Cali Realty Corporation Announces Second Quarter and First Half Results; FFO per Share up 18%, Revenues Nearly Triple in Second Quarter.CRANFORD Cranford can mean:
REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. Corporation (NYSE NYSE See: New York Stock Exchange :CLI (1) (Call Level Interface) A database programming interface from the SQL Access Group (SAG), an SQL membership organization. SAG's CLI is an attempt to standardize the SQL language for database access. ) today reported its results for the second quarter and the six months ended June June: see month. 30, 1997. Financial Highlights For the quarter ended June 30, 1997, funds from operations Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. (FFO FFO See: Funds from operations ) before minority interest and after adjustment for straight-lining of rents amounted to $26.5 million, or $.65 per share, versus $9.9 million, or $.55 per share, for the quarter ended June 30, 1996, representing an 18% increase on a per share basis in 1997 over 1996. For the six months ended June 30, 1997, FFO before minority interest and after adjustment for straight-lining of rents amounted to $50.5 million, or $1.25 per share, versus $19.0 million, or $1.06 per share, for the six months ended June 30, 1996, also showing an 18% increase in 1997 over 1996. Cash available for distribution in the second quarter of 1997 amounted to $25.3 million, or $.62 per share, versus $8.7 million, or $.48 per share, for the same period last year, representing a 29% increase on a per share basis. For the six months ended June 30, 1997, cash available for distribution equaled $47.9 million, or $1.19 per share, versus $16.8 million, or $.94 per share, for the six months ended June 30, 1996, showing a 27% increase on a per share basis in 1997 over 1996. Revenues increased 188% in the second quarter to $60.5 million from $21.0 million for the quarter ended June 30, 1996. For the six months ended June 30, 1997, revenues increased 178% to $112.7 million from $40.6 million for the same period in 1996. For the quarter ended June 30, 1997, net income totaled $18.0 million, or $.49 per share, versus net income of $5.7 million, or $.37 per share, for the quarter ended June 30, 1996, representing a 32% increase on a per share basis. For the six months ended June 30, 1997, income before gain on sale of rental property and extraordinary item increased 34% to $34.5 million, or $.95 per share, versus $10.9 million, or $0.71 per share, for the six months ended June 30, 1996. At June 30, 1997, Cali Realty had a total market capitalization Total Market Capitalization The total market value of all of a firm's outstanding securities. of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.9 billion, with an equity market value of $1.4 billion, and a total debt-to-total market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. ratio of 28.6%. Commenting on the results, Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs A. Rizk, President and Chief Executive Officer, stated, "We are especially pleased with our positive financial results, which reflect our first complete quarter since the January January: see month. 1997 acquisition of the Robert Martin Robert J. Martin (born January 13, 1947) is an American Republican Party politician, who has served as a member of the New Jersey State Senate since 1993, where he represents the 26th Legislative District. Company. Our results truly demonstrate that the transaction was an excellent opportunity for Cali and its shareholders. Going forward, we will continue to make strategic acquisitions that will enhance our strategy for growth and create additional value for shareholders." Summary of Recent Acquisitions Including the Company's January acquisition of the Robert Martin Company, which added 65 properties totaling 4.1 million square feet, Cali has completed $555 million in acquisitions thus far in 1997, comprising 73 properties aggregating 4.9 million square feet. This represents a 69% increase in Cali's portfolio from its holdings at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 1996. In the second quarter, Cali acquired four class A office buildings totaling 444,000 square feet in Westlakes Office Park, in suburban Philadelphia Philadelphia, ancient cities Philadelphia, name of several ancient cities. One was in Lydia, W Asia Minor (now W Turkey). At the foot of Mt. Tmolus and near the location of modern Alaşehir, it was founded in the 2d cent. B.C. . More recently, the Company acquired two class A office buildings aggregating 150,000 square feet in Moorestown Moorestown, township (1990 pop. 16,500), Burlington co., SW N.J., an industrial suburb of the Camden, N.J.–Philadelphia area; settled 1682 by Quakers, inc. 1922. Electronic equipment, metal products, and chemicals are the principal manufactures. Corporate Center, in Moorestown, New Jersey, and Shelton Shelton, city (1990 pop. 35,418), Fairfield co., SW Conn., on the Housatonic River opposite Derby; settled 1697, set off from Stratford 1789, inc. as a city 1915. Metal products, furniture, and electronic equipment are among the city's manufactures. Place, a 133,000 square-foot class A office building in Shelton, Connecticut Shelton is a city in Fairfield County, Connecticut, United States. History Origins The town was split off from Stratford in 1789, as Huntington (named for Samuel Huntington). . Merger Planned with the Mack Company and Patriot American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Office Group In the Company's largest announced transaction to date, Cali yesterday reported plans to merge See mail merge and concatenate. the office assets of the Mack Company and Patriot American Office Group into Cali for approximately $1.2 billion. The Mack Company, based in New Jersey, will contribute its 5.9 million square-foot class A office portfolio and related operations, and Dallas-based Patriot American Office Group will contribute its 3.6 million square-foot office portfolio and related operations. The Company will be renamed Mack-Cali Realty Corporation, and will be one of the largest REITs in the country, with a total market capitalization of approximately $3.3 billion and over 21 million square feet of office space, primarily in the Northeast “Northeastern” redirects here. For the Boston college, see Northeastern University, Boston. Northeast or north east is the ordinal direction halfway between north and east. It is the opposite of southwest. See boxing the compass. and Southwest Southwest or south west is the ordinal direction halfway between south and west, the opposite of northeast. Southwest or south west may also refer to:
tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. and shareholder approval. Financing Activity In August, Cali announced a number of financing activities, including the addition of a new credit facility which brings the company's total borrowing capacity under its two revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facilities to $500 million, as compared to Cali's previous facilities which totaled $225 million. The Company currently has $230 million of borrowings outstanding under its facilities. Most notably, on August 6, 1997, the Company obtained a new $400 million unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. revolving credit facility with a group of 13 lenders led by Fleet National Bank. The new facility, which has a three-year term, currently carries an interest rate equal to LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). plus 125 basis points. In conjunction with the closing of the $400 million unsecured facility, Cali retired two of the Company's existing secured revolving credit facilities. Barry Barry, Welsh Barri, town (1991 pop. 45,053) and port, Vale of Glamorgan, S Wales, on the Bristol Channel. Once a major coal-exporting port, its more diversified export products include cement, flour, and steel products. Lefkowitz, Chief Financial Officer, stated, "The addition of the unsecured facility, in combination with the retiring of our $64.5 million REMIC mortgage financing, will provide Cali with greater financial flexibility in which to pursue an aggressive acquisition program. We continue to evaluate all aspects of our balance sheet and financial performance in an effort to further enhance our already strong financial health." Following Cali's recent financing transactions, the Company now has 83 unencumbered Unencumbered Property that is not subject to any creditor claims or liens. Notes: For example, if a house is owned free and clear (meaning the owner owes no mortgage to anyone), it is unencumbered. properties totaling 7 million square feet, representing approximately 58% of the Company's portfolio. Leasing Summary Cali Realty's portfolio of office buildings was 96.5 percent leased at June 30, 1997 compared to 96.3 percent at March 31, 1997. During the second quarter 1997, the Company executed 83 leases totaling 428,121 square feet, consisting of 241,398 square feet of office space and 186,723 square feet of office/flex space; 202,702 square feet for new leases and 225,419 square feet for lease renewals. A schedule is attached highlighting the second quarter's leasing statistics. About the Company Cali Realty Corporation is a fully integrated, self-administered, self-managed real estate investment trust(REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ) providing leasing, management, acquisition, development, construction and tenant-related services for its portfolio. The Company owns 130 properties, primarily office and office/flex buildings, totaling approximately 12 million square feet. All of the properties are located in New Jersey, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York and Connecticut Connecticut, state, United States Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). . Additional information on Cali Realty Corporation is available on the Company's Web site at http://www.calirealty.com. Certain information discussed in this press release may constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Federal Securities law. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office, office/flex and industrial/warehouse properties in the northeast; interest rate levels; the availability of financing; and other risks associated with the development and acquisition of properties, including risks that the development may not be completed on schedule, that the tenants will not take occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy or pay rent, or that development or operating costs operating costs npl → gastos mpl operacionales may be greater than anticipated. For further information on factors which could impact the Company and the statements contained herein, reference should be made to the Company's filings with the Securities and Exchange Commission including quarterly reports on Form 10-Q Form 10-Q See 10-Q. , reports on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. , and annual reports on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . -0-
Cali Realty Corporation
Condensed Statements of Operations
(in thousands, except per share amounts)
Quarter Ended June 30,
1997 1996
Revenues $60,542 $21,013
Operating and other expenses (18,068) (6,579)
General and administrative (3,754) (1,128)
Depreciation and amortization (9,080) (3,614)
Interest expense (9,603) (2,999)
Total expenses (40,505) (14,320)
Income before minority interest 20,037 6,693
Minority interest (2,012) (1,009)
Net income $18,025 $ 5,684
Weighted average shares
outstanding 36,489 15,203
Net income per common share $ 0.49 $ 0.37
Dividends declared per
common share $ 0.45 $ 0.425
Cali Realty Corporation
Statements of Funds from Operations and
Cash Available for Distribution
(in thousands, except per share amounts)
Quarter Ended June 30,
1997 1996
Income before minority interest,
gain on sale of rental property
and extraordinary item $20,037 $ 6,693
Add:
Real estate depreciation and amortization 8,786 3,334
Deduct:
Adjustment to rental income for
straight line rents (2,337) (135)
Funds from Operations(1)after adjustment
for straight-lining of rents $26,486 $ 9,892
Deduct:
Non-incremental revenue generating
capital expenditures:
Capital improvements (341) (364)
Tenant improvements and lease
commissions (871) (869)
Cash available for distribution $25,274 $ 8,659
Weighted average shares/units
outstanding(2) 40,579 17,902
Per share/unit:
Funds from Operations $ 0.65 $ 0.55
Cash available for distribution $ 0.62 $ 0.48
Dividend $ 0.45 $ 0.425
Dividend payout ratios:
Funds from Operations(1) 68.94% 76.91%
Cash available for distribution 72.25% 87.87%
(1) 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.
(2) Assumes conversion of 4,091 (1997) and 2,751 (1996) weighted
average limited partnership units in Cali Realty, L.P. to
shares of Cali Realty Corporation.
Cali Realty Corporation
Condensed Statements of Operations
(in thousands, except per share amounts)
Six Months Ended June 30,
1997 1996
Revenues $112,697 $40,584
Gain on sale of rental property -- 5,658
Operating and other expenses (33,642) (13,223)
General and administrative (6,927) (2,064)
Depreciation and amortization (16,844) (6,908)
Interest expense (17,152) (5,568)
Total expenses (74,565) (27,763)
Income before minority interest
and extraordinary item 38,132 18,479
Minority interest (3,648) (2,821)
Extraordinary item-loss on early
retirement of debt(1) -- (475)
Net income $ 34,484 $ 15,183
Weighted average shares
outstanding 36,475 15,175
Net income per common share:
Before gain on sale of
rental property and
extraordinary item(2) $ 0.95 $ 0.71
Gain on sale of
rental property(3) -- $ 0.32
Extraordinary item -- (.03)
Net income: $ 0.95 $ 1.00
Dividends declared per
common share $ 0.90 $ 0.85
(1) Net of minority interest's share of $86 in 1996.
(2) 1996 amount calculated by taking net income, adding back the
extraordinary item, and deducting the gain on sale of rental
property (net of minority interest's share of $864), divided by
weighted average shares outstanding.
(3) 1996 amount calculated by taking the gain on sale of rental
property (net of minority interest's share of $864), divided
by weighted average shares outstanding.
Cali Realty Corporation
Statements of Funds from Operations and
Cash Available for Distribution
(in thousands, except per share amounts)
Six Months Ended June 30,
1997 1996
Income before minority interest,
gain on sale of rental property
and extraordinary item $ 38,132 $ 12,821
Add:
Real estate depreciation and amortization 16,265 6,355
Deduct:
Adjustment to rental income for
straight line rents (3,944) (204)
Funds from Operations(1) after adjustment
for straight-lining of rents $ 50,453 $ 18,972
Deduct:
Non-incremental revenue generating
capital expenditures:
Capital improvements (633) (551)
Tenant improvements and lease
commissions (1,926) (1,610)
Cash available for distribution $ 47,894 $ 16,811
Weighted average shares/units
outstanding(2) 40,334 17,900
Per share/unit:
Funds from Operations $ 1.25 $ 1.06
Cash available for distribution $ 1.19 $ .94
Dividend $ .90 $ .85
Dividend payout ratios:
Funds from Operations(1) 71.95% 80.20%
Cash available for distribution 75.79% 90.50%
(1) Funds from Operations for both periods are calculated in
accordance with the new National Association of Real Estate
Investment Trusts (NAREIT) definition, as published in March
1995.
(2) Assumes conversion of 3,859 (1997) and 2,725 (1996) weighted
average limited partnership units in Cali Realty, L.P. to
shares of Cali Realty Corporation.
Cali Realty Corporation
Leasing Statistics
For Quarter Ended June 30, 1997
Leased Area Percentage
Rentable S.F. Leased
March 31, 1997 10,889,919 96.3%
2nd quarter leasing, net 17,589
2nd quarter acquisitions 441,668
June 30, 1997 11,349,176 96.5%
Second Quarter Leasing Activity:
OFFICE SPACE
Number Weighted Average
of Rentable Average Term
Leases S.F. Base Rent (Years)
New Leases:
Second generation space 36 116,417 $21.79 4.90
Total new leasing 36 116,417
Renewals & extensions 19 124,981 $20.65 3.60
Total leasing 55 241,398
Capital Expenditures- Tenant Leasing
Second Generation Space: Improvements Commissions Total
Expend. committed-2nd qtr.(1) $1,535,711(2) $ 904,166 $2,439,877
Rentable s.f. leased-2nd qtr. 241,398 241,398 241,398
Cap ex. committed per r.s.f. $6.36 $3.75 $10.11
(1) Represents amounts committed but not necessarily expended during period.
(2) Equals estimated workletter costs, net of estimated profit and overhead.
Cali Realty Corporation
Leasing Statistics
For Quarter Ended June 30, 1997
(continued)
OFFICE/FLEX SPACE
Number Weighted Average
of Rentable Average Base Term
Leases S.F. Net Rent (3) (Years)
New leases:
First generation space 2 16,654 $15.63 5.0
Second generation space 15 69,631 $13.00 4.3
Total new leasing: 17 86,285
Renewals & extensions: 11 100,438 $13.80 2.9
Total leasing: 28 186,723
Capital Expenditures- Tenant Leasing
Second Generation Space: Improvements(2) Commissions Total
Expend. committed-2nd qtr.(1) $611,595 $321,796 $933,391
Rentable s.f. leased-2nd qtr. 170,069 170,069 170,069
Cap ex.committed per r.s.f.: $3.60 $1.89 $5.49
(1) Represents amounts committed, but not necessarily expended during period.
(2) Equals estimated workletter costs, net of estimated profit and overhead.
(3) Equals "triple net" rent plus common area costs and real estate taxes.
Lease Renewals
Number of
Leases Rentable S.F.
Leases expiring-2nd quarter(4) 74 411,054
Leases renewed and relet-2nd quarter 30 225,419
Renewal percentage per r.s.f. 41% 55%
Expiring in future periods and
renewed in 2nd quarter 17 192,025
Expiring in future periods and
relet in 2nd quarter 2 4,100
(4) Includes leases expiring ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. in future periods for which leases were renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. or relet in 2nd quarter. CONTACT: Barry Lefkowitz Gregory Pettit Chief Financial Officer Edelman Ed·el·man , Gerald Maurice Born 1929. American biochemist. He shared a 1972 Nobel Prize for research on the chemical structure and nature of antibodies. Financial Cali Realty Corporation (212) 704-8176 (908) 272-8000 |
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