SECOND QUARTER 2015

Supplemental Operating and Financial Data

Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
 
 



INDEX


   
   
 
PAGE(S)
I.  COMPANY BACKGROUND
  
·      About the Company / Other Corporate Data
4
·      Board of Directors / Executive Officers / Company Contact Information
5
·      Equity Research Coverage
6
   
II.  FINANCIAL HIGHLIGHTS
  
·      Quarterly Summary / Recent Transactions
7
·      Operating Highlights / Balance Sheet/Capital Markets
7
·      Dividends / Information About FFO
8
·      Key Financial Data
9
·      Same-Store Results and Analysis
10
·      Select Financial Ratios
11
·      Debt Analysis:
  
(a) Debt Breakdown/Future Repayments
12
(b) Debt Maturities
13
(c) Debt Detail
14
   
III.  FINANCIAL INFORMATION
  
·      Consolidated Statements of Operations
15
·      Consolidated Balance Sheets
16
·      Consolidated Statement of Changes in Equity
17
·      Statements of Funds from Operations
18
·      Statements of Funds from Operations Per Diluted Share
19
·      Reconciliation of Basic-to-Diluted Shares/Units
20
·      Unconsolidated Joint Venture Information
21 - 23
   
IV.  PORTFOLIO SUMMARY
  
·      Rental Property Sales/Dispositions
24
·      Breakdown of Company Holdings
25
·      Consolidated Portfolio Analyses:
  
                 Breakdown by:
  
                  Number of Properties / Square Footage
26
                  Base Rental Revenue / Percentage Leased
27
   
V.  OFFICE PORTFOLIO
  
·      Summary of Development Projects
28
·      Summary of Land Holdings
28
·      Leasing Statistics
29 - 35
·      Market Diversification (MSAs)
36
·      Industry Diversification (Top 30 Tenant Industries)
37
·      Significant Tenants (Top 50 Tenants)
38 - 39
·      Schedules of Lease Expirations (by Property Type)
40 - 44


Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
2
 

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS

The Company considers portions of this information to be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of such act. Such forward-looking statements relate to, without limitation, our future economic performance, plans and objectives for future operations and projections of revenue and other financial items. Forward-looking statements can be identified by the use of words such as “may,” “will,” “plan,” “potential,” “projected,” “should,” “expect,” “anticipate,” “estimate,” “continue” or comparable terminology. Forward-looking statements are inherently subject to risks and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, the Company can give no assurance that such expectations will be achieved. Future events and actual results, financial and otherwise, may differ materially from the results discussed in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements.

Among the factors about which the Company has made assumptions are:

   
· 
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;
   
· 
our ability to complete construction and development activities on time and within budget, including without limitation obtaining regulatory permits and the availability and cost of materials, labor and equipment;
   
· 
forward-looking financial and operational information, including information relating to future development projects, potential acquisitions or dispositions, and projected revenue and income;
   
· 
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.

For further information on factors which could impact us and the statements contained herein, see Item 1A: Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2014. The Company assumes no obligation to update and supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise.

This Supplemental Operating and Financial Data is not an offer to sell or solicitation to buy any securities of the Company. Any offers to sell or solicitations of the Company shall be made by means of a prospectus. The information in this Supplemental Package must be read in conjunction with, and is modified in its entirety by, the Quarterly Report on Form 10-Q (the “10-Q”) filed by the Company for the same period with the Securities and Exchange Commission (the “SEC”) and all of the Company’s other public filings with the SEC (the “Public Filings”). In particular, the financial information contained herein is subject to and qualified by reference to the financial statements contained in the 10-Q, the footnotes thereto and the limitations set forth therein. Investors may not rely on the Supplemental Package without reference to the 10-Q and the Public Filings. Any investors’ receipt of, or access to, the information contained herein is subject to this qualification.

Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
3
 

I.  COMPANY BACKGROUND

About the Company

Mack-Cali Realty Corporation (NYSE: CLI) has been involved in all aspects of commercial real estate development, management, and ownership for over 60 years and has been a publicly traded real estate investment trust ("REIT") since 1994. At June 30, 2015, Mack-Cali owned or had interests in 279 properties consisting of 260 office and office/flex properties totaling approximately 30.5 million square feet of commercial space and 19 multi-family rental properties containing 5,644 apartment homes (including 975 apartment homes in lease-up), as well as 1,182 apartment homes in development and land to accommodate up to 5.7 million square feet of additional commercial space and 9,042 multi-family apartment homes – in addition to hotel development, all located in the Northeast.

History

Established over 60 years ago, in 1994 the New Jersey-based firm, Cali Realty, became a publicly traded company listed on the New York Stock Exchange under the ticker symbol CLI. Through combinations with some of the top companies in the real estate industry—most notably New Jersey-based Mack Company and Westchester, New York-based Robert Martin Company—Mack-Cali has become one of the leading real estate companies in the country.

Strategy

Mack-Cali’s strategy is to operate two platforms, an office platform built around transit based locations with a high concentration on the New Jersey Waterfront and a luxury multi-family platform ranging from Washington D.C. to Boston also with a high concentration on the New Jersey Waterfront.  Both platforms are expected to produce above market returns.

Summary
(as of June 30, 2015)

   
Corporate Headquarters
Edison, New Jersey
Fiscal Year-End
12/31
Total Properties
279
Total Commercial Square Feet / Multi-family Units
30.5 million commercial square feet and 5,644 multi-family apartment homes
Geographic Diversity
Seven states and the District of Columbia
New Jersey Presence
20.6 million square feet of commercial space and 2,979 multi-family apartment homes
Northeast Presence
30.5 million square feet of commercial space and 5,644 multi-family apartment homes
Common Shares and
  
Units Outstanding
100.2 million
Dividend--Quarter/Annualized
$0.15/$0.60
Dividend Yield
3.3%
Total Market Capitalization
$3.9 billion
Senior Debt Rating
BBB- (S&P and Fitch);
 
Baa3 (Moody’s)


Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
4
 



Board of Directors

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




Executive Officers

Mitchell E. Rudin, Chief Executive Officer
Michael J. DeMarco, President and Chief Operating Officer
   
Anthony Krug, Chief Financial Officer
Gary Wagner, Chief Legal Officer and Secretary
   




Company Contact Information

Mack-Cali Realty Corporation
Investor Relations Department
343 Thornall Street
Edison, New Jersey 08837-2206
Deidre Crockett
Phone: (732) 590-1025
Fax: (732) 205-4951
E-Mail: dcrockett@mack-cali.com
Web: www.mack-cali.com



Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
5
 



Equity Research Coverage


   
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
Stifel, Nicolaus & Company, Inc.
John W. Guinee, III
(443) 224-1307
Cowen and Company
James Sullivan
(646) 562-1380
SunTrust Robinson Humphrey, Inc.
Michael R. Lewis
(212) 319-5659
Deutsche Bank North America
Vin Chao
(212) 250-6799
UBS Investment Research
Ross T. Nussbaum
(212) 713-2484
Evercore ISI
Steve Sakwa
(212) 446-9462
  





Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
6
 

II.  FINANCIAL HIGHLIGHTS

Quarterly Summary

 
Funds from operations (FFO) for the quarter ended June 30, 2015 amounted to $46.5 million, or $0.46 per share, as compared to $50.3 million, or $0.50 per share, for the quarter ended June 30, 2014.  For the six months ended June 30, 2015, FFO equaled $89.6 million, or $0.89 per share, as compared to $80.5 million, or $0.81 per share, for the same period last year.  For the quarter compared to last year, the decrease in FFO per share results primarily from lower NOI as a result of assets sold of $0.05 and lower revenue from decreased percent leased of $0.04, partially offset by increased net real estate tax appeal proceeds of $0.02, decreased acquisition related general and administrative costs of $0.02 and decreased interest expense of $0.01.
 
Net income available to common shareholders for the quarter ended June 30, 2015 amounted to $35.4 million, or $0.40 per share, as compared to $51.1 million, or $0.58 per share, for the quarter ended June 30, 2014.  For the six months ended June 30, 2015, net income to common shareholders equaled $32.9 million, or $0.37 per share, as compared to $35.8 million, or $0.40 per share, for the same period last year.
 
All per share amounts presented above are on a diluted basis.
 
Total revenues for the second quarter 2015 were $148.6 million, as compared to $160.3 million for the second quarter 2014.  For the six months ended June 30, 2015, total revenues amounted to $302.3 million, as compared to $329.9 for the same period last year.
 
The Company had 89,195,529 shares of common stock, and 11,012,069 common operating partnership units outstanding as of June 30, 2015. The Company had a total of 100,207,598 common shares/common units outstanding at June 30, 2015.


Recent Transactions

 
In June, the Company sold its commercial office property located at 14 Sylvan Way, in Mack-Cali Business Campus, Parsippany, New Jersey, for approximately $80.0 million.  The three-story, 203,506-square-foot class A office building is fully leased to Wyndham.
 
Also in June, the Company sold its interest in The Highlands at Morristown Station in Morristown, New Jersey, realizing net proceeds of approximately $6.4 million.  Mack-Cali had acquired its 25 percent subordinated interest in the 217-unit community in October 2012 as part of the Roseland acquisition for approximately $2 million. The sale represents an approximately 3.0-times multiple on the 2012 acquisition price. Mack-Cali’s Roseland subsidiary will continue to manage the property.

Operating Highlights


   
Mack-Cali’s consolidated commercial in-service portfolio was 82.3 percent leased at June 30, 2015, as compared to 84.3 percent leased at March 31, 2015.
   
For the quarter ended June 30, 2015, the Company executed 138 leases at its consolidated in-service commercial portfolio totaling 1,377,100 square feet, consisting of 970,472 square feet of office space, 391,328 square feet of office/flex space and 15,300 square feet of industrial/warehouse space. Of these totals, 214,577 square feet were for new leases and 1,162,523 square feet were for lease renewals and other tenant retention transactions.

Balance Sheet/Capital Markets


 
As of June 30, 2015, the Company had total indebtedness of approximately $2.0 billion, with a weighted average annual interest rate of 5.67 percent.  The Company had a total market capitalization of $3.9 billion and a debt-to-undepreciated assets ratio of 36.3 percent at June 30, 2015.  The Company had an interest coverage ratio of 2.7 times for the quarter eneded June 30, 2015 and an interest coverage ratio of 2.7 times for the six months ended June 30, 2015.


Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
7
 

Dividends


 
In June, the Company’s Board of Directors declared a cash dividend of $0.15 per common share (indicating an annual rate of $0.60 per common share) for the second quarter 2015, which was paid on July 14, 2015 to shareholders of records as of July 6, 2015.


Information About FFO

Funds from operations (“FFO”) is defined as net income (loss) before noncontrolling interest of unitholders, computed in accordance with generally accepted accounting principles (“GAAP”), excluding gains (or losses) from extraordinary items, sales of depreciable rental property, and impairments related to depreciable rental property, plus real estate-related depreciation and amortization. The Company believes that FFO per share is helpful to investors as one of several measures of the performance of an equity REIT. The Company further believes that as FFO per share excludes the effect of depreciation, gains (or losses) from sales of properties and impairments related to depreciable rental property (all of which are based on historical costs which may be of limited relevance in evaluating current performance), FFO per share can facilitate comparison of operating performance between equity REITs.

FFO per share should not be considered as an alternative to net income available to common shareholders per share as an indication of the Company’s performance or to cash flows as a measure of liquidity. FFO per share presented herein is not necessarily comparable to FFO per share presented by other real estate companies due to the fact that not all real estate companies use the same definition. However, the Company’s FFO per share is comparable to the FFO per share of real estate companies that use the current definition of the National Association of Real Estate Investment Trusts (“NAREIT”). A reconciliation of net income per share to FFO per share is included in the financial tables on page 19.

Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
8
 

Key Financial Data

As of or for the three months ended


                     
                     
 
06/30/15
  
03/31/15
  
12/31/14
  
09/30/14
  
06/30/14
  
Shares and Units:
                    
Common Shares Outstanding
89,195,529
  
89,127,942
  
89,076,578
  
89,055,220
  
88,982,062
  
Common Units Outstanding
11,012,069
  
11,036,898
  
11,083,876
  
11,092,044
  
11,164,018
  
Combined Shares and Units
100,207,598
  
100,164,840
  
100,160,454
  
100,147,264
  
100,146,080
  
Weighted Average- Basic (a)
100,271,906
  
100,265,509
  
100,130,039
  
99,995,081
  
99,993,083
  
Weighted Average- Diluted (b)
100,314,310
  
100,265,509
  
100,130,039
  
100,052,290
  
100,022,734
  
                     
Common Share Price ($’s):
                    
At the end of the period
18.43
  
19.28
  
19.06
  
19.11
  
21.48
  
High during period
19.73
  
20.11
  
20.11
  
22.05
  
22.44
  
Low during period
16.85
  
18.01
  
17.92
  
18.95
  
19.98
  
                     
Market Capitalization:
                    
($’s in thousands, except ratios)
                    
Market Value of Equity (c)
1,901,178
  
1,985,839
  
1,964,115
  
1,977,334
  
2,205,844
  
Total Debt
2,034,819
  
2,107,572
  
2,088,654
  
2,238,641
  
2,208,268
  
Total Market Capitalization
3,935,997
  
4,093,411
  
4,052,769
  
4,215,975
  
4,414,112
  
Total Debt/ Total Market
                    
  Capitalization
51.70
%
51.49
%
51.54
%
53.10
%
50.03
%
                     
Financials:
                    
($’s in thousands, except ratios and
                    
   per share amounts)
                    
Total Assets
4,153,465
  
4,198,854
  
4,192,247
  
4,357,197
  
4,354,772
  
Gross Book Value of Real Estate Assets
4,928,197
  
4,955,293
  
4,958,179
  
4,909,727
  
4,966,633
  
Total Liabilities
2,264,242
  
2,334,631
  
2,310,236
  
2,452,915
  
2,438,892
  
Total Equity
1,889,223
  
1,864,223
  
1,882,011
  
1,904,283
  
1,915,880
  
Total Revenues
148,567
  
153,715
  
151,414
  
155,489
  
160,300
  
Capitalized Interest
3,781
  
3,607
  
4,820
  
4,158
  
3,351
  
Scheduled Principal Amortization
1,001
  
1,017
  
1,022
  
690
  
595
  
Interest Coverage Ratio
2.74
  
2.58
  
2.24
  
2.76
  
2.79
  
Fixed Charge Coverage Ratio
2.32
  
2.20
  
1.85
  
2.34
  
2.44
  
Net Income (Loss)
39,389
  
(3,325)
  
(10,413)
  
2,897
  
57,347
  
Net Income (Loss) Available to Common Shareholders
35,379
  
(2,521)
  
(9,240)
  
2,704
  
51,123
  
Earnings per Share—diluted
0.40
  
(0.03)
  
(0.10)
  
0.03
  
0.58
  
FFO per Share—diluted (d)
0.46
  
0.43
  
0.34
  
0.48
  
0.50
  
Dividends Declared per Share
0.15
  
0.15
  
0.15
  
0.15
  
0.15
  
FFO Payout Ratio—diluted (d)
32.33
%
34.93
%
44.00
%
31.24
%
29.80
%
                     
Portfolio Size:
                    
Consolidated Properties
227
  
230
  
231
  
232
  
239
  
Consolidated Total Commercial Square Footage
24,837,821
  
25,266,990
  
25,288,590
  
25,363,590
  
26,279,958
  
Commercial Sq. Ft. Leased at End of Period (e)
82.3
%
84.3
%
84.2
%
83.7
%
83.7
%
                     



(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 8.
(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).

Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
9
 

Same Store Results and Analysis
(dollars in thousands)


               
   
For the Three Months Ended
      
   
June 30,
    
%
   
2015
  
2014
  
Change
Change
               
Total Property Revenues
$
136,952
$
137,799
$
(847)
(0.6)
               
Real Estate Taxes
  
21,139
  
21,304
  
(165)
(0.8)
Utilities
  
13,310
  
12,690
  
620
4.9
Operating Services
  
25,475
  
24,904
  
571
2.3
Total Property Expenses:
  
59,924
  
58,898
  
1,026
1.7
               
GAAP Net Operating Income
  
77,028
  
78,901
  
(1,873)
(2.4)
               
Less: straight-lining of rents adj.
  
(397)
  
541
  
(938)
(173.4)
               
Net Operating Income
$
77,425
$
78,360
$
(935)
(1.2)
               
Percentage Leased at Period End
  
82.3
%
83.4
%
    
               
Total Properties:
  
226
          
               
Total Square Footage:
  
24,837,821
          
               
Apartment Homes:
  
1,081
          
               



               
   
For the Six Months Ended
      
   
June 30,
    
%
   
2015
  
2014
  
Change
Change
               
Total Property Revenues
$
278,758
$
282,012
$
(3,254)
(1.2)
               
Real Estate Taxes
  
42,896
  
42,907
  
(11)
0.0
Utilities
  
30,675
  
36,957
  
(6,282)
(17.0)
Operating Services
  
52,937
  
51,307
  
1,630
3.2
Total Property Expenses:
  
126,508
  
131,171
  
(4,663)
(3.6)
               
GAAP Net Operating Income
  
152,250
  
150,841
  
1,409
0.9
               
Less: straight-lining of rents adj.
  
(818)
  
2,217
  
(3,035)
(136.9)
               
Net Operating Income
$
153,068
$
148,624
$
4,444
3.0
               
Percentage Leased at Period End
  
82.3
%
83.4
%
    
               
Total Properties:
  
226
          
               
Total Square Footage:
  
24,837,821
          
               
Apartment Homes:
  
1,081
          
               


Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
10
 
 


Select Financial Ratios


                   
Ratios Computed For Industry
June 30,
        
Comparisons:
2015
  
2014
            
                   
Financial Position Ratios:
                  
Total Debt/ Total Book
 48.99 
%
 50.71 
%
          
   Capitalization
                  
   (Book value) (%)
                  
                   
Total Debt/ Total Market
 51.70 
%
 50.03 
%
          
   Capitalization
                  
   (Market value) (%)
                  
                   
Total Debt/ Total Undepreciated
 36.32 
%
 38.44 
%
          
   Assets (%)
                  
                   
Secured Debt/ Total Undepreciated
 13.68 
%
 12.80 
%
          
   Assets (%)
                  
 
 
 
 
Three Months Ended
    
Six Months Ended
 
June 30,
  
June 30,
 
2015
  
2014
    
2015
  
2014
  
                   
Operational Ratios:
                  
Interest Coverage
 2.74 
  
 2.79 
    
 2.66 
  
2.39
  
   (Funds from Operations+Interest
                  
    Expense)/Interest Expense (x)
                  
                   
Debt Service Coverage
 2.64 
  
 2.73 
    
2.56
  
2.33
  
   (Funds from Operations +
                  
   Interest Expense)/(Interest Expense
                  
   + Principal Amort.) (x)
                  
                   
Fixed Charge Coverage
 2.32 
  
 2.44 
    
2.26
  
2.09
  
   (Funds from Operations +
                  
   Interest Expense + Ground Lease Payments)/
                  
   (Interest Expense + Capitalized Interest+Pref. Div.
                  
   +Prin. Amort.+Ground Lease
                  
   Payments)(x)
                  
                   
FFO Payout
 32.33 
%
 29.80 
%
  
33.59
%
55.89
%
   (Dividends Declared/Funds from
                  
   Operations) (%)
                  
                   


Note: Excluding executive severance costs of $11 million in the first quarter 2014, Interest Coverage, Debt Service Coverage, Fixed Charge Coverage and FFO Payout ratios would have been 2.58x, 2.51x, 2.26x and 49.2 percent, respectively, for the six months ended June 30, 2014.

Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
11
 





Debt Analysis
(as of June 30, 2015)

 
Debt Breakdown
(dollars in thousands)

               
               
     
%
  
Weighted Average
  
Weighted Average
   
Balance
of Total
  
Interest Rate (a)
  
Maturity in Years
Fixed Rate Unsecured Debt and
              
  Other Obligations
$
1,268,293
62.33%
  
4.88%
  
 4.66 
Fixed Rate Secured Debt
  
626,983
30.81%
  
7.66%
  
 2.90 
Variable Rate Secured Debt
  
139,543
6.86%
  
3.89%
  
 1.44 
               
Totals/Weighted Average:
$
2,034,819
100.00%
  
5.67%
       (b)
 3.90 

(a)  
The actual weighted average LIBOR rate for the Company’s outstanding variable rate debt was 0.19 percent as of June 30, 2015, plus the applicable spread.
(b)  
Excludes amortized deferred financing costs pertaining to the Company’s unsecured revolving credit facility which amounted to $0.8 million and $1.6 million for the three and six months ended June 30, 2015.

 
Future Repayments
(dollars in thousands)

                 
                 
             
Weighted Average
  
   
Scheduled
  
Principal
    
Interest Rate of
  
Period
  
Amortization
  
Maturities
  
Total
Future Repayments (a)
  
July 1 - December 31, 2015
$
4,806
$
113,442
$
118,248
6.91%
  
2016
  
8,311
  
333,273
  
341,584
7.43%
  
2017
  
7,275
  
394,644
  
401,919
4.10%
  
2018
  
7,311
  
231,536
  
238,847
6.67%
  
2019
  
723
  
331,566
  
332,289
7.44%
  
Thereafter
  
6,328
  
605,206
  
611,534
4.13%
  
Sub-total
  
34,754
  
2,009,667
  
2,044,421
    
Adjustment for unamortized debt discount/premium and mark-to-market, net, as of June 30, 2015
  
(9,602)
  
 -
  
(9,602)
    
                 
Totals/Weighted Average:
$
25,152
$
2,009,667
$
2,034,819
5.67%
(b)

(a)  
The actual weighted average LIBOR rate for the Company’s outstanding variable rate debt was 0.19 percent as of June 30, 2015, plus the applicable spread.
(b)  
Excludes amortized deferred financing costs pertaining to the Company’s unsecured revolving credit facility which amounted to $0.8 million and $1.6 million for the three and six months ended June 30, 2015.

 

Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
12
 

 
Debt Maturities
(dollars in thousands)

                                       
                                       
                                       
   
July 1 -
                                  
   
December 31,
                            
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
Port Imperial South
  
44,550
                                
44,550
9200 Edmonston Road
  
3,857
                                
3,857
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
        
$
141,151
                        
141,151
150 Main Street
          
3,493
                        
3,493
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
                      
$
3,801
          
3,801
Port Imperial South 4/5 Garage
                              
$
26,405
  
26,405
Total Secured Debt:
$
113,442
$
133,272
$
144,644
$
231,536
$
81,567
 -
$
3,801
  
 -
$
 26,405 
$
734,667
                                       
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:
$
113,442
$
333,272
$
394,644
$
231,536
$
331,567
 -
$
 3,801 
$
 300,000 
   $
301,405
$
2,009,667


Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
13
 

 
Debt Detail
(dollars in thousands)


                     
                     
   
Effective
                
   
Interest
    
June 30,
  
December 31,
  
Date of
  
Property Name
Lender
Rate
    
2015
  
2014
  
Maturity
  
Senior Unsecured Notes: (a)
                    
5.800%, Senior Unsecured Notes
public debt
5.806%
  
$
200,047
$
200,086
  
01/15/16
  
2.500%, Senior Unsecured Notes
public debt
2.803%
    
249,298
  
249,150
  
12/15/17
  
7.750%, Senior Unsecured Notes
public debt
8.017%
    
249,120
  
249,013
  
08/15/19
  
4.500%, Senior Unsecured Notes
public debt
4.612%
    
299,595
  
299,565
  
04/18/22
  
3.150%, Senior Unsecured Notes
public debt
3.517%
    
270,233
  
269,930
  
05/15/23
  
Total Senior Unsecured Notes:
      
$
1,268,293
$
1,267,744
      



                     
Revolving Credit Facilities:
                    
Unsecured Facility (b)
17 Lenders
LIBOR +1.300%
    
 -
  
 -
  
07/31/17
  
Total Revolving Credit Facilities:
      
 -
  
 -
      

                     
Property Mortgages: (c)
                    
Overlook Ridge-Sites III D, III C, III A (d)
Wells Fargo Bank N.A.
LIBOR+3.50%
    
-
$
17,260
  
-
  
Overlook Ridge-Site II B (Quarrystone I) (d)
Wells Fargo Bank N.A.
LIBOR+2.50%
    
-
  
5,787
  
-
  
4 Sylvan (e)
Wells Fargo CMBS
10.260%
    
 -
  
14,575
  
-
  
10 Independence (f)
Wells Fargo CMBS
10.260%
    
 -
  
16,924
  
-
  
6 Becker, 85 Livingston, 75 Livingston & 20 Waterview (g)
Wells Fargo CMBS
10.260%
  
$
65,035
  
65,035
  
08/11/14
(h)
9200 Edmonston Road (i)
Principal Commercial Funding, L.L.C.
5.534%
    
3,857
  
3,951
  
05/01/15
  
Port Imperial South
Wells Fargo Bank N.A.
LIBOR+1.75%
    
44,550
  
44,119
  
09/19/15
  
4 Becker
Wells Fargo CMBS
9.550%
    
39,739
  
39,421
  
05/11/16
  
5 Becker (j)
Wells Fargo CMBS
19.450%
    
14,288
  
13,867
  
05/11/16
  
210 Clay (k)
Wells Fargo CMBS
18.100%
    
13,770
  
13,330
  
05/11/16
  
Curtis Center (l)
CCRE & PREFG
LIBOR+5.912%
(o)
  
64,000
  
64,000
  
10/09/16
  
Various (m)
Prudential Insurance
6.332%
    
144,551
  
145,557
  
01/15/17
  
150 Main Street
Webster Bank
LIBOR+2.35%
    
3,493
  
1,193
(q)
03/30/17
  
23 Main Street
JPMorgan CMBS
5.587%
    
28,878
  
29,210
  
09/01/18
  
Harborside Plaza 5
The Northwestern Mutual Life Insurance Co. & New York Life Insurance Co.
6.842%
    
219,682
  
221,563
  
11/01/18
  
100 Walnut Avenue
Guardian Life Ins. Co.
7.311%
    
18,410
  
18,542
  
02/01/19
  
One River Center (n)
Guardian Life Ins. Co.
7.311%
    
42,173
  
42,476
  
02/01/19
  
Park Square
Wells Fargo Bank N.A.
LIBOR+1.872%
(p)
  
27,500
  
27,500
  
04/10/19
  
Port Imperial South 4/5 Retail
American General Life & A/G PC
4.559%
    
4,000
  
4,000
  
12/01/21
  
Port Imperial South 4/5 Garage
American General Life & A/G PC
4.853%
    
32,600
  
32,600
  
12/01/29
  
Total Mortgages, Loans Payable and Other Obligations:
    
$
766,526
$
820,910
      
                     
Total Debt:
      
$
2,034,819
$
2,088,654
      

   
(a)
Includes the cost of terminated treasury lock agreements (if any), offering and other transaction costs and the discount/premium on the notes, as applicable.
(b)
Total borrowing capacity under the facility is $600 million, is expandable to $1 billion and matures in July 2017. It has two six-month extension options each requiring the payment of a 7.5 basis point fee. The interest rate on outstanding borrowings (not electing the Company’s competitive bid feature) and the facility fee on the current borrowing capacity payable quarterly in arrears are based upon the Operating Partnership’s unsecured debt ratings.
(c)
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.
(d)
On March 27, 2015, the Company repaid these loans at par, using borrowings on the Company's unsecured revolving credit facility.
(e)
On June 11, 2015, the Company transerred the deed for 4 Sylvan Way to the lender in satisfaction of its obligations.
(f)
On May 27, 2015, the Company transferred the deed for 10 Independence Boulevard to the lender in satisfaction of its obligation.
(g)
Mortgage is cross collateralized by the four properties.
(h)
The loan was not repaid at maturity and the Company has begun discussions with the lender regarding a potential deed-in-lieu of foreclosure in satisfaction of the obligation.
(i)
The mortgage loan originally matured on May 1, 2013.  The maturity date was extended until May 1, 2015 with the same interest rate.  Excess cash flow, as defined, is being held by the lender for re-leasing costs.  The deed for the property was placed in escrow and is available to the lender in the event of default or non-payment at maturity.  The mortage loan was not repaid on May 1, 2015.  The Company is in discussions with the lender regarding a further extension of the loan.
(j)
The cash flow from this property is insufficient to cover operating costs and debt service.  Consequently, the Company notified the lender and suspended debt service payments in August 2013.  The Company has begun discussions with the lender regarding a deed-in-lieu of foreclosure and began remitting available cash flow to the lender effective August 2013.
(k)
 The cash flow from this property is insufficient to cover operating costs and debt service.  Consequently, the Company notified the lender and suspended debt service payments in January 2015.
(l)
The Company owns a 50 percent tenants-in-common interest in the Curtis Center Property.  The Company’s $64.0 million loan consists of its 50 percent interest in a $102 million senior loan with a current rate of 3.480 percent at June 30, 2015 and its 50 percent interest in a $26 million mezzanine loan (with a maximum borrowing capacity of $48 million) with a current rate of 9.686 percent at June 30, 2015.  The senior loan rate is based on a floating rate of one-month LIBOR plus 329 basis points and the mezzanine loan rate is based on a floating rate of one-month LIBOR plus 950 basis points.  The Company has entered into LIBOR caps for the periods of the loans.  The loans provide for three one-year extension options.
(m)
Mortgage is cross collateralized by seven properties. The Company has agreed, subject to certain conditions, to guarantee repayment of $61.1 million of the loan. 
(n)
Mortgage is collateralized by the three properties comprising One River Center. 
(o)
The effective interest rate includes amortization of deferred financing costs of 1.362 percent.
(p)
The effective interest rate includes amortization of deferred financing costs of 0.122 percent.
(q)
This construction loan has a maximum borrowing capacity of $28.8 million.

Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
14
 


III.  FINANCIAL INFORMATION

Mack-Cali Realty Corporation and Subsidiaries
Consolidated Statements of Operations
(in thousands, except per share amounts) (unaudited)


                     
   
Three Months Ended
  
Six Months Ended
   
June 30,
  
June 30,
REVENUES
  
2015
    
2014
  
2015
    
2014
Base rents
$
 121,246 
  
$
 133,210 
$
 245,039 
  
$
267,261
Escalations and recoveries from tenants
  
 15,842 
    
 16,996 
  
 34,241 
    
42,564
Real estate services
  
 7,401 
    
 7,009 
  
 15,045 
    
13,701
Parking income
  
 2,850 
    
 2,236 
  
 5,392 
    
4,350
Other income
  
 1,228 
    
 849 
  
 2,565 
    
2,020
    Total revenues
  
 148,567 
    
 160,300 
  
 302,282 
    
329,896
                     
EXPENSES
                    
Real estate taxes
  
 21,410 
    
 23,375 
  
 43,862 
    
47,726
Utilities
  
 13,399 
    
 14,573 
  
 30,974 
    
42,854
Operating services
  
 25,844 
    
 27,840 
  
 54,072 
    
57,062
Real estate services expenses
  
 6,208 
    
 6,571 
  
 12,847 
    
13,280
General and administrative
  
 11,988 
    
 13,673 
  
 22,999 
    
36,554
Depreciation and amortization
  
 42,365 
    
 44,711 
  
 83,167 
    
 89,696 
    Total expenses
  
 121,214 
    
 130,743 
  
 247,921 
    
287,172
Operating income
  
 27,353 
    
29,557
  
54,361
    
42,724
                     
OTHER (EXPENSE) INCOME
                    
Interest expense
  
 (26,773)
    
 (28,159)
  
 (53,988)
    
(58,105)
Interest and other investment income
  
 291 
    
 922 
  
 558 
    
1,308
Equity in earnings (loss) of unconsolidated joint ventures
  
 (2,329)
    
 443 
  
 (5,858)
    
(792)
Realized gains (losses) on disposition of rental property, net
  
 34,399 
    
 54,584 
  
 34,543 
    
 54,584 
Gain on sale of investment in unconsolidated joint ventures
  
 6,448 
    
-
  
 6,448 
    
-
    Total other (expense) income
  
 12,036 
    
 27,790 
  
 (18,297)
    
 (3,005)
Net income
  
 39,389 
    
 57,347 
  
 36,064 
    
 39,719 
  Noncontrolling interest in consolidated joint ventures
  
 373 
    
 290 
  
 863 
    
612
  Noncontrolling interest in Operating Partnership
  
 (4,383)
    
 (6,514)
  
 (4,069)
    
(4,506)
Net income available to common shareholders
$
 35,379 
  
$
 51,123 
$
 32,858 
  
$
35,825
                     
Basic earnings per common share:
                    
Net income available to common shareholders
$
 0.40 
  
$
 0.58 
$
 0.37 
  
$
0.40
                     
Diluted earnings per common share:
                    
Net income available to common shareholders
$
 0.40 
  
$
 0.58 
$
 0.37 
  
$
0.40
                     
Basic weighted average shares outstanding
  
 89,244 
    
 88,691 
  
 89,218 
    
88,491
                     
Diluted weighted average shares outstanding
  
 100,314 
    
 100,023 
  
 100,313 
    
99,964



Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
15
 




Mack-Cali Realty Corporation and Subsidiaries
Consolidated Balance Sheets
(in thousands, except per share amounts)(unaudited)

           
           
   
June 30,
    
December 31,
Assets
  
2015
    
2014
Rental property
          
  Land and leasehold interests
$
749,359 
  
$
760,855 
  Buildings and improvements
  
3,751,805 
    
3,753,300 
  Tenant improvements
  
414,166 
    
431,969 
  Furniture, fixtures and equipment
  
12,867 
    
12,055 
   
 4,928,197 
    
 4,958,179 
Less – accumulated depreciation and amortization
  
(1,448,791)
    
(1,414,305)
           
Net investment in rental property
  
 3,479,406 
    
 3,543,874 
Cash and cash equivalents
  
19,813 
    
29,549
Investments in unconsolidated joint ventures
  
 284,507 
    
 247,468 
Unbilled rents receivable, net
  
117,777 
    
123,885
Deferred charges, goodwill and other assets, net
  
 197,773 
    
 204,650 
Restricted cash
  
42,052 
    
34,245 
Accounts receivable, net of allowance for doubtful accounts
          
of $1,871 and $2,584
  
12,137 
    
8,576 
           
Total assets
$
 4,153,465 
  
$
 4,192,247 
           
Liabilities and Equity
          
Senior unsecured notes
$
1,268,293 
  
$
1,267,744 
Mortgages, loans payable and other obligations
  
766,526 
    
820,910 
Dividends and distributions payable
  
15,582 
    
15,528 
Accounts payable, accrued expenses and other liabilities
  
134,089 
    
126,971 
Rents received in advance and security deposits
  
49,093 
    
52,146 
Accrued interest payable
  
30,659 
    
26,937 
   Total liabilities
  
 2,264,242 
    
 2,310,236 
Commitments and contingencies
          
           
Equity:
          
Mack-Cali Realty Corporation stockholders’ equity:
          
Common stock, $0.01 par value, 190,000,000 shares authorized,
          
89,195,529 and 89,076,578 shares outstanding
  
892 
    
891 
Additional paid-in capital
  
2,562,507 
    
2,560,183 
Dividends in excess of net earnings
  
(930,167)
    
(936,293)
   Total Mack-Cali Realty Corporation stockholders’ equity
  
 1,633,232 
    
 1,624,781 
           
Noncontrolling interests in subsidiaries:
          
Operating Partnership
  
201,639 
    
202,173 
Consolidated joint ventures
  
54,352 
    
55,057 
Total noncontrolling interests in subsidiaries
  
 255,991 
    
 257,230 
           
Total equity
  
 1,889,223 
    
 1,882,011 
           
Total liabilities and equity
$
 4,153,465 
  
$
 4,192,247 







Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
16
 


Mack-Cali Realty Corporation and Subsidiaries
Consolidated Statement of Changes in Equity
(in thousands) (unaudited)

                                   
                                   
               
Additional
    
Dividends in
    
Noncontrolling
      
   
Common Stock
    
Paid-In
    
Excess of
    
Interests
    
Total
   
   Shares
    
Par Value
    
Capital
    
Net Earnings
    
in Subsidiaries
    
Equity
Balance at January 1, 2015
  
 89,077 
  
$
 891 
  
$
 2,560,183 
  
$
 (936,293)
  
$
 257,230 
  
$
 1,882,011 
  Net income
  
 -
    
 -
    
 -
    
 32,858 
    
 3,206 
    
 36,064 
  Common stock dividends
  
 -
    
 -
    
 -
    
 (26,732)
    
 -
    
 (26,732)
  Common unit distributions
  
 -
    
 -
    
 -
    
 -
    
 (3,308)
    
 (3,308)
   Increase in noncontrolling interest
                                  
   in consolidated joint ventures
  
 -
    
 -
    
 -
    
 -
    
 158 
    
 158 
  Redemption of common units
                                  
   for common stock
  
 72 
    
 1 
    
 1,305 
    
 -
    
 (1,306)
    
 -
  Shares issued under Dividend
                                  
   Reinvestment and Stock Purchase Plan
  
 1 
    
 -
    
 25 
    
 -
    
 -
    
 25 
  Directors' deferred compensation plan
  
 -
    
 -
    
 197 
    
 -
    
 -
    
 197 
  Stock compensation
  
 46 
    
-
    
 808 
    
 -
    
 -
    
 808 
  Rebalancing of ownership percentage
                                  
   between parent and subsidiaries
  
 -
    
 -
    
 (11)
    
 -
    
 11 
    
 -
Balance at June 30, 2015
  
 89,196 
  
$
 892 
  
$
 2,562,507 
  
$
 (930,167)
  
$
 255,991 
  
$
 1,889,223 









Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
17
 


Mack-Cali Realty Corporation and Subsidiaries
Statements of Funds from Operations
(in thousands, except per share/unit amounts) (unaudited)

                             
                             
 
Three Months Ended
  
Six Months Ended
 
June 30,
  
June 30,
   
2015
    
2014
      
2015
      
2014
  
Net income available to common shareholders
$
 35,379 
  
$
 51,123 
    
$
 32,858 
    
$
 35,825 
  
Add (deduct):  Noncontrolling interest in Operating Partnership
  
 4,383 
    
 6,514 
      
 4,069 
      
 4,506 
  
Real estate-related depreciation and amortization on continuing operations (a)
  
 47,634 
    
 47,291 
      
 93,665 
      
 94,739 
  
Deduct: Realized (gains) losses and unrealized losses on disposition of rental property, net
  
 (34,399)
    
 (54,584)
      
 (34,543)
      
 (54,584)
  
Gain on sale of investment in unconsolidated joint ventures
  
 (6,448)
    
 -
      
 (6,448)
      
 -
  
Funds from operations available to common shareholders (b)
$
 46,549 
  
$
 50,344 
    
$
 89,601 
    
$
 80,486 
  
                             
Diluted weighted average shares/units outstanding (c)
  
 100,314 
    
 100,023 
      
 100,313 
      
 99,964 
  
                             
Funds from operations per share/unit-diluted
$
0.46
  
$
0.50
    
$
0.89
    
$
 0.81 
  
                             
Dividends declared per common share
$
0.15
  
$
0.15
    
$
0.30
    
$
 0.45 
  
                             
Dividend payout ratio:
                            
     Funds from operations-diluted
  
32.33
%
  
 29.80 
%
    
33.59
%
    
 55.89 
%
                             
Supplemental Information:
                            
Non-incremental revenue generating capital expenditures:
                            
     Building improvements
$
 7,763 
  
$
 2,784 
    
$
 14,562 
    
$
 5,253 
  
     Tenant improvements and leasing commissions (d)
$
 6,188 
  
$
 17,548 
    
$
 11,409 
    
$
 24,335 
  
Straight-line rent adjustments (e)
$
 56 
  
$
 1,110 
    
$
 (83)
    
$
 4,189 
  
Amortization of (above)/below market lease intangibles, net (f)
$
 194 
  
$
 314 
    
$
 425 
    
$
 582 
  
Acquisition transaction costs (h)
  
 -
  
$
 1,943 
      
 -
    
$
 1,943 
  
Net effect of unusual electricity rate spikes (g)
  
 -
    
 -
      
 -
    
$
 4,845 
  
Executives severance costs (h)
  
 -
    
 -
      
 -
    
$
 11,044 
  
                             

 
   
   
(a)
Includes the Company’s share from unconsolidated joint ventures of $5,512 and $2,658 for the three months ended June 30, 2015 and 2014, respectively, and $10,983 and $5,215 for the six months ended June 30, 2015 and 2014, respectively. Excludes non-real estate-related depreciation and amortization of $243 and $78 for the three months ended June 30, 2015 and 2014, respectively, and $485 and $172 for the six months ended June 30, 2015 and 2014, respectively.
(b)
Funds from operations is calculated in accordance with the definition of FFO of the National Association of Real Estate Investment Trusts (NAREIT). See “Information About FFO” on page 8.
(c)
Calculated based on weighted average common shares outstanding, assuming redemption of Operating Partnership common units into common shares (11,028 and 11,302 shares for the three months ended June 30, 2015 and 2014, respectively, and 11,050 and 11,444 for the six months ended June 30, 2015 and 2014, respectively), plus dilutive Common Stock Equivalents (i.e. stock options). See reconciliation of basic to diluted shares/units on page 20.
(d)
Excludes expenditures for tenant spaces that have not been owned for at least a year or were vacant for more than a year.
(e)
Includes the Company’s share from unconsolidated joint ventures of $362 and $52 for the three months ended June 30, 2015 and 2014, respectively, and $538 and $0 for the six months ended June 30, 2015 and 2014, respectively.
(f)
Includes the Company’s share from unconsolidated joint ventures of $114 and $124 for the three months ended June 30, 2015 and 2014, respectively, and $238 and $248 for the six months ended June 30, 2015 and 2014, respectively.
(g)
Approximately $10 million in utilities expense, net of approximately $5 million in escalations and recoveries from tenants related to such costs.
(h)
Included in general and administrative expense.





Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
18
 





Mack-Cali Realty Corporation and Subsidiaries
Statements of Funds from Operations Per Diluted Share
(amounts are per diluted share, except share count in thousands) (unaudited)


 
Three Months Ended
    
Six Months Ended
 
June 30,
  
June 30,
   
2015
    
2014
    
2015
      
2014
Net income available to common shareholders
$
 0.40 
  
$
 0.58 
  
$
 0.37 
    
$
 0.40 
Add: Real estate-related depreciation and amortization on continuing operations (a)
  
 0.47 
    
 0.47 
    
 0.93 
      
 0.95 
Deduct: Realized (gains) losses and unrealized losses on disposition of rental property, net
  
 (0.34)
    
 (0.55)
    
 (0.34)
      
 (0.55)
Gain on sale of investment in unconsolidated joint ventures
  
 (0.06)
    
 -
    
 (0.06)
      
 -
Noncontrolling interest/rounding adjustment
  
 (0.01)
    
 -
    
 (0.01)
      
 0.01 
Funds from operations (b)
$
 0.46 
  
$
 0.50 
  
$
 0.89 
    
$
 0.81 
                         
Add: Net effect of unusual electricity rate spikes
$
 -
  
$
 -
  
$
-
    
$
 0.05 
   Executives severance costs
  
-
    
-
    
-
      
 0.11 
Noncontrolling interests/rounding adjustment
  
 -
    
 -
    
-
      
 (0.01)
FFO excluding certain items
$
 0.46 
  
$
 0.50 
  
$
 0.89 
    
$
 0.96 
                         
Diluted weighted average shares/units outstanding (c)
  
100,314
    
100,023
    
 100,313 
      
99,964

 

   
   
(a)
Includes the Company’s share from unconsolidated joint ventures of $0.05 and $0.03 for the three months ended June 30, 2015 and 2014, respectively, and $0.11 and $0.05 for the six months ended June 30, 2015 and 2014, respectively.
(b)
Funds from operations is calculated in accordance with the definition of FFO of the National Association of Real Estate Investment Trusts (NAREIT). See “Information About FFO” on page 8.
(c)
Calculated based on weighted average common shares outstanding, assuming redemption of Operating Partnership common units into common shares (11,028 and 11,302 shares for the three months ended June 30, 2015 and 2014, respectively, and 11,050 and 11,444 for the six months ended June 30, 2015 and 2014, respectively), plus dilutive Common Stock Equivalents (i.e. stock options). See reconciliation of basic to diluted shares/units on page 20.






Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
19
 





Mack-Cali Realty Corporation and Subsidiaries
Reconciliation of Basic-to-Diluted Shares/Units
(in thousands)


The following schedule reconciles the Company’s basic weighted average shares outstanding to basic and diluted weighted average shares/units outstanding for the purpose of calculating FFO per share:

               
               
 
Three Months Ended
  
Six Months Ended
 
June 30,
  
June 30,
 
2015
  
2014
  
2015
  
2014
Basic weighted average shares outstanding:
89,244
  
88,691
  
89,218
  
88,491
Add: Weighted average common units
11,028
  
11,302
  
11,051
  
11,444
Basic weighted average shares/units
100,272
  
99,993
  
100,269
  
99,935
Restricted Stock Awards
42
  
30
  
44
  
29
Diluted weighted average shares/units outstanding:
100,314
  
100,023
  
100,313
  
99,964





Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
20
 

Unconsolidated Joint Venture Financial Information

The following is a summary of the financial position of the unconsolidated joint ventures in which the Company had investment interests as of June 30, 2015 and December 31, 2014, respectively: (dollars in thousands)
           
   
June 30,
    
December 31,
   
2015
    
2014
Assets:
          
   Rental property, net
$
 1,597,359 
  
$
 1,534,812 
   Other assets
  
 421,753 
    
 398,222 
   Total assets
$
 2,019,112 
  
$
 1,933,034 
Liabilities and partners'/
          
members' capital:
          
   Mortgages and loans payable
$
 1,193,461 
  
$
 1,060,020 
   Other liabilities
  
 215,077 
    
 211,340 
   Partners'/members' capital
  
 610,574 
    
 661,674 
 
          
Total liabilities and partners'/members' capital
$
 2,019,112 
  
$
 1,933,034 



The following is a summary of the Company’s investment in unconsolidated joint ventures as of June 30, 2015 and December 31, 2014, respectively: (dollars in thousands)


           
           
   
June 30,
    
December 31,
Entity/Property Name
  
2015
    
2014
Multi-family
          
Marbella RoseGarden, L.L.C./ Marbella (c)
$
 15,721 
  
$
 15,779 
RoseGarden Monaco Holdings, L.L.C./ Monaco (c)
  
 1,532 
    
 2,161 
Rosewood Lafayette Holdings, L.L.C./ Highlands at Morristown Station (e)
  
 -
    
 62 
PruRose Port Imperial South 15, LLC /RiversEdge at Port Imperial (c)
  
 -
    
 -
Rosewood Morristown, L.L.C. / Metropolitan at 40 Park (c)
  
 5,806 
    
 6,029 
Overlook Ridge JV, L.L.C./ Quarrystone at Overlook Ridge (e)
  
 -
    
 -
Overlook Ridge JV 2C/3B, L.L.C./The Chase at Overlook Ridge (c)
  
 2,277 
    
 2,524 
PruRose Riverwalk G, L.L.C./ RiverTrace at Port Imperial (c)
  
 425 
    
 955 
Elmajo Urban Renewal Associates, LLC / Lincoln Harbor (Bldg A&C) (c)
  
 -
    
 -
Crystal House Apartments Investors LLC / Crystal House
  
 28,018 
    
 27,051 
Portside Master Company, L.L.C./ Portside at Pier One - Bldg 7 (c)
  
 379 
    
 1,747 
PruRose Port Imperial South 13, LLC / RiverParc at Port Imperial (c)
  
 274 
    
 1,087 
Roseland/Port Imperial Partners, L.P./ Riverwalk C (c)
  
 1,678 
    
 1,800 
RoseGarden Marbella South, L.L.C./ Marbella II
  
 14,149 
    
 11,282 
Estuary Urban Renewal Unit B, LLC / Lincoln Harbor (Bldg B) (c)
  
 -
    
 -
Riverpark at Harrison I, L.L.C./ Riverpark at Harrison
  
 4,420 
    
 4,744 
Capitol Place Mezz LLC / Station Townhouses
  
 48,610 
    
 49,327 
Harborside Unit A Urban Renewal, L.L.C. / URL Harborside
  
 77,564 
    
 34,954 
RoseGarden Monaco, L.L.C./ San Remo Land
  
 1,310 
    
 1,283 
Grand Jersey Waterfront URA, L.L.C./ Liberty Landing
  
 337 
    
 337 
Office
          
Red Bank Corporate Plaza, L.L.C./ Red Bank
  
 4,201 
    
 3,963 
12 Vreeland Associates, L.L.C./ 12 Vreeland Road
  
 5,692 
    
 5,620 
BNES Associates III / Offices at Crystal Lake
  
 2,114 
    
 1,993 
Hillsborough 206 Holdings, L.L.C./ Hillsborough 206
  
 1,962 
    
 1,962 
KPG-P 100 IMW JV, LLC / 100 Independence Mall West
  
 37 
    
 -
Keystone-Penn (c)
  
 -
    
 -
Keystone-TriState (c) (d)
  
 4,549 
    
 6,140 
KPG-MCG Curtis JV, L.L.C./ Curtis Center (a)
  
 57,382 
    
 59,911 
Other
          
Plaza VIII & IX Associates, L.L.C./ Vacant land (parking operations)
  
 3,867 
    
 4,022 
Roseland/North Retail, L.L.C./ Riverwalk at Port Imperial (c)
  
 1,793 
    
 1,828 
South Pier at Harborside / Hyatt Regency Jersey City on the Hudson (b)
  
 -
    
 -
Other
  
 410 
    
 907 
Company's investment in unconsolidated joint ventures
$
 284,507 
  
$
 247,468 
           

(a)  
Includes undivided interests in the same manner as investments in noncontrolled partnerships, pursuant to ASC 810.
(b)  
The negative investment balance for this joint venture of $2,570 and $1,854 as of June 30, 2015 and December 31, 2014, respectively, were included in accounts payable, accrued expenses and other liabilities.
(c)  
The Company's ownership interests in this venture are subordinate to its partner's preferred capital balance and the Company is not expected to meaningfully participate in the venture's cash flows in the near term.
(d)  
Includes Company's pari-passu interests in five properties.
(e)  
Company's interests in the unconsolidated joint ventures were sold during the quarter ended June 30, 2015.
 
 
Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
21
 
 
 
The following is a summary of the results of operations of the unconsolidated joint ventures for the period in which the Company had investment interests for the three and six months ended June 30, 2015 and 2014, respectively: (dollars in thousands)

                       
                       
   
Three Months Ended
    
Six Months Ended
  
   
June 30,
    
June 30,
  
   
2015
    
2014
    
2015
    
2014
  
Total revenues
$
 81,075 
  
$
 113,118 
  
$
 155,552 
  
$
 144,111 
  
Operating and other expenses
  
 (55,953)
    
 (96,605)
    
 (113,309)
    
 (114,958)
  
Depreciation and amortization
  
 (17,816)
    
 (8,213)
    
 (34,809)
    
 (16,581)
  
Interest expense
  
 (13,324)
    
 (8,786)
    
 (24,658)
    
 (15,127)
  
Net loss
$
 (6,018)
  
$
 (486)
  
$
 (17,224)
  
$
 (2,555)
  

The following is a summary of the Company’s equity in earnings (loss) of unconsolidated joint ventures for the three and six months ended June 30, 2015 and 2014, respectively: (dollars in thousands)

                       
                       
   
Three Months Ended
    
Six Months Ended
   
June 30,
    
June 30,
Entity/Property Name
  
2015
    
2014
    
2015
    
2014
Multi-family
                      
Marbella RoseGarden, L.L.C./ Marbella (a)
$
 61 
  
$
 (9)
  
$
 122 
  
$
 (15)
RoseGarden Monaco Holdings, L.L.C./ Monaco (a)
  
 (313)
    
(238)
    
 (629)
    
 (515)
Rosewood Lafayette Holdings, L.L.C./ Highlands at Morristown Station (a)
  
 -
    
(203)
    
 (62)
    
 (419)
PruRose Port Imperial South 15, LLC /RiversEdge at Port Imperial (a)
  
 -
    
 -
    
 -
    
-
Rosewood Morristown, L.L.C. / Metropolitan at 40 Park (a)
  
 (91)
    
(76)
    
 (185)
    
 (174)
Overlook Ridge JV, L.L.C./ Quarrystone at Overlook Ridge (a)
  
 -
    
-
    
 -
    
-
Overlook Ridge JV 2C/3B, L.L.C./The Chase at Overlook Ridge (a)
  
 (27)
    
-
    
 (247)
    
 62 
PruRose Riverwalk G, L.L.C./ RiverTrace at Port Imperial (a)
  
 (276)
    
 (613)
    
 (530)
    
 (1,151)
Elmajo Urban Renewal Associates, LLC / Lincoln Harbor (Bldg A&C) (a)
  
 -
    
(91)
    
 -
    
 (203)
Crystal House Apartments Investors LLC / Crystal House
  
 13 
    
53
    
 3 
    
 (274)
Portside Master Company, L.L.C./ Portside at Pier One - Bldg 7 (a)
  
 (637)
    
(220)
    
 (1,357)
    
 (434)
PruRose Port Imperial South 13, LLC / RiverParc Port Imperial (a)
  
 (506)
    
(213)
    
 (731)
    
 (418)
Roseland/Port Imperial Partners, L.P./ Riverwalk C (a)
  
 (125)
    
 (180)
    
 (309)
    
 (345)
RoseGarden Marbella South, L.L.C./ Marbella II
  
 -
    
 -
    
 -
    
 -
Estuary Urban Renewal Unit B, LLC / Lincoln Harbor (Bldg B) (a)
  
 -
    
-
    
 -
    
 (15)
Riverpark at Harrison I, L.L.C./ Riverpark at Harrison
  
 (150)
    
 -
    
 (324)
    
 -
Capitol Place Mezz LLC / Station Townhouses
  
 (1,263)
    
 -
    
 (1,188)
    
 -
Harborside Unit A Urban Renewal, L.L.C. / URL Harborside
  
 -
    
 (212)
    
 -
    
 (212)
RoseGarden Monaco, L.L.C./ San Remo Land
  
 -
    
-
    
 -
    
 -
Grand Jersey Waterfront URA, L.L.C./ Liberty Landing
  
 -
    
 (16)
    
 (19)
    
 (54)
Office
                      
Red Bank Corporate Plaza, L.L.C./ Red Bank
  
 112 
    
106
    
 222 
    
 205 
12 Vreeland Associates, L.L.C./ 12 Vreeland Road
  
 86 
    
54
    
 72 
    
 144 
BNES Associates III / Offices at Crystal Lake
  
 52 
    
110
    
 121 
    
 147 
Hillsborough 206 Holdings, L.L.C./ Hillsborough 206
  
 (5)
    
-
    
 (5)
    
 (5)
KPG-P 100 IMW JV, LLC / 100 Independence Mall West
  
 (379)
    
 (483)
    
 (763)
    
 (1,136)
Keystone-Penn (a)
  
 -
    
 -
    
 -
    
 -
Keystone-TriState (a)
  
 (242)
    
 -
    
 (1,590)
    
 -
KPG-MCG Curtis JV, L.L.C./ Curtis Center
  
 232 
    
 251 
    
 428 
    
 251 
Other
                      
Plaza VIII & IX Associates, L.L.C./ Vacant land (parking operations)
  
 70 
    
 44 
    
 156 
    
 146 
Roseland/North Retail, L.L.C./ Riverwalk at Port Imperial (a)
  
 (18)
    
 (23)
    
 (36)
    
 (47)
South Pier at Harborside / Hyatt Regency Jersey City on the Hudson
  
 868 
    
892
    
 784 
    
 1,290 
Stamford SM LLC / Senior Mezzanine Loan
  
 -
    
928
    
 -
    
 1,844 
Other
  
 209 
    
582
    
 209 
    
 536 
Company's equity in earnings (loss) of unconsolidated joint ventures
$
 (2,329)
  
$
 443 
  
$
 (5,858)
  
$
 (792)

(a)  
The Company's ownership interests in this venture are subordinate to its partner's preferred capital balance and the Company is not expected to meaningfully participate in the venture's cash flows in the near term.

Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
22
 

 
 


The following is a summary of the Company’s funds from operations of unconsolidated joint ventures for the three and six months ended June 30, 2015 and 2014, respectively:
(dollars in thousands)

                       
                       
   
Three Months Ended
    
Six Months Ended
   
June 30,
    
June 30,
Entity/Property Name
  
2015
    
2014
    
2015
    
2014
Multi-family
                      
Marbella RoseGarden, L.L.C./ Marbella (a)
$
 317 
  
$
242
  
$
 634 
  
$
 479 
RoseGarden Monaco Holdings, L.L.C./ Monaco (a)
  
 -
    
 (6)
    
 (4)
    
 (50)
Rosewood Lafayette Holdings, L.L.C./ Highlands at Morristown Station (a)
  
 -
    
 22 
    
 6 
    
 30 
PruRose Port Imperial South 15, LLC /RiversEdge at Port Imperial (a)
  
 -
    
-
    
 -
    
 -
Rosewood Morristown, L.L.C. / Metropolitan at 40 Park (a)
  
 4 
    
 18 
    
 5 
    
 13 
Overlook Ridge JV, L.L.C./ Quarrystone at Overlook Ridge (a)
  
 -
    
-
    
 -
    
 -
Overlook Ridge JV 2C/3B, L.L.C./The Chase at Overlook Ridge (a)
  
 304 
    
 37 
    
 440 
    
 99 
PruRose Riverwalk G, L.L.C./ RiverTrace at Port Imperial (a)
  
 (48)
    
 (416)
    
 (74)
    
 (795)
Elmajo Urban Renewal Associates, LLC / Lincoln Harbor (Bldg A&C) (a)
  
 119 
    
 (55)
    
 119 
    
 (167)
Crystal House Apartments Investors LLC / Crystal House
  
 306 
    
 346 
    
 589 
    
 312 
Portside Master Company, L.L.C./ Portside at Pier One - Bldg 7 (a)
  
 (382)
    
 (220)
    
 (845)
    
 (434)
PruRose Port Imperial South 13, LLC / RiverParc Port Imperial (a)
  
 (392)
    
 (213)
    
 (618)
    
 (418)
Roseland/Port Imperial Partners, L.P./ Riverwalk C (a)
  
 (124)
    
 (180)
    
 (309)
    
 (345)
RoseGarden Marbella South, L.L.C./ Marbella II
  
 -
    
 -
    
 -
    
 -
Estuary Urban Renewal Unit B, LLC / Lincoln Harbor (Bldg B) (a)
  
 -
    
-
    
 -
    
 (15)
Riverpark at Harrison I, L.L.C./ Riverpark at Harrison
  
 (53)
    
 -
    
 (141)
    
 -
Capitol Place Mezz LLC / Station Townhouses
  
 (570)
    
 -
    
 (495)
    
 -
Harborside Unit A Urban Renewal, L.L.C. / URL Harborside
  
 -
    
 (212)
    
 -
    
 (212)
RoseGarden Monaco, L.L.C./ San Remo Land
  
 -
    
 -
    
 -
    
 -
Grand Jersey Waterfront URA, L.L.C./ Liberty Landing
  
 -
    
 (17)
    
 (20)
    
 (54)
Office
                      
Red Bank Corporate Plaza, L.L.C./ Red Bank
  
 228 
    
 223 
    
 455 
    
 438 
12 Vreeland Associates, L.L.C./ 12 Vreeland Road
  
 133 
    
 138 
    
 204 
    
 312 
BNES Associates III / Offices at Crystal Lake
  
 76 
    
 133 
    
 168 
    
 269 
Hillsborough 206 Holdings, L.L.C./ Hillsborough 206
  
 (5)
    
-
    
 (5)
    
 (5)
KPG-P 100 IMW JV, LLC / 100 Independence Mall West
  
 (197)
    
 (307)
    
 (399)
    
 (730)
Keystone-Penn (a)
  
 -
    
 -
    
 -
    
 -
Keystone-TriState (a)
  
 414 
    
 -
    
 384 
    
 -
KPG-MCG Curtis JV, L.L.C./ Curtis Center
  
1,160
    
 365 
    
 2,320 
    
 365 
Other
                      
Plaza VIII & IX Associates, L.L.C./ Vacant land (parking operations)
  
 76 
    
 50 
    
 168 
    
 158 
Roseland/North Retail, L.L.C./ Riverwalk at Port Imperial (a)
  
 3 
    
 (2)
    
 7 
    
 (5)
South Pier at Harborside / Hyatt Regency Jersey City on the Hudson
  
 1,604 
    
 1,644 
    
 2,327 
    
 2,797 
Stamford SM LLC / Senior Mezzanine Loan
  
 -
    
 928 
    
 -
    
 1,844 
Other
  
 209 
    
 582 
    
 209 
    
 536 
Company's funds from operations of unconsolidated joint ventures
$
 3,182 
  
$
 3,100 
  
$
 5,125 
  
$
 4,422 

 
(a)  
The Company's ownership interests in this venture are subordinate to its partner's preferred capital balance and the Company is not expected to meaningfully participate in the venture's cash flows in the near term.



Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
23
 



IV. PORTFOLIO SUMMARY

Rental Property Sales/Dispositions
(dollars in thousands)


For the six months ended June 30, 2015
 

                     
                     
       
Rentable
            
Sale
    
# of
Square
  
Net Sales
  
Realized
Capitalization
Date
Property/Address
Location
Buildings
Feet
  
Proceeds
  
Gain
Rate (a)
01/15/15
1451 Metropolitan Drive
West Deptford, New Jersey
1
21,600
$
1,072
$
144
(4.70)
% (b)
05/27/15
10 Independence Boulevard (c)
Warren, New Jersey
1
120,528
  
-
  
3,236
    
06/11/15
4 Sylvan Way (c)
Parsippany, New Jersey
1
105,135
  
-
  
6,439
    
06/26/15
14 Sylvan Way
Parsippany, New Jersey
1
203,506
$
79,977
$
24,724
6.14
%
                     
Total Property Sales:
  
4
450,769
$
81,049
$
34,543
    

(a)  
Capitalization rate is calculated by dividing the projected net operating income for the 12 months forward from the closing date by the gross sales price.
(b)  
This property was vacant when sold.
(c)  
The Company transferred the deed for these properties to the lender in satisfaction of its mortgage loan obligations.  The Company had previously recorded impairment charges on these properties totaling $12.2 million at September 30, 2013.



For the year ended December 31, 2014

 
                     
                     
       
Rentable
            
Sale
    
# of
Square
  
Net Sales
  
Realized
Capitalization
Date
Property/Address
Location
Buildings
Feet
  
Proceeds
  
Gain
Rate (c)
04/23/14
22 Sylvan Way
Parsippany, New Jersey
1
249,409
$
94,897
$
34,653
6.20
%
06/23/14
30 Knightsbridge Road (a)
Piscataway, New Jersey
4
680,350
  
54,641
  
2,280
11.90
%
06/23/14
470 Chestnut Ridge Road (a) (b)
Woodcliff Lake, New Jersey
1
52,500
  
7,195
  
86
9.42
%
06/23/14
530 Chestnut Ridge Road (a) (b)
Woodcliff Lake, New Jersey
1
57,204
  
6,299
  
64
7.74
%
06/27/14
400 Rella Boulevard
Suffern, New York
1
180,000
  
27,539
  
16,601
5.00
%
06/30/14
412 Mount Kemble Avenue (a)
Morris Township, New Jersey
1
475,100
  
44,751
  
900
5.70
%
07/29/14
17-17 Route 208 North (a) (b)
Fair Lawn, New Jersey
1
143,000
  
11,835
  
104
9.14
%
08/20/14
555, 565, 570 Taxter Road (a)
Elmsford, New York
3
416,108
  
41,057
  
-
7.77
%
08/20/14
220 - 220 White Plains Road (a)
Tarrytown, New York
2
178,000
  
12,619
  
-
3.01
%
08/20/14
1266 East Main Street (a) (b)
Stamford, Connecticut
1
179,260
  
18,406
  
160
5.30
%
                     
Total Property Sales:
  
16
2,610,931
$
319,239
$
54,848
    

(a)  
The Company completed the sale of these properties for approximately $221 million, comprised of: $192.5 million in cash from a combination of affiliates of Keystone Property Group’s (“Keystone Entities”) senior and pari-passu equity and mortgage financing; Company subordinated equity interests in each of the properties sold with capital accounts aggregating $21.2 million; and Company pari-passu equity interests in five of the properties sold aggregating $7.3 million.  Net sale proceeds from the sale aggregated $196.8 million which was comprised of the $221 million gross sales price less the subordinated equity interests of $21.2 million and $3 million in closing costs.  The purchasers of these properties are unconsolidated joint ventures formed between the Company and the Keystone Entities.  The senior and pari-passu equity will receive a 15 percent internal rate of return (“IRR”) after which the subordinated equity will receive a 10 percent IRR and then all distributable cash flow will be split equally between the Keystone Entities and the Company.  In connection with certain of these partial sale transactions, because the buyer received a preferential return on certain of the ventures for which the Company received subordinated equity interests, the Company only recognized profit to the extent that they received net proceeds in excess of their entire carrying value of the properties, effectively reflecting their retained subordinated equity interest at zero.
(b)  
The Company recorded an impairment charge of $20.7 million on these properties at December 31, 2013 as it estimated that the carrying value of the properties may not be recoverable over their anticipated holding periods.
(c)  
Capitalization rate is calculated by dividing the projected net operating income for the 12 months forward from the closing date by the gross sales price.




Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
24
 



Breakdown of Company Holdings
(dollars in thousands)

As of June 30, 2015

           
           
   
# of
Commercial
  
Garage
 
# of
Apartment
Square
  
Parking
Property
Properties
Homes
Feet
  
Spaces
MULTI-FAMILY RENTAL PORTFOLIO
          
Stabilized Operating Communities:
          
Consolidated Properties
6
1,301
      
Unconsolidated Joint Venture Interests:
          
   Participating JVs
1
798
      
   Subordinated Interests
8
2,570
      
Total Stabilized Operating Communities-included in Property Count:
15
4,669
      
           
Communities in Lease-Up:
          
Unconsolidated Joint Venture Interests:
          
   Participating JVs
2
519
      
   Subordinated Interests
2
456
      
Total Properties in Lease-Up-Multi-Family-included in Property Count:
4
975
      
           
Development Communities:
          
Consolidated Properties
1
108
    
786
Unconsolidated Joint Venture Interests:
          
   Participating JVs
2
1,074
      
   Subordinated Interests
 -
 -
      
Total Development Communities-Multi-Family:
3
1,182
    
786
           
Total Land Holdings/Pre-Development and Repurposing-Multi-Family:
n/a
9,042
      
           
           
OFFICE PORTFOLIO
          
Stabilized Operating Properties:
          
Consolidated Properties
221
  
24,837,821
  
850
Unconsolidated Joint Venture Interests:
          
   Participating JVs (incl. 350-room hotel)
8
  
1,645,306
    
   Subordinated Joint Ventures
31
  
4,033,049
    
Total Operating Properties-included in Property Count:
260
  
30,516,176
  
850
           
Total Land Holdings/Pre-Development-Office
 -
  
5,748,750
    




Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
25
 


Consolidated Operating Portfolio Analysis (a)
(as of June 30, 2015)

Breakdown by Number of Properties
 

PROPERTY TYPE:

                                         
                                         
                   
Stand-
                    
   
% of
    
% of
  
Industrial/
% of
  
Alone
% of
  
Land
% of
  
Multi-
% of
  
Totals
% of
STATE
Office
Total
  
Office/Flex
Total
  
Warehouse
Total
  
Retail
Total
  
Leases
Total
  
Family
Total
  
By State
Total
New Jersey
91
40.1%
  
48
21.1%
  
 -
 -
  
1
0.4%
  
 -
 -
  
3
1.3%
  
143
62.9%
New York
14
6.2%
  
41
18.1%
  
6
2.7%
  
2
0.9%
  
2
0.9%
  
 -
 -
  
65
28.8%
Connecticut
 -
 -
  
5
2.2%
  
 -
 -
  
 -
 -
  
 -
 -
  
 -
 -
  
5
2.2%
Wash., D.C./Maryland
10
4.4%
  
 -
 -
  
 -
 -
  
 -
 -
  
1
0.4%
  
 -
 -
  
11
4.8%
Massachusetts
 -
 -
  
 -
 -
  
 -
 -
  
 -
 -
  
 -
 -
  
3
1.3%
  
3
1.3%
TOTALS
                                        
    By Type:
115
50.7%
  
94
41.4%
  
6
2.7%
  
3
1.3%
  
3
1.3%
  
6
2.6%
  
227
100.0%



(a)  
Excludes 52 operating properties, aggregating approximately 5.7 million of commercial square feet and 4,343 apartment homes, which are not consolidated by the Company.
 

 

Breakdown by Square Footage for Commercial Properties

PROPERTY TYPE:


                             
                             
                   
Stand-
        
   
% of
    
% of
  
Industrial/
% of
  
Alone
% of
  
Totals
% of
STATE
Office
Total
  
Office/Flex
Total
  
Warehouse
Total
  
Retail
Total
  
By State
Total
New Jersey
16,611,025
66.9%
  
2,167,931
8.7%
  
 -
 -
  
16,736
0.1%
  
18,795,692
75.7%
New York
1,716,876
6.8%
  
2,348,812
9.5%
  
387,400
1.6%
  
17,300
0.1%
  
4,470,388
18.0%
Connecticut
-
 -
  
273,000
1.1%
  
 -
 -
  
 -
 -
  
273,000
1.1%
Wash., D.C./Maryland
1,292,807
5.2%
  
 -
 -
  
 -
 -
  
 -
 -
  
1,292,807
5.2%
TOTALS
                            
    By Type:
19,620,708
78.9%
  
4,789,743
19.3%
  
387,400
1.6%
  
34,036
0.2%
  
24,831,887
100.0%

(a)  
Excludes six consolidated operating multi-family properties, aggregating 1,301 apartment homes; as well as 52 operating properties, aggregating approximately 5.7 million commercial square feet and 4,343 apartment homes, which are not consolidated by the Company.

 

Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
26
 

Consolidated Operating Portfolio Analysis (a)
 
(12 Months ended June 30, 2015)
 

Breakdown by Base Rental Revenue (b)
(Dollars in thousands)

PROPERTY TYPE:



                                                         
                                                         
                           
Stand-
                            
     
% of
    
Office/
% of
    
Indust./
% of
    
Alone
% of
    
Land
% of
    
Multi-
% of
    
Totals
  
% of
STATE
  
Office
Total
    
Flex
Total
    
Warehouse
Total
    
Retail
Total
    
Leases
Total
    
Family
Total
    
By State
  
Total
                                                         
New Jersey
$
328,179
67.9%
  
$
17,367
3.6%
    
 -
 -
    
 -
 -
    
 -
 -
  
$
7,149
1.5%
  
$
352,695
  
73.0%
New York
  
44,233
9.2%
    
32,878
6.8%
  
$
4,441
0.9%
  
$
335
0.1%
  
$
349
0.1%
    
 -
 -
    
82,236
  
17.1%
Connecticut
  
-
 -
    
4,075
0.8%
    
 -
 -
    
 -
 -
    
 -
 -
    
 -
 -
    
4,075
  
0.8%
Wash., D.C./Maryland
  
28,023
5.8%
    
 -
 -
    
 -
 -
    
 -
 -
    
153
 -
    
 -
 -
    
28,176
  
5.8%
Massachusetts
  
 -
 -
    
 -
 -
    
 -
 -
    
 -
 -
    
 -
 -
    
15,791
3.3%
    
15,791
  
3.3%
TOTALS
                                                        
   By Type:
$
400,435
82.9%
  
$
54,320
11.2%
  
$
4,441
0.9%
  
$
335
0.1%
  
$
502
0.1%
  
$
22,940
4.8%
  
$
482,973
(c)
100.0%

 
(a)  
Excludes 52 operating properties, aggregating approximately 5.7 million commercial square feet and 4,343 apartment homes, which are not consolidated by the Company.
(b)  
Total base rent for the 12 months ended June 30, 2015, determined in accordance with GAAP. Substantially all of the commercial leases provide for annual base rents plus recoveries and escalation charges based upon the tenants’ proportionate share of and/or increases in real estate taxes and certain costs, as defined, and the pass through of charges for electrical usage.
(c)  
Excludes $11.5 million from properties which were sold during the 12 months ended June 30, 2015.


 
Breakdown by Percentage Leased for Commercial Properties
 

PROPERTY TYPE:

           
           
         
WEIGHTED AVG.
STATE
Office
Office/Flex
Industrial/Warehouse
Stand-Alone Retail
By State
New Jersey
79.2%
89.3%
 -
52.2%
80.3%
New York
87.4%
93.9%
97.9%
100.0%
91.8%
Connecticut
 -
96.3%
 -
 -
96.3%
Washington, D.C./ Maryland
75.0%
 -
 -
 -
75.0%
           
WEIGHTED AVG. By Type:
79.6%
92.0%
97.9%
76.5%
82.3%

(a)  
Excludes six consolidated operating multi-family properties, aggregating 1,301 apartment homes; as well as 52 operating properties, aggregating approximately 5.7 million commercial square feet and 4,343 apartment homes, which are not consolidated by the Company, and parcels of land leased to others.
Percentage leased includes all commercial leases in effect as of the period end date, some of which have commencement dates in the future as well as leases expiring June 30, 2015, aggregating 74,128 square feet for which no new leases were signed.

Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
27
 



V. OFFICE PORTFOLIO

Summary of Development Projects
(dollars in thousands)

As of June 30, 2015

               
               
       
Costs
    
Estimated
       
Incurred
  
Total
Initial
       
Through
  
Estimated
Delivery
Property
Location
Type
  
06/30/15
  
Costs
Date
Consolidated;
              
Wegmans Food Markets
Hanover, NJ
Retail pad/Land Lease
$
11,504
$
28,652
1Q-2017
               
Total In-Process Development Projects:
  
$
11,504
$
28,652
  


Summary of Land Holdings

As of June 30, 2015

         
         
     
Potential
  
     
Commercial
  
Property
Location
State
Square Feet (a)
Type of Space
Office:
        
Capital Office Park
Greenbelt
MD
595,000
Office
Eastpoint II
Lanham
MD
122,000
Office/Hotel
3 & 5 AAA Drive (b)
Hamilton Township
NJ
112,000
Office
6 AAA Drive
Hamilton Township
NJ
32,000
Office
2 South Gold Drive (c)
Hamilton Township
NJ
75,000
Office
Hillsborough 206 (d)
Hillsborough
NJ
160,000
Office
Plaza VIII and IX Associates, L.L.C. (d)
Jersey City
NJ
1,225,000
Office
Harborside
Jersey City
NJ
1,067,000
Office
One Newark Center (d)
Newark
NJ
400,000
Office
3 Campus Drive
Parsippany
NJ
124,000
Office
Mack-Cali Business Campus
Parsippany & Hanover
NJ
150,000
Office/Retail
Princeton Metro
West Windsor
NJ
97,000
Office
Princeton Overlook II
West Windsor
NJ
149,500
Office
Mack-Cali Princeton Executive Park
West Windsor
NJ
760,000
Office/Hotel
Total Office:
    
5,068,500
  
         
Office/Flex:
        
Horizon Center
Hamilton Township
NJ
68,000
Office/Flex/Retail
Mack-Cali Commercenter
Totowa
NJ
30,000
Office/Flex
Mid-Westchester Executive Park
Hawthorne
NY
82,250
Office/Flex
South Westchester Executive Park (e)
Yonkers
NY
350,000
Office/Flex
South Westchester Executive Park
Yonkers
NY
50,000
Office/Flex
Total Office/Flex:
    
580,250
  
         
Industrial/Warehouse:
        
Elmsford Distribution Center (e)
Elmsford
NY
100,000
Industrial/Warehouse
Total Warehouse:
    
100,000
  
         
Total
    
5,748,750
  

(a)  
Amount of square feet is subject to change.
(b)  
This land parcel also includes an existing office building totaling 35,270 square feet.
(c)  
This land parcel also includes an existing office building totaling 33,962 square feet.
(d)  
Land owned or controlled by joint venture in which Mack-Cali is an equity partner.
(e)  
Mack-Cali holds an option to purchase this land.

Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
28
 

Leasing Statistics
 
(For the three months ended June 30, 2015)
 
Consolidated Commercial In-Service Portfolio
 
SUMMARY OF SPACE LEASED


                       
                       
         
LEASING ACTIVITY
        
Property Type
Pct. Leased
  
Leased Sq. Ft.
  
Expiring/Adjustment
Incoming
Net
  
Sq. Ft. Leased
Pct. Leased
Market Pct. Leased (d)
  Market/Submarket
03/31/15
  
Acquired/Disposed (a)
  
Sq. Ft. (b)
Sq. Ft.
Leasing Activity
  
6/30/15 (c)
06/30/15
06/30/15
OFFICE
                      
  Northern NJ
                      
    Bergen Meadowlands
10.9%
  
 -
  
 -
 -
 -
  
13,193
10.9%
82.7%
    Bergen Route 17S
46.2%
  
 -
  
 -
 -
 -
  
24,009
46.2%
77.6%
    Bergen Route 4 East
71.9%
  
 -
  
(12,172)
79,633
67,461
  
239,680
100.0%
85.8%
    Bergen Route 17/GSP
83.0%
  
 -
  
(709,520)
215,772
(493,748)
  
1,774,204
65.0%
79.7%
    Essex Route 280
74.6%
  
 -
  
(115,062)
103,820
(11,242)
  
1,186,644
73.9%
89.8%
    GW Bridge
93.3%
  
 -
  
(16,706)
18,900
2,194
  
252,272
94.1%
86.9%
    Hudson Waterfront
82.9%
  
 -
  
(61,339)
43,832
(17,507)
  
3,561,163
82.5%
87.8%
    Morris Route 10/24
91.2%
  
 -
  
(15,189)
15,189
 -
  
233,838
91.2%
76.3%
    Parsippany
77.3%
  
 (308,641)
  
(117,730)
166,233
48,503
  
2,184,639
76.5%
78.3%
    Suburban Passaic
91.8%
  
 -
  
(3,767)
3,767
 -
  
51,477
91.8%
67.9%
  Total Northern NJ
79.9%
  
 (308,641)
  
(1,051,485)
647,146
(404,339)
  
9,521,119
76.2%
82.2%
                       
  Central NJ
                      
    Clark & Cranford
86.5%
  
 -
  
(39,466)
38,904
(562)
  
 686,988
86.4%
76.8%
    Mercer Southern
93.8%
  
 -
  
(120,000)
120,000
 -
  
 266,518
93.8%
89.1%
    Middlesex South/8A
66.4%
  
 -
  
(21,487)
5,144
(16,343)
  
 207,350
61.5%
83.3%
    Monmouth County
92.2%
  
 -
  
(39,639)
26,827
(12,812)
  
 1,210,896
91.3%
86.9%
    Princeton
93.5%
  
 -
  
(19,472)
14,220
(5,252)
  
 316,496
92.0%
87.8%
    Somerset Route 78
89.7%
  
 (111,663)
  
 -
4,392
4,392
  
 454,799
89.9%
82.0%
    The Brunswicks
100.0%
  
 -
  
 -
 -
 -
  
 40,000
100.0%
82.5%
    Union Route 78
72.4%
  
 -
  
 -
 -
 -
  
 57,955
72.4%
94.8%
    Woodbridge/Edison
99.7%
  
 -
  
(9,349)
9,349
 -
  
 394,394
99.7%
86.2%
  Total Central NJ
89.3%
  
 (111,663)
  
(249,413)
218,836
(30,577)
  
3,635,396
88.5%
85.0%
                       
  Westchester Co., NY
                      
    Elmsford
48.7%
  
 -
  
 -
 -
 -
  
53,569
48.7%
86.7%
    Hawthorne
89.6%
  
 -
  
(29,832)
39,656
9,824
  
228,784
93.6%
94.5%
    White Plains CBD
80.1%
  
 -
  
(31,430)
20,441
(10,989)
  
524,010
78.4%
82.5%
    Yonkers
100.0%
  
 -
  
(15,326)
15,326
 -
  
170,000
100.0%
87.4%
  Total Westchester Co., NY
82.0%
  
 -
  
(76,588)
75,423
(1,165)
  
976,363
81.9%
85.3%
                       
  NYC-Downtown
100.0%
  
 -
  
 -
 -
 -
  
524,476
100.0%
90.5%
                       
  Washington DC/MD
                      
    DC-CBD
90.1%
  
 -
  
(732)
 -
(732)
  
152,012
89.7%
90.7%
    DC-East End
100.0%
  
 -
  
 -
 -
 -
  
159,000
100.0%
89.1%
    MD-Greenbelt
68.7%
  
 -
  
(26,443)
29,067
2,624
  
581,521
69.0%
64.8%
    MD-Lanham
97.4%
  
 -
  
(41,751)
 -
(41,751)
  
77,078
63.2%
62.8%
  Total Washington DC/MD
78.1%
  
 -
  
(68,926)
29,067
(39,859)
  
969,611
75.0%
87.9%
                       
Office Totals
82.4%
  
(420,304)
  
(1,446,412)
970,472
(475,940)
  
15,626,965
79.6%
85.1%

Schedules continue on next page.

Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
29
 

Leasing Statistics
(For the three months ended June 30, 2015)
 
 
Consolidated Commercial In-Service Portfolio (continued)
 
SUMMARY OF SPACE LEASED
                     
                     
         
LEASING ACTIVITY
      
Property Type
Pct. Leased
  
Leased Sq. Ft.
  
Expiring/Adjustment
Incoming
Net
  
Sq. Ft. Leased
Pct. Leased
  Market/Submarket
03/31/15
  
Acquired/Disposed (a)
  
Sq. Ft. (b)
Sq. Ft.
Leasing Activity
  
6/30/15 (c)
06/30/15
OFFICE/FLEX
                    
  Northern NJ
                    
    Suburban Passaic
95.9%
  
 -
  
 (13,823)
 -
 (13,823)
  
411,215
92.8%
                     
  Central NJ
                    
    Mercer Southern
79.3%
  
 -
  
(16,302)
27,680
11,378
  
 146,219
86.0%
    Monmouth County
93.4%
  
 -
  
(25,330)
25,330
 -
  
 274,990
93.4%
  Total Central NJ
88.3%
  
 -
  
(41,632)
53,010
11,378
  
421,209
90.7%
                     
  Westchester Co., NY
                    
    Elmsford
95.3%
  
 -
  
 (109,755)
 106,907
 (2,848)
  
1,190,106
95.1%
    Hawthorne
87.8%
  
 -
  
(13,760)
32,026
18,266
  
472,151
91.4%
    Yonkers
92.5%
  
 -
  
(31,443)
38,122
6,679
  
543,472
93.7%
  Total Westchester Co., NY
93.0%
  
 -
  
(154,958)
177,055
22,097
  
2,205,729
93.9%
                     
  Burlington Co., NJ
85.6%
  
 -
  
 (41,520)
 66,263
 24,743
  
1,104,118
87.6%
                     
  Stamford, CT Non-CBD
96.3%
  
 -
  
 (95,000)
 95,000
 -
  
262,928
96.3%
                     
Office/Flex Totals
91.0%
  
-
  
(346,933)
391,328
44,395
  
4,405,199
92.0%
                     
INDUSTRIAL
                    
  Westchester Co., NY
                    
    Elmsford
97.9%
  
 -
  
 (15,300)
 15,300
 -
  
379,373
97.9%
                     
RETAIL
                    
  Northern NJ
                    
    Hudson Waterfront
52.2%
  
 -
  
 -
 -
 -
  
8,736
52.2%
                     
  Central NJ
                    
    Clark & Cranford
68.7%
  
 -
  
 -
 -
 -
  
4,074
68.7%
                     
  Westchester Co., NY
                    
    Tarrytown
100.0%
  
 -
  
 -
 -
 -
  
9,300
100.0%
    Yonkers
100.0%
  
 -
  
 -
 -
 -
  
8,000
100.0%
  Total Westchester Co., NY
100.0%
  
 -
  
 -
 -
 -
  
17,300
100.0%
                     
Retail Totals
75.3%
  
-
  
 -
 -
 -
  
30,110
75.3%
                     
COMPANY TOTALS
84.3%
  
(420,304)
  
(1,808,645)
1,377,100
(431,545)
  
20,441,647
82.3%
                     

 
RECONCILIATION OF TOTAL PROPERTY SQUARE FOOTAGE
 

   
   
   
Total sq. ft. as of March 31, 2015
25,266,990
    Total sq. ft. of property sold
 (429,169)
Total sq. ft. as of June 30, 2015
24,837,821

(a)  
Net gain/loss of leased square footage through properties sold, acquired or placed in service during the period.
(b)  
Represents the square footage of expiring leases and leases scheduled to expire in the future for which new leases or renewals were signed during the period, as well as internal administrative adjustments.
(c)  
Includes leases expiring June 30, 2015 aggregating 74,128 square feet for which no new leases were signed.
(d)  
Market percent leased derived by inverting the market direct vacancy rate for all classes as published by Cushman & Wakefield.  Data not available for other property types.

Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
30
 

Leasing Statistics
(For the three months ended June 30, 2015)
 
 
Consolidated Commercial In-Service Portfolio (continued)
 
DETAIL OF TRANSACTION ACTIVITY
 
                 
Property Type
        
Sq. Ft  Renewed and
Wtd. Avg.
Wtd. Avg.
Leasing Costs Per
  Market/Submarket
# of Transactions
  
Total Sq. Ft.
Sq. Ft New Leases
Other Retained (a)
Term (Yrs.)
Base Rent (b)
Sq. Ft. Per Year (c)
                 
OFFICE
                
  Northern NJ
                
    Bergen Route 4 East Corridor
2
  
 79,633 
 73,978 
 5,655 
 10.6 
 23.20 
 4.33 
    Bergen Route 17/GSP
16
  
 215,772 
 13,060 
 202,712 
 4.6 
 26.32 
 4.15 
    Essex Route 280 Corridor
8
  
 103,820 
 938 
 102,882 
 1.3 
 25.18 
 1.97 
    GW Bridge
4
  
 18,900 
 2,474 
 16,426 
 3.1 
 24.93 
 1.14 
    Hudson Waterfront
3
  
 43,832 
 4,168 
 39,664 
 4.0 
 34.49 
 4.11 
    Morris Route 10/24
3
  
 15,189 
 -
 15,189 
 3.8 
 21.37 
 3.14 
    Parsippany
18
  
 166,233 
 52,525 
 113,708 
 4.9 
 27.32 
 5.04 
    Suburban Passaic
2
  
 3,767 
 -
 3,767 
 4.2 
 20.18 
 1.07 
  Total Northern NJ
56
  
 647,146 
 147,143 
 500,003 
 4.8 
 26.37 
 4.25 
                 
  Central NJ
                
    Clark & Cranford
8
  
 38,904 
 9,826 
 29,078 
 4.5 
 22.65 
 2.12 
    Mercer Southern
1
  
 120,000 
 -
 120,000 
 5.3 
 32.83 
 3.23 
    Middlesex South/8A
3
  
 5,144 
 5,144 
 -
 4.3 
 24.14 
 3.23 
    Monmouth County
1
  
 26,827 
 -
 26,827 
 2.0 
 24.13 
 0.20 
    Princeton
4
  
 14,220 
 -
 14,220 
 3.5 
 27.85 
 2.97 
    Somerset Route 78
1
  
 4,392 
 4,392 
 -
 5.1 
 24.87 
 6.65 
    Woodbridge/Edison
1
  
 9,349 
 -
 9,349 
 5.0 
 28.55 
 2.40 
  Total Central NJ
19
  
 218,836 
 19,362 
 199,474 
 4.6 
 29.08 
 2.90 
                 
  Westchester Co., NY
                
    Hawthorne
4
  
 39,656 
 -
 39,656 
 3.9 
 25.85 
 3.24 
    White Plains CBD
7
  
 20,441 
 -
 20,441 
 3.4 
 27.06 
 3.88 
    Yonkers
2
  
 15,326 
 -
 15,326 
 4.3 
 20.50 
 0.20 
  Total Westchester Co., NY
13
  
 75,423 
 -
 75,423 
 3.9 
 25.09 
 2.70 
                 
  Washington DC/MD
                
    MD - Greenbelt
12
  
 29,067 
 4,068 
 24,999 
 4.5 
 21.87 
 2.33 
                 
OFFICE Totals/Weighted Avg.
100
  
970,472
170,573
799,899
 4.7 
 26.75 
 3.79 
                 
OFFICE/FLEX
                
  Central NJ
                
    Mercer Southern
3
  
 27,680 
 -
 27,680 
 7.2 
 16.94 
 2.85 
    Monmouth County
2
  
 25,330 
 -
 25,330 
 2.1 
 17.75 
 0.86 
  Total Central NJ
 5 
  
 53,010 
 -
 53,010 
 4.8 
 17.32 
 2.43 
                 
  Westchester Co., NY
                
    Elmsford
13
  
 106,907 
 1,140 
 105,767 
 3.7 
 15.34 
 1.00 
    Hawthorne
3
  
 32,026 
 23,221 
 8,805 
 8.3 
 15.84 
 2.67 
    Yonkers
8
  
 38,122 
 -
 38,122 
 4.9 
 15.66 
 2.50 
  Total Westchester Co., NY
 24 
  
 177,055 
 24,361 
 152,694 
 4.8 
 15.50 
 1.85 
                 
Burlington Co., NJ
6
  
66,263
4,343
61,920
 3.0 
 10.40 
 1.53 
                 
Stamford, CT Non-CBD
2
  
 95,000 
 -
 95,000 
 1.9 
 29.81 
 2.80 
                 
OFFICE/FLEX Totals/Weighted Avg.
 37 
  
 391,328 
 28,704 
 362,624 
 3.8 
 18.36 
 2.02 
                 
INDUSTRIAL
                
  Westchester Co., NY
                
    Elmsford
1
  
 15,300 
 15,300 
 -
 10.3 
 18.43 
 3.00 
                 
INDUSTRIAL Totals/Weighted Avg.
1
  
15,300
 15,300 
 -
 10.3 
 18.43 
 3.00 
                 
COMPANY Totals/Weighted Avg.
138 
  
1,377,100
214,577
1,162,523
 4.5 
 24.27 
 3.35 
                 
Tenant Retention
Leases Retained
73.8%
          
 
Sq. Ft. Retained
64.3%
          

(a)  
“Other Retained” transactions include existing tenants’ expansions and relocations within the same building.
(b)  
Equals triple net rent plus common area costs and real estate taxes, as applicable.
(c)  
Represents estimated workletter costs of $13,814,967 and commissions of $6,786,912 committed, but not necessarily expended, during the period for second generation space aggregating 1,377,100 square feet.

Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
31
 

Leasing Statistics
(For the six months ended June 30, 2015)
 
Consolidated Commercial In-Service Portfolio
 
SUMMARY OF SPACE LEASED


                       
         
LEASING ACTIVITY
        
Property Type
Pct. Leased
  
Leased Sq. Ft
  
Expiring/Adjustment
Incoming
Net
  
Sq. Ft. Leased
Pct. Leased
Market Pct. Leased
  Market/Submarket
12/31/14
  
Acquired/Disposed (a)
  
Sq. Ft. (b)
Sq. Ft.
Leasing Activity
  
6/30/15 (c)
06/30/15
06/30/15
OFFICE
                      
  Northern NJ
                      
    Bergen Meadowlands
82.4%
  
 -
  
 (88,846)
 2,193 
 (86,653)
  
13,193
10.9%
82.7%
    Bergen Route 17S
99.6%
  
 -
  
 (27,766)
 -
 (27,766)
  
24,009
46.2%
77.6%
    Bergen Route 4 East
71.9%
  
 -
  
(12,172)
79,633
67,461
  
239,680
100.0%
85.8%
    Bergen Route 17/GSP
83.0%
  
 -
  
(762,562)
269,661
(492,901)
  
1,774,204
65.0%
79.7%
    Essex Route 280
72.0%
  
 -
  
(115,062)
146,030
30,968
  
1,186,644
73.9%
89.8%
    GW Bridge
89.8%
  
 -
  
(23,318)
34,950
11,632
  
252,272
94.1%
86.9%
    Hudson Waterfront
82.1%
  
 -
  
(90,708)
105,210
14,502
  
3,561,163
82.5%
87.8%
    Morris Route 10/24
91.5%
  
 -
  
(19,128)
18,156
 (972)
  
233,838
91.2%
76.3%
    Parsippany
73.2%
  
 (308,641)
  
(137,413)
315,661
178,248
  
2,184,639
76.5%
78.3%
    Suburban Passaic
91.8%
  
 -
  
(3,767)
3,767
 -
  
51,477
91.8%
67.9%
  Total Northern NJ
79.1%
  
 (308,641)
  
(1,280,742)
975,261
(305,481)
  
9,521,119
76.2%
82.2%
                       
  Central NJ
                      
    Clark & Cranford
86.0%
  
 -
  
(65,964)
68,903
2,939
  
 686,988 
86.4%
76.8%
    Mercer Southern
94.6%
  
 -
  
(138,125)
135,896
 (2,229)
  
 266,518 
93.8%
89.1%
    Middlesex South/8A
94.9%
  
 -
  
(120,360)
7,995
(112,365)
  
 207,350 
61.5%
83.3%
    Monmouth County
91.9%
  
 -
  
(53,018)
44,395
(8,623)
  
 1,210,896 
91.3%
86.9%
    Princeton
93.2%
  
 -
  
(26,661)
22,439
(4,222)
  
 316,496 
92.0%
87.8%
    Somerset Route 78
89.7%
  
 (111,663)
  
 -
4,392
4,392
  
 454,799 
89.9%
82.0%
    The Brunswicks
100.0%
  
 -
  
 -
 -
 -
  
 40,000 
100.0%
82.5%
    Union Route 78
77.1%
  
 -
  
 (3,723)
 -
 (3,723)
  
 57,955 
72.4%
94.8%
    Woodbridge/Edison
98.9%
  
 -
  
(9,364)
12,438
 3,074 
  
 394,394 
99.7%
86.2%
  Total Central NJ
91.5%
  
 (111,663)
  
(417,215)
296,458
(120,757)
  
3,635,396
88.5%
85.0%
                       
  Westchester Co., NY
                      
    Elmsford
50.0%
  
 -
  
 (1,645)
 195 
 (1,450)
  
53,569
48.7%
86.7%
    Hawthorne
90.3%
  
 -
  
(31,572)
39,656
8,084
  
228,784
93.6%
94.5%
    White Plains CBD
80.4%
  
 -
  
(53,731)
40,668
(13,063)
  
524,010
78.4%
82.5%
    Yonkers
100.0%
  
 -
  
(26,591)
26,591
 -
  
170,000
100.0%
87.4%
  Total Westchester Co., NY
82.4%
  
 -
  
(113,539)
107,110
(6,429)
  
976,363
81.9%
85.3%
                       
  NYC-Downtown
100.0%
  
 -
  
 -
 -
 -
  
524,476
100.0%
90.5%
                       
  Washington DC/MD
                      
    DC-CBD
89.1%
  
 -
  
(732)
 1,633 
901
  
152,012
89.7%
90.7%
    DC-East End
100.0%
  
 -
  
 -
 -
 -
  
159,000
100.0%
89.1%
    MD-Greenbelt
68.6%
  
 -
  
(109,596)
113,449
3,853
  
581,521
69.0%
64.8%
    MD-Lanham
97.4%
  
 -
  
(58,033)
 16,282 
(41,751)
  
77,078
63.2%
62.8%
  Total Washington DC/MD
77.9%
  
 -
  
(168,361)
131,364
(36,997)
  
969,611
75.0%
87.9%
                       
Office Totals
82.4%
  
(420,304)
  
(1,979,857)
1,510,193
(469,664)
  
15,626,965
79.6%
85.1%

Schedules continue on next page.

Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
32
 


Leasing Statistics
(For the six months ended June 30, 2015)
 
Consolidated Commercial In-Service Portfolio

SUMMARY OF SPACE LEASED
                     
                     
         
LEASING ACTIVITY
      
Property Type
Pct. Leased
  
Leased Sq. Ft.
  
Expiring/Adjustment
Incoming
Net
  
Sq. Ft. Leased
Pct. Leased
  Market/Submarket
12/31/14
  
Acquired/Disposed (a)
  
Sq. Ft. (b)
Sq. Ft.
Leasing Activity
  
6/30/15 (c)
06/30/15
OFFICE/FLEX
                    
  Northern NJ
                    
    Suburban Passaic
95.9%
  
 -
  
 (17,322)
 3,499 
 (13,823)
  
411,215
92.8%
                     
  Central NJ
                    
    Mercer Southern
79.3%
  
 -
  
(16,302)
27,680
11,378
  
 146,219 
86.0%
    Monmouth County
93.4%
  
 -
  
(33,643)
33,643
 -
  
 274,990 
93.4%
  Total Central NJ
88.3%
  
 -
  
(49,945)
61,323
11,378
  
421,209
90.7%
                     
  Westchester Co., NY
                    
    Elmsford
95.0%
  
 -
  
 (174,663)
 174,728 
 65 
  
1,190,106
95.1%
    Hawthorne
87.8%
  
 -
  
(26,295)
44,561
18,266
  
472,151
91.4%
    Yonkers
92.5%
  
 -
  
(40,568)
47,247
6,679
  
543,472
93.7%
  Total Westchester Co., NY
92.8%
  
 -
  
(241,526)
266,536
25,010
  
2,205,729
93.9%
                     
  Burlington Co., NJ
86.0%
  
 (21,600)
  
 (152,255)
 174,868 
 22,613 
  
1,104,118
87.6%
                     
  Stamford, CT Non-CBD
96.3%
  
 -
  
 (95,000)
 95,000 
 -
  
262,928
96.3%
                     
Office/Flex Totals
91.1%
  
(21,600)
  
(556,048)
601,226
45,178
  
4,405,199
92.0%
                     
INDUSTRIAL
                    
  Westchester Co., NY
                    
    Elmsford
97.9%
  
 -
  
 (15,300)
 15,300 
 -
  
379,373
97.9%
                     
RETAIL
                    
  Northern NJ
                    
    Hudson Waterfront
52.2%
  
 -
  
 -
 -
 -
  
8,736
52.2%
                     
  Central NJ
                    
    Clark & Cranford
68.7%
  
 -
  
 -
 -
 -
  
4,074
68.7%
                     
  Westchester Co., NY
                    
    Tarrytown
 -
  
 -
  
 -
 9,300 
 9,300 
  
9,300
100.0%
    Yonkers
100.0%
  
 -
  
 -
 -
 -
  
8,000
100.0%
  Total Westchester Co., NY
46.2%
  
 -
  
 -
 9,300 
 9,300 
  
17,300
100.0%
                     
Retail Totals
52.1%
  
-
  
 -
 9,300 
 9,300 
  
30,110
75.3%
                     
COMPANY TOTALS
84.2%
  
(441,904)
  
(2,551,205)
2,136,019
(415,186)
  
20,441,647
82.3%
                     
 
RECONCILIATION OF TOTAL PROPERTY SQUARE FOOTAGE
 
 

   
   
Total sq. ft. as of December 31, 2014
25,288,590
    Total sq. ft. of properties added/sold/removed from service
 (450,769)
Total sq. ft. as of June 30, 2015
24,837,821

(a)  
Net gain/loss of leased square footage through properties sold, acquired or placed in service during the period.
(b)  
Represents the square footage of expiring leases and leases scheduled to expire in the future for which new leases or renewals were signed during the period, as well as internal administrative adjustments.
(c)  
Includes leases expiring June 30, 2015 aggregating 74,128 square feet for which no new leases were signed.
(d)  
Market percent leased derived by inverting the market direct vacancy rate for all classes as published by Cushman & Wakefield.  Data not available for other property types.

Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
33
 

Leasing Statistics
(For the six months ended June 30, 2015)
 
Consolidated Commercial In-Service Portfolio (continued)
 
 
DETAIL OF TRANSACTION ACTIVITY


                 
Property Type
# of
      
Sq. Ft  Renewed and
Wtd. Avg.
Wtd. Avg.
Leasing Costs Per
  Market/Submarket
Transactions
  
Total Sq. Ft.
Sq. Ft New Leases
Other Retained (a)
Term (Yrs.)
Base Rent (b)
Sq. Ft. Per Year (c)
                 
OFFICE
                
  Northern NJ
                
    Bergen Meadowlands
1
  
 2,193 
 -
 2,193 
 1.0 
 23.92 
 0.20 
    Bergen Route 4 East Corridor
2
  
 79,633 
 73,978 
 5,655 
 10.6 
 23.20 
 4.33 
    Bergen Route 17/GSP
28
  
 269,661 
 22,511 
 247,150 
 4.5 
 25.82 
 4.30 
    Essex Route 280 Corridor
13
  
 146,030 
 42,217 
 103,813 
 3.5 
 27.00 
 4.73 
    GW Bridge
12
  
 34,950 
 6,210 
 28,740 
 3.8 
 25.78 
 2.57 
    Hudson Waterfront
12
  
 105,210 
 12,555 
 92,655 
 5.6 
 35.01 
 4.21 
    Morris Route 10/24
4
  
 18,156 
 -
 18,156 
 4.2 
 21.86 
 3.53 
    Parsippany
31
  
 315,661 
 183,381 
 132,280 
 8.0 
 24.17 
 5.20 
    Suburban Passaic
2
  
 3,767 
 -
 3,767 
 4.2 
 20.18 
 1.07 
  Total Northern NJ
105
  
 975,261 
 340,852 
 634,409 
 6.1 
 26.14 
 4.66 
                 
  Central NJ
                
    Clark & Cranford
15
  
 68,903 
 24,265 
 44,638 
 4.6 
 22.77 
 2.49 
    Mercer Southern
2
  
 135,896 
- 
 135,896 
 5.0 
 31.71 
 3.21 
    Middlesex South/8A
4
  
 7,995 
 5,144 
 2,851 
 4.0 
 24.75 
 4.13 
    Monmouth County
5
  
 44,395 
 6,470 
 37,925 
 2.7 
 23.53 
 2.54 
    Princeton
10
  
 22,439 
 4,528 
 17,911 
 4.2 
 28.00 
 3.36 
    Somerset Route 78
1
  
 4,392 
4,392
- 
 5.1 
 24.87 
 6.65 
    Woodbridge/Edison
2
  
 12,438 
 -
 12,438 
 4.6 
 28.82 
 3.37 
  Total Central NJ
39
  
 296,458 
 44,799 
 251,659 
 4.5 
 27.71 
 3.07 
                 
  Westchester Co., NY
                
    Elmsford
1
  
 195 
 -
 195 
 3.0 
 27.03 
 0.20 
    Hawthorne
4
  
 39,656 
 -
 39,656 
 3.9 
 25.85 
 3.24 
    White Plains CBD
16
  
 40,668 
 -
 40,668 
 3.1 
 28.96 
 3.23 
    Yonkers
5
  
 26,591 
 -
 26,591 
 2.9 
 22.02 
 0.41 
  Total Westchester Co., NY
26
  
 107,110 
 -
 107,110 
 3.4 
 26.08 
 2.62 
                 
  Washington DC/MD
                
    DC-CBD
1
  
 1,633 
 1,633 
 -
 10.3 
 44.94 
 6.34 
    MD-Greenbelt
27
  
 113,449 
 9,709 
 103,740 
 3.2 
 24.09 
 2.19 
    MD-Lanham
1
  
 16,282 
 -
 16,282 
 5.4 
 19.52 
 2.86 
  Total Washington DC/MD
29
  
 131,364 
 11,342 
 120,022 
 3.6 
 23.78 
 2.46 
                 
OFFICE Totals/Weighted Avg.
199
  
1,510,193
396,993
1,113,200
 5.3 
 26.24 
 4.18 
                 
OFFICE/FLEX
                
  Northern NJ
                
    Suburban Passaic
1
  
 3,499 
 -
 3,499 
 2.0 
 16.15 
 0.20 
                 
  Central NJ
                
    Mercer Southern
3
  
 27,680 
 -
 27,680 
 7.2 
 16.94 
 2.85 
    Monmouth County
3
  
 33,643 
 -
 33,643 
 1.9 
 17.17 
 0.77 
  Total Central NJ
 6 
  
 61,323 
 -
 61,323 
 4.3 
 17.07 
2.35 
                 
  Westchester Co., NY
                
    Elmsford
22
  
 174,728 
 27,076 
 147,652 
 4.8 
 14.36 
 0.77 
    Hawthorne
5
  
 44,561 
 23,221 
 21,340 
 6.2 
 15.38 
 2.56 
    Yonkers
10
  
 47,247 
 -
 47,247 
 4.5 
 16.78 
 2.24 
  Total Westchester Co., NY
 37 
  
 266,536 
 50,297 
 216,239 
 5.0 
 14.96 
 1.37 
                 
  Burlington Co., NJ
14
  
174,868
19,343
 155,525 
 3.5 
 10.69 
 1.36 
                 
  Stamford, CT Non-CBD
2
  
 95,000 
 -
 95,000 
 1.9 
 29.81 
 2.80 
                 
OFFICE/FLEX Totals/Weighted Avg.
 60 
  
 601,226 
 69,640 
 531,586 
 4.0 
 16.29 
 1.58 

Schedules/Footnotes continue on next page.

Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
34
 


 
Leasing Statistics
 
 
(For the six months ended June 30, 2015)
 
Consolidated Commercial In-Service Portfolio (continued)
 
 
DETAIL OF TRANSACTION ACTIVITY


                 
                 
                 
Property Type
# of
  
Total
Sq. Ft.
Sq. Ft. Renewed and
Wtd. Avg.
Wtd. Avg
Leasing Costs Per
  Market/Submarket
Transactions
  
Sq. Ft.
New Leases
Other Retained (a)
Term (Yrs.)
Base Rent (b)
Sq. Ft. Per Year (c)
INDUSTRIAL
                
  Westchester Co., NY
                
    Elmsford
1
  
 15,300 
 15,300 
 -
 10.3 
 18.43 
 3.00 
                 
INDUSTRIAL Totals/Weighted Avg.
1
  
15,300
 15,300 
 -
 10.3 
 18.43 
 3.00 
                 
RETAIL
                
  Westchester Co., NY
                
    Tarrytown
1
  
 9,300 
 9,300 
 -
 15.4 
 35.99 
 2.20 
                 
RETAIL Totals/Weighted Avg.
1
  
9,300
 9,300 
 -
 15.4 
 35.99 
 2.20 
                 
COMPANY Totals/Weighted Avg.
 261 
  
2,136,019
491,233
1,644,786
 5.0 
 23.42 
 3.56 
                 
Tenant Retention
Leases Retained
75.4%
        
 
Sq. Ft. Retained
64.5%
        



   
(a)
"Other Retained" transactions include existing tenants' expansions and relocations within the same building.
(b)
Equals triple net rent plus common area costs and real estate taxes, as applicable.
(c)
Represents estimated workletter costs of $26,924,369 and commissions of $11,363,726 committed, but not necessarily expended, during the period for second generation space aggregating 2,136,019 square feet.
















Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
35
 



Market Diversification


The following table lists the Company’s markets (MSAs) based on annualized commercial contractual base rent of the Consolidated Commercial Properties:

         
         
   
Percentage of
    
   
Company
    
 
Annualized Base
Annualized
Total Property
  
 
Rental Revenue
Base Rental
Size Rentable
Percentage of
Market (MSA)
($) (a) (b) (c)
Revenue (%)
Area (b) (c)
Rentable Area (%)
Jersey City, NJ
113,064,740
23.7
4,334,714
17.5
Newark, NJ (Essex-Morris-Union Counties)
108,022,632
22.6
5,597,005
22.5
Westchester-Rockland, NY
68,855,542
14.4
3,945,912
15.9
Bergen-Passaic, NJ
62,054,404
13.0
3,911,522
15.7
Monmouth-Ocean, NJ
28,044,891
5.9
1,620,863
6.5
Washington, DC-MD-VA-WV
26,526,267
5.5
1,292,807
5.2
Middlesex-Somerset-Hunterdon, NJ
23,105,006
4.8
1,120,527
4.5
Trenton, NJ
18,641,883
3.9
956,597
3.9
New York (Manhattan)
17,874,043
3.7
524,476
2.1
Philadelphia, PA-NJ
7,618,686
1.6
1,260,398
5.1
Stamford-Norwalk, CT
4,214,288
0.9
273,000
1.1
         
Totals
478,022,382
100.0
24,837,821
100.0


   
   
(a)
Annualized base rental revenue is based on actual June 2015 billings times 12.  For leases whose rent commences after July 1, 2015, annualized base rental revenue is based on the first full month's billing times 12.  As annualized base rental revenue is not derived from historical GAAP results, historical results may differ from those set forth above.
(b)
Includes leases in effect as of the period end date, some of which have commencement dates in the future, and leases expiring June 30, 2015 aggregating 74,128 square feet and representing annualized rent of $1,411,583  for which no new leases were signed.
(c)
Includes office, office/flex, industrial/warehouse and stand-alone retail tenants only.  Excludes leases for amenity, retail, parking and month-to-month tenants.  Some tenants have multiple leases.






Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
36
 



Industry Diversification

The following table lists the Company’s 30 largest industry classifications based on annualized commercial contractual base rent of the Consolidated Commercial Properties:

         
         
 
Annualized
Percentage of
  
Percentage of
 
Base Rental
Company
Square
Total Company
 
Revenue
Annualized Base
Feet Leased
Leased
Industry Classification (a)
($) (b) (c) (d)
Rental Revenue (%)
(c) (d)
Sq. Ft. (%)
Securities, Commodity Contracts & Other Financial
66,676,868
13.8
2,206,643
11.0
Insurance Carriers & Related Activities
50,953,223
10.6
1,855,706
9.2
Manufacturing
36,098,360
7.6
1,712,561
8.6
Legal Services
34,354,884
7.2
1,279,252
6.4
Credit Intermediation & Related Activities
32,451,498
6.8
1,062,443
5.3
Computer System Design Svcs.
21,731,457
4.5
948,894
4.8
Health Care & Social Assistance
21,685,641
4.5
1,133,804
5.7
Accounting/Tax Prep.
19,495,783
4.1
728,717
3.7
Wholesale Trade
17,243,128
3.6
1,168,496
5.9
Telecommunications
16,188,297
3.4
892,240
4.5
Scientific Research/Development
15,239,401
3.2
503,444
2.5
Public Administration
14,502,774
3.0
532,084
2.7
Admin & Support, Waste Mgt. & Remediation Svcs.
14,277,443
3.0
703,543
3.5
Architectural/Engineering
13,526,949
2.8
522,335
2.6
Management/Scientific
11,865,810
2.5
464,688
2.3
Other Services (except Public Administration)
11,464,582
2.4
465,401
2.3
Other Professional
11,410,522
2.4
522,419
2.6
Real Estate & Rental & Leasing
8,468,547
1.8
450,549
2.3
Retail Trade
7,824,917
1.6
471,272
2.4
Advertising/Related Services
7,520,518
1.6
278,941
1.4
Utilities
6,375,526
1.3
267,320
1.3
Transportation
5,475,825
1.1
277,776
1.4
Educational Services
4,660,060
1.0
196,935
1.0
Construction
4,554,005
1.0
253,864
1.3
Data Processing Services
4,037,870
0.8
147,487
0.7
Publishing Industries
3,974,381
0.8
194,674
1.0
Arts, Entertainment & Recreation
3,259,294
0.7
240,102
1.2
Agriculture, Forestry, Fishing & Hunting
2,221,151
0.5
66,303
0.3
Information Services
2,070,132
0.4
69,259
0.3
Broadcasting
1,779,200
0.4
52,732
0.3
Other
6,634,336
1.6
275,943
1.5
         
TOTAL
478,022,382
100.0
19,945,827
100.0

(a)  
The Company’s tenants are classified according to the U.S. Government’s North American Industrial Classification System (NAICS).
(b)  
Annualized base rental revenue is based on actual June 2015 billings times 12. For leases whose rent commences after July 1, 2015, annualized base rental revenue is based on the first full month’s billing times 12. As annualized base rental revenue is not derived from historical GAAP results, historical results may differ from those set forth above.
(c)  
Includes leases in effect as of the period end date, some of which have commencement dates in the future, and leases expiring June 30, 2015 aggregating 74,128 square feet and representing annualized rent of $1,411,583 for which no new leases were signed.
(d)  
Includes office, office/flex, industrial/warehouse and stand-alone retail tenants only. Excludes leases for amenity, retail, parking and month-to-month tenants. Some tenants have multiple leases.

Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
37
 

Significant Tenants


The following table sets forth a schedule of the Company’s 50 largest tenants for the Consolidated Commercial Properties as of June 30, 2015, based upon annualized base rental revenue:

             
             
     
Percentage of
      
   
Annualized
Company
Square
Percentage
Year of
 
Number of
Base Rental
Annualized Base
Feet
Total Company
Lease
 
Properties
Revenue ($) (a)
Rental Revenue (%)
Leased
Leased Sq. Ft. (%)
Expiration
             
DB Services New Jersey, Inc.
2
12,335,217
2.6
409,166
2.1
2017
National Union Fire Insurance Company of Pittsburgh, PA
2
11,191,058
2.3
388,651
1.9
(b)
Bank Of Tokyo-Mitsubishi FUJI, Ltd.
1
10,540,716
2.2
282,606
1.4
(c)
Forest Research Institute, Inc.
1
9,070,892
1.9
215,659
1.1
2017
United States of America-GSA
12
8,875,098
1.9
287,169
1.4
(d)
Montefiore Medical Center
7
7,416,678
1.6
314,049
1.6
(e)
ICAP Securities USA, LLC
1
6,975,342
1.5
159,834
0.8
2017
TD Ameritrade Online Holdings
1
6,294,189
1.3
188,776
0.9
2020
Daiichi Sankyo, Inc.
1
6,277,788
1.3
171,900
0.9
2022
Merrill Lynch Pierce Fenner
1
5,883,780
1.2
294,189
1.5
2017
New Cingular Wireless PCS, LLC
2
4,841,564
1.0
212,816
1.1
2018
KPMG, LLP
2
4,678,873
1.0
170,023
0.9
(f)
HQ Global Workplaces, LLC
15
4,668,126
1.0
243,622
1.2
(g)
Vonage America, Inc.
1
4,427,500
0.9
350,000
1.8
2017
CohnReznick, LLP
2
4,333,954
0.9
155,056
0.8
(h)
Arch Insurance Company
1
4,005,563
0.8
106,815
0.5
2024
AECOM Technology Corporation
1
3,707,752
0.8
91,414
0.5
2029
UBS Financial Services, Inc.
1
3,535,047
0.7
124,773
0.6
(i)
Allstate Insurance Company
3
3,194,396
0.7
135,816
0.7
(j)
SunAmerica Asset Management, LLC
5
3,167,756
0.7
69,621
0.3
2018
Tullett Prebon Holdings Corp.
1
3,127,970
0.7
100,759
0.5
2023
Alpharma, LLC
1
3,098,092
0.6
112,235
0.6
2018
Xand Operations, LLC
2
3,014,150
0.6
131,078
0.7
2024
Morgan Stanley Smith Barney
1
2,951,125
0.6
103,173
0.5
(k)
E*Trade Financial Corporation
1
2,930,757
0.6
106,573
0.5
2022
Natixis North America, Inc.
2
2,823,569
0.6
89,907
0.5
2021
Continental Casualty Company
2
2,784,736
0.6
100,712
0.5
(l)
AAA Mid-Atlantic, Inc.
1
2,779,829
0.6
129,784
0.7
(m)
Tradeweb Markets, LLC
2
2,721,070
0.6
65,242
0.3
2027
Plymouth Rock Management Company of New Jersey
3
2,694,827
0.6
106,618
0.5
2020
Connell Foley, LLP
2
2,689,686
0.6
97,822
0.5
(n)
United Water Management & Services, Inc.
1
2,618,100
0.5
116,360
0.6
2035
New Jersey Turnpike Authority
1
2,605,798
0.5
100,223
0.5
2017
Lowenstein Sandler LLP
1
2,540,933
0.5
98,677
0.5
2017
Movado Group, Inc.
1
2,359,824
0.5
98,326
0.5
2018
AMTrust Financial Services, Inc.
1
2,306,760
0.5
76,892
0.4
2023
Bozzuto & Associates, Inc.
1
2,301,992
0.5
104,636
0.5
2025
Savvis Communications Corporation
1
2,287,168
0.5
71,474
0.4
2025
Norris, McLaughlin & Marcus, PA
1
2,259,738
0.5
86,913
0.4
2017
Bunge Management Services, Inc.
1
2,221,151
0.5
66,303
0.3
2020
Barr Laboratories, Inc.
1
2,209,107
0.5
89,510
0.4
2016
Sumitomo Mitsui Banking Corp.
2
2,170,167
0.5
71,153
0.4
2021
Herzfeld & Rubin, P.C.
1
2,140,236
0.4
56,322
0.3
2030
New Jersey City University
1
2,084,614
0.4
68,348
0.3
2035
Sun Chemical Management, LLC
1
2,034,798
0.4
66,065
0.3
2019
Syncsort, Inc.
1
1,991,439
0.4
73,757
0.4
2018
Jeffries, LLC
1
1,945,653
0.4
62,763
0.3
2023
American General Life Insurance Company
1
1,854,975
0.4
74,199
0.4
2024
Bressler, Amery & Ross, P.C.
1
1,766,850
0.4
70,674
0.4
2023
Withum Smith + Brown
3
1,740,738
0.4
64,165
0.3
(o)
Totals
  
198,477,141
41.7
7,032,618
34.5
  
See footnotes on subsequent page.

Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
38
 


Significant Tenants
(Continued)

 
   
   
(a)
Annualized base rental revenue is based on actual June 2015 billings times 12. For leases whose rent commences after July 1, 2015, annualized base rental revenue is based on the first full month’s billing times 12. As annualized base rental revenue is not derived from historical GAAP results, historical results may differ from those set forth above.
(b)
271,533 square feet expire in 2018; 117,118 square feet expire in 2019.
(c) 
20,649 square feet expire in 2018; 24,607 square feet expire in 2019; 237,350 square feet expire in 2029.
(d)
154,453 square feet expire in 2015; 56,270 square feet expire in 2016; 7,046 square feet expire in 2018; 28,102 square feet expire in 2020; 21,596 square feet expire in 2022; 19,702 square feet expire in 2023.
(e)
43,047 square feet expire in 2016; 59,302 square feet expire in 2017; 36,385 square feet expire in 2018; 133,763 square feet expire in 2019; 8,600 square feet expire in 2020; 14,842 square feet expire in 2021; 9,610 square feet expire in 2022; 8,500 square feet expire in 2023.
(f)
88,652 square feet expire in 2017; 81,371 square feet expire in 2019.
(g)
22,279 square feet expire in 2015; 12,407 square feet expire in 2017; 41,549 square feet expire in 2019; 21,008 square feet expire in 2020; 14,724 square feet expire in 2021; 36,158 square feet expire in 2023; 80,089 square feet expire in 2024; 15,408 square feet expire in 2027.
(h)
1,021 square feet expire in 2018; 154,035 square feet expire in 2020.
(i)
42,360 square feet expire in 2016; 13,340 square feet expire in 2022; 26,713 square feet expire in 2024; 42,360 square feet expire in 2026.
(j)
4,014 square feet expire in 2016; 75,740 square feet expire in 2017; 51,606 square feet expire in 2018; 4,456 square feet in 2019.
(k)
26,262 square feet expire in 2018; 34,516 square feet expire in 2025; 42,395 square feet expire in 2026.
(l)
6,488 square feet expire in 2015; 19,416 square feet expire in 2016; 74,808 square feet expire in 2031.
(m)
9,784 square feet expire in 2017; 120,000 square feet expire in 2027.
(n)
7,116 square feet expire in 2015; 77,719 square feet expire in 2016; 12,987 square feet expire in 2026.
(o)
5,427 square feet expire in 2015; 58,738 square feet expire in 2016.
   










Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
39
 


Schedule of Lease Expirations

All Consolidated Commercial Properties

 
The following table sets forth a schedule of lease expirations for the total of the Company’s office, office/flex, industrial/warehouse and stand-alone retail properties included in the Consolidated Commercial Properties beginning July 1, 2015, assuming that none of the tenants exercise renewal or termination options (with a breakdown by market for 2015 through 2017 only):
 

             
             
         
Average Annualized
  
     
Percentage of
  
 Base Rent Per
  
   
Net Rentable
Total Leased
Annualized
Net Rentable
Percentage of
   
Area Subject
Square Feet
Base Rental
Square Foot
Annual Base
Year of
Number of
To Expiring
Represented By
Revenue Under
Represented
Rent Under
Expiration/
Leases
Leases
Expiring
Expiring
By Expiring
Expiring
Market
Expiring (a)
(Sq. Ft.)
Leases (%)
Leases ($) (b)
Leases ($)
Leases (%)
             
   Third Quarter 2015
64
503,728
2.6
11,768,085
23.36
2.5
   Fourth Quarter 2015
43
147,154
0.7
3,637,569
24.72
0.7
TOTAL – 2015
107
650,882
3.3
15,405,654
23.67
3.2
             
2015 (c)
            
   Northern  NJ
33
140,712
0.7
3,335,806
23.71
0.7
   Central NJ
28
171,005
0.9
3,563,966
20.84
0.8
   Westchester Co., NY
24
110,504
0.5
1,954,083
17.68
0.4
   Manhattan
1
6,488
(d)
188,152
29.00
(d)
   Sub. Philadelphia
2
11,595
0.2
84,354
7.28
(d)
   Fairfield, CT
-
-
-
-
-
-
   Washington, DC/MD
19
210,578
1.0
6,279,293
29.82
1.3
TOTAL – 2015
107
650,882
3.3
15,405,654
23.67
3.2
             
             
2016
            
   Northern  NJ
103
704,541
3.5
17,818,880
25.29
3.6
   Central NJ
69
515,391
2.6
11,601,640
22.51
2.4
   Westchester Co., NY
71
334,536
1.7
6,598,703
19.72
1.4
   Manhattan
-
-
-
-
-
-
   Sub. Philadelphia
11
94,773
0.5
670,956
7.08
0.2
   Fairfield, CT
3
36,649
0.2
489,539
13.36
0.1
   Washington, DC/MD
30
139,036
0.7
3,671,277
26.41
0.8
TOTAL – 2016
287
1,824,926
9.2
40,850,995
22.39
8.5
             
             
2017
            
   Northern  NJ
124
1,970,926
9.8
57,238,754
29.04
12.1
   Central NJ
71
986,619
5.0
19,210,121
19.47
4.0
   Westchester Co., NY
69
342,418
1.7
7,227,956
21.11
1.5
   Manhattan
1
14,863
0.1
505,342
34.00
0.1
   Sub. Philadelphia
19
191,206
1.0
1,485,285
7.77
0.3
   Fairfield, CT
2
102,928
0.5
1,484,988
14.43
0.3
   Washington, DC/MD
23
104,335
0.5
3,081,925
29.54
0.6
TOTAL – 2017
309
3,713,295
18.6
90,234,371
24.30
18.9

Schedule continued, with footnotes, on subsequent page.


Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
40
 


Schedule of Lease Expirations

All Consolidated Commercial Properties
(continued)

             
             
         
Average Annualized
  
     
Percentage of
  
 Base Rent Per
  
   
Net Rentable
Total Leased
Annualized
Net Rentable
Percentage of
   
Area Subject
Square Feet
Base Rental
Square Foot
Annual Base
Year of
Number of
To Expiring
Represented By
Revenue Under
Represented
Rent Under
Expiration/
Leases
Leases
Expiring
Expiring
By Expiring
Expiring
Market
Expiring (a)
(Sq. Ft.)
Leases (%)
Leases ($) (b)
Leases ($)
Leases (%)
             
2018
287
2,745,969
13.8
61,327,863
22.33
12.8
             
2019
231
2,292,997
11.5
49,219,353
21.47
10.3
             
2020
206
1,721,196
8.6
38,439,117
22.33
8.0
             
2021
130
1,437,871
7.2
37,093,970
25.80
7.8
             
2022
96
1,085,420
5.4
27,076,039
24.95
5.7
             
2023
58
1,115,979
5.6
28,630,426
25.65
6.0
             
2024
56
1,052,878
5.3
26,445,642
25.12
5.5
             
2025
28
542,632
2.7
11,362,466
20.94
2.4
             
2026 and thereafter
55
1,761,782
8.8
51,936,486
29.48
10.9
Totals/Weighted
            
Average
1,850
19,945,827
100.0
478,022,382
23.97
100.0

(a)  
Includes office, office/flex, industrial/warehouse and stand-alone retail property tenants only. Excludes leases for amenity, retail, parking and month-to-month tenants.  Some tenants have multiple leases.
(b)  
Annualized base rental revenue is based on actual June 2015 billings times 12. For leases whose rent commences after July 1, 2015 annualized base rental revenue is based on the first full month’s billing times 12. As annualized base rental revenue is not derived from historical GAAP results, historical results may differ from those set forth above.
(c)  
Includes leases expiring June 30, 2015 aggregating 74,128 square feet and representing annualized rent of $1,411,583 for which no new leases were signed.
(d)  
Represents 0.05% or less.
(e)  
Reconciliation to Company’s total net rentable square footage is as follows:

   
 
Square Feet
Square footage leased to commercial tenants
19,945,827
Square footage used for corporate offices, management offices,
  
building use, retail tenants, food services, other ancillary
  
service tenants and occupancy adjustments
495,820
Square footage unleased
4,396,174
Total net rentable square footage (does not include land leases)
24,837,821


Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
41
 


Schedule of Lease Expirations

Office Properties

The following table sets forth a schedule of lease expirations for the office properties beginning July 1, 2015, assuming that none of the tenants exercise renewal or termination options (with a breakdown by market for 2015 through 2017 only):

               
               
           
Average Annualized
  
       
Percentage of
  
 Base Rent Per
  
   
Net Rentable
  
Total Leased
Annualized
Net Rentable
Percentage of
   
Area Subject
  
Square Feet
Base Rental
Square Foot
Annual Base
Year of
Number of
To Expiring
  
Represented By
Revenue Under
Represented
Rent Under
Expiration/
Leases
Leases
  
Expiring
Expiring
By Expiring
Expiring
Market
Expiring (a)
(Sq. Ft.)
  
Leases (%)
Leases ($) (b)
Leases ($)
Leases (%)
               
2015 (c)
              
   Northern  NJ
31
126,985
  
0.8
3,167,673
24.95
0.8
   Central NJ
21
100,518
  
0.7
2,617,900
26.04
0.6
   Westchester Co., NY
12
21,254
  
0.1
694,303
32.67
0.2
   Manhattan
1
6,488
  
(d)
188,152
29.00
(d)
   Washington, DC/MD
19
210,578
  
1.4
6,279,293
29.82
1.5
TOTAL – 2015
84
465,823
  
3.0
12,947,321
27.79
3.1
               
2016
              
   Northern  NJ
96
638,908
  
4.1
17,005,890
26.62
4.1
   Central NJ
57
396,025
  
2.6
9,786,240
24.71
2.4
   Westchester Co., NY
29
113,818
  
0.8
3,064,450
26.92
0.7
   Manhattan
-
-
  
-
-
-
-
   Washington, DC/MD
30
139,036
  
0.9
3,671,277
26.41
0.9
TOTAL – 2016
212
1,287,787
  
8.4
33,527,857
26.04
8.1
               
2017
              
   Northern NJ
117
1,941,300
  
12.7
56,902,720
29.31
13.7
   Central NJ
61
951,746
  
6.3
18,834,403
19.79
4.6
   Westchester Co., NY
29
83,559
  
0.6
2,479,863
29.68
0.6
   Manhattan
1
14,863
  
0.1
505,342
34.00
0.1
   Washington, DC/MD
23
104,335
  
0.7
3,081,925
29.54
0.8
TOTAL – 2017
231
3,095,803
  
20.4
81,804,253
26.42
19.8
               
2018
193
1,695,924
  
11.2
48,000,541
28.30
11.6
               
2019
173
1,516,831
  
10.0
38,605,918
25.45
9.3
               
2020
157
1,304,569
  
8.6
32,773,068
25.12
7.9
               
2021
104
1,177,156
  
7.8
33,318,941
28.30
8.1
               
2022
78
917,828
  
6.1
24,749,020
26.96
6.0
               
2023
44
881,973
  
5.8
25,452,192
28.86
6.2
               
2024
40
831,604
  
5.5
23,010,233
27.67
5.6
               
2025
17
339,581
  
2.2
8,781,260
25.86
2.1
               
2026 and thereafter
46
1,665,568
  
11.0
50,258,574
30.18
12.2
Totals/Weighted
              
  Average
1,379
15,180,447
(c)
100.0
413,229,178
27.22
100.0

(a)  
Includes office tenants only. Excludes leases for amenity, retail, parking and month-to-month tenants. Some tenants have multiple leases.
(b)  
Annualized base rental revenue is based on actual June 2015 billings times 12. For leases whose rent commences after July 1, 2015 annualized base rental revenue is based on the first full month’s billing times 12. As annualized base rental revenue is not derived from historical GAAP results, historical results may differ from those set forth above.
(c)  
Includes leases expiring June 30, 2015 aggregating 43,913 square feet and representing annualized rent of $882,651 for which no new leases were signed.
(d)  
Represents 0.05% or less.

Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
42
 


Schedule of Lease Expirations

Office/Flex Properties

The following table sets forth a schedule of lease expirations for the office/flex properties beginning July 1, 2015, assuming that none of the tenants exercise renewal or termination options (with a breakdown by market for 2015 through 2017 only):
 
               
           
Average Annualized
  
       
Percentage of
  
 Base Rent Per
  
   
Net Rentable
  
Total Leased
Annualized
Net Rentable
Percentage of
   
Area Subject
  
Square Feet
Base Rental
Square Foot
Annual Base
Year of
Number of
To Expiring
  
Represented By
Revenue Under
Represented
Rent Under
Expiration/
Leases
Leases
  
Expiring
Expiring
By Expiring
Expiring
Market
Expiring (a)
(Sq. Ft.)
  
Leases (%)
Leases ($) (b)
Leases ($)
Leases (%)
               
2015 (c)
              
   Northern  NJ
2
13,727
  
0.2
168,133
12.25
0.3
   Central NJ
5
67,473
  
1.5
874,366
12.96
1.4
   Westchester Co., NY
12
89,250
  
2.1
1,259,780
14.12
2.2
   Sub. Philadelphia
2
11,595
  
0.3
84,354
7.28
0.1
   Fairfield Co., CT
-
-
  
-
-
-
-
TOTAL – 2015
21
182,045
  
4.1
2,386,633
13.11
4.0
               
2016
              
   Northern  NJ
7
65,633
  
1.5
812,990
12.39
1.3
   Central NJ
11
118,306
  
2.7
1,791,544
15.14
3.0
   Westchester Co., NY
40
209,130
  
4.8
3,375,397
16.14
5.7
   Sub. Philadelphia
11
94,773
  
2.2
670,956
7.08
1.2
   Fairfield Co., CT
3
36,649
  
0.8
489,539
13.36
0.8
TOTAL – 2016
72
524,491
  
12.0
7,140,426
13.61
12.0
               
2017
              
   Northern NJ
7
29,626
  
0.7
336,034
11.34
0.6
   Central NJ
10
34,873
  
0.8
375,718
10.77
0.6
   Westchester Co., NY
40
258,859
  
5.9
4,748,093
18.34
8.0
   Sub. Philadelphia
19
191,206
  
4.4
1,485,285
7.77
2.5
   Fairfield Co., CT
2
102,928
  
2.4
1,484,988
14.43
2.5
TOTAL – 2017
78
617,492
  
14.2
8,430,118
13.65
14.2
               
2018
91
956,562
  
22.0
12,731,349
13.31
21.4
               
2019
55
731,721
  
16.8
9,799,932
13.39
16.5
               
2020
46
335,505
  
7.7
4,537,006
13.52
7.6
               
2021
26
260,715
  
6.0
3,775,029
14.48
6.3
               
2022
18
167,592
  
3.9
2,327,019
13.89
3.9
               
2023
11
146,485
  
3.4
2,129,159
14.53
3.6
               
2024
15
175,274
  
4.0
3,018,649
17.22
5.1
               
2025
10
195,051
  
4.5
2,285,606
11.72
3.8
               
2026 and thereafter
5
62,878
  
1.4
941,494
14.97
1.6
Totals/Weighted
              
  Average
448
4,355,811
(c)
100.0
59,502,420
13.66
100.0

(a)  
Includes office/flex tenants only.  Excludes leases for amenity, retail, parking and month-to-month tenants.  Some tenants have multiple leases.
(b)  
Annualized base rental revenue is based on actual June  2015 billings times 12. For leases whose rent commences after July 1, 2015, annualized base rental revenue is based on the first full month’s billing times 12. As annualized base rental revenue is not derived from historical GAAP results, historical results may differ from those set forth above. Includes office/flex tenants only.  Excludes leases for amenity, retail, parking and month-to-month tenants.  Some tenants have multiple leases.
(c)  
Includes leases expiring June 30, 2015 aggregating 30,215 square feet and representing annualized rent of $528,933 for which no new leases were signed.

Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
43
 

Schedule of Lease Expirations

Industrial Properties

The following table sets forth a schedule of lease expirations for the industrial properties beginning July 1, 2015, assuming that none of the tenants exercise renewal or termination options. All industrial/warehouse properties are located in the Westchester County, NY market:
 
               
           
Average Annualized
  
       
Percentage of
  
 Base Rent Per
  
   
Net Rentable
  
Total Leased
Annualized
Net Rentable
Percentage of
   
Area Subject
  
Square Feet
Base Rental
Square Foot
Annual Base
Year of
Number of
To Expiring
  
Represented By
Revenue Under
Represented
Rent Under
Expiration/
Leases
Leases
  
Expiring
Expiring
By Expiring
Expiring
Market
Expiring (a)
(Sq. Ft.)
  
Leases (%)
Leases ($) (b)
Leases ($)
Leases (%)
               
2016
2
11,588
  
3.1
158,856
13.71
3.5
               
2018
3
93,483
  
24.6
595,973
6.38
13.6
               
2019
3
44,445
  
11.7
813,503
18.30
18.5
               
2020
3
81,122
  
21.4
1,129,043
13.92
25.7
               
2023
3
87,521
  
23.1
1,049,075
11.99
23.9
               
2024
1
46,000
  
12.1
416,760
9.06
9.5
               
2026 and thereafter
2
15,300
  
4.0
231,548
15.13
5.3
Totals/Weighted
              
  Average
17
379,459
  
100.0
4,394,758
11.58
100.0

(a)  
Includes industrial/warehouse tenants only. Excludes leases for amenity, retail, parking and month-to-month industrial/warehouse tenants. Some tenants have multiple leases.
(b)  
Annualized base rental revenue is based on actual June 2015 billings times 12. For leases whose rent commences after July1, 2015, annualized base rental revenue is based on the first full month’s billing times 12. As annualized base rental revenue is not derived from historical GAAP results, the historical results may differ from those set forth above.

Stand-Alone Retail Properties

The following table sets forth a schedule of lease expirations for the stand-alone retail properties beginning July 1, 2015, assuming that none of the tenants exercise renewal or termination options (with a breakdown by market for 2015 and 2016 only):
 
               
           
Average Annualized
  
       
Percentage of
  
 Base Rent Per
  
   
Net Rentable
  
Total Leased
Annualized
Net Rentable
Percentage of
   
Area Subject
  
Square Feet
Base Rental
Square Foot
Annual Base
Year of
Number of
To Expiring
  
Represented By
Revenue Under
Represented
Rent Under
Expiration/
Leases
Leases
  
Expiring
Expiring
By Expiring
Expiring
Market
Expiring (a)
(Sq. Ft.)
  
Leases (%)
Leases ($) (b)
Leases ($)
Leases (%)
               
2015 (c)
              
   Central NJ
2
3,014
  
10.0
71,700
23.79
8.0
   Westchester
-
-
  
-
-
-
-
TOTAL – 2015
2
3,014
  
10.0
71,700
23.79
8.0
               
2016
              
   Central NJ
1
1,060
  
3.4
23,856
22.51
2.6
   Westchester
-
-
  
-
-
-
-
TOTAL – 2016
1
1,060
  
3.4
23,856
22.51
2.6
               
2025
1
8,000
  
26.6
295,600
36.95
33.0
               
2026 and thereafter
2
18,036
  
60.0
504,870
27.99
56.4
               
Totals/Weighted
              
  Average
6
30,110
  
100.0
896,026
29.76
100.0

(a)  
Includes stand-alone retail property tenants only.
Annualized base rental revenue is based on actual June 2015 billings times 12. For leases whose rent commences after July 1, 2015 annualized base rental revenue is based on the first full month’s billing times 12. As annualized base rental revenue is not derived from historical GAAP results, historical results may differ from those set forth above.

Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2015

 

 
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