PAGE(S)
I.  COMPANY BACKGROUND
·      About the Company / Other Corporate Data	5
·      Board of Directors / Executive Officers	6
·      Equity Research Coverage / Company Contact Information	7
II.  FINANCIAL HIGHLIGHTS
·      Quarterly Summary / Recent Transactions	9
·      Leasing	9 - 10
·      Information About FFO	11
·      Key Financial Data	12
·      Same-Store Results and Analysis	13
·      Select Financial Ratios	14
·      Debt Analysis:
(a) Debt Breakdown/Future Repayments	15
(b) Debt Maturities	16
(c) Debt Detail	17
III.  FINANCIAL INFORMATION
·      Consolidated Statements of Operations	19
·      Consolidated Balance Sheets	20
·      Consolidated Statement of Changes in Equity	21
·      Statements of Funds from Operations	22
·      Statements of Funds from Operations Per Diluted Share	23
·      Reconciliation of Basic-to-Diluted Shares/Units	24
·      Unconsolidated Joint Venture Information	25 - 27
IV.  PORTFOLIO SUMMARY
·      Operating Property Acquisitions	29
·      Properties Commencing Initial Operations	30
·      Rental Property Sales/Dispositions	31
·      Breakdown of Company Holdings	32
·      Consolidated Property Listing (by Property Type)	33 - 41
·      Unconsolidated Joint Venture Summary	42 - 44
·      Consolidated Portfolio Analyses:
Breakdown by:
(a) Number of Properties	45
(b) Square Footage	46
(c) Base Rental Revenue	47
(d) Percentage Leased	48
V.  MULTI-FAMILY RENTAL PORTFOLIO
·      Summary of Stabilized Operating Communities/	50
·      Stabilizing Operating Communities Capitalization/ Repositioning	51
·      Summary of Communities in Lease-Up	52
·      Summary of Development Communities	53
·      Summary of Land Holdings/Pre-Development	54
VI.  OFFICE PORTFOLIO
·      Summary of Development Projects	56
·      Summary of Land Holdings	57
·      Leasing Statistics	58 -63
·      Market Diversification (MSAs)	64
·      Industry Diversification (Top 30 Tenant Industries)	65
·      Significant Tenants (Top 50 Tenants)	66 - 67
·      Schedules of Lease Expirations (by Property Type)	68 - 72

·	risks and uncertainties affecting the general economic climate and conditions, which in turn may have a negative effect on the fundamentals of the Company’s business and the financial condition of the Company’s tenants and residents;
·	the value of the Company’s real estate assets, which may limit the Company’s ability to dispose of assets at attractive prices or obtain or maintain debt financing secured by the Company’s properties or on an unsecured basis;
·	the extent of any tenant bankruptcies or of any early lease terminations;
·	the Company’s ability to lease or re-lease space at current or anticipated rents;
·	changes in the supply of and demand for our properties;
·	changes in interest rate levels and volatility in the securities markets;
·	changes in operating costs;
·	the Company’s ability to obtain adequate insurance, including coverage for terrorist acts;
·	the Company's credit worthiness and the availability of financing on attractive terms or at all, which may adversely impact the Company’s ability to pursue acquisition and development opportunities and refinance existing debt and the Company’s future interest expense;
·	changes in governmental regulation, tax rates and similar matters; and
·	other risks associated with the development and acquisition of properties, including risks that the development may not be completed on schedule, that the tenants or residents will not take occupancy or pay rent, or that development or operating costs may be greater than anticipated.

Corporate Headquarters	Edison, New Jersey
Fiscal Year-End	12/31
Total Properties	283
Total Commercial Square Feet / Multi-family Units	31.0 million commercial square feet and 5,484 multi-family apartment homes
Geographic Diversity	Seven states and the District of Columbia
New Jersey Presence	21.1 million square feet of commercial space and 2,916 multi-family apartment homes
Northeast Presence	31.0 million square feet of commercial space and 5,484 multi-family apartment homes
Common Shares and
Units Outstanding	100.2 million
Dividend-- Quarter/Annualized	$0.15/$0.60
Dividend Yield	3.1%
Total Market Capitalization	$4.1 billion
Senior Debt Rating	BBB- (S&P and Fitch);
	Baa3 (Moody’s)

William L. Mack, Chairman of the Board
Alan S. Bernikow	David S. Mack
Kenneth M. Duberstein	Alan G. Philibosian
Nathan Gantcher	Irvin D. Reid
Mitchell E. Hersh	Vincent Tese
Jonathan Litt	Roy J. Zuckerberg

 

Executive Officers

Mitchell E. Hersh, President and Chief Executive Officer

Anthony Krug, Chief Financial Officer

Gary Wagner, Chief Legal Officer and Secretary

 

Bank of America Merrill Lynch James C. Feldman (646) 855-5808	Green Street Advisors Michael Knott (949) 640-8780
Barclays Capital Ross Smotrich (212) 526-2306	J.P. Morgan Anthony Paolone (212) 622-6682
Citigroup Michael Bilerman (212) 816-1383	KeyBanc Capital Markets Jordan Sadler (917) 368-2280
Cowen and Company James Sullivan (646) 562-1380	Stifel, Nicolaus & Company, Inc. John W. Guinee, III (443) 224-1307
Deutsche Bank North America Vin Chao (212) 250-6799	SunTrust Robinson Humphrey, Inc. Michael R. Lewis (212) 319-5659
Evercore ISI Steve Sakwa (212) 446-9462	UBS Investment Research Ross T. Nussbaum (212) 713-2484

Mack-Cali Realty Corporation
Investor Relations Department
343 Thornall Street
Edison, New Jersey 08837-2206
Phone:   (732) 590-1000	Web:     www.mack-cali.com
Fax:        (732) 205-8237	E-mail:  investorrelations@mack-cali.com

Funds from operations (FFO) for the quarter ended December 31, 2014 amounted to $34.1 million, or $0.34 per share. For the year ended December 31, 2014, FFO equaled $162.7 million, or $1.63 per share.

Net loss to common shareholders for the fourth quarter 2014 equaled $9.2 million, or $0.10 per share. For the year ended December 31, 2014, net income available to common shareholders amounted to $28.6 million, or $0.32 per share.

Included in net income and FFO for the fourth quarter 2014 was $12.8 million, or $0.13 per share, related to executives severance costs. Included in net income and FFO for the year ended December 31, 2014 was $4.8 million, or $0.05 per share, related to the net effect of unusual electricity rate spikes and $23.8 million, or $0.24 per share, related to executives severance costs.

All per share amounts presented above are on a diluted basis.

Total revenues for the fourth quarter 2014 were $151.4 million. For the year ended December 31, 2014 total revenues amounted to $636.8 million.

The Company had 89,076,578 shares of common stock, and 11,083,876 common operating partnership units outstanding as of December 31, 2014. The Company had a total of 100,160,454 common shares/common units outstanding at December 31, 2014.

As of December 31, 2014, the Company had total indebtedness of approximately $2.1 billion, with a weighted average annual interest rate of 5.64 percent.

The Company had a debt-to-undepreciated assets ratio of 37.3 percent at December 31, 2014. The Company had an interest coverage ratio of 2.2 times for the quarter ended December 31, 2014. Excluding executive severance costs, the interest coverage ratio would have been 2.7 times.

In December, the Company acquired developable land in Conshohocken, Pennsylvania, for approximately $15.3 million, which was funded using available cash.

Mack-Cali’s consolidated commercial in-service portfolio was 84.2 percent leased at December 31, 2014, as compared to 83.7 percent at September 30, 2014.
For the quarter ended December 31, 2014, the Company executed 112 leases at its consolidated in-service portfolio totaling 923,410 square feet, consisting of 507,400 square feet of office space, 376,210 square feet of office/flex space and 39,800 square feet of industrial space. Of these totals, 267,471 square feet were for new leases and 655,939 square feet were for lease renewals and other tenant retention transactions.
For the year ended December 31, 2014, the Company executed 450 leases at its consolidated in-service portfolio totaling 3,065,801 square feet, consisting of 1,995,453 square feet of office space, 970,958 square feet of office/flex space and 99,390 square feet of industrial space. Of these totals, 1,106,990 square feet were for new leases and 1,958,811 square feet were for lease renewals and other tenant retention transactions.
Highlights of the quarter’s leasing transactions include:
NORTHERN NEW JERSEY:
-	New Jersey City University (NJCU) signed a new lease for 68,348 square feet at Harborside Plaza 2 in Jersey City. The 761,200 square-foot office building is 57.3 percent leased.

-	Law firm Connell Foley LLP signed transactions totaling 17,411 square feet consisting of a 12,987 square-foot renewal and a 4,424 square-foot expansion at Harborside Plaza 5 in Jersey City. The 977,225 square-foot office building is 87.0 percent leased.
-	Cisco Systems Inc., a worldwide leader in IT, signed a new lease for 35,446 square feet at 4 Gatehall Drive in Parsippany. The 248,480 square-foot office building, located in Mack-Cali Business Campus, is 84.9 percent leased.
-	Atlantic Inertial Systems, Inc., a provider of high technology products and services to the building and aerospace industries, signed a renewal for 19,854 square feet at 20 Commerce Way in Totowa. The 42,540 square-foot office/flex building, located in Mack-Cali Commercenter, is 95.5 percent leased.
-	Federal Farm Credit Banks Funding Corporation, a provider of loans, leases, and services to U.S. agriculture and rural America, signed a new lease for 19,225 square feet at 101 Hudson Street in Jersey City. The 1,246,283 square-foot office building is 87.0 percent leased.
CENTRAL NEW JERSEY:
-	U.S. General Services Administration (GSA), signed a renewal for 19,676 square feet at 343 Thornall Street in Edison. The 195,709 square-foot office building is 98.4 percent leased.
-	RGN-Neptune I LLC, a subsidiary of HQ Global Workplaces, LLC and provider of temporary office suites, signed a new lease for 15,408 square feet at 3600 Route 66 in Neptune. The 180,000 square-foot office building is 100 percent leased.
WESTCHESTER COUNTY, NEW YORK:
-	Fabrication Enterprises, Inc., a manufacturer, importer, and master distributor of products for physical and occupational therapy, athletic training, and home care, signed a transaction totaling 81,394 square feet at 250 Clearbrook Road in Elmsford, representing a renewal of 33,659 square feet and expansion of 47,735 square feet.  The 155,000 square-foot office/flex building, located in Cross Westchester Executive Park, is 95.1 percent leased.
-	Westinghouse Air Brake Technologies Corporation, a provider of value-added, technology-based equipment and services for the global rail industry, signed a renewal for 28,000 square feet at 4 Warehouse Lane in Elmsford. The 195,500 square-foot industrial building, located in Elmsford Distribution Center, is 97.0 percent leased.
-	Retrieval-Masters Creditors Bureau Inc., a recovery agency for consumer collections, signed transactions totaling 15,100 square feet at 4 Westchester Plaza in Elmsford, consisting of a 10,100 square-foot renewal and a 5,000 square-foot expansion. The 44,700 square-foot office/flex building, located in Cross Westchester Executive Park, is 100 percent leased.
SOUTHERN NEW JERSEY
-	Quaker Sales and Distribution, Inc., a division of PepsiCo, Inc., signed a renewal for 26,580 square feet at 915 North Lenola Road in Moorestown.  The 52,488 square-foot office/flex building, located in Moorestown West Corporate Center, is 100 percent leased.
-	Schindler Elevator Corporation, a global provider of elevators, escalators and related services, signed a renewal for 18,020 square feet at 840 North Lenola Road in Moorestown. The 38,300 square-foot office/flex building, located in Moorestown West Corporate Center, is 47.0 percent leased.
-	Curbell Plastics, Inc. signed a renewal for 16,800 square feet at 844 North Lenola Road in Moorestown. The 28,670 square-foot office/flex building, located in Moorestown West Corporate Center, is 100 percent leased.
CONNECTICUT:
-	Immucor, Inc., a provider of transfusion and transplantation diagnostics that facilitate patient-donor compatibility, signed a renewal for 36,928 square feet at 550 West Avenue in Stamford. The 54,000 square-foot office/flex building, located in Stamford Executive Park, is 81.3 percent leased.

(a)	Calculated based on weighted average common shares outstanding, assuming redemption of operating partnership common units into common shares.

(b)	Calculated based on shares and units included in basic per share/unit computation, plus dilutive Common Stock Equivalents (i.e. convertible preferred units, options and warrants).

(c)	Includes any outstanding preferred units presented on a converted basis into common units and noncontrolling interests in consolidated joint ventures.

(d)	Funds from Operations (“FFO”) is calculated in accordance with the definition of the National Association of Real Estate Investment Trusts (NAREIT). See “Information About FFO” on page 11.

(e)

Percentage leased includes leases in effect as of the period end date, some of which have commencement dates in the future and leases that expire at the period end date.  Reflects square feet leased at the Company’s consolidated in-service portfolio, excluding in-service properties in lease up (if any).

 

Ratios Computed For Industry	December 31,
Comparisons:	2014		2013
Financial Position Ratios:
Total Debt/ Total Book	49.82	%	52.33	%
Capitalization
(Book value) (%)
Total Debt/ Total Market	51.54	%	51.72	%
Capitalization
(Market value) (%)
Total Debt/ Total Undepreciated	37.25	%	39.94	%
Assets (%)
Secured Debt/ Total Undepreciated	14.64	%	12.61	%
Assets (%)
	Three Months Ended					Year Ended
	December 31,					December 31,
	2014		2013			2014		2013
Operational Ratios:
Interest Coverage	2.24		2.65			2.44		2.92
(Funds from Operations+Interest
Expense)/Interest Expense (x)
Debt Service Coverage	2.16		2.57			2.37		2.83
(Funds from Operations +
Interest Expense)/(Interest Expense
+ Principal Amort.) (x)
Fixed Charge Coverage	1.85		2.38			2.09		2.57
(Funds from Operations +
Interest Expense + Ground Lease Payments)/
(Interest Expense + Capitalized Interest+Pref. Div.
+Prin. Amort.+Ground Lease
Payments)(x)
FFO Payout	44.00	%	57.46	%		46.13	%	56.74	%
(Dividends Declared/Funds from
Operations) (%)

 

 

 

			%		Weighted Average		Weighted Average
		Balance	of Total		Interest Rate (a)		Maturity in Years
Fixed Rate Unsecured Debt and
Other Obligations	$	1,267,744	60.70%		4.88%		5.16
Fixed Rate Secured Debt		661,050	31.65%		7.53%		3.19
Variable Rate Secured Debt		159,860	7.65%		3.83%		1.69
Totals/Weighted Average:	$	2,088,654	100.00%		5.64%	(b)	4.27

(a)	The actual weighted average LIBOR rate for the Company’s outstanding variable rate debt was 0.17 percent as of December 31, 2014, plus the applicable spread.

(b)	Excludes amortized deferred financing costs pertaining to the Company’s unsecured revolving credit facility which amounted to $2.7 million for the year ended December 31, 2014.

 

 

							Weighted Average
		Scheduled		Principal			Interest Rate of
Period		Amortization		Maturities		Total	Future Repayments (a)
2015	$	8,811	$	167,589	$	176,400	7.03%
2016		8,311		333,272		341,583	6.94%
2017		7,275		392,345		399,620	4.11%
2018		7,311		231,536		238,847	6.67%
2019		723		331,567		332,290	7.44%
Thereafter		6,329		605,205		611,534	4.13%
Sub-total		38,760		2,061,514		2,100,274
Adjustment for unamortized debt discount/premium and mark-to-market, net, as of December 31, 2014		(11,620)		-		(11,620)
Totals/Weighted Average:	$	27,140	$	2,061,514	$	2,088,654	5.64%	(b)

(a)	The actual weighted average LIBOR rate for the Company’s outstanding variable rate debt was 0.17 percent as of December 31, 2014, plus the applicable spread.

(b)	Excludes amortized deferred financing costs pertaining to the Company’s unsecured revolving credit facility which amounted to $2.7 million for the year ended December 31, 2014.

 

 

 

																	2023 and
		2015		2016		2017		2018		2019	2020		2021		2022		Beyond		Totals
Secured Debt:
6 Becker, 85 Livingston,75 Livingston, & 20 Waterview	$	65,035																$	65,035
4 Sylvan Way		14,575																	14,575
10 Independence		16,924																	16,924
Port Imperial South		44,119																	44,119
9200 Edmonston Road		3,889																	3,889
Overlook-Site II B		5,787																	5,787
Overlook-Sites III D, III C, III A		17,260																	17,260
Curtis Center			$	64,000															64,000
4 Becker				40,431															40,431
5 Becker				14,574															14,574
210 Clay				14,267															14,267
Prudential Portfolio					$	141,152													141,152
150 Main Street						1,193													1,193
23 Main Street							$	26,566											26,566
Harborside Plaza 5								204,970											204,970
100 Walnut Avenue									$	17,281									17,281
One River Center										39,586									39,586
Park Square										24,700									24,700
Port Imperial South 4/5 Retail												$	3,800						3,800
Port Imperial South 4/5 Garage																$	26,405		26,405
Total Secured Debt:	$	167,589	$	133,272	$	142,345	$	231,536	$	81,567	-	$	3,800		-	$	26,405	$	786,514
Unsecured Debt:
Unsecured credit facility						-													-
5.80% unsecured notes
due 1/16			$	200,000														$	200,000
2.50% unsecured notes
due 12/17					$	250,000													250,000
7.75% unsecured notes
due 8/19									$	250,000									250,000
4.50% unsecured notes
due 4/22														$	300,000				300,000
3.15% unsecured notes
due 5/23																$	275,000		275,000
Total Unsecured Debt:		-	$	200,000	$	250,000		-	$	250,000	-		-	$	300,000	$	275,000	$	1,275,000
Total Debt:	$	167,589	$	333,272	$	392,345	$	231,536	$	331,567	-	$	3,800	$	300,000	$	301,405	$	2,061,514

 

 

		Effective
		Interest			December 31,			Date of
Property Name	Lender	Rate			2014		2013	Maturity
Senior Unsecured Notes: (a)
5.125%, Senior Unsecured Notes	public debt	5.11%			-	$	200,030	02/15/14	(b)
5.125%, Senior Unsecured Notes	public debt	5.30%			-		149,902	01/15/15	(c)
5.800%, Senior Unsecured Notes	public debt	5.81%		$	200,086		200,161	01/15/16
2.500%, Senior Unsecured Notes	public debt	2.80%			249,150		248,855	12/15/17
7.750%, Senior Unsecured Notes	public debt	8.02%			249,013		248,799	08/15/19
4.500%, Senior Unsecured Notes	public debt	4.61%			299,565		299,505	04/18/22
3.150%, Senior Unsecured Notes	public debt	3.52%			269,930		269,323	05/15/23
Total Senior Unsecured Notes:				$	1,267,744	$	1,616,575