, the effective portions of the derivative are reported in other
comprehensive income (“OCI”) and are subsequently reclassified into
earnings when the hedged item affects earnings. Changes in fair
value of derivative instruments not designated as hedging and ineffective
portions of hedges are recognized in earnings in the affected
period.
|
Recognition
|
Base
rental revenue is recognized on a straight-line basis over the terms of
the respective leases.
Unbilled rents receivable represents the amount by which straight-line
rental revenue exceeds rents currently billed in accordance with the lease
agreements. Above-market and below-market lease values for
acquired properties are recorded based on the present value (using a
discount rate which reflects the risks associated with the leases
acquired) of the difference between (i) the contractual amounts to be paid
pursuant to each in-place lease and (ii) management’s estimate of fair
market lease rates for each corresponding in-place lease, measured over a
period equal to the remaining term of the lease for above-market leases
and the initial term plus the term of any below-market fixed-rate renewal
options for below-market leases. The capitalized above-market
lease values for acquired properties are amortized as a reduction of base
rental revenue over the remaining term of the respective leases, and the
capitalized below-market lease values are amortized as an increase to base
rental revenue over the remaining initial terms plus the terms of any
below-market fixed-rate renewal options of the respective
leases. Escalations and recoveries from tenants are received
from tenants for certain costs as provided in the lease
agreements. These costs generally include real estate taxes,
utilities, insurance, common area maintenance and other recoverable
costs. See Note 11: Tenant Leases. Construction
services revenue includes fees earned and reimbursements received by the
Company for providing construction management and general contractor
services to clients. Construction services revenue is
recognized on the percentage of completion method. Using this
method, profits are recorded on the basis of estimates of the overall
profit and percentage of completion of individual contracts. A
portion of the estimated profits is accrued based upon estimates of the
percentage of completion of the construction contract. This
revenue recognition method involves inherent risks relating to profit and
cost estimates. Real estate services revenue includes property
management, facilities management, leasing commission fees and other
services, and payroll and related costs reimbursed from
clients. Other income includes income from parking spaces
leased to tenants, income from tenants for additional services arranged
for by the Company and income from tenants for early lease
terminations.
|
Doubtful
Accounts
|
Management
periodically performs a detailed review of amounts due from tenants and
clients to determine if accounts receivable balances are impaired based on
factors affecting the collectibility of those
balances. Management’s estimate of the allowance for doubtful
accounts requires management to exercise significant judgment about the
timing, frequency and severity of collection losses, which affects the
allowance and net income.
|
Other
Taxes
|
The
Company has elected to be taxed as a REIT under Sections 856 through 860
of the Internal Revenue Code of 1986, as amended (the
“Code”). As a REIT, the Company generally will not be subject
to corporate federal income tax (including alternative minimum tax) on net
income that it currently distributes to its shareholders, provided that
the Company satisfies certain organizational and operational requirements
including the requirement to distribute at least 90 percent of its REIT
taxable income to its shareholders. The Company has elected to
treat certain of its corporate subsidiaries as taxable REIT subsidiaries
(each a “TRS”). In general, a TRS of the Company may perform
additional services for tenants of the Company and generally may engage in
any real estate or non-real estate related business (except for the
operation or management of health care facilities or lodging facilities or
the providing to any person, under a franchise, license or otherwise,
rights to any brand name under which any lodging facility or health care
facility is operated). A TRS is subject to corporate federal
income tax. If the Company fails to qualify as a REIT in any
taxable year, the Company will be subject to federal income tax (including
any applicable alternative minimum tax) on its taxable income at regular
corporate tax rates. The Company is subject to certain state
and local taxes.
|
Earnings
|
|
Per
Share
|
The
Company presents both basic and diluted earnings per share
(“EPS”). Basic EPS excludes dilution and is computed by
dividing net income available to common shareholders by the weighted
average number of shares outstanding for the period. Diluted
EPS reflects the potential dilution that could occur if securities or
other contracts to issue common stock were exercised or converted into
common stock, where such exercise or conversion would result in a lower
EPS amount.
|
Dividends
and
|
|
Payable
|
The
dividends and distributions payable at September 30, 2009 represents
dividends payable to preferred shareholders (10,000 shares) and common
shareholders (78,555,358 shares), and distributions payable to
noncontrolling interest common unitholders of the Operating Partnership
(13,821,755 common units) for all such holders of record as of October 5,
2009 with respect to the third quarter 2009. The third quarter
2009 preferred stock dividends of $50.00 per share, common stock dividends
and common unit distributions of $0.45 per common share and unit were
approved by the Board of Directors on September 16, 2009. The
common stock dividends and common unit distributions payable were paid on
October 9, 2009. The preferred stock dividends payable were
paid on October 15, 2009.
|
Stock
Issuances
|
Costs
incurred in connection with the Company’s stock issuances are reflected as
a reduction of additional paid-in
capital.
|
Stock
|
|
Compensation
|
The
Company accounts for stock options and restricted stock awards granted
prior to 2002 using the intrinsic value method prescribed in the
previously existing accounting guidance on accounting for stock issued to
employees. Under this guidance, compensation cost for stock
options is measured as the excess, if any, of the quoted market price of
the Company’s stock at the date of grant over the exercise price of the
option granted. Compensation cost for stock options is
recognized ratably over the vesting period. The Company’s
policy is to grant options with an exercise price equal to the quoted
closing market price of the Company’s stock on the business day preceding
the grant date. Accordingly, no compensation cost has been
recognized under the Company’s stock option plans for the granting of
stock options made prior to 2002. Restricted stock awards
granted prior to 2002 are valued at the vesting dates of such awards with
compensation cost for such awards recognized ratably over the vesting
period.
|
Other
|
|
Comprehensive
|
|
Income
|
Other
comprehensive income (loss) includes items that are recorded in equity,
such as unrealized holding gains or losses on marketable securities
available for sale.
|
3.
|
REAL
ESTATE TRANSACTIONS
|
4.
|
INVESTMENTS IN
UNCONSOLIDATED JOINT
VENTURES
|
|
(i)
|
99
percent of Mack-Green’s share of the profits and losses from 10 specific
OPLP Properties allocable to the Company and one percent allocable to SL
Green;
|
|
(ii)
|
one
percent of Mack-Green’s share of the profits and losses from eight
specific OPLP Properties and its minor interest in four office properties
allocable to the Company and 99 percent allocable to SL Green;
and
|
|
(iii)
|
50
percent of all other profits and losses allocable to the Company and 50
percent allocable to SL Green.
|
(i)
|
first,
to JPM, such that JPM is provided with an annual 12 percent compound
preferred return on Preferred Equity Capital Contributions (as such term
is defined in the operating agreement of 100 Kimball and largely comprised
of development and construction
costs);
|
(ii)
|
second,
to JPM, as return of Preferred Equity Capital Contributions until complete
repayment of such Preferred Equity Capital
Contributions;
|
(iii)
|
third,
to each of JPM and Gale Kimball in proportion to their respective
membership interests until each member is provided, as a result of such
distributions, with an annual twelve percent compound return on the
Member’s Capital Contributions (as defined in the operating agreement of
100 Kimball, and excluding Preferred Equity Capital Contributions, if
any); and
|
(iv)
|
fourth,
50 percent to each of JPM and Gale
Kimball.
|
September
30, 2009
|
||||||||||||||
Plaza
|
Red
Bank
|
M-G-G/
|
Princeton
|
Boston-
|
||||||||||
VIII
& IX
|
Ramland
|
Harborside
|
Corporate
|
Gramercy
|
Forrestal
|
Route
93
|
Gale
|
55
|
12
|
Downtown
|
Gale
|
Combined
|
||
Associates
|
Realty
|
South
Pier
|
Plaza
I & II
|
Agreement
|
Village
|
Portfolio
|
Kimball
|
Corporate
|
Vreeland
|
Crossing
|
Jefferson
|
Total
|
||
Assets:
|
||||||||||||||
Rental
property, net
|
$ 9,713
|
--
|
$
60,339
|
$
24,953
|
$
72,912
|
$
39,085
|
--
|
--
|
--
|
$
14,632
|
--
|
--
|
$
221,634
|
|
Other
assets
|
857
|
--
|
14,801
|
4,626
|
9,823
|
21,426
|
--
|
--
|
--
|
754
|
$
46,591
|
$
1,838
|
100,716
|
|
Total
assets
|
$
10,570
|
--
|
$
75,140
|
$
29,579
|
$
82,735
|
$
60,511
|
--
|
--
|
--
|
$
15,386
|
$
46,591
|
$
1,838
|
$
322,350
|
|
Liabilities
and
|
||||||||||||||
partners’/members’
|
||||||||||||||
capital
(deficit):
|
||||||||||||||
Mortgages,
loans
|
||||||||||||||
payable
and other
|
||||||||||||||
obligations
|
--
|
--
|
$
73,796
|
$
20,849
|
$
90,288
|
$
51,627
|
--
|
--
|
--
|
$ 5,643
|
--
|
--
|
$
242,203
|
|
Other
liabilities
|
$ 530
|
--
|
3,713
|
69
|
2,772
|
3,424
|
--
|
--
|
--
|
--
|
--
|
--
|
10,508
|
|
Partners’/members’
|
||||||||||||||
capital
(deficit)
|
10,040
|
--
|
(2,369)
|
8,661
|
(10,325)
|
5,460
|
--
|
--
|
--
|
9,743
|
$
46,591
|
$
1,838
|
69,639
|
|
Total
liabilities and
|
||||||||||||||
partners’/members’
|
||||||||||||||
capital
(deficit)
|
$
10,570
|
--
|
$
75,140
|
$
29,579
|
$
82,735
|
$
60,511
|
--
|
--
|
--
|
$
15,386
|
$
46,591
|
$
1,838
|
$
322,350
|
|
Company’s
|
||||||||||||||
investment
|
||||||||||||||
in
unconsolidated
|
||||||||||||||
joint
ventures, net
|
$ 4,942
|
--
|
$ 11
|
$ 4,126
|
--
|
$ 1,183
|
--
|
--
|
--
|
$ 8,808
|
$
13,109
|
$ 790
|
$ 32,969
|
December
31, 2008
|
||||||||||||||
Plaza
|
Red
Bank
|
M-G-G/
|
Princeton
|
Boston-
|
||||||||||
VIII
& IX
|
Ramland
|
Harborside
|
Corporate
|
Gramercy
|
Forrestal
|
Route
93
|
Gale
|
55
|
12
|
Downtown
|
Gale
|
Combined
|
||
Associates
|
Realty
|
South
Pier
|
Plaza
I & II
|
Agreement
|
Village
|
Portfolio
|
Kimball
|
Corporate
|
Vreeland
|
Crossing
|
Jefferson
|
Total
|
||
Assets:
|
||||||||||||||
Rental
property, net
|
$
10,173
|
--
|
$
62,469
|
$
24,583
|
$
326,912
|
$
41,058
|
$
56,771
|
--
|
--
|
$
14,598
|
--
|
$
536,564
|
||
Other
assets
|
1,008
|
$
20
|
34,654
|
4,301
|
45,391
|
21,680
|
495
|
--
|
$
17,896
|
789
|
$
46,743
|
$
1,838
|
174,815
|
|
Total
assets
|
$
11,181
|
$
20
|
$
97,123
|
$
28,884
|
$
372,303
|
$
62,738
|
$
57,266
|
--
|
$
17,896
|
$
15,387
|
$
46,743
|
$
1,838
|
$
711,379
|
|
Liabilities
and
|
||||||||||||||
partners’/members’
|
||||||||||||||
capital
(deficit):
|
||||||||||||||
Mortgages,
loans
|
||||||||||||||
payable
and other
|
||||||||||||||
obligations
|
--
|
--
|
$
74,852
|
$
20,416
|
$
276,752
|
$
52,800
|
$
43,541
|
--
|
--
|
$ 7,170
|
--
|
--
|
$
475,531
|
|
Other
liabilities
|
$ 531
|
--
|
21,652
|
87
|
23,805
|
4,156
|
985
|
--
|
--
|
--
|
--
|
--
|
51,216
|
|
Partners’/members’
|
||||||||||||||
capital
(deficit)
|
10,650
|
$
20
|
619
|
8,381
|
71,746
|
5,782
|
12,740
|
--
|
$
17,896
|
8,217
|
$
46,743
|
$
1,838
|
184,632
|
|
Total
liabilities and
|
||||||||||||||
partners’/members’
|
||||||||||||||
capital
(deficit)
|
$
11,181
|
$
20
|
$
97,123
|
$
28,884
|
$
372,303
|
$
62,738
|
$
57,266
|
--
|
$
17,896
|
$
15,387
|
$
46,743
|
$
1,838
|
$
711,379
|
|
Company’s
|
||||||||||||||
investment
|
||||||||||||||
in
unconsolidated
|
||||||||||||||
joint
ventures, net
|
$ 5,248
|
--
|
$ 254
|
$ 3,929
|
$ 92,110
|
$ 1,342
|
$ 4,024
|
--
|
$ 9,068
|
$ 8,300
|
$
13,464
|
$ 756
|
$
138,495
|
Three
Months Ended September 30, 2009
|
|||||||||||||
Plaza
|
Red
Bank
|
M-G-G/
|
Princeton
|
Boston-
|
|||||||||
VIII
& IX
|
Ramland
|
Harborside
|
Corporate
|
Gramercy
|
Forrestal
|
Route
93
|
Gale
|
55
|
12
|
Downtown
|
Gale
|
Combined
|
|
Associates
|
Realty
|
South
Pier
|
Plaza
I & II
|
Agreement
|
Village
|
Portfolio
|
Kimball
|
Corporate
|
Vreeland
|
Crossing
|
Jefferson
|
Total
|
|
Total
revenues
|
$ 232
|
--
|
$
9,334
|
$ 808
|
$
3,213
|
$
2,856
|
$ 466
|
$ 3
|
--
|
$
594
|
--
|
--
|
$
17,506
|
Operating
and
|
|||||||||||||
other
expenses
|
(52)
|
--
|
(6,112)
|
(230)
|
(1,924)
|
(1,976)
|
(516)
|
--
|
--
|
(12)
|
$
(706)
|
--
|
(11,528)
|
Depreciation
and
|
|||||||||||||
amortization
|
(153)
|
--
|
(1,045)
|
(153)
|
(1,211)
|
(842)
|
(297)
|
--
|
--
|
(128)
|
--
|
--
|
(3,829)
|
Interest
expense
|
--
|
--
|
(1,154)
|
(85)
|
(781)
|
(436)
|
(38)
|
--
|
--
|
(106)
|
--
|
--
|
(2,600)
|
Net
income
|
$ 27
|
--
|
$
1,023
|
$ 340
|
$ (703)
|
$ (398)
|
$
(385)
|
$ 3
|
--
|
$
348
|
$
(706)
|
--
|
$ (451)
|
Company’s
equity
|
|||||||||||||
in
earnings (loss)
|
|||||||||||||
of
unconsolidated
|
|||||||||||||
joint
ventures
|
$ 13
|
--
|
$ 511
|
$ 170
|
--
|
$ (87)
|
--
|
$
66
|
--
|
$
174
|
$
(212)
|
--
|
$ 635
|
Three
Months Ended September 30, 2008
|
|||||||||||||
Plaza
|
Red
Bank
|
M-G-G/
|
Princeton
|
Boston-
|
|||||||||
VIII
& IX
|
Ramland
|
Harborside
|
Corporate
|
Gramercy
|
Forrestal
|
Route
93
|
Gale
|
55
|
12
|
Downtown
|
Gale
|
Combined
|
|
Associates
|
Realty
|
South
Pier
|
Plaza
I & II
|
Agreement
|
Village
|
Portfolio
|
Kimball
|
Corporate
|
Vreeland
|
Crossing
|
Jefferson
|
Total
|
|
Total
revenues
|
$
307
|
$
395
|
$
11,232
|
$ 793
|
$
12,457
|
$
2,719
|
$ 773
|
$ 409
|
--
|
$
597
|
$
1
|
--
|
$
29,683
|
Operating
and
|
|||||||||||||
other
expenses
|
(40)
|
(284)
|
(6,670)
|
(210)
|
(5,155)
|
(1,889)
|
(852)
|
(146)
|
--
|
(16)
|
--
|
--
|
(15,262)
|
Depreciation
and
|
|||||||||||||
amortization
|
(153)
|
(118)
|
(991)
|
(148)
|
(5,075)
|
(929)
|
(497)
|
(86)
|
--
|
(128)
|
--
|
--
|
(8,125)
|
Interest
expense
|
--
|
(179)
|
(1,165)
|
(187)
|
(4,227)
|
(801)
|
(548)
|
(184)
|
--
|
(136)
|
--
|
--
|
(7,427)
|
Net
income
|
$
114
|
$
(186)
|
$ 2,406
|
$ 248
|
$
(2,000)
|
$ (900)
|
$
(1,124)
|
$ (7)
|
--
|
$
317
|
$
1
|
--
|
$
(1,131)
|
Company’s
equity
|
|||||||||||||
in
earnings (loss)
|
|||||||||||||
of
unconsolidated
|
|||||||||||||
joint
ventures
|
$ 57
|
--
|
$ 1,203
|
$ 124
|
$
(1,326)
|
$ (187)
|
$ (337)
|
$ 38
|
--
|
$
159
|
--
|
--
|
$ (269)
|
Nine
Months Ended September 30, 2009
|
|||||||||||||
Plaza
|
Red
Bank
|
M-G-G/
|
Princeton
|
Boston-
|
|||||||||
VIII
& IX
|
Ramland
|
Harborside
|
Corporate
|
Gramercy
|
Forrestal
|
Route
93
|
Gale
|
55
|
12
|
Downtown
|
Gale
|
Combined
|
|
Associates
|
Realty
|
South
Pier
|
Plaza
I & II
|
Agreement
|
Village
|
Portfolio
|
Kimball
|
Corporate
|
Vreeland
|
Crossing
|
Jefferson
|
Total
|
|
Total
revenues
|
$
619
|
--
|
$
25,002
|
$
2,421
|
$
22,851
|
$
9,262
|
$ 2,153
|
$ 38
|
--
|
$
1,786
|
--
|
--
|
$ 64,132
|
Operating
and
|
|||||||||||||
other
expenses
|
(146)
|
--
|
(16,921)
|
(688)
|
(10,052)
|
(5,149)
|
(2,487)
|
--
|
--
|
(47)
|
$
(9,564)
|
--
|
(45,054)
|
Depreciation
and
|
|||||||||||||
amortization
|
(459)
|
--
|
(3,130)
|
(450)
|
(8,466)
|
(3,074)
|
(1,206)
|
--
|
--
|
(383)
|
--
|
--
|
(17,168)
|
Interest
expense
|
--
|
(3,459)
|
(257)
|
(6,057)
|
(1,361)
|
(649)
|
--
|
--
|
(340)
|
--
|
--
|
(12,123)
|
|
Net
income
|
$ 14
|
--
|
$ 1,492
|
$
1,026
|
$
(1,724)
|
$ (322)
|
$
(2,189)
|
$ 38
|
--
|
$
1,016
|
$
(9,564)
|
--
|
$
(10,213)
|
Company’s
equity
|
|||||||||||||
in
earnings (loss)
|
|||||||||||||
of
unconsolidated
|
|||||||||||||
joint
ventures
|
$ 7
|
--
|
$ 2,008
|
$ 513
|
$ (916)
|
$ (159)
|
$
(4,354)
|
$
107
|
--
|
$ 508
|
$
(4,115)
|
--
|
$ (6,401)
|
Nine
Months Ended September 30, 2008
|
|||||||||||||
Plaza
|
Red
Bank
|
M-G-G/
|
Princeton
|
Boston-
|
|||||||||
VIII
& IX
|
Ramland
|
Harborside
|
Corporate
|
Gramercy
|
Forrestal
|
Route
93
|
Gale
|
55
|
12
|
Downtown
|
Gale
|
Combined
|
|
Associates
|
Realty
|
South
Pier
|
Plaza
I & II
|
Agreement
|
Village
|
Portfolio
|
Kimball
|
Corporate
|
Vreeland
|
Crossing
|
Jefferson
|
Total
|
|
Total
revenues
|
$
843
|
$
1,339
|
$
32,579
|
$
2,396
|
$
37,285
|
$ 8,862
|
$ 2,100
|
$
1,214
|
--
|
$1,589
|
$
51
|
$
1
|
$ 88,259
|
Operating
and
|
|||||||||||||
other
expenses
|
(137)
|
(881)
|
(19,115)
|
(596)
|
(15,427)
|
(4,881)
|
(2,551)
|
(388)
|
--
|
(58)
|
--
|
(1)
|
(44,035)
|
Depreciation
and
|
|||||||||||||
amortization
|
(461)
|
(363)
|
(3,919)
|
(445)
|
(14,529)
|
(2,683)
|
(1,288)
|
(253)
|
--
|
(383)
|
--
|
--
|
(24,324)
|
Interest
expense
|
--
|
(590)
|
(3,525)
|
(602)
|
(13,162)
|
(2,604)
|
(1,899)
|
(518)
|
--
|
(380)
|
--
|
--
|
(23,280)
|
Net
income
|
$
245
|
$
(495)
|
$ 6,020
|
$ 753
|
$
(5,833)
|
$
(1,306)
|
$
(3,638)
|
$ 55
|
--
|
$
768
|
$
51
|
--
|
$ (3,380)
|
Company’s
equity
|
|||||||||||||
in
earnings (loss)
|
|||||||||||||
of
unconsolidated
|
|||||||||||||
joint
ventures
|
$
123
|
--
|
$ 3,046
|
$ 376
|
$
(3,938)
|
$ (267)
|
$ (701)
|
$ 426
|
--
|
$
384
|
$
18
|
--
|
$ (533)
|
5.
|
DEFERRED CHARGES AND
OTHER ASSETS
|
September
30,
|
December
31,
|
||
(dollars
in thousands)
|
2009
|
2008
|
|
Deferred
leasing costs
|
$
222,534
|
$
214,887
|
|
Deferred
financing costs
|
26,802
|
23,723
|
|
249,336
|
238,610
|
||
Accumulated
amortization
|
(114,545)
|
(104,652)
|
|
Deferred
charges, net
|
134,791
|
133,958
|
|
Notes
receivable
|
--
|
11,443
|
|
In-place
lease values, related intangible and other assets, net
|
58,794
|
33,256
|
|
Prepaid
expenses and other assets, net
|
32,060
|
33,765
|
|
Total
deferred charges and other assets, net
|
$
225,645
|
$
212,422
|
6.
|
SENIOR UNSECURED
NOTES
|
September
30,
|
December
31,
|
Effective
|
||
2009
|
2008
|
Rate
(1)
|
||
7.250%
Senior Unsecured Notes, due March 15, 2009
|
--
|
$ 199,689
|
7.486%
|
|
5.050%
Senior Unsecured Notes, due April 15, 2010
|
$ 149,970
|
149,929
|
5.265%
|
|
7.835%
Senior Unsecured Notes, due December 15, 2010
|
15,000
|
15,000
|
7.950%
|
|
7.750%
Senior Unsecured Notes, due February 15, 2011
|
299,771
|
299,641
|
7.930%
|
|
5.250%
Senior Unsecured Notes, due January 15, 2012
|
99,550
|
99,404
|
5.457%
|
|
6.150%
Senior Unsecured Notes, due December 15, 2012
|
93,332
|
92,963
|
6.894%
|
|
5.820%
Senior Unsecured Notes, due March 15, 2013
|
25,723
|
25,641
|
6.448%
|
|
4.600%
Senior Unsecured Notes, due June 15, 2013
|
99,894
|
99,872
|
4.742%
|
|
5.125%
Senior Unsecured Notes, due February 15, 2014
|
201,049
|
201,229
|
5.110%
|
|
5.125%
Senior Unsecured Notes, due January 15, 2015
|
149,510
|
149,441
|
5.297%
|
|
5.800%
Senior Unsecured Notes, due January 15, 2016
|
200,483
|
200,540
|
5.806%
|
|
7.750%
Senior Unsecured Notes, due August 15, 2019
|
247,891
|
--
|
8.020%
|
|
Total
Senior Unsecured Notes
|
$1,582,173
|
$1,533,349
|
||
(1)
Includes the cost of terminated treasury lock agreements (if any),
offering and other transaction costs and the discount/premium on the
notes, as applicable.
|
7.
|
UNSECURED REVOLVING
CREDIT FACILITY
|
Operating
Partnership’s
|
Interest
Rate –
|
|
Unsecured
Debt Ratings:
|
Applicable
Basis Points
|
Facility
Fee
|
S&P
Moody’s/Fitch (a)
|
Above
LIBOR
|
Basis
Points
|
No
ratings or less than BBB-/Baa3/BBB-
|
100.0
|
25.0
|
BBB-/Baa3/BBB-
|
75.0
|
20.0
|
BBB/Baa2/BBB
(current)
|
55.0
|
15.0
|
BBB+/Baa1/BBB+
|
42.5
|
15.0
|
A-/A3/A-
or higher
|
37.5
|
12.5
|
(a)
If the Operating Partnership has debt ratings from two rating agencies,
one of which is Standard & Poor’s Rating Services (“S&P”) or
Moody’s Investors Service (“Moody’s”), the rates per the above table shall
be based on the lower of such ratings. If the Operating
Partnership has debt ratings from three rating agencies, one of which is
S&P or Moody’s, the rates per the above table shall be based on the
lower of the two highest ratings. If the Operating Partnership
has debt ratings from only one agency, it will be considered to have no
rating or less than BBB-/Baa3/BBB- per the above
table.
|
8.
|
MORTGAGES, LOANS
PAYABLE AND OTHER
OBLIGATIONS
|
Effective
|
||||||
Interest
|
September
30,
|
December
31,
|
||||
Property
Name
|
Lender
|
Rate
(a)
|
2009
|
2008
|
Maturity
|
|
Assumed
obligations
|
Various
|
4.96%
|
--
|
$ 5,090
|
n/a
|
|
Various
(b)
|
Prudential
Insurance
|
4.84%
|
$150,000
|
150,000
|
01/15/10
|
|
105
Challenger Road
|
Archon
Financial CMBS
|
6.24%
|
19,353
|
19,188
|
06/06/10
|
|
2200
Renaissance Boulevard
|
Wachovia
CMBS
|
5.89%
|
16,728
|
17,043
|
12/01/12
|
|
Soundview
Plaza
|
Morgan
Stanley Mortgage Capital
|
6.02%
|
16,741
|
17,109
|
01/01/13
|
|
9200
Edmonston Road
|
Principal
Commercial Funding L.L.C.
|
5.53%
|
4,843
|
4,955
|
05/01/13
|
|
6305
Ivy Lane
|
John
Hancock Life Insurance Co.
|
5.53%
|
6,746
|
6,901
|
01/01/14
|
|
395
West Passaic
|
State
Farm Life Insurance Co.
|
6.00%
|
11,847
|
12,176
|
05/01/14
|
|
6301
Ivy Lane
|
John
Hancock Life Insurance Co.
|
5.52%
|
6,343
|
6,480
|
07/01/14
|
|
35
Waterview Boulevard
|
Wachovia
CMBS
|
6.35%
|
19,679
|
19,868
|
08/11/14
|
|
6
Becker, 85 Livingston,
75
Livingston &
20
Waterview
|
Wachovia
CMBS
|
10.22%
|
60,218
|
--
|
08/11/14
|
|
4
Sylvan
|
Wachovia
CMBS
|
10.19%
|
14,348
|
--
|
08/11/14
|
|
10
Independence
|
Wachovia
CMBS
|
12.44%
|
15,277
|
--
|
08/11/14
|
|
4
Becker
|
Wachovia
CMBS
|
9.55%
|
36,090
|
--
|
05/11/16
|
|
5
Becker
|
Wachovia
CMBS
|
12.83%
|
10,999
|
--
|
05/11/16
|
|
210
Clay
|
Wachovia
CMBS
|
13.42%
|
11,062
|
--
|
05/11/16
|
|
51
Imclone
|
Wachovia
CMBS
|
8.39%
|
3,900
|
--
|
05/11/16
|
|
23
Main Street
|
JPMorgan
CMBS
|
5.59%
|
32,166
|
32,521
|
09/01/18
|
|
Harborside
Plaza 5
|
The
Northwestern Mutual Life Insurance Co. & New York Life Insurance
Co.
|
6.84%
|
237,901
|
239,795
|
11/01/18
|
|
100
Walnut Avenue
|
Guardian
Life Insurance Co.
|
7.31%
|
19,600
|
--
|
02/01/19
|
|
One
River Center
|
Guardian
Life Insurance Co.
|
7.31%
(c)
|
44,900
|
--
|
02/01/19
|
|
581
Main Street
|
Valley
National Bank
|
6.94%
(d)
|
16,961
|
--
|
07/01/34
|
|
Total
mortgages, loans payable and other obligations
|
$755,702
|
$531,126
|
(a)
Reflects effective rate of debt, including deferred financing costs,
comprised of the cost of terminated treasury lock agreements (if any),
debt initiation costs, mark-to-market adjustment of acquired debt and
other transaction costs, as applicable.
|
(b)
Mortgage is collateralized by seven properties.
|
(c)
Mortgage is collateralized by the three properties compromising One River
Center.
|
(d)
The coupon interest rate will be reset at the end of year 10 and year 20
at 225 basis points over the 10-year treasury yield 45 days prior to the
reset dates with a minimum rate of 6.875
percent.
|