Contact:
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Barry Lefkowitz
Executive Vice President
and Chief Financial Officer
(732) 590-1000
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Ilene Jablonski
Vice President of Marketing
(732) 590-1000
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Reported funds from operations of $0.68 per diluted share;
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Reported net income of $0.18 per diluted share;
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Announced development agreement for residential project on the Jersey City waterfront;
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Refinanced its unsecured revolving credit facility with a group of 20 lenders; and
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Declared $0.45 per share quarterly cash common stock dividend.
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NORTHERN NEW JERSEY:
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JPMorgan Chase Bank N.A., a global financial services firm, renewed 17,814 square feet at 300 Tice Boulevard in Woodcliff Lake. The 230,000 square-foot office building is 100 percent leased.
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McManimon & Scotland LLC, a law firm, signed a new lease for 17,931 square feet at 75 Livingston Avenue in Roseland. The 94,221 square-foot office building, located in 280 Corporate Center, is 59.4 percent leased.
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MFXCHANGE US Inc., a subsidiary of Fairfax Financial Holdings Ltd, renewed 20,217 square feet at 412 Mt. Kemble Avenue in Morris Township. The 475,100 square-foot office building is 63.4 percent leased.
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One Call Medical, Inc., a provider of specialty services to insurance payers, renewed 57,243 square feet at 20 Waterview Boulevard in Parsippany. The 225,550 square-foot office building, located in Waterview Corporate Center, is 99.1 percent leased.
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Thales USA Inc., a global technology leader in the defense and security and the aerospace and transport markets, renewed 18,276 square feet at 40 Commerce Way in Totowa. The 50,576 square-foot office/flex building, located in Mack-Cali Commercecenter, is 86.3 percent leased.
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QualCare Alliance Networks, a full-service managed care organization, expanded its presence at 30 Knightsbridge Road in Piscataway by 19,238 square feet. 30 Knightsbridge Road is a four-building office complex totaling 680,350 square feet and 88.7 percent leased.
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Tercica Inc., a specialty pharmaceutical company and an affiliate of the Ipsen Group, signed a new lease for 32,552 square feet at Liberty Corner Corporate Center in Bernards Township. The 132,010 square-foot office building, located at 106 Allen Road, is 93.5 percent leased.
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Hypres Inc., a superconducting microelectronics manufacturer, renewed 19,200 square-feet at 175 Clearbrook Road in Elmsford. The 98,900 square-foot office/flex building, located in Cross Westchester Executive Park, is 100 percent leased.
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Reliance Standard Life Insurance Company signed transactions totaling 25,860 square feet at 7 Skyline Drive in Hawthorne, consisting of a 19,401 square-foot renewal and a 6,459 square-foot expansion. The 109,000 square-foot office building, located in Mid-Westchester Executive Park, is 88.6 percent leased.
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MANHATTAN:
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AXA Insurance Company signed a new lease for 18,702 square feet at 125 Broad Street. Mack-Cali’s ownership interests of 524,476 square-feet in the building are 95.5 percent leased.
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SUBURBAN PHILADELPHIA:
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Oldcastle BuildingEnvelope Inc., a supplier of architectural glass and aluminum glazing systems, signed a new lease for the entire 32,700 square-foot office/flex building at 1507 Lancer Drive, which is part of the Moorestown West Corporate Center in Moorestown.
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PNC Bank N.A., a member of The PNC Financial Services Group, Inc., signed transactions totaling 30,426 square feet at 1000 Westlakes Drive in Berwyn, consisting of a 23,337 square-foot renewal and a 7,089 square-foot expansion. The 60,696 square-foot office building, located in Westlakes Office Park, is 96.7 percent leased.
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The Township of Moorestown signed lease transactions totaling 24,280 square feet at Moorestown West Corporate Center in Moorestown, NJ. The transactions consisted of a 15,000-square-foot renewal with the Police Department at 1245 North Church Street, and a 9,280-square-foot renewal, with the Township for its Township Hall, at 2 Executive Drive. 1245 North Church Street is a fully leased 52,810-square-foot office/flex building, and 2 Executive Drive is a 60,800-square-foot office/flex building which is 90.3 percent leased.
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The U.S. General Services Administration (GSA) signed transactions totaling 28,667 square feet at Capital Office Park in Greenbelt, Maryland. The transactions included a new lease for 18,766 square feet at 6406 Ivy Lane, and a renewal of 9,901 square feet at 6411 Ivy Lane. The 842,258 square-foot office complex is 65.7 percent leased.
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Full Year
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2012 Range
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Net income available to common shareholders
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$0.50 - $0.70
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Add: Real estate-related depreciation and amortization
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2.00
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Funds from operations available to common shareholders
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$2.50 - $2.70
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Quarter Ended
December 31,
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Year Ended
December 31,
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|||||||||||||||
Revenues
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2011
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2010
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2011
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2010
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||||||||||||
Base rents
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$ | 151,388 | $ | 149,908 | $ | 600,163 | $ | 602,357 | ||||||||
Escalations and recoveries from tenants
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20,836 | 23,323 | 94,047 | 101,699 | ||||||||||||
Construction services
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3,074 | 13,303 | 12,058 | 62,997 | ||||||||||||
Real estate services
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1,462 | 2,214 | 5,199 | 7,874 | ||||||||||||
Other income
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2,927 | 3,408 | 12,812 | 12,553 | ||||||||||||
Total revenues
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179,687 | 192,156 | 724,279 | 787,480 | ||||||||||||
Expenses
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||||||||||||||||
Real estate taxes
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23,539 | 20,549 | 87,473 | 93,535 | ||||||||||||
Utilities
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16,138 | 17,011 | 73,274 | 74,077 | ||||||||||||
Operating services
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30,167 | 30,353 | 117,645 | 114,452 | ||||||||||||
Direct construction costs
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2,802 | 12,667 | 11,458 | 60,255 | ||||||||||||
General and administrative
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9,003 | 8,939 | 35,541 | 35,003 | ||||||||||||
Depreciation and amortization
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48,673 | 47,226 | 193,587 | 191,168 | ||||||||||||
Impairment charge on rental property
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-- | 9,521 | -- | 9,521 | ||||||||||||
Total expenses
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130,322 | 146,266 | 518,978 | 578,011 | ||||||||||||
Operating income
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49,365 | 45,890 | 205,301 | 209,469 | ||||||||||||
Other (Expense) Income
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||||||||||||||||
Interest expense
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(31,784 | ) | (35,982 | ) | (125,975 | ) | (149,329 | ) | ||||||||
Interest and other investment income
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9 | 13 | 39 | 86 | ||||||||||||
Equity in earnings of unconsolidated joint ventures
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848 | 2,063 | 2,022 | 2,276 | ||||||||||||
Loss from early extinguishment of debt
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-- | (3,752 | ) | -- | (3,752 | ) | ||||||||||
Total other (expense) income
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(30,927 | ) | (37,658 | ) | (123,914 | ) | (150,719 | ) | ||||||||
Income from continuing operations
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18,438 | 8,232 | 81,387 | 58,750 | ||||||||||||
Discontinued Operations:
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Income from discontinued operations
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-- | -- | -- | 242 | ||||||||||||
Realized gains (losses) and unrealized losses on disposition of rental property, net
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-- | -- | -- | 4,447 | ||||||||||||
Total discontinued operations, net
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-- | -- | -- | 4,689 | ||||||||||||
Net income
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18,438 | 8,232 | 81,387 | 63,439 | ||||||||||||
Noncontrolling interest in consolidated joint ventures
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94 | (19 | ) | 402 | 262 | |||||||||||
Noncontrolling interest in Operating Partnership
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(2,338 | ) | (1,086 | ) | (10,369 | ) | (8,133 | ) | ||||||||
Noncontrolling interest in discontinued operations
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-- | -- | -- | (668 | ) | |||||||||||
Preferred stock dividends
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(72 | ) | (500 | ) | (1,736 | ) | (2,000 | ) | ||||||||
Net income available to common shareholders
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$ | 16,122 | $ | 6,627 | $ | 69,684 | $ | 52,900 | ||||||||
PER SHARE DATA:
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Basic earnings per common share
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$ | 0.18 | $ | 0.09 | $ | 0.81 | $ | 0.67 | ||||||||
Diluted earnings per common share
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$ | 0.18 | $ | 0.09 | $ | 0.81 | $ | 0.67 | ||||||||
Basic weighted average shares outstanding
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87,226 | 79,412 | 86,047 | 79,224 | ||||||||||||
Diluted weighted average shares outstanding
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99,940 | 92,510 | 98,962 | 92,477 |
Quarter Ended
December 31,
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Year Ended
December 31,
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2011
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2010
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2011
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2010
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Net income available to common shareholders
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$ | 16,122 | $ | 6,627 | $ | 69,684 | $ | 52,900 | ||||||||
Add: Noncontrolling interest in Operating Partnership
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2,338 | 1,086 | 10,369 | 8,133 | ||||||||||||
Noncontrolling interest in discontinued operations
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-- | -- | -- | 668 | ||||||||||||
Real estate-related depreciation and amortization on continuing operations (1)
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49,604 | 48,343 | 197,391 | 195,467 | ||||||||||||
Real estate-related depreciation and amortization on discontinued operations
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-- | -- | -- | 409 | ||||||||||||
Non-cash impairment charge on rental property
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-- | 9,521 | -- | 9,521 | ||||||||||||
Deduct: Discontinued operations – Realized (gains) losses and unrealized losses on disposition of rental property
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-- | -- | -- | (4,447 | ) | |||||||||||
Equity in earnings – gain on disposition
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-- | (1,400 | ) | -- | (1,400 | ) | ||||||||||
Funds from operations available to common shareholders (2)
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$ | 68,064 | $ | 64,177 | $ | 277,444 | $ | 261,251 | ||||||||
Diluted weighted average shares/units outstanding (3)
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99,940 | 92,510 | 98,962 | 92,477 | ||||||||||||
Funds from operations per share/unit – diluted
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$ | 0.68 | $ | 0.69 | $ | 2.80 | $ | 2.81 | ||||||||
Dividends declared per common share
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$ | 0.45 | $ | 0.45 | $ | 1.80 | $ | 1.80 | ||||||||
Dividend payout ratio:
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Funds from operations-diluted
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66.08 | % | 64.87 | % | 64.21 | % | 63.71 | % | ||||||||
Supplemental Information:
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Non-incremental revenue generating capital expenditures:
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Building improvements
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$ | 9,663 | $ | 5,745 | $ | 24,768 | $ | 13,713 | ||||||||
Tenant improvements and leasing commissions (4)
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$ | 10,772 | $ | 11,998 | $ | 42,439 | $ | 40,320 | ||||||||
Straight-line rent adjustments (5)
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$ | 2,732 | $ | 2,615 | $ | 9,612 | $ | 8,000 | ||||||||
Amortization of (above)/below market lease intangibles, net (6)
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$ | 410 | $ | 235 | $ | 1,360 | $ | 1,512 | ||||||||
(1)
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Includes the Company’s share from unconsolidated joint ventures of $1,064 and $1,254 for the quarters ended December 31, 2011 and 2010, respectively, and $4,278 and $4,816 for the years ended December 31, 2011 and 2010, respectively.
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(2)
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Funds from operations is calculated in accordance with the definition of FFO of the National Association of Real Estate Investment Trusts (NAREIT) definition. For further discussion, see “Information About FFO” in this release.
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(3)
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Calculated based on weighted average common shares outstanding, assuming redemption of Operating Partnership common units into common shares (12,643 and 13,007 shares for the quarters ended December 31, 2011 and 2010, respectively, and 12,808 and 13,149 shares for the years ended December 31, 2011 and 2010, respectively), plus dilutive Common Stock Equivalents (i.e. stock options).
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(4)
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Excludes expenditures for tenant spaces that haven’t been owned for at least a year or were vacant for more than a year.
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(5)
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Includes the Company’s share from unconsolidated joint ventures of $45 and $87 for the quarters ended December 31, 2011 and 2010, respectively, and $199 and $180 for the years ended December 31, 2011 and 2010, respectively.
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(6)
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Includes the Company’s share from unconsolidated joint ventures of $0 and $8 for the quarters ended December 31, 2011 and 2010, respectively, and $0 and $34 for the years ended December 31, 2011 and 2010, respectively.
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Quarter Ended
December 31,
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Year Ended
December 31,
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2011
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2010
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2011
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2010
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Net income available to common shareholders
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$ | 0.18 | $ | 0.09 | $ | 0.81 | $ | 0.67 | ||||||||
Add: Real estate-related depreciation and amortization on continuing operations (1)
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0.50 | 0.52 | 1.99 | 2.11 | ||||||||||||
Non-cash impairment charge on rental property
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-- | 0.10 | -- | 0.10 | ||||||||||||
Deduct: Realized (gains) losses and unrealized losses on disposition of rental property
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-- | -- | -- | (0.05 | ) | |||||||||||
Equity in earnings – gain on disposition
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-- | (0.02 | ) | -- | (0.02 | ) | ||||||||||
Funds from operations available to common shareholders (2)
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$ | 0.68 | $ | 0.69 | $ | 2.80 | $ | 2.81 | ||||||||
Diluted weighted average shares/units outstanding (3)
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99,940 | 92,510 | 98,962 | 92,477 | ||||||||||||
(1)
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Includes the Company’s share from unconsolidated joint ventures of $0.01 and $0.01 for the quarters ended December 31, 2011 and 2010, respectively, and $0.04 and $0.05 for the years ended December 31, 2011 and 2010, respectively.
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(2)
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Funds from operations is calculated in accordance with the definition of FFO of the National Association of Real Estate Investment Trusts (NAREIT) definition. For further discussion, see “Information About FFO” in this release.
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(3)
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Calculated based on weighted average common shares outstanding, assuming redemption of Operating Partnership common units into common shares (12,643 and 13,007 shares for the quarters ended December 31, 2011 and 2010, respectively, and 12,808 and 13,149 shares for the years ended December 31, 2011 and 2010, respectively), plus dilutive Common Stock Equivalents (i.e. stock options).
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December 31,
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2011
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2010
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Assets
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Rental property
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Land and leasehold interests
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$ | 773,026 | $ | 771,960 | ||||
Buildings and improvements
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4,001,943 | 3,970,177 | ||||||
Tenant improvements
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500,336 | 470,098 | ||||||
Furniture, fixtures and equipment
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4,465 | 4,485 | ||||||
5,279,770 | 5,216,720 | |||||||
Less-accumulated deprec. & amort.
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(1,409,163 | ) | (1,278,985 | ) | ||||
Net investment in rental property
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3,870,607 | 3,937,735 | ||||||
Cash and cash equivalents
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20,496 | 21,851 | ||||||
Investments in unconsolidated joint ventures
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32,015 | 34,220 | ||||||
Unbilled rents receivable, net
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134,301 | 126,917 | ||||||
Deferred charges and other assets, net
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210,470 | 212,038 | ||||||
Restricted cash
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20,716 | 17,310 | ||||||
Accounts receivable, net
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7,154 | 12,395 | ||||||
Total assets
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$ | 4,295,759 | $ | 4,362,466 | ||||
Liabilities and Equity
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Senior unsecured notes
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$ | 1,119,267 | $ | 1,118,451 | ||||
Revolving credit facility
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55,500 | 228,000 | ||||||
Mortgages, loans payable and other obligations
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739,448 | 743,043 | ||||||
Dividends and distributions payable
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44,999 | 42,176 | ||||||
Accounts payable, accrued expenses and other liabilities
|
100,480 | 101,944 | ||||||
Rents received in advance and security deposits
|
53,019 | 57,877 | ||||||
Accrued interest payable
|
29,046 | 27,038 | ||||||
Total liabilities
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2,141,759 | 2,318,529 | ||||||
Commitments and contingencies
|
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Equity:
|
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Mack-Cali Realty Corporation stockholders’ equity:
|
||||||||
Preferred stock, $0.01 par value, 5,000,000 shares authorized,
|
||||||||
0 and 10,000 shares outstanding, at liquidation preference
|
-- | 25,000 | ||||||
Common stock, $0.01 par value, 190,000,000 shares authorized,
|
||||||||
87,799,479 and 79,605,474 shares outstanding
|
878 | 796 | ||||||
Additional paid-in capital
|
2,536,184 | 2,292,641 | ||||||
Dividends in excess of net earnings
|
(647,498 | ) | (560,165 | ) | ||||
Total Mack-Cali Realty Corporation stockholders’ equity
|
1,889,564 | 1,758,272 | ||||||
Noncontrolling interests in subsidiaries:
|
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Operating Partnership
|
262,499 | 283,219 | ||||||
Consolidated joint ventures
|
1,937 | 2,446 | ||||||
Total noncontrolling interests in subsidiaries
|
264,436 | 285,665 | ||||||
Total equity
|
2,154,000 | 2,043,937 | ||||||
Total liabilities and equity
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$ | 4,295,759 | $ | 4,362,466 |