|
Our balance sheet remains one of the strongest in the industry. Over 80% of our portfolio is unencumbered (by square footage). At the end of 2004, debt-to-undepreciated assets stood at 37.9%. As a result, our balance sheet provides us with ample capacity to quickly pursue strategic opportunities.
Mack-Cali's revenues in 2004 rose slightly, from $569.3 million to $589.0 million. Our dividend, at $2.52 per share on an annualized basis, closed 2004 with a 5.5% yield, again outshining the S&P average yield of 1.7%.
DELIVERING VALUE
In 2004, investors continued to look to high-quality REITs, such as Mack-Cali, due to their strong dividends, predictable income streams from long-term leases, tangible assets, and skilled management. REITs have become widely accepted
|
|
as a sound component of a diversified portfolio. As an investment, the REIT sector had a positive year, outperforming the broader stock indices.
Mack-Cali's total return to shareholders was 17.5% in 2004. Since we became a public company in 1994, Mack-Cali has outperformed both the National Association of Real Estate Investment Trusts (NAREIT) equity index and the S&P 500, producing a total return of over 458% for our shareholders.
THE DECADE AHEAD
For 2005, real estate markets will continue to face considerable pressure. A widespread recovery in the office sector will not occur until there is sustained economic expansion that gives businesses the confidence to add new staff, which will then lead to increased office space demand.
|
|
Mack-Cali enters its second decade as a public company in an excellent position, poised to meet these challenges and prepared to capitalize on a recovering economy. We believe our focused strategy -- combined with our exceptional office properties, impressive tenant base, deep market presence, and strong and flexible balance sheet -- will continue to result in success for our Company and value for our shareholders.
We appreciate your interest and support of Mack-Cali and look forward to sharing our continued progress with you.
Sincerely,
Mitchell E. Hersh
President and
Chief Executive Officer
|
