Mack-Cali Realty Corporation
Consolidated Statements of Operations
(in thousands, except per share amounts)
-------------------------------------------------------------------
Quarter Ended June 30,
2000 1999
Base rents $122,072 $116,499
Escalations & recoveries 14,627 16,366
Parking and other 6,128 3,061
Equity in earnings of
unconsolidated joint ventures 1,070 834
Interest income 1,992 215
Total revenues 145,889 136,975
Real estate taxes 14,733 14,208
Utilities 10,014 9,829
Operating services 16,822 17,429
General and administrative 5,159 5,568
Depreciation and amortization 22,945 22,465
Interest expense 26,835 25,697
Total expenses 96,508 95,196
Minority interest in partially-owned
properties (2,982) --
Income from operations before minority
interest in Operating Partnership 46,399 41,779
Minority interest in Operating
Partnership(1) (8,936) (8,757)
Income from operations 37,463 33,022
Non-recurring charges(2) (8,109) (14,336)
Gain on sales of rental property(3) 64,954 --
Net income $94,308 $18,686
PER SHARE DATA:
Income from operations - basic $0.64 $0.56
Net income — basic $1.61 $0.32
Income from operations — diluted $0.63 $0.56
Net income — diluted $1.52 $0.32
Dividends declared
per common share $0.58 $0.55
Basic weighted average
shares outstanding 58,545 58,510
Diluted weighted average
shares outstanding 73,284 67,486
(1) Excludes effect of minority interest's share of non-recurring charges and gain on sales of
rental property.
(2) Net of minority interest's share of $1,119 and $2,122 in 2000 and 1999, respectively.
(3) Net of minority interest's share of $8,967 in 2000.
Mack-Cali Realty Corporation
Statements of Funds from Operations and
Cash Available for Distribution
(in thousands, except per share/unit amounts)
------------------------------------------------------------------------
Quarter Ended June 30,
2000 1999
Income from operations before minority interest
in Operating Partnership $46,399 $41,779
Add: Real estate depreciation and amortization(1) 23,434 22,769
Deduct: Adj. to rental income for straight-lining
of rents(2) (3,400) (3,833)
Funds from operations(3), after adj. for straight-
lining of rents and non-recurring charges $66,433 $60,715
Deduct: Non-incremental revenue generating
capital expenditures:
Capital expenditures (1,763) (1,464)
Tenant improvements and leasing commissions (10,551) (5,753)
Cash available for distribution $54,119 $53,498
Basic weighted average shares/units
outstanding(4) 66,627 67,173
Diluted weighted average shares/units
outstanding(5) 73,284 74,104
Per Share/Unit - Basic(6):
Funds from operations $0.94 $0.85
Cash available for distribution $0.76 $0.74
Per Share/Unit - Diluted:
Funds from operations $0.91 $0.82
Cash available for distribution $0.74 $0.72
Dividends declared per common share $0.58 $0.55
Dividend payout ratios:
Funds from operations-diluted 63.98% 67.13%
Cash available for distribution-diluted 78.54% 76.18%
(1) Includes the Company's share from unconsolidated joint ventures of $686 and $509
for 2000 and 1999, respectively.
(2) Includes the Company's share from unconsolidated joint ventures of ($3) and ($26)
for 2000 and 1999, respectively.
(3) Funds from operations for both periods are calculated in accordance with the
National Association of Real Estate Investment Trusts (NAREIT) definition, as
published in October 1999.
(4) Calculated based on weighted average common shares outstanding, assuming
redemption of Operating Partnership common units into common shares.
(5) 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).
(6) Amounts calculated after deduction for distributions to preferred unitholders of
$3,765 and $3,869 in 2000 and 1999, respectively.
Mack-Cali Realty Corporation
Consolidated Statements of Operations
(in thousands, except per share amounts)
------------------------------------------------------------------------
Six Months Ended June 30,
2000 1999
Base rents $243,670 $232,579
Escalations & recoveries 31,295 31,226
Parking and other 9,450 6,961
Equity in earnings of
unconsolidated joint ventures 2,207 628
Interest income 2,246 470
Total revenues 288,868 271,864
Real estate taxes 29,437 28,051
Utilities 20,393 19,421
Operating services 34,564 34,516
General and administrative 11,272 13,531
Depreciation and amortization 45,127 44,434
Interest expense 53,261 49,319
Total expenses 194,054 189,272
Minority interest in partially-owned
properties (5,072) --
Income from operations before minority
interest in Operating Partnership 89,742 82,592
Minority interest in Operating
Partnership(1) (17,637) (17,506)
Income from operations 72,105 65,086
Non-recurring charges(2) (8,109) (14,336)
Gain on sales of rental property(3) 66,927 --
Net income $130,923 $50,750
PER SHARE DATA:
Income from operations - basic $1.23 $1.12
Net income — basic $2.24 $0.87
Income from operations - diluted $1.23 $1.11
Net income — diluted $2.14 $0.87
Dividends declared
per common share $1.16 $1.10
Basic weighted average
shares outstanding 58,420 58,337
Diluted weighted average
shares outstanding 73,237 67,385
(1) Excludes effect of minority interest's share of non-recurring charges and gain on sales of
rental property.
(2) Net of minority interest's share of $1,119 and $2,122 in 2000 and 1999, respectively.
(3) Net of minority interest's share of $9,242 in 2000.
Mack-Cali Realty Corporation
Statements of Funds from Operations and
Cash Available for Distribution
(in thousands, except per share/unit amounts)
------------------------------------------------------------------------
Six Months Ended June 30,
2000 1999
Income from operations before minority interest
in Operating Partnership $89,742 $82,592
Add: Real estate depreciation and amortization(1) 46,152 45,720
Gain on sale of land 2,248 --
Deduct: Adj. to rental income for straight-lining
of rents(2) (5,590) (7,378)
Funds from operations(3), after adj. for straight-
lining of rents and non-recurring charges $132,552 $120,934
Deduct: Non-incremental revenue generating
capital expenditures:
Capital expenditures (2,610) (2,033)
Tenant improvements and leasing commissions (20,460) (11,406)
Cash available for distribution $109,482 $107,495
Basic weighted average shares/units
outstanding(4) 66,527 67,092
Diluted weighted average shares/units
outstanding(5) 73,237 74,040
Per Share/Unit - Basic(6):
Funds from operations $1.88 $1.69
Cash available for distribution $1.53 $1.49
Per Share/Unit - Diluted:
Funds from operations $1.81 $1.63
Cash available for distribution $1.49 $1.45
Dividends declared per common share $1.16 $1.10
Dividend payout ratios:
Funds from operations-diluted 64.09% 67.35%
Cash available for distribution-diluted 77.60% 75.76%
(1) Includes the Company's share from unconsolidated joint ventures of $1,420 and $1,610
for 2000 and 1999, respectively.
(2) Includes the Company's share from unconsolidated joint ventures of $54 and ($44)
for 2000 and 1999, respectively.
(3) Funds from operations for both periods are calculated in accordance with the
National Association of Real Estate Investment Trusts (NAREIT) definition, as
published in October 1999.
(4) Calculated based on weighted average common shares outstanding, assuming
redemption of Operating Partnership common units into common shares.
(5) 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).
(6) Amounts calculated after deduction for distributions to preferred unitholders of
$7,634 and $7,738 in 2000 and 1999, respectively.
Mack-Cali Realty Corporation
Consolidated Balance Sheets
(in thousands, except share amounts)
------------------------------------------------------------------------
June 30, December 31,
ASSETS: 2000 1999
Rental property
Land and leasehold interests $ 548,813 $ 549,096
Buildings and improvements 3,015,197 3,014,532
Tenant improvements 84,687 85,057
Furniture, fixtures and equipment 6,169 6,160
3,654,866 3,654,845
Less-accumulated depreciation
and amortization (270,065) (256,629)
Total rental property 3,384,801 3,398,216
Cash and cash equivalents 10,535 8,671
Investments in unconsolidated
joint ventures 95,382 89,134
Unbilled rents receivable 43,821 53,253
Deferred charges and other assets, net 80,117 66,436
Restricted cash 6,498 7,081
Accounts receivable, net 6,950 6,810
Total assets $3,628,104 $3,629,601
LIABILITIES AND STOCKHOLDERS' EQUITY:
Senior unsecured notes $ 782,942 $ 782,785
Revolving credit facilities 215,730 177,000
Mortgages and loans payable 488,605 530,390
Dividends and distributions payable 42,543 42,499
Accounts payable and accrued expenses 74,376 63,394
Rents received in advance and
security deposits 34,170 36,150
Accrued interest payable 16,263 16,626
Total liabilities 1,654,629 1,648,844
Minority interests:
Operating Partnership 455,645 455,275
Partially-owned properties -- 83,600
Total minority interests 455,645 538,875
Commitments and contingencies
Stockholders' equity:
Preferred stock, 5,000,000 shares
authorized, none issued -- --
Common stock, $0.01 par value,
190,000,000 shares authorized,
58,782,808 and 58,446,552
shares outstanding 588 584
Additional paid-in capital 1,561,547 1,549,888
Dividends in excess of net earnings (40,997) (103,902)
Unamortized stock compensation (3,308) (4,688)
Total stockholders' equity 1,517,830 1,441,882
Total liabilities and
stockholders' equity $3,628,104 $3,629,601
Mack-Cali Realty Corporation
Leasing Statistics
For The Quarter Ended June 30, 2000
CONSOLIDATED PORTFOLIO
SUMMARY OF SPACE LEASED DURING PERIOD
------------------------------------------------------------------------
IN-SERVICE PROPERTIES:
Square feet leased at March 31, 2000 26,551,621
Net leasing activity in 2nd quarter 2000 95,642
Leased s.f. acquired/placed in service during the period 549,360
Leased s.f. sold during the period (1,157,759)
Occupancy adjustment(1) (9,931)
Square feet leased at June 30, 2000 26,028,933
Percent leased at June 30, 2000 96.9%
Square feet of Development Properties
Not-in-Service as of June 30, 2000 720,010
OFFICE SPACE
------------------------------------------------------------------------
Number Weighted Average
of Rentable Average Term
Leases S.F. Base Rent (Years)
New Leases:
First generation space 18 129,030 $32.08 7.3
Second generation space 52 339,867 $19.20 6.4
Total New Leasing 70 468,897 $22.75 6.6
Renewals & extensions 91 695,326 $24.55 5.8
Other retained tenants 38 134,835 $23.05 4.7
Total Leasing 199 1,299,058
Capital Expenditures - Second Generation Space(2):
Tenant Leasing
Improvements(3) Commissions Total
Expend. committed-2nd qtr $5,928,536 $6,244,013 $12,172,549
Rentable s.f. leased-2nd qtr 1,170,028
Cap. ex. committed
per r.s.f. per year $0.86 $0.91 $1.77
(1) Represents the net change in the amount of space leased/expired since the prior
reporting period in excess of 100 percent of the gross rentable area of certain
properties in the portfolio.
(2) Represents amounts committed, but not necessarily expended during period.
(3) Equals estimated workletter costs.
OFFICE/FLEX SPACE
------------------------------------------------------------------------
Number Weighted Average
of Rentable Average Term
Leases S.F. Base Rent(1) (Years)
New Leases:
Second generation space 9 76,919 $16.72 6.9
Renewals & extensions 22 203,472 $14.29 5.1
Other retained tenants 5 24,248 $15.09 5.7
Total Leasing 36 304,639
Capital Expenditures - Second Generation Space(2):
Tenant Leasing
Improvements(3) Commissions Total
Expend. committed-2nd qtr $1,518,261 $771,558 $2,289,819
Rentable s.f. leased-2nd qtr 304,639
Cap. ex. committed
per r.s.f. per year $0.89 $0.45 $1.34
INDUSTRIAL/WAREHOUSE SPACE
------------------------------------------------------------------------
No activity this quarter
LEASE RENEWALS
------------------------------------------------------------------------
Number of Rentable
Leases S.F.
Leases expiring 228 1,570,039
Leases renewed & extended 113 898,798
Other retained tenants 44 221,067
Total leases retained 157 1,119,865
Percent retained 68.9% 71.3%
Future expirations renewed or
relet (included in totals above) 96 1,021,023
(1) Equals triple net rent plus common area costs and real estate taxes.
(2) Represents amounts committed, but not necessarily expended during period.
(3) Equals estimated workletter costs.
UNCONSOLIDATED JOINT VENTURE PROPERTIES
SUMMARY OF SPACE LEASED DURING PERIOD
------------------------------------------------------------------------
IN-SERVICE PROPERTIES:
Square feet leased at March 31, 2000 1,243,049
Net leasing activity in 2nd quarter 2000 34,483
Square feet leased at June 30, 2000 1,277,532
Percent leased at June 30, 2000 82.6%
Square feet of Development Properties
Not-in-Service as of June 30, 2000 622,982
OFFICE SPACE
------------------------------------------------------------------------
Number Weighted Average
of Rentable Average Term
Leases S.F. Base Rent (Years)
New Leases:
First generation space 4 34,483 $20.16 5.4
Total Leasing 4 34,483
Capital Expenditures - Second Generation Space: none this quarter
Lease Expirations and Renewals: none this quarter
Mack-Cali Realty Corporation
Leasing Statistics
For The Six Months Ended June 30, 2000
CONSOLIDATED PORTFOLIO
SUMMARY OF SPACE LEASED DURING PERIOD
------------------------------------------------------------------------
IN-SERVICE PROPERTIES:
Square feet leased at December 31, 1999 26,411,471
Net leasing activity year-to-date 185,003
Leased s.f. acquired/placed in service during the period 610,160
Leased s.f. sold during the period (1,157,759)
Occupancy adjustment(1) (19,942)
Square feet leased at June 30, 2000 26,028,933
Percent leased at June 30, 2000 96.9%
Square feet of Development Properties
Not-in-Service as of June 30, 2000 720,010
OFFICE SPACE
------------------------------------------------------------------------
Number Weighted Average
of Rentable Average Term
Leases S.F. Base Rent (Years)
New Leases:
First generation space 29 194,931 $29.54 6.4
Second generation space 113 607,963 $20.86 5.6
Total New Leasing 142 802,894 $22.97 5.8
Renewals & extensions 175 1,212,117 $25.56 4.7
Other retained tenants 76 388,454 $26.21 5.7
Total Leasing 393 2,403,465
Capital Expenditures - Second Generation Space(2):
Tenant Leasing
Improvements(3) Commissions Total
Expend. Committed YTD $10,708,195 $10,714,938 $21,423,133
Rentable s.f. leased YTD 2,208,534
Cap. ex. committed
per r.s.f. per year $0.95 $0.95 $1.90
(1) Represents the net change in the amount of space leased/expired since the prior
reporting period in excess of 100 percent of the gross rentable area of certain
properties in the portfolio.
(2) Represents amounts committed, but not necessarily expended during period.
(3) Equals estimated workletter costs.
OFFICE/FLEX SPACE
------------------------------------------------------------------------
Number Weighted Average
of Rentable Average Term
Leases S.F. Base Rent(1) (Years)
New Leases:
First generation space 1 6,000 $15.90 5.0
Second generation space 18 140,194 $15.87 6.4
Total New Leasing 19 146,194 $15.87 6.3
Renewals & extensions 33 267,855 $13.59 4.8
Other retained tenants 8 46,843 $14.53 4.3
Total Leasing 60 460,892
Capital Expenditures - Second Generation Space(2):
Tenant Leasing
Improvements(3) Commissions Total
Expend. Committed YTD $1,866,428 $1,049,001 $2,915,429
Rentable s.f. leased YTD 454,892
Cap. ex. committed
per r.s.f. per year $0.79 $0.44 $1.23
INDUSTRIAL/WAREHOUSE SPACE
------------------------------------------------------------------------
Number Weighted Average
of Rentable Average Term
Leases S.F. Base Rent(1) (Years)
New Leases:
Second generation space 1 4,500 $14.00 4.0
Renewals & extensions 3 34,104 $20.44 3.7
Other retained tenants 2 7,650 $10.91 3.3
Total Leasing 6 46,254
Capital Expenditures - Second Generation Space(2):
Tenant Leasing
Improvements(3) Commissions Total
Expend. Committed YTD $51,769 $33,876 $85,645
Rentable s.f. leased YTD 46,254
Cap. ex. committed
per r.s.f. per year $0.31 $0.20 $0.51
(1) Equals triple net rent plus common area costs and real estate taxes.
(2) Represents amounts committed, but not necessarily expended during period.
(3) Equals estimated workletter costs.
LEASE RENEWALS
------------------------------------------------------------------------
Number of Rentable
Leases S.F.
Leases expiring 421 2,787,592
Leases renewed & extended 211 1,514,076
Other retained tenants 86 504,931
Total leases retained 297 2,019,007
Percent retained 70.5% 72.5%
Future expirations renewed or
relet (included in totals above) 135 1,446,441
UNCONSOLIDATED JOINT VENTURE PROPERTIES
SUMMARY OF SPACE LEASED
For The Six Months Ended June 30, 2000
------------------------------------------------------------------------
IN-SERVICE PROPERTIES:
Square feet leased at December 31, 1999 1,071,411
Net leasing activity year-to-date 35,899
Leased s.f. acquired/placed in service during the period 170,222
Square feet leased at June 30, 2000 1,277,532
Percent leased at June 30, 2000 82.6%
Square feet of Development Properties
Not-in-Service as of June 30, 2000 622,982
OFFICE SPACE
------------------------------------------------------------------------
Number Weighted Average
of Rentable Average Term
Leases S.F. Base Rent (Years)
New Leases:
First generation space 5 35,899 $20.13 5.4
Renewals & extensions 1 8,769 $39.40 3.0
Total Leasing 6 44,668
Capital Expenditures - Second Generation Space(1):
Tenant Leasing
Improvements(2) Commissions Total
Expend. committed YTD $0.00 $5,261 $5,261
Rentable s.f. leased YTD 8,769
Cap. ex. committed
per r.s.f. per year $0.00 $0.20 $0.20
(1) Represents amounts committed, but not necessarily expended during period.
(2) Equals estimated workletter costs.
LEASE RENEWALS
------------------------------------------------------------------------
Number of Rentable
Leases S.F.
Leases expiring 1 8,769
Leases renewed & extended 1 8,769
Percent retained 100.0% 100.0%
Future expirations renewed or
relet (included in totals above) 1 8,769
Executive Vice President and Chief Financial Officer
Mack-Cali Realty Corporation
T: 732.590.1000
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