Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.21.2
Segment Reporting
6 Months Ended
Jun. 30, 2021
Segment Reporting Information [Line Items]  
Segment Reporting 18.    SEGMENT REPORTING

The Company operates in two business segments: (i) commercial and other real estate and (ii) multi-family real estate and services. The Company provides leasing, property management, acquisition, development, construction and tenant-related services for its commercial and other real estate and multi-family real estate portfolio. The Company’s multi-family services business also provides similar services for third parties. The Company had no revenues from foreign countries recorded for the six months ended June 30, 2021 and 2020. The Company had no long lived assets in foreign locations as of June 30, 2021 and December 31, 2020. The accounting policies of the segments are the same as those described in Note 2: Significant Accounting Policies, excluding depreciation and amortization.

The Company evaluates performance based upon net operating income from the combined properties and operations in each of its real estate segments (commercial and other real estate and multi-family real estate and services). All properties classified as discontinued operations have been excluded.

Selected results of operations for the six months ended June 30, 2021 and 2020 and selected asset information as of June 30, 2021 and December 31, 2020 regarding the Company’s operating segments are as follows. Amounts for prior periods have been restated to conform to the current period segment reporting presentation (dollars in thousands):

Commercial

Multi-family

Corporate

Total

& Other Real Estate

Real Estate & Services (d)

& Other (e)

Company

Total revenues:

Three months ended:

June 30, 2021

$

41,446 

$

40,279 

$

(478)

$

81,247 

June 30, 2020

36,307 

38,234 

(344)

74,197 

Six months ended:

June 30, 2021

80,701 

77,596 

(957)

157,340 

June 30, 2020

77,403 

81,081 

(683)

157,801 

Total operating and

interest expenses (a):

Three months ended:

June 30, 2021

$

16,306 

$

30,909 

$

27,732 

$

74,947 

June 30, 2020

16,277

22,144 

32,243 

70,664

Six months ended:

June 30, 2021

35,973 

53,065 

52,182 

141,220 

June 30, 2020

36,473

44,917 

60,914 

142,304

Equity in earnings (loss) of

unconsolidated joint ventures:

Three months ended:

June 30, 2021

$

(14)

$

363 

$

-

$

349 

June 30, 2020

(377)

(569)

-

(946)

Six months ended:

June 30, 2021

(133)

(974)

-

(1,107)

June 30, 2020

(494)

(1,160)

-

(1,654)

Net operating income (loss) (b):

Three months ended:

June 30, 2021

$

25,126 

$

9,733 

$

(28,210)

$

6,649 

June 30, 2020

19,653

15,521 

(32,587)

2,587

Six months ended:

June 30, 2021

44,595 

23,557 

(53,139)

15,013 

June 30, 2020

40,436

35,004 

(61,597)

13,843

Total assets:

June 30, 2021

$

1,257,056 

$

3,304,351 

$

30,070 

$

4,591,477 

December 31, 2020

1,881,161 

3,249,516 

17,109 

5,147,786 

Total long-lived assets (c):

June 30, 2021

$

1,109,042 

$

3,101,034 

$

(1,642)

$

4,208,434 

December 31, 2020

1,693,054 

3,035,485 

(1,411)

4,727,128 

Total investments in

unconsolidated joint ventures:

June 30, 2021

$

3,610 

$

151,304 

$

-

$

154,914 

December 31, 2020

5,555 

156,827 

-

162,382 

(a)Total operating and interest expenses represent the sum of: real estate taxes; utilities; operating services; real estate services expenses; general and administrative, acquisition related costs and interest expense (net of interest income). All interest expense, net of interest and other investment income, (including for property-level mortgages) is excluded from segment amounts and classified in Corporate & Other for all periods.

(b)Net operating income represents total revenues less total operating and interest expenses (as defined and classified in Note “a”), plus equity in earnings (loss) of unconsolidated joint ventures, for the period.

(c)Long-lived assets are comprised of net investment in rental property, unbilled rents receivable and goodwill.

(d)Segment assets and operations were owned through a consolidated variable interest entity commencing in February 2018, and which also include

the Company’s consolidated hotel operations.

(e)Corporate & Other represents all corporate-level items (including interest and other investment income, interest expense, non-property general and administrative expense), as well as intercompany eliminations necessary to reconcile to consolidated Company totals.

Mack-Cali Realty Corporation

The following schedule reconciles net operating income to net income (loss) available to common shareholders (dollars in thousands):

Three Months Ended

Six Months Ended

June 30,

June 30,

2021

2020

2021

2020

Net operating income

$

6,649

$

2,587

$

15,013

$

13,843

Add (deduct):

Depreciation and amortization

(28,893)

(27,440)

(57,066)

(61,335)

Land and other impairments

(7,519)

(16,846)

(7,932)

(22,109)

Property impairments

(6,041)

-

(6,041)

-

Gain on change of control of interests

-

-

-

-

Realized gains (losses) and unrealized losses on disposition of

rental property, net

3,521

-

3,521

(7,915)

Gain on disposition of developable land

111

-

111

4,813

Gain on sale from unconsolidated joint ventures

-

-

-

-

Loss from extinguishment of debt, net

(46,735)

-

(46,735)

-

Loss from continuing operations

(78,907)

(41,699)

(99,129)

(72,703)

Discontinued operations

Income from discontinued operations

2,796

20,694

13,758

41,600

Realized gains (losses) and unrealized gains (losses) on

disposition of rental property and impairments, net

2,080

(11,929)

24,861

(39,675)

Total discontinued operations, net

4,876

8,765

38,619

1,925

Net loss

(74,031)

(32,934)

(60,510)

(70,778)

Noncontrolling interests in consolidated joint ventures

1,198

829

2,533

1,005

Noncontrolling interests in Operating Partnership

7,669

4,527

9,974

8,089

Noncontrolling interest in discontinued operations

(444)

(838)

(3,511)

(185)

Redeemable noncontrolling interests

(6,471)

(6,471)

(12,942)

(12,942)

Net loss available to common shareholders

$

(72,079)

$

(34,887)

$

(64,456)

$

(74,811)

Mack-Cali Realty, L.P.

The following schedule reconciles net operating income to net income (loss) available to common unitholders (dollars in thousands):

Three Months Ended

Six Months Ended

June 30,

June 30,

2021

2020

2021

2020

Net operating income

$

6,649

$

2,587

$

15,013

$

13,843

Add (deduct):

Depreciation and amortization

(28,893)

(27,440)

(57,066)

(61,335)

Land and other impairments

(7,519)

(16,846)

(7,932)

(22,109)

Property impairments

(6,041)

-

(6,041)

-

Realized gains (losses) and unrealized losses on disposition of

rental property, net

3,521

-

3,521

(7,915)

Gain on disposition of developable land

111

-

111

4,813

Loss from extinguishment of debt, net

(46,735)

-

(46,735)

-

Loss from continuing operations

(78,907)

(41,699)

(99,129)

(72,703)

Discontinued operations

Income from discontinued operations

2,796

20,694

13,758

41,600

Realized gains (losses) and unrealized gains (losses) on

disposition of rental property and impairments, net

2,080

(11,929)

24,861

(39,675)

Total discontinued operations, net

4,876

8,765

38,619

1,925

Net loss

(74,031)

(32,934)

(60,510)

(70,778)

Noncontrolling interests in consolidated joint ventures

1,198

829

2,533

1,005

Redeemable noncontrolling interests

(6,471)

(6,471)

(12,942)

(12,942)

Net loss available to common unitholders

$

(79,304)

$

(38,576)

$

(70,919)

$

(82,715)

 
Mack-Cali Realty LP [Member]  
Segment Reporting Information [Line Items]  
Segment Reporting 18.    SEGMENT REPORTING

The Company operates in two business segments: (i) commercial and other real estate and (ii) multi-family real estate and services. The Company provides leasing, property management, acquisition, development, construction and tenant-related services for its commercial and other real estate and multi-family real estate portfolio. The Company’s multi-family services business also provides similar services for third parties. The Company had no revenues from foreign countries recorded for the six months ended June 30, 2021 and 2020. The Company had no long lived assets in foreign locations as of June 30, 2021 and December 31, 2020. The accounting policies of the segments are the same as those described in Note 2: Significant Accounting Policies, excluding depreciation and amortization.

The Company evaluates performance based upon net operating income from the combined properties and operations in each of its real estate segments (commercial and other real estate and multi-family real estate and services). All properties classified as discontinued operations have been excluded.

Selected results of operations for the six months ended June 30, 2021 and 2020 and selected asset information as of June 30, 2021 and December 31, 2020 regarding the Company’s operating segments are as follows. Amounts for prior periods have been restated to conform to the current period segment reporting presentation (dollars in thousands):

Commercial

Multi-family

Corporate

Total

& Other Real Estate

Real Estate & Services (d)

& Other (e)

Company

Total revenues:

Three months ended:

June 30, 2021

$

41,446 

$

40,279 

$

(478)

$

81,247 

June 30, 2020

36,307 

38,234 

(344)

74,197 

Six months ended:

June 30, 2021

80,701 

77,596 

(957)

157,340 

June 30, 2020

77,403 

81,081 

(683)

157,801 

Total operating and

interest expenses (a):

Three months ended:

June 30, 2021

$

16,306 

$

30,909 

$

27,732 

$

74,947 

June 30, 2020

16,277

22,144 

32,243 

70,664

Six months ended:

June 30, 2021

35,973 

53,065 

52,182 

141,220 

June 30, 2020

36,473

44,917 

60,914 

142,304

Equity in earnings (loss) of

unconsolidated joint ventures:

Three months ended:

June 30, 2021

$

(14)

$

363 

$

-

$

349 

June 30, 2020

(377)

(569)

-

(946)

Six months ended:

June 30, 2021

(133)

(974)

-

(1,107)

June 30, 2020

(494)

(1,160)

-

(1,654)

Net operating income (loss) (b):

Three months ended:

June 30, 2021

$

25,126 

$

9,733 

$

(28,210)

$

6,649 

June 30, 2020

19,653

15,521 

(32,587)

2,587

Six months ended:

June 30, 2021

44,595 

23,557 

(53,139)

15,013 

June 30, 2020

40,436

35,004 

(61,597)

13,843

Total assets:

June 30, 2021

$

1,257,056 

$

3,304,351 

$

30,070 

$

4,591,477 

December 31, 2020

1,881,161 

3,249,516 

17,109 

5,147,786 

Total long-lived assets (c):

June 30, 2021

$

1,109,042 

$

3,101,034 

$

(1,642)

$

4,208,434 

December 31, 2020

1,693,054 

3,035,485 

(1,411)

4,727,128 

Total investments in

unconsolidated joint ventures:

June 30, 2021

$

3,610 

$

151,304 

$

-

$

154,914 

December 31, 2020

5,555 

156,827 

-

162,382 

(a)Total operating and interest expenses represent the sum of: real estate taxes; utilities; operating services; real estate services expenses; general and administrative, acquisition related costs and interest expense (net of interest income). All interest expense, net of interest and other investment income, (including for property-level mortgages) is excluded from segment amounts and classified in Corporate & Other for all periods.

(b)Net operating income represents total revenues less total operating and interest expenses (as defined and classified in Note “a”), plus equity in earnings (loss) of unconsolidated joint ventures, for the period.

(c)Long-lived assets are comprised of net investment in rental property, unbilled rents receivable and goodwill.

(d)Segment assets and operations were owned through a consolidated variable interest entity commencing in February 2018, and which also include

the Company’s consolidated hotel operations.

(e)Corporate & Other represents all corporate-level items (including interest and other investment income, interest expense, non-property general and administrative expense), as well as intercompany eliminations necessary to reconcile to consolidated Company totals.

Mack-Cali Realty Corporation

The following schedule reconciles net operating income to net income (loss) available to common shareholders (dollars in thousands):

Three Months Ended

Six Months Ended

June 30,

June 30,

2021

2020

2021

2020

Net operating income

$

6,649

$

2,587

$

15,013

$

13,843

Add (deduct):

Depreciation and amortization

(28,893)

(27,440)

(57,066)

(61,335)

Land and other impairments

(7,519)

(16,846)

(7,932)

(22,109)

Property impairments

(6,041)

-

(6,041)

-

Gain on change of control of interests

-

-

-

-

Realized gains (losses) and unrealized losses on disposition of

rental property, net

3,521

-

3,521

(7,915)

Gain on disposition of developable land

111

-

111

4,813

Gain on sale from unconsolidated joint ventures

-

-

-

-

Loss from extinguishment of debt, net

(46,735)

-

(46,735)

-

Loss from continuing operations

(78,907)

(41,699)

(99,129)

(72,703)

Discontinued operations

Income from discontinued operations

2,796

20,694

13,758

41,600

Realized gains (losses) and unrealized gains (losses) on

disposition of rental property and impairments, net

2,080

(11,929)

24,861

(39,675)

Total discontinued operations, net

4,876

8,765

38,619

1,925

Net loss

(74,031)

(32,934)

(60,510)

(70,778)

Noncontrolling interests in consolidated joint ventures

1,198

829

2,533

1,005

Noncontrolling interests in Operating Partnership

7,669

4,527

9,974

8,089

Noncontrolling interest in discontinued operations

(444)

(838)

(3,511)

(185)

Redeemable noncontrolling interests

(6,471)

(6,471)

(12,942)

(12,942)

Net loss available to common shareholders

$

(72,079)

$

(34,887)

$

(64,456)

$

(74,811)

Mack-Cali Realty, L.P.

The following schedule reconciles net operating income to net income (loss) available to common unitholders (dollars in thousands):

Three Months Ended

Six Months Ended

June 30,

June 30,

2021

2020

2021

2020

Net operating income

$

6,649

$

2,587

$

15,013

$

13,843

Add (deduct):

Depreciation and amortization

(28,893)

(27,440)

(57,066)

(61,335)

Land and other impairments

(7,519)

(16,846)

(7,932)

(22,109)

Property impairments

(6,041)

-

(6,041)

-

Realized gains (losses) and unrealized losses on disposition of

rental property, net

3,521

-

3,521

(7,915)

Gain on disposition of developable land

111

-

111

4,813

Loss from extinguishment of debt, net

(46,735)

-

(46,735)

-

Loss from continuing operations

(78,907)

(41,699)

(99,129)

(72,703)

Discontinued operations

Income from discontinued operations

2,796

20,694

13,758

41,600

Realized gains (losses) and unrealized gains (losses) on

disposition of rental property and impairments, net

2,080

(11,929)

24,861

(39,675)

Total discontinued operations, net

4,876

8,765

38,619

1,925

Net loss

(74,031)

(32,934)

(60,510)

(70,778)

Noncontrolling interests in consolidated joint ventures

1,198

829

2,533

1,005

Redeemable noncontrolling interests

(6,471)

(6,471)

(12,942)

(12,942)

Net loss available to common unitholders

$

(79,304)

$

(38,576)

$

(70,919)

$

(82,715)