Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.21.1
Segment Reporting
 3 Months Ended
Mar. 31, 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 three months ended March 31, 2021 and 2020. The Company had no long lived assets in foreign locations as of March 31, 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 three months ended March 31, 2021 and 2020 and selected asset information as of March 31, 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:

March 31, 2021

$

39,072

$

37,316

$

(295)

$

76,093

March 31, 2020

41,096

42,847 

(339)

83,604

Total operating and

interest expenses (a):

Three months ended:

March 31, 2021

$

16,122

$

22,156

$

27,995

$

66,273

March 31, 2020

16,651

22,773 

32,216 

71,640

Equity in earnings (loss) of

unconsolidated joint ventures:

Three months ended:

March 31, 2021

$

(119)

$

(1,337)

$

-

$

(1,456)

March 31, 2020

(117)

(591)

-

(708)

Net operating income (loss) (b):

Three months ended:

March 31, 2021

$

22,831

$

13,823

$

(28,290)

$

8,364

March 31, 2020

24,328

19,483 

(32,555)

11,256

Total assets:

March 31, 2021

$

1,623,931

$

3,281,872

$

254,555

$

5,160,358

December 31, 2020

1,881,161

3,249,516

17,109

5,147,786

Total long-lived assets (c):

March 31, 2021

$

1,449,483

$

3,075,106

$

(1,354)

$

4,523,235

December 31, 2020

1,693,054

3,035,485

(1,411)

4,727,128

Total investments in

unconsolidated joint ventures:

March 31, 2021

$

5,437

$

154,534

$

-

$

159,971

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

March 31,

2021

2020

Net operating income

$

8,364

$

11,256

Add (deduct):

Depreciation and amortization

(28,173)

(33,895)

Land and other impairments

(413)

(5,263)

Realized gains (losses) and unrealized losses on disposition of

rental property, net

-

(7,915)

Gain on disposition of developable land

-

4,813

Income (loss) from continuing operations

(20,222)

(31,004)

Discontinued operations

Income from discontinued operations

10,962

20,906

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

disposition of rental property and impairments, net

22,781

(27,746)

Total discontinued operations, net

33,743

(6,840)

Net income (loss)

13,521

(37,844)

Noncontrolling interests in consolidated joint ventures

1,335

176

Noncontrolling interests in Operating Partnership

2,305

3,562

Noncontrolling interest in discontinued operations

(3,067)

653

Redeemable noncontrolling interests

(6,471)

(6,471)

Net income (loss) available to common shareholders

$

7,623

$

(39,924)

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

March 31,

2021

2020

Net operating income

$

8,364

$

11,256

Add (deduct):

Depreciation and amortization

(28,173)

(33,895)

Land and other impairments

(413)

(5,263)

Realized gains (losses) and unrealized losses on disposition of

rental property, net

-

(7,915)

Gain on disposition of developable land

-

4,813

Income (loss) from continuing operations

(20,222)

(31,004)

Discontinued operations

Income from discontinued operations

10,962

20,906

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

disposition of rental property and impairments, net

22,781

(27,746)

Total discontinued operations, net

33,743

(6,840)

Net income (loss)

13,521

(37,844)

Noncontrolling interests in consolidated joint ventures

1,335

176

Redeemable noncontrolling interests

(6,471)

(6,471)

Net income (loss) available to common unitholders

$

8,385

$

(44,139)
 
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 three months ended March 31, 2021 and 2020. The Company had no long lived assets in foreign locations as of March 31, 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 three months ended March 31, 2021 and 2020 and selected asset information as of March 31, 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:

March 31, 2021

$

39,072

$

37,316

$

(295)

$

76,093

March 31, 2020

41,096

42,847 

(339)

83,604

Total operating and

interest expenses (a):

Three months ended:

March 31, 2021

$

16,122

$

22,156

$

27,995

$

66,273

March 31, 2020

16,651

22,773 

32,216 

71,640

Equity in earnings (loss) of

unconsolidated joint ventures:

Three months ended:

March 31, 2021

$

(119)

$

(1,337)

$

-

$

(1,456)

March 31, 2020

(117)

(591)

-

(708)

Net operating income (loss) (b):

Three months ended:

March 31, 2021

$

22,831

$

13,823

$

(28,290)

$

8,364

March 31, 2020

24,328

19,483 

(32,555)

11,256

Total assets:

March 31, 2021

$

1,623,931

$

3,281,872

$

254,555

$

5,160,358

December 31, 2020

1,881,161

3,249,516

17,109

5,147,786

Total long-lived assets (c):

March 31, 2021

$

1,449,483

$

3,075,106

$

(1,354)

$

4,523,235

December 31, 2020

1,693,054

3,035,485

(1,411)

4,727,128

Total investments in

unconsolidated joint ventures:

March 31, 2021

$

5,437

$

154,534

$

-

$

159,971

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

March 31,

2021

2020

Net operating income

$

8,364

$

11,256

Add (deduct):

Depreciation and amortization

(28,173)

(33,895)

Land and other impairments

(413)

(5,263)

Realized gains (losses) and unrealized losses on disposition of

rental property, net

-

(7,915)

Gain on disposition of developable land

-

4,813

Income (loss) from continuing operations

(20,222)

(31,004)

Discontinued operations

Income from discontinued operations

10,962

20,906

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

disposition of rental property and impairments, net

22,781

(27,746)

Total discontinued operations, net

33,743

(6,840)

Net income (loss)

13,521

(37,844)

Noncontrolling interests in consolidated joint ventures

1,335

176

Noncontrolling interests in Operating Partnership

2,305

3,562

Noncontrolling interest in discontinued operations

(3,067)

653

Redeemable noncontrolling interests

(6,471)

(6,471)

Net income (loss) available to common shareholders

$

7,623

$

(39,924)

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

March 31,

2021

2020

Net operating income

$

8,364

$

11,256

Add (deduct):

Depreciation and amortization

(28,173)

(33,895)

Land and other impairments

(413)

(5,263)

Realized gains (losses) and unrealized losses on disposition of

rental property, net

-

(7,915)

Gain on disposition of developable land

-

4,813

Income (loss) from continuing operations

(20,222)

(31,004)

Discontinued operations

Income from discontinued operations

10,962

20,906

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

disposition of rental property and impairments, net

22,781

(27,746)

Total discontinued operations, net

33,743

(6,840)

Net income (loss)

13,521

(37,844)

Noncontrolling interests in consolidated joint ventures

1,335

176

Redeemable noncontrolling interests

(6,471)

(6,471)

Net income (loss) available to common unitholders

$

8,385

$

(44,139)