Mack-Cali Realty Corporation
Consolidated Statements of Operations
(in thousands, except per share amounts)
Quarter Ended June 30,
1999 1998
Base rents $116,499 $105,861
Escalations & recoveries 16,366 12,358
Parking and other 3,061 2,836
Interest income 215 916
Equity in earnings of
unconsolidated joint ventures 834 70
Total revenues 136,975 122,041
Real estate taxes 14,208 11,854
Utilities 9,829 9,115
Operating services 17,227 15,629
General and administrative 5,770 6,394
Depreciation and amortization 22,465 19,093
Interest expense 25,697 21,786
Total expenses 95,196 83,871
Income from operations before
minority interest 41,779 38,170
Minority interest (1) (8,757) (7,782)
Income from operations 33,022 30,388
Non-recurring charges (2) (14,336) --
Extraordinary item-loss on
early retirement of debt (3) -- (2,373)
Net income $18,686 $28,015
PER SHARE DATA:
Income from operations - basic $0.56 $0.53
Net income - basic $0.32 $0.49
Income from operations - diluted $0.56 $0.53
Net income - diluted $0.32 $0.49
Dividends declared $0.55 $0.50
Basic weighted average
shares outstanding 58,510 57,019
Diluted weighted average
shares outstanding 67,486 64,626
(1) Excludes effect of minority interest's share of non-recurring charges and
extraordinary items.
(2) Net of minority interest's share in 1999 of $2,122.
(3) Net of minority interest's 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)
Quarter Ended June 30,
1999 1998
Income from operations before
minority interest $41,779 $38,170
Add: Real estate depreciation
and amortization(1) 22,769 19,211
Deduct: Adj. to rental income for
straight-lining of rents(1) (3,833) (3,142)
Funds from operations(2) after adj.
for straight-lining of rents $60,715 $54,239
Deduct:
Non?incremental revenue generating
capital expenditures:
Capital improvements (1,464) (377)
Tenant improvements and leasing
commissions (5,753) (4,878)
Cash available for distribution $53,498 $48,984
Basic weighted average shares/units
outstanding (3) 67,173 64,145
Diluted weighted average shares/units
outstanding(4) 74,104 71,444
Per Share/Unit - Basic(5):
Funds from operations $0.85 $0.78
Cash available for distribution $0.74 $0.70
Per Share/Unit - Diluted:
Funds from operations $0.82 $0.76
Cash available for distribution $0.72 $0.69
Dividend per common share $0.55 $0.50
Dividend payout ratios:
Funds from operations-diluted 67.13% 65.86%
Cash available for distribution-diluted 76.18% 72.93%
(1) Includes FFO adjustments related to Company's 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 $3,985 for the three months ended June 30,
1999 and 1998, respectively.
Mack-Cali Realty Corporation
Consolidated Statements of Operations
(in thousands, except per share amounts)
Six Months Ended June 30,
1999 1998
Base rents $232,579 $198,777
Escalations & recoveries 31,226 22,715
Parking and other 6,961 4,818
Interest income 470 1,459
Equity in earnings of
unconsolidated joint ventures 628 95
Total revenues 271,864 227,864
Real estate taxes 28,051 21,926
Utilities 19,421 17,417
Operating services 34,143 28,321
General and administrative 13,904 12,591
Depreciation and amortization 44,434 35,324
Interest expense 49,319 40,265
Total expenses 189,272 155,844
Income from operations before
minority interest 82,592 72,020
Minority interest (1) (17,506) (15,089)
Income from operations 65,086 56,931
Non-recurring charges (2) (14,336) --
Extraordinary item-loss on
early retirement of debt (3) -- (2,373)
Net income $50,750 $54,558
PER SHARE DATA:
Income from operations - basic $1.12 $1.05
Net income - basic $0.87 $1.01
Income from operations - diluted $1.11 $1.04
Net income - diluted $0.87 $1.00
Dividends declared $1.10 $1.00
Basic weighted average
shares outstanding 58,337 54,207
Diluted weighted average
shares outstanding 67,385 61,671
(1) Excludes effect of minority interest's share of non-recurring charges and
extraordinary items.
(2) Net of minority interest's share in 1999 of $2,122.
(3) Net of minority interest's 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)
Six Months Ended June 30,
1999 1998
Income from operations before
minority interest $82,592 $72,020
Add: Real estate depreciation
and amortization(1) 45,720 35,330
Deduct: Adj. to rental income for
straight-lining of rents(1) (7,378) (6,345)
Funds from operations(2) after adj.
for straight-lining of rents $120,934 $101,005
Deduct:
Non?incremental revenue generating
capital expenditures:
Capital improvements (2,033) (739)
Tenant improvements and leasing
commissions (11,406) (10,624)
Cash available for distribution $107,495 $89,642
Basic weighted average shares/units
outstanding (3) 67,092 61,056
Diluted weighted average shares/units
outstanding(4) 74,040 68,425
Per Share/Unit - Basic(5):
Funds from operations $1.69 $1.53
Cash available for distribution $1.49 $1.34
Per Share/Unit - Diluted:
Funds from operations $1.63 $1.48
Cash available for distribution $1.45 $1.31
Dividend per common share $1.10 $1.00
Dividend payout ratios:
Funds from operations-diluted 67.35% 67.74%
Cash available for distribution-diluted 75.76% 76.33%
(1) Includes FFO adjustments related to Company's 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 $7,738 and $7,896 for the six months ended June 30, 1999 and
1998, respectively.
Mack-Cali Realty Corporation
Consolidated Balance Sheets
(in thousands, except share amounts)
June 30, December 31,
ASSETS: 1999 1998
Rental property
Land and leasehold interests $523,250 $510,534
Buildings and improvements 2,934,780 2,887,115
Tenant improvements 83,030 64,464
Furniture, fixtures and equipment 5,795 5,686
3,546,855 3,467,799
Less-accumulated depreciation
and amortization (220,152) (177,934)
Total rental property 3,326,703 3,289,865
Cash and cash equivalents 11,519 5,809
Investments in unconsolidated
joint ventures 86,380 66,508
Unbilled rents receivable 48,435 41,038
Deferred charges and other assets, net 52,703 39,020
Restricted cash 6,160 6,026
Accounts receivable 6,698 3,928
Total assets $3,538,598 $3,452,194
LIABILITIES AND STOCKHOLDERS' EQUITY:
Senior Unsecured Notes $ 597,344 $ --
Revolving credit facilities 148,600 671,600
Mortgages and loans payable 749,041 749,331
Dividends and distributions payable 40,926 40,564
Accounts payable and accrued expenses 39,644 33,253
Rents received in advance and
security deposits 31,117 29,980
Accrued interest payable 14,729 2,246
Total liabilities 1,621,401 1,526,974
Minority interest of unitholders
in Operating Partnership 458,544 501,313
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,
58,915,684 and 57,266,137
shares outstanding 589 573
Additional paid-in capital 1,563,187 1,514,648
Dividends in excess of net earnings (105,123) (91,314)
Total stockholders' equity 1,458,653 1,423,907
Total liabilities and
stockholders' equity $3,538,598 $3,452,194
Mack-Cali Realty Corporation
Leasing Statistics
For Quarter Ended June 30, 1999
WHOLLY-OWNED PORTFOLIO
SUMMARY OF SPACE LEASED DURING PERIOD
IN-SERVICE PROPERTIES:
Square feet leased at March 31, 1999 26,011,277
Net leasing activity in 2nd quarter 1999 20,760
Leased s.f. from 2nd quarter 1999 acquisitions 63,278
Occupancy adjustment(1) (13,975)
Square feet leased at June 30, 1999 26,081,340
Percent leased at June 30, 1999 96.3%
Square feet of Development/Redevelopment
Properties Not-in-Service as of June 30, 1999 500,850
OFFICE SPACE
Number Weighted Average
of Rentable Average Term
Leases S.F. Base Rent (Years)
New Leases:
First generation space 2 21,746 $17.88 9.3
Second generation space 79 313,451 $25.52 6.6
Total New Leasing 81 335,197 $25.02
Renewals & extensions 81 324,334 $23.09 4.3
Other retained tenants 30 122,883 $25.46 6.3
Total Leasing 192 782,414
Capital Expenditures - Second Generation Space(2):
Tenant Leasing
Improvements(3) Commissions Total
Expend. committed-2nd qtr $7,525,809 $4,824,831 $12,350,640
Rentable s.f. leased-2nd qtr 760,668
Cap. ex. committed
per r.s.f. per year $1.77 $1.13 $2.90
(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 24,240 $10.50 10.0
Second generation space 9 67,705 $ 8.85 6.3
Total New Leasing 10 91,945 $ 9.29
Renewals & extensions 14 162,978 $13.67 5.7
Other retained tenants 3 16,850 $ 7.74 2.9
Total Leasing 27 271,773
Capital Expenditures - Second Generation Space(2):
Tenant Leasing
Improvements(3) Commissions Total
Expend. committed-2nd qtr $1,154,303 $374,043 $1,528,346
Rentable s.f. leased-2nd qtr 247,533
Cap. ex. committed
per r.s.f. per year $0.83 $0.27 $1.10
INDUSTRIAL/WAREHOUSE SPACE
Number Weighted Average
of Rentable Average Term
Leases S.F. Base Rent(1) (Years)
New Leases:
Second generation space 1 36,290 $11.11 3.0
Renewals & extensions 1 450 $16.50 1.0
Other retained tenants 2 15,600 $ 9.15 8.8
Total Leasing 4 52,340
Capital Expenditures - Second Generation Space(2):
Tenant Leasing
Improvements(3) Commissions Total
Expend. committed-2nd qtr $174,215 $107,622 $281,837
Rentable s.f. leased-2nd qtr 52,340
Cap. ex. committed
per r.s.f. per year $0.71 $0.44 $1.15
(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 230 1,085,767
Leases renewed & extended 96 487,762
Other retained tenants 35 155,333
Total leases retained 131 643,095
Percent retained 57.0% 59.2%
Future expirations renewed or
relet (included in totals above) 67 581,116
-------------------------------
JOINT VENTURE PROPERTIES
SUMMARY OF SPACE LEASED DURING PERIOD
IN-SERVICE PROPERTIES:
Square feet leased at March 31, 1999 639,293
Net leasing activity in 2nd quarter 1999 46,196
Square feet leased at June 30, 1999 685,489
Percent leased at June 30, 1999 90.2%
Square feet of Development/Redevelopment
Properties Not-in-Service as of June 30, 1999 784,500
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 3 36,111 $32.82 5.1
Total New Leasing 5 45,041 $29.98
Renewals & extensions 1 2,805 $24.06 5.0
Other retained tenants 1 2,936 $22.33 4.8
Total Leasing 7 50,782
Capital Expenditures - Second Generation Space(1):
Tenant Leasing
Improvements(2) Commissions Total
Expend. committed-2nd qtr $999,960 $239,368 $1,239,328
Rentable s.f. leased-2nd qtr 41,852
Cap. ex. committed
per r.s.f. per year $4.75 $1.14 $5.89
(1) Represents amounts committed, but not necessarily expended during period.
(2) Equals estimated workletter costs.
# # #
Mack-Cali Realty Corporation
Leasing Statistics
For The Six Months Ended June 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 96,007
Leased s.f. from 1999 acquisitions 133,963
Occupancy adjustment(1) 3,913
Square feet leased at June 30, 1999 26,081,340
Percent leased at June 30, 1999 96.3%
Square feet of Development/Redevelopment
Properties Not-in-Service as of June 30, 1999 500,850
OFFICE SPACE
Number Weighted Average
of Rentable Average Term
Leases S.F. Base Rent (Years)
New Leases:
First generation space 3 24,130 $17.55 8.8
Second generation space 125 429,863 $24.75 6.2
Total New Leasing 128 453,993 $24.37
Renewals & extensions 146 524,427 $22.60 4.1
Other retained tenants 56 298,245 $26.17 6.6
Total Leasing 330 1,276,665
Capital Expenditures - Second Generation Space(2):
Tenant Leasing
Improvements(3) Commissions Total
Expend. committed (y-t-d) $11,513,386 $6,588,807 $18,102,193
Rentable s.f. leased (y-t-d) 1,252,535
Cap. ex. committed
per r.s.f. per year $1.69 $0.97 $2.66
(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 19 178,712 $11.02 6.9
Total New Leasing 20 202,952 $10.96
Renewals & extensions 27 231,294 $13.23 4.9
Other retained tenants 6 51,285 $15.45 7.3
Total Leasing 53 485,531
Capital Expenditures - Second Generation Space(2):
Tenant Leasing
Improvements(3) Commissions Total
Expend. committed (y-t-d) $2,544,044 $889,464 $3,433,508
Rentable s.f. leased (y-t-d) 247,533
Cap. ex. committed
per r.s.f. per year $0.92 $0.32 $1.24
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 $10.91 3.5
Renewals & extensions 2 3,450 $12.39 1.9
Other retained tenants 2 15,600 $ 9.15 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 419 1,734,329
Leases renewed & extended 175 759,171
Other retained tenants 64 365,130
Total leases retained 239 1,124,301
Percent retained 57.0% 64.8%
Future expirations renewed or
relet (included in totals above) 89 693,595
-------------------------------
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 59,776
Square feet leased at June 30, 1999 685,489
Percent leased at June 30, 1999 90.2%
Square feet of Development/Redevelopment
Properties Not-in-Service as of June 30, 1999 784,500
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 4 38,194 $32.12 5.1
Total New Leasing 6 47,124 $29.54
Renewals & extensions 1 2,805 $24.06 5.0
Other retained tenants 4 16,206 $23.31 4.3
Total Leasing 11 66,135
Capital Expenditures - Second Generation Space(1):
Tenant Leasing
Improvements(2) Commissions Total
Expend. committed (y-t-d) $1,160,972 $253,694 $1,414,666
Rentable s.f. leased (y-t-d) 57,205
Cap. ex. committed
per r.s.f. per year $4.20 $0.92 $5.12
(1) Represents amounts committed, but not necessarily expended during period.
(2) Equals estimated workletter costs.
Executive Vice President and Chief Financial Officer
Mack-Cali Realty Corporation
T: 732.590.1000
Close
Forward this page.
Close