Mack-Cali Realty Corporation
Consolidated Statements of Operations
(in thousands, except per share amounts)
Quarter Ended September 30,
1999 1998
Base rents $118,086 $112,976
Escalations & recoveries 14,829 14,182
Parking and other 5,112 2,684
Interest income 159 728
Equity in earnings of
unconsolidated joint ventures 834 324
Total revenues 139,020 130,894
Real estate taxes 14,849 13,488
Utilities 11,634 11,300
Operating services 16,258 15,807
General and administrative 5,897 6,118
Depreciation and amortization 22,967 21,213
Interest expense 26,474 23,881
Total expenses 98,079 91,807
Income from operations before
minority interest 40,941 39,087
Minority interest (1) (8,421) (8,375)
Income from operations 32,520 30,712
Net income $32,520 $30,712
PER SHARE DATA:
Income from operations - basic $0.55 $0.53
Net income - basic $0.55 $0.53
Income from operations - diluted $0.55 $0.53
Net income - diluted $0.55 $0.53
Dividends declared $0.58 $0.55
Basic weighted average
shares outstanding 58,679 57,720
Diluted weighted average
shares outstanding 67,113 65,884
(1) Excludes effect of minority interestís share of non-recurring charges and
extraordinary items.
Mack-Cali Realty Corporation
Statements of Funds from Operations and
Cash Available for Distribution
(in thousands, except per share/unit amounts)
Quarter Ended September 30,
1999 1998
Income from operations before
minority interest $40,941 $39,087
Add: Real estate depreciation
and amortization(1) 23,419 21,520
Deduct: Adj. to rental income for
straight-lining of rents(1) (3,076) (3,355)
Funds from operations(2) after adj.
for straight-lining of rents $61,284 $57,252
Deduct non-incremental revenue
generating capital expenditures:
Capital improvements (1,061) (965)
Tenant improvements and leasing
commissions(6) (9,812) (4,165)
Cash available for distribution(6) $50,411 $52,122
Basic weighted average shares/units
outstanding (3) 66,893 65,577
Diluted weighted average shares/units
outstanding(4) 73,731 73,044
Per Share/Unit - Basic(5):
Funds from operations $0.86 $0.81
Cash available for distribution(6) $0.70 $0.73
Per Share/Unit - Diluted:
Funds from operations $0.83 $0.78
Cash available for distribution(6) $0.68 $0.71
Dividend per common share $0.58 $0.55
Dividend payout ratios:
Funds from operations-diluted 69.78% 70.17%
Cash available for distribution-diluted 84.83% 77.08%
(1) Includes FFO adjustments related to Companyís investments in unconsolidated
joint ventures.
(2) Funds from operations for both periods are calculated in accordance with the
National Association of Real Estate Investment Trusts (NAREIT) definition, as
published in March 1995.
(3) Calculated based on weighted average common shares outstanding, assuming
redemption of operating partnership common units into common shares.
(4) 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).
(5) Amounts calculated after deduction for distributions to preferred unitholders of
$3,869 and $4,194 for the quarter ended September 30, 1999 and 1998, respectively.
(6) 1999 period includes $3.2 million of expenditures during the period related to the
early releasing of 187,439 square feet of office space at Harborside Financial Center
in Jersey City, NJ; such new leases carry a weighted average term of 10.1 years.
Excluding these expenditures, CAD per share for the period would have amounted to
$0.74(basic) and $0.73(diluted).
Mack-Cali Realty Corporation
Consolidated Statements of Operations
(in thousands, except per share amounts)
Nine Months Ended September 30,
1999 1998
Base rents $350,665 $311,753
Escalations & recoveries 46,055 36,897
Parking and other 12,073 7,502
Interest income 629 2,187
Equity in earnings of
unconsolidated joint ventures 1,462 419
Total revenues 410,884 358,758
Real estate taxes 42,900 35,415
Utilities 31,055 28,717
Operating services 50,401 44,128
General and administrative 19,801 18,708
Depreciation and amortization 67,401 56,537
Interest expense 75,793 64,146
Total expenses 287,351 247,651
Income from operations before
minority interest 123,533 111,107
Minority interest (1) (25,927) (23,464)
Income from operations 97,606 87,643
Non-recurring charges (2) (14,336) --
Extraordinary item-loss on
early retirement of debt (3) -- (2,373)
Net income $83,270 $85,270
PER SHARE DATA:
Income from operations - basic $1.67 $1.58
Net income - basic $1.42 $1.54
Income from operations - diluted $1.66 $1.57
Net income - diluted $1.42 $1.53
Dividends declared $1.68 $1.55
Basic weighted average
shares outstanding 58,452 55,391
Diluted weighted average
shares outstanding 67,294 63,093
(1) Excludes effect of minority interestís share of non-recurring charges and
extraordinary items.
(2) Net of minority interestís share in 1999 of $2,122.
(3) Net of minority interestís share of extraordinary item of $297 in 1998.
Mack-Cali Realty Corporation
Statements of Funds from Operations and
Cash Available for Distribution
(in thousands, except per share/unit amounts)
Nine Months Ended September 30,
1999 1998
Income from operations before
minority interest $123,533 $111,107
Add: Real estate depreciation
and amortization(1) 69,139 56,850
Deduct: Adj. to rental income for
straight-lining of rents(1) (10,454) (9,700)
Funds from operations(2) after adj.
for straight-lining of rents $182,218 $158,257
Deduct non-incremental revenue
generating capital expenditures:
Capital improvements (3,094) (1,704)
Tenant improvements and leasing
commissions(6) (21,218) (14,789)
Cash available for distribution(6) $157,906 $141,764
Basic weighted average shares/units
outstanding(3) 67,025 62,580
Diluted weighted average shares/units
outstanding(4) 73,936 69,983
Per Share/Unit - Basic(5):
Funds from operations $2.55 $2.34
Cash available for distribution(6) $2.18 $2.07
Per Share/Unit - Diluted:
Funds from operations $2.46 $2.26
Cash available for distribution(6) $2.14 $2.03
Dividend per common share $1.68 $1.55
Dividend payout ratios:
Funds from operations-diluted 68.17% 68.54%
Cash available for distribution-diluted 78.66% 76.52%
(1) Includes FFO adjustments related to Companyís investments in unconsolidated
joint ventures.
(2) Funds from operations for both periods are calculated in accordance with the
National Association of Real Estate Investment Trusts (NAREIT) definition, as
published in March 1995.
(3) Calculated based on weighted average common shares outstanding, assuming
redemption of operating partnership common units into common shares.
(4) 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).
(5) Amounts calculated after deduction for distributions to preferred unitholders of
$11,607 and $12,090 for the nine months ended September 30, 1999 and 1998, respectively.
(6) 1999 period includes $3.2 million of expenditures during the period related to the
early releasing of 187,439 square feet of office space at Harborside Financial Center
in Jersey City, NJ; such new leases carry a weighted average term of 10.1 years.
Excluding these expenditures, CAD per share for the period would have amounted to
$2.23(basic) and $2.18(diluted).
Mack-Cali Realty Corporation
Consolidated Balance Sheets
(in thousands, except share amounts)
September 30, December 31,
ASSETS: 1999 1998
Rental property
Land and leasehold interests $ 548,572 $ 510,534
Buildings and improvements 2,966,769 2,887,115
Tenant improvements 98,577 64,464
Furniture, fixtures and equipment 5,865 5,686
3,619,783 3,467,799
Less-accumulated depreciation
and amortization (241,746) (177,934)
Total rental property 3,378,037 3,289,865
Cash and cash equivalents 1,068 5,809
Investments in unconsolidated
joint ventures 95,457 66,508
Unbilled rents receivable 51,356 41,038
Deferred charges and other assets, net 60,700 39,020
Restricted cash 6,184 6,026
Accounts receivable 5,328 3,928
Total assets $3,598,130 $3,452,194
LIABILITIES AND STOCKHOLDERSí EQUITY:
Senior Unsecured Notes $ 782,706 $ --
Revolving credit facilities 249,956 671,600
Mortgages and loans payable 545,567 749,331
Dividends and distributions payable 42,488 40,564
Accounts payable and accrued expenses 46,359 33,253
Rents received in advance and
security deposits 31,838 29,980
Accrued interest payable 3,238 2,246
Total liabilities 1,702,152 1,526,974
Minority interest of unitholders
in Operating Partnership 458,253 501,313
Commitments and contingencies
Stockholdersí equity:
Preferred stock, 5,000,000 shares
authorized, none issued -- --
Common stock, $0.01 par value,
190,000,000 shares authorized,
58,390,984 and 57,266,137
shares outstanding 584 573
Additional paid-in capital 1,548,413 1,514,648
Dividends in excess of net earnings (106,470) (91,314)
Unamortized stock compensation (4,802) --
Total stockholdersí equity 1,437,725 1,423,907
Total liabilities and
stockholdersí equity $3,598,130 $3,452,194
Mack-Cali Realty Corporation
Leasing Statistics
For The Quarter Ended September 30, 1999
WHOLLY-OWNED PORTFOLIO
SUMMARY OF SPACE LEASED DURING PERIOD
IN-SERVICE PROPERTIES:
Square feet leased at June 30, 1999 26,081,340
Net leasing activity in 3rd quarter 1999 34,549
Leased s.f. from 3rd quarter 1999 acquisitions 200,161
Occupancy adjustment(1) (4,112)
Square feet leased at September 30, 1999 26,311,938
Percent leased at September 30, 1999 96.1%
Square feet of Development/Redevelopment
Properties Not-in-Service as of September 30, 1999 603,303
OFFICE SPACE
Number Weighted Average
of Rentable Average Term
Leases S.F. Base Rent (Years)
New Leases:
First generation space 10 122,506 $37.45 6.7
Second generation space 60 240,592 $21.06 6.0
Total New Leasing 70 363,098 $26.59 6.2
Renewals & extensions 77 430,622 $20.89 4.0
Other retained tenants 40 255,353 $26.10 7.0
Total Leasing 187 1,049,073
Capital Expenditures - Second Generation Space(2):
Tenant Leasing
Improvements(3) Commissions Total
Expend. committed-3rd qtr $6,641,216 $4,510,749 $11,151,965
Rentable s.f. leased-3rd qtr 926,567
Cap. ex. committed
per r.s.f. per year $1.34 $0.91 $2.25
(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 7 40,931 $15.48 6.8
Renewals & extensions 12 95,874 $13.63 4.6
Other retained tenants 5 30,263 $11.15 5.0
Total Leasing 24 167,068
Capital Expenditures - Second Generation Space(2):
Tenant Leasing
Improvements(3) Commissions Total
Expend. committed-3rd qtr $801,521 $336,785 $1,138,306
Rentable s.f. leased-3rd qtr 167,068
Cap. ex. committed
per r.s.f. per year $0.92 $0.39 $1.31
INDUSTRIAL/WAREHOUSE SPACE
Number Weighted Average
of Rentable Average Term
Leases S.F. Base Rent(1) (Years)
Total Leasing -- -- -- --
Capital Expenditures - Second Generation Space(2):
Tenant Leasing
Improvements(3) Commissions Total
Expend. committed-3rd qtr -- -- --
LEASE RENEWALS
Number of
Leases Rentable S.F.
Leases expiring 211 1,181,592
Leases renewed & extended 89 526,496
Other retained tenants 45 285,616
Total leases retained 134 812,112
Percent retained 63.5% 68.7%
Future expirations renewed or
relet (included in totals above) 70 642,159
(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.
JOINT VENTURE PROPERTIES
SUMMARY OF SPACE LEASED DURING PERIOD
IN-SERVICE PROPERTIES:
Square feet leased at June 30, 1999 685,489
Net leasing activity in 3rd quarter 1999 18,634
Leased s.f. from 3rd quarter 1999 acquisitions 187,000
Occupancy adjustment(1) (1,442)
Square feet leased at September 30, 1999 889,681
Percent leased at September 30, 1999 89.7%
Square feet of Development/Redevelopment
Properties Not-in-Service as of September 30, 1999 904,500
OFFICE SPACE
Number Weighted Average
of Rentable Average Term
Leases S.F. Base Rent (Years)
New Leases:
Second generation space 1 23,394 $23.50 4.0
Other retained tenants 1 10,577 $19.64 4.2
Total Leasing 2 33,971
Capital Expenditures - Second Generation Space(2):
Tenant Leasing
Improvements(3) Commissions Total
Expend. committed-3rd qtr $467,880 $18,715 $486,595
Rentable s.f. leased-3rd qtr 10,577
Cap. ex. per r.s.f. per year $3.40 $0.14 $3.54
(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.
Mack-Cali Realty Corporation
Leasing Statistics
For The Nine Months Ended September 30, 1999
WHOLLY-OWNED PORTFOLIO
SUMMARY OF SPACE LEASED DURING PERIOD
IN-SERVICE PROPERTIES:
Square feet leased at December 31, 1998 25,847,457
Net leasing activity year-to-date 130,556
Leased s.f. from 1999 acquisitions 334,124
Occupancy adjustment(1) (199)
Square feet leased at September 30, 1999 26,311,938
Percent leased at September 30, 1999 96.1%
Square feet of Development/Redevelopment
Properties Not-in-Service as of September 30, 1999 603,303
OFFICE SPACE
Number Weighted Average
of Rentable Average Term
Leases S.F. Base Rent (Years)
New Leases:
First generation space 12 144,252 $34.50 7.1
Second generation space 182 643,468 $23.24 6.2
Total New Leasing 194 787,720 $25.30 6.4
Renewals & extensions 224 956,674 $21.87 4.1
Other retained tenants 97 561,201 $25.93 6.7
Total Leasing 515 2,305,595
Capital Expenditures - Second Generation Space(2):
Tenant Leasing
Improvements(3) Commissions Total
Expend. committed (y-t-d) $18,220,744 $10,746,421 $28,967,165
Rentable s.f. leased (y-t-d) 2,161,343
Cap. ex. committed
per r.s.f. per year $1.57 $0.92 $2.49
(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 24,240 $10.50 10.0
Second generation space 26 219,643 $12.08 6.9
Total New Leasing 27 243,883 $11.94 7.2
Renewals & extensions 39 327,168 $13.46 4.8
Other retained tenants 11 81,548 $14.00 6.4
Total Leasing 77 652,599
Capital Expenditures - Second Generation Space(2):
Tenant Leasing
Improvements(3) Commissions Total
Expend. committed (y-t-d) $3,345,564 $1,226,249 $4,571,813
Rentable s.f. leased (y-t-d) 628,359
Cap. ex. committed
per r.s.f. per year $0.92 $0.34 $1.26
INDUSTRIAL/WAREHOUSE SPACE
Number Weighted Average
of Rentable Average Term
Leases S.F. Base Rent(1) (Years)
New Leases:
Second generation space 2 49,090 $10.90 3.5
Renewals & extensions 2 3,450 $12.44 1.9
Other retained tenants 2 15,600 $ 9.16 8.8
Total Leasing 6 68,140
Capital Expenditures - Second Generation Space(2):
Tenant Leasing
Improvements(3) Commissions Total
Expend. committed (y-t-d) $187,015 $153,287 $340,302
Rentable s.f. leased (y-t-d) 68,140
Cap. ex. committed
per r.s.f. per year $0.59 $0.49 $1.08
(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
Leases Rentable S.F.
Leases expiring 623 2,895,778
Leases renewed & extended 265 1,287,292
Other retained tenants 110 658,349
Total leases retained 375 1,945,641
Percent retained 60.2% 67.2%
Future expirations renewed or
relet (included in totals above) 113 973,201
-------------------------------------
JOINT VENTURE PROPERTIES
SUMMARY OF SPACE LEASED DURING PERIOD
IN-SERVICE PROPERTIES:
Square feet leased at December 31, 1998 625,713
Net leasing activity year-to-date 78,410
Leased s.f. from 1999 acquisitions 187,000
Occupancy adjustment(1) (1,442)
Square feet leased at September 30, 1999 889,681
Percent leased at September 30, 1999 89.7%
Square feet of Development/Redevelopment
Properties Not-in-Service as of September 30, 1999 904,500
OFFICE SPACE
Number Weighted Average
of Rentable Average Term
Leases S.F. Base Rent (Years)
New Leases:
First generation space 2 8,930 $18.50 4.0
Second generation space 5 61,588 $28.85 4.7
Total New Leasing 7 70,518 $27.54 4.6
Renewals & extensions 1 2,805 $24.06 5.0
Other retained tenants 5 26,783 $21.86 4.2
Total Leasing 13 100,106
Capital Expenditures - Second Generation Space(2):
Tenant Leasing
Improvements(3) Commissions Total
Expend. committed (y-t-d) $1,628,852 $272,409 $1,901,261
Rentable s.f. leased (y-t-d) 91,176
Cap. ex. per r.s.f. per year $3.93 $0.66 $4.59
(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.
Executive Vice President and Chief Financial Officer
Mack-Cali Realty Corporation
T: 732.590.1000
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