Press Release

Mack-Cali Realty Corporation Reports Fourth Quarter and Full Year 2019 Results

Company Release - 2/26/2020 7:36 PM ET

JERSEY CITY, N.J., Feb. 26, 2020 /PRNewswire/ -- Mack-Cali Realty Corporation (NYSE: CLI) today reported its results for the fourth quarter and full year 2019.

Mack-Cali Realty Corporation logo (PRNewsFoto/Mack-Cali Realty Corporation) (PRNewsfoto/Mack-Cali Realty Corporation)

FOURTH QUARTER 2019 HIGHLIGHTS

  • Reported net income (loss) of $(0.64) per diluted share for the quarter and net income of $0.95 per diluted share for the year ended December 31, 2019;
  • Achieved Core Funds from Operations per diluted share of $0.44 for the fourth quarter and $1.62 for full year 2019;
  • Roseland's 6,524-unit multifamily stabilized portfolio was 95.0% leased at December 31, 2019, with an average rent of $2,938 per unit;
  • Roseland's same-store portfolio, consisting of 4,287 units, experienced a 5.4% increase in NOI over fourth quarter 2018. Over the same period, revenues grew 0.6%, and expenses decreased by 6.9%;
  • In October, Roseland completed the sale of Alterra and The Chase at Overlook Ridge for $411.5 million, completing the 1031 Exchange into Liberty Towers in Jersey City, NJ;
  • Leased 169,333 sq. ft. of commercial space: 27,746 sq. ft. on the Waterfront, 141,587 sq. ft. class A suburban and suburban; growing Core portfolio office rental rates by 6.5% on a cash basis and 19.9% on a GAAP basis;
  • Core office portfolio was 80.7% leased, with the class A suburban portfolio at 89.7%, Suburban at 79.0% and Waterfront at 77.8% leased at December 31, 2019;
  • The Company's office same-store portfolio, consisting of 10,130,064 sq. ft., experienced a 3.5% increase in Cash NOI and a 6.0% increase in GAAP NOI over the fourth quarter 2018; and
  • Declared $0.20 per share quarterly common stock dividend.

Michael J. DeMarco, Chief Executive Officer stated, "In 2019, we achieved a number of important milestones, including the completion of over $2.1 billion of transactions and the launch of our final non-core disposition initiative. Waterfront office leasing, while slower than prior years, is beginning to show some improvement; and our residential properties continue to perform ahead of our expectations.  Leasing and balance sheet management are top priorities in 2020 as we continue to work to maximize value for our shareholders."

FINANCIAL HIGHLIGHTS

* All per share amounts presented below are on a diluted basis.

Net income (loss) available to common shareholders for the quarter ended December 31, 2019 amounted to $(54.7) million, or $(0.64) per share, as compared to $43.8 million, or $0.45 per share, for the quarter ended December 31, 2018. For the year ended December 31, 2019, net income available to common shareholders equaled $111.9 million, or $0.95 per share, as compared to $84.1 million, or $0.80 per share, for the same period last year.

Funds from operations (FFO) for the quarter ended December 31, 2019 amounted to $12.2 million, or $0.12 per share, as compared to $49.0 million, or $0.49 per share, for the quarter ended December 31, 2018. For the year ended December 31, 2019, FFO equaled $116.1 million, or $1.15 per share, as compared to $170.4 million, or $1.69 per share, for the same period last year.

For the fourth quarter 2019, Core FFO was $44.1 million, or $0.44 per share, as compared to $45.3 million, or $0.45 per share for the same period last year. For the year ended December 31, 2019, Core FFO equaled $163.1 million, or $1.62 per share, as compared to $184.5 million, or $1.83 per share, for the same period last year.

OPERATING HIGHLIGHTS

Office

The Company's consolidated Core office properties were 80.7 percent leased at December 31, 2019, as compared to 80.8 percent leased at September 30, 2019 and 83.2 percent leased at December 31, 2018.

Fourth quarter 2019 same-store GAAP revenues for the office portfolio increased by 2.5 percent while same-store GAAP NOI increased by 6.0 percent from the same period in 2018. Fourth quarter 2019 same store cash revenues for the office portfolio increased by 0.9 percent while same store cash NOI grew by 3.5 percent from 2018. Same store cash revenues and same store cash NOI exclude straight-line rent and FAS 141 adjustments.

For the quarter ended December 31, 2019, the Company executed 21 leases at its consolidated in-service commercial portfolio, totaling 169,333 square feet. Of these totals, 10 leases for 51,579 square feet (30.5 percent) were for new leases and 11 leases for 117,754 square feet (69.5 percent) were lease renewals and other tenant retention transactions.

Rental rate roll-up for the Core portfolio for fourth quarter 2019 transactions was 6.5 percent on a cash basis and 19.9 percent on a GAAP basis. Rental rate roll-up in the fourth quarter 2019 for new transactions was 5.8 percent on a cash basis and 10.9 percent on a GAAP basis; and for renewals and other tenant retention transactions was 6.7 percent on a cash basis and 23.0 percent on a GAAP basis. 

Multifamily

Roseland's stabilized operating portfolio was 95.0 percent leased at December 31, 2019, as compared to 96.7 percent at September 30, 2019. Same-store revenues, inclusive of the negative impacts from the Company's active renovation program at Marbella and Monaco, increased by 0.6 percent resulting in same-store net operating income growth of 5.4 percent for the fourth quarter 2019.

TRANSACTION ACTIVITY

For the fourth quarter 2019, the Company completed a number of sales and financings, including the following:

  • In October, the Company completed the sale of its 1,386-unit residential community in Malden and Revere, MA for $411.5 million, thereby closing out the 1031 Exchange with the Liberty Towers in Jersey City, NJ acquisition;
  • In October, the Company secured a $74 million bridge loan on the Marriott Hotels at Port Imperial in Weehawken, NJ with an additional $20 million of proceeds availability;
  • In October, the Company sold 3600 Route 66, a 180,000-square-foot fully leased office building in Neptune, NJ for $26.05 million ($145 PSF);
  • In October, the Company received its portion of proceeds from the sale of its URBY tax credit totaling approximately $2.6 million. This gain was recognized in the fourth quarter; and
  • In December, the Company sold 5 Wood Hollow Road, a 317,000-square-foot office building in Parsippany, NJ for $29.3 million.

BALANCE SHEET/CAPITAL MARKETS

As of December 31, 2019, the Company had a debt-to-undepreciated assets ratio of 48.0 percent compared to 47.6 percent at September 30, 2019 and 45.3 percent at December 31, 2018. Net debt to adjusted EBITDA for the quarter ended December 31, 2019 was 9.7x compared to 9.3x for the quarter ended December 31, 2018.  The Company's interest coverage ratio was 3.0x for the quarter ended December 31, 2019, compared to 3.1x for the quarter ended December 31, 2018.

DIVIDEND

In December 2019, the Company's Board of Directors declared a quarterly cash dividend of $0.20 per common share (indicating an annual rate of $0.80 per common share) for the fourth quarter 2019, which was paid on January 10, 2020 to shareholders of record as of January 3, 2020.

GUIDANCE AND OUTLOOK

The Company is presenting initial Core FFO guidance of $1.24 - $1.36 per diluted share for full year 2020, as follows:

 



Full Year




2020 Range


Net income (loss) available to common shareholders

$

(1.06)

-

$

(0.94)


Add (deduct):



Real estate-related depreciation and amortization on continuing operations


2.30


Core FFO

$

1.24

-

$

1.36


 

2020 Guidance Assumptions 

($ in millions)


Low


High

Multifamily Revenue Growth

2.2%


3.2%

Multifamily Expense Growth

1.5%


2.5%

Multifamily Same Store NOI Growth

2.2%


3.3%

Office Occupancy (year-end % leased)

79%


81%

Office Same Store GAAP NOI Growth

1%


3%

Office Same Store Cash NOI Growth

3%


7%

Straight-Line Rent Adjustment & FAS 141 Mark-to-Market Rent Adjustment

$4


$12

Dispositions

$1,000


$1,200

Base Building Capex

$12


$20

Leasing Capex

$50


$70

G&A

$40


$44

Interest Expense

$75


$85





Guidance Rollforward

($ per share)


Low


High

2019 Core FFO per share

$1.62


$1.62





2019 Operating Assets




Waterfront Same-Store

$0.03


$0.04

Residential Same-Store

0.02


0.04

Total

$0.05


$0.08





Transitioning Assets




Discontinued Operations Sales

($0.30)


($0.25)

2019/2020 Flex & Other Office Sales

(0.21)


(0.21)

2019 Residential Transaction Activity

(0.03)


(0.03)

2019/2020 Development Activity

0.02


0.02

Total

($0.52)


($0.47)





Corporate




Interest Expense

$0.15


$0.17

General & Administrative

0.02


0.04

Rockpoint Distributions

(0.03)


(0.03)

Other (1)

(0.05)


(0.05)

Total

$0.09


$0.13





2020 Core FFO per share

$1.24


$1.36


(1)

Includes Hotel operations, lease termination fees, real estate services, Plaza 1 removal from service, and other non-recurring adjustments.

This guidance reflects management's view of current market conditions and certain assumptions with regard to rental rates, occupancy levels and other assumptions/projections. Actual results could differ from these estimates.

CONFERENCE CALL/SUPPLEMENTAL INFORMATION

An earnings conference call with management is scheduled for February 27, 2020 at 8:00 a.m. Eastern Time, which will be broadcast live via the Internet at:

https://edge.media-server.com/mmc/p/tpvr22fj

The live conference call is also accessible by calling (323) 794-2597 and requesting the Mack-Cali conference call.

The conference call will be rebroadcast on Mack-Cali's website at http://investors.mack-cali.com/corporate-profile beginning at 10:30 a.m. Eastern Time on February 27, 2020.

A replay of the call will also be accessible February 27, 2020 through March 5, 2020 by calling (719) 457-0820 and using the pass code, 8919100.

Copies of Mack-Cali's 2019 Form 10-K and fourth quarter Supplemental Operating and Financial Data are available on Mack-Cali's website, as follows:

2019 Form 10-K:
http://investors.mack-cali.com/sec-filings

Fourth Quarter 2019 Supplemental Operating and Financial Data:
http://investors.mack-cali.com/quarterly-supplementals 
In addition, these items are available upon request from:
Mack-Cali Investor Relations Department - Deidre Crockett
Harborside 3, 210 Hudson St., Ste. 400, Jersey City, New Jersey 07311
(732) 590-1025

INFORMATION ABOUT FFO

Funds from operations ("FFO") is defined as net income (loss) before noncontrolling interests in Operating Partnership, computed in accordance with generally accepted accounting principles ("GAAP"), excluding gains or losses from depreciable rental property transactions (including both acquisitions and dispositions), 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 property transactions 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 accompanying this press release.

Core FFO is defined as FFO, as adjusted for certain items to facilitate comparative measurement of the Company's performance over time.  Core FFO is presented solely as supplemental disclosure that the Company's management believes provides useful information to investors and analysts of its results, after adjusting for certain items to facilitate comparability of its performance from period to period. Core FFO is a non-GAAP financial measure that is not intended to represent cash flow and is not indicative of cash flows provided by operating activities as determined in accordance with GAAP.  As there is not a generally accepted definition established for Core FFO, the Company's measures of Core FFO may not be comparable to the Core FFO reported by other REITs.  A reconciliation of net income per share to Core FFO in dollars and per share is included in the financial tables accompanying this press release.

ABOUT THE COMPANY

One of the country's leading real estate investment trusts (REITs), Mack-Cali Realty Corporation is an owner, manager and developer of premier office and multifamily properties in select waterfront and transit-oriented markets throughout the Northeast. Mack-Cali is headquartered in Jersey City, New Jersey, and is the visionary behind the city's flourishing waterfront, where the company is leading development, improvement and place-making initiatives for Harborside, a master-planned destination comprised of class A office, luxury apartments, diverse retail and restaurants, and public spaces.

A fully-integrated and self-managed company, Mack-Cali has provided world-class management, leasing, and development services throughout New Jersey and the surrounding region for two decades. By regularly investing in its properties and innovative lifestyle amenity packages, Mack-Cali creates environments that empower tenants and residents to reimagine the way they work and live.

For more information on Mack-Cali Realty Corporation and its properties, visit www.mack-cali.com.

The information in this press release must be read in conjunction with, and is modified in its entirety by, the Annual Report on Form 10-K (the "10-K") 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-K, the footnotes thereto and the limitations set forth therein. Investors may not rely on the press release without reference to the 10-K and the Public Filings.

We consider portions of this report, including the documents incorporated by reference, to be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended.  We intend 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," "target," "continue" or comparable terminology.  Forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which we cannot predict with accuracy and some of which we might not even anticipate.  Although we believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, we 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.


Contacts:  

Michael J. DeMarco 

David Smetana  

Deidre Crockett


 Mack-Cali Realty Corporation 

Mack-Cali Realty Corporation  

Mack-Cali Realty Corporation


Chief Executive Officer 

Chief Financial Officer 

Chief Administrative Officer


 (732) 590-1589  

(732) 590-1035 

(732) 590-1025


mdemarco@mack-cali.com 

dsmetana@mack-cali.com 

investorrelations@mack-cali.com  

 

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



Three Months Ended


Year Ended


December 31,


December 31,

REVENUES


2019



2018



2019



2018

Revenue from leases

$

71,195


$

79,479


$

296,142


$

317,783

Real estate services


3,090



3,927



13,873



17,094

Parking income


5,760



5,477



21,857



21,907

Hotel income


4,139



-



9,841



-

Other income


2,489



1,394



9,222



8,930

    Total revenues


86,673



90,277



350,935



365,714













EXPENSES












Real estate taxes


10,185



7,625



43,998



44,389

Utilities


3,276



5,517



17,881



23,799

Operating services


16,820



17,978



69,641



70,074

Real estate services expenses


3,768



4,223



15,918



17,919

Leasing personnel costs


444



-



2,261



-

General and administrative


16,516



12,813



57,535



53,865

Depreciation and amortization


35,906



30,266



132,016



112,244

Land and other impairments


27,356



24,566



32,444



24,566

    Total expenses


114,271



102,988



371,694



346,856













OTHER (EXPENSE) INCOME












Interest expense


(22,751)



(22,265)



(90,569)



(77,346)

Interest and other investment income (loss)


886



768



2,412



3,219

Equity in earnings (loss) of unconsolidated joint ventures


(437)



(960)



(1,319)



(127)

Gain on change of control of interests


-



-



13,790



14,217

Realized gains (losses) and unrealized losses on disposition of












  rental property, net


112,228



49,342



345,926



99,436

Gain (loss) on disposition of developable land


(44)



30,939



522



30,939

Gain on sale of investment in unconsolidated joint venture


-



-



903



-

Gain (loss) from extinguishment of debt, net


(153)



(461)



1,648



(8,929)

    Total other income (expense)


89,729



57,363



273,313



61,409

Income (loss) from continuing operations


62,131



44,652



252,554



80,267

Discontinued operations:












Income from discontinued operations


2,770



7,871



27,456



26,134

Realized gains (losses) and unrealized losses on












  disposition of rental property and impairments, net


(120,309)



-



(136,174)



-

Total discontinued operations, net


(117,539)



7,871



(108,718)



26,134

Net income (loss)


(55,408)



52,523



143,836



106,401

Noncontrolling interest in consolidated joint ventures


1,404



640



3,904



1,216

Noncontrolling interest in Operating Partnership of income from continuing 
  operations


(5,494)



(4,153)



(23,685)



(6,866)

Noncontrolling interests in Operating Partnership in discontinued operations


11,317



(800)



10,421



(2,661)

Redeemable noncontrolling interests


(6,471)



(4,406)



(22,615)



(13,979)

Net income (loss) available to common shareholders

$

(54,652)


$

43,804


$

111,861


$

84,111













Basic earnings per common share:












Income from continuing operations

$

0.53


$

0.37


$

2.03



0.54

Discontinued operations


(1.17)



0.08



(1.08)



0.26

Net income (loss) available to common shareholders

$

(0.64)


$

0.45


$

0.95


$

0.80













Diluted earnings per common share:












Income from continuing operations

$

0.53


$

0.37


$

2.03


$

0.54

Discontinued operations


(1.17)



0.08



(1.08)



0.26

Net income (loss) available to common shareholders

$

(0.64)


$

0.45


$

0.95


$

0.80













Basic weighted average shares outstanding


90,611



90,488



90,557



90,388













Diluted weighted average shares outstanding


100,264



100,845



100,689



100,724

 

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



Three Months Ended


Year Ended


December 31,


December 31,



2019




2018




2019




2018


Net income (loss) available to common shareholders

$

(54,652)



$

43,804



$

111,861



$

84,111


Add (deduct): Noncontrolling interest in Operating Partnership


5,494




4,153




23,685




6,866


Noncontrolling interests in discontinued operations


(11,317)




800




(10,421)




2,661


Real estate-related depreciation and amortization on continuing operations (a)


39,155




33,655




143,352




128,333


Real estate-related depreciation and amortization on discontinued operations


21,776




15,923




72,194




62,061


Property impairments


-




-




11,696




-


Impairment of unconsolidated joint venture investment
















  (included in Equity in earnings)


3,661




-




3,661




-


Gain on change of control of interests


-




-




(13,790)




(14,217)


Gain on sale of investment in unconsolidated joint venture


-




-




(903)




-


Continuing operations: Realized (gains)/losses and unrealized losses 
















  on disposition of rental property, net


(112,228)




(49,342)




(345,926)




(99,436)


Discontinued operations: Realized (gains) losses and unrealized losses on
















  disposition of rental property, net


120,309




-




120,722




-


Funds from operations (b)

$

12,198



$

48,993



$

116,131



$

170,379


















Add/(Deduct):
















(Gain)/loss from extinguishment of debt, net


153




461




(1,648)




10,750


Land and other impairments


27,356




24,566




36,200




24,566


(Gain) loss on disposition of developable land


44




(30,939)




(522)




(30,939)


Severance/separation costs on management restructuring


-




450




1,839




7,937


Strategic direction costs


4,629




-




4,629




-


Reporting systems conversion costs


998




-




998




-


Dead deal costs


-




893




271




893


Management contract termination costs


-




-




1,021




-


Proxy fight costs


-




-




4,171




-


New payroll tax consulting costs


-




903




1,313




903


Noncontrolling interest share on consolidated joint ventures
















   impairment charges


(1,263)




-




(1,263)




-


Core FFO

$

44,115



$

45,327



$

163,140



$

184,489


















Diluted weighted average shares/units outstanding (c)


100,264




100,845




100,689




100,724


















Funds from operations per share/unit-diluted

$

0.12



$

0.49



$

1.15



$

1.69


















Core funds from operations per share/unit diluted

$

0.44



$

0.45



$

1.62



$

1.83


















Dividends declared per common share

$

0.20



$

0.20



$

0.80



$

0.80


















Dividend payout ratio:
















     Core Funds from operations-diluted


45.45

%



44.49

%



49.38

%



43.68

%

















Supplemental Information:
















Non-incremental revenue generating capital expenditures:
















     Building improvements

$

6,012



$

2,639



$

12,418



$

7,236


     Tenant improvements & leasing commissions (d)

$

9,354



$

11,429



$

29,330



$

38,303


Tenant improvements & leasing commissions
















  on space vacant for more than a year

$

888



$

8,433



$

14,724



$

30,761


Straight-line rent adjustments (e)

$

4,084



$

4,204



$

14,616



$

8,598


Amortization of (above)/below market lease intangibles, net (f)

$

1,116



$

1,054



$

4,268



$

5,389


Amortization of stock compensation

$

2,192



$

2,064



$

8,481



$

7,401


Amortization of lease inducements

$

(15)



$

166



$

460



$

932


Non real estate depreciation and amortization

$

431



$

557



$

2,092



$

2,139


Amortization of deferred financing costs

$

1,147



$

1,486



$

4,625



$

5,029



















(a)

Includes the Company's share from unconsolidated joint ventures of $3,677 and $3,810 for the three months ended December 31, 2019 and 2018, respectively, and $13,018 and $17,683 for the years ended December 31, 2019 and 2018, respectively.  Excludes non-real estate-related depreciation and amortization of $431 and $557 for the three months ended December 31, 2019 and 2018, respectively, and $2,092 and $2,139 for the years ended December 31, 2019 and 2018, 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" in this release.

(c)

Calculated based on weighted average common shares outstanding, assuming redemption of Operating Partnership common units into common shares (9,530 and 10,176 shares for the three months ended December 31, 2019 and 2018, respectively, and 9,852 and 10,204 for the years ended December 31, 2019 and 2018, respectively), plus dilutive Common Stock Equivalents (i.e. stock options).

(d)

Excludes expenditures for tenant spaces that have not been owned for at least a year.

(e)

Includes free rent of $5,329 and $4,428 for the three months ended December 31, 2019 and 2018, respectively, and $21,424 and $16,545 for the years ended December 31, 2019 and 2018, respectively.  Also, includes the Company's share from unconsolidated joint ventures of $186 and $(165) for the three months ended December 31, 2019 and 2018, respectively, and $127 and $(955) for the years ended December 31, 2019 and 2018, respectively.

(f)

Includes the Company's share from unconsolidated joint ventures of $0 and $0 for the three months ended December 31, 2019 and 2018, respectively, and $0 and $107 for the years ended December 31, 2019 and 2018, respectively.

 


Statements of Funds from Operations (FFO) and Core FFO per Diluted Share
(amounts are per diluted share, except share counts in thousands) (unaudited)



Three Months Ended


Year Ended


December 31,


December 31,



2019



2018



2019



2018

Net income (loss) available to common shareholders

$

(0.64)


$

0.45


$

0.95


$

0.80

Add (deduct): Real estate-related depreciation and amortization












  on continuing operations (a)


0.39



0.33



1.42



1.27

Real estate-related depreciation and amortization


0.22



0.16



0.72



0.62

  on discontinued operations












Redemption value adjustment to redeemable noncontrolling interests


0.03



0.03



0.29



0.13

Property impairments


-



-



0.12



-

Impairment of unconsolidated joint venture investment












  (included in Equity in earnings)


0.04



-



0.04



-

Gain on change of control of interests


-



-



(0.14)



(0.14)

Gain on sale of investment in unconsolidated joint venture


-



-



(0.01)



-

Continuing operations: Realized (gains) losses and unrealized losses












  on disposition of rental property, net


(1.12)



(0.49)



(3.44)



(0.99)

Discontinued operations: Realized (gains) losses and unrealized losses 












  on disposition of rental property, net


1.20



-



1.20



-

Noncontrolling interest/rounding adjustment


-



0.01



-



-

Funds from operations (b)

$

0.12


$

0.49


$

1.15


$

1.69













Add/(Deduct):












Dead deal costs


-



0.01



-



0.01

(Gain)/loss from extinguishment of debt, net


-



-



(0.02)



0.11

Land and other impairments


0.27



0.24



0.36



0.24

Gain on disposition of developable land


-



(0.31)



(0.01)



(0.31)

Severance/separation costs on management restructuring


-



-



0.02



0.08

Management contract termination costs


-



-



0.01



-

Strategic direction costs


0.05



-



0.05



-

Reporting systems conversion costs


0.01



-



0.01



-

Proxy fight costs


-



-



0.04



-

New payroll tax consulting costs


-



0.01



0.01



0.01

Noncontrolling interest share of consolidated joint venture












  impairment charges


(0.01)



-



(0.01)



-

Noncontrolling interest/rounding adjustment


-



0.01



0.01



-

Core FFO

$

0.44


$

0.45


$

1.62


$

1.83

Diluted weighted average shares/units outstanding (c)


100,264



100,845



100,689



100,724


(a)

Includes the Company's share from unconsolidated joint ventures of $0.04 and $0.05 for the three months ended December 31, 2019 and 2018, respectively, and $0.17 and $0.19 for the years ended December 31, 2019 and 2018, 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" in this release.

(c)

Calculated based on weighted average common shares outstanding, assuming redemption of Operating Partnership common units into common shares (9,530 and 10,176 shares for the three months ended December 31, 2019 and 2018, respectively, and 9,852 and 10,204 for the years ended December 31, 2019 and 2018, respectively), plus dilutive Common Stock Equivalents (i.e. stock options).

 

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




December 31,

Assets


2019



2018

Rental property






  Land and leasehold interests

$

653,231


$

807,236

  Buildings and improvements


3,361,435



4,109,797

  Tenant improvements


163,299



335,266

  Furniture, fixtures and equipment


78,716



53,718



4,256,681



5,306,017

Less – accumulated depreciation and amortization


(558,617)



(1,097,868)



3,698,064



4,208,149

Rental property held for sale, net


966,497



108,848

Net investment in rental property


4,664,561



4,316,997

Cash and cash equivalents


25,589



29,633

Restricted cash


15,577



19,921

Investments in unconsolidated joint ventures


209,091



232,750

Unbilled rents receivable, net


95,686



100,737

Deferred charges, goodwill and other assets, net


275,102



355,234

Accounts receivable


7,192



5,372







Total assets

$

5,292,798


$

5,060,644







Liabilities and Equity






Senior unsecured notes, net

$

571,484


$

570,314

Unsecured revolving credit facility and term loans


329,000



790,939

Mortgages, loans payable and other obligations, net


1,908,034



1,431,398

Dividends and distributions payable


22,265



21,877

Accounts payable, accrued expenses and other liabilities


209,510



168,115

Rents received in advance and security deposits


39,463



41,244

Accrued interest payable


10,185



9,117

   Total liabilities


3,089,941



3,033,004

Commitments and contingencies












Redeemable noncontrolling interests


503,382



330,459







Equity:






Mack-Cali Realty Corporation stockholders' equity:






Common stock, $0.01 par value, 190,000,000 shares authorized,






90,595,176 and 90,320,306 shares outstanding


906



903

Additional paid-in capital


2,535,440



2,561,503

Dividends in excess of net earnings


(1,042,629)



(1,084,518)

Accumulated other comprehensive income (loss)


(18)



8,770

   Total Mack-Cali Realty Corporation stockholders' equity


1,493,699



1,486,658







Noncontrolling interests in subsidiaries:






Operating Partnership


158,480



168,373

Consolidated joint ventures


47,296



42,150

Total noncontrolling interests in subsidiaries


205,776



210,523







Total equity


1,699,475



1,697,181







Total liabilities and equity

$

5,292,798


$

5,060,644

 

 

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SOURCE Mack-Cali Realty Corporation