Mack-Cali Realty Corporation Announces Second Quarter Results.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 2006. Highlights of the quarter included: --Reported net income per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share of $0.43; --Reported 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. per diluted share of $0.95; --Completed Gale/Green transactions acquiring services company and interests in 28 office properties; --Acquired joint venture interests in seven-building suburban Boston Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. office portfolio; --Sold only asset in Dutchess County, New York Dutchess County is a county located in the U.S. state of New York, in the state's Mid-Hudson Region of the Hudson Valley. As of the 2000 census, the population was 280,150. for $15.1 million; and --Declared $0.63 per share quarterly common stock dividend. FINANCIAL HIGHLIGHTS Net income available to common shareholders for the second quarter 2006 equaled $26.6 million, or $0.43 per share, versus $36.0 million, or $0.58 per share, for the same quarter last year. For the six months ended June June: see month. 30, 2006, net income available to common shareholders equaled $59.2 million, or $0.95 per share, versus $58.5 million, or $0.95 per share, for the same period last year. Funds from operations (FFO FFO See: Funds from operations ) available to common shareholders for the quarter ended June 30, 2006 amounted to $74.4 million, or $0.95 per share, versus $71.4 million, or $0.94 per share, for the quarter ended June 30, 2005. For the six months ended June 30, 2006, FFO available to common shareholders amounted to $155.2 million, or $2.00 per share, versus $138.5 million, or $1.83 per share, for the same period last year. Total revenues for the second quarter 2006 increased 19.6 percent to $194.3 million as compared to $162.4 million for the same quarter last year. For the six months ended June 30, 2006, total revenues amounted to $357.7 million, an increase of 13.7 percent over total revenues of $314.5 million, for the same period last year. All per share amounts presented above are on a diluted basis. The Company had 62,360,388 shares of common stock, 10,000 shares of 8 percent Series C cumulative redeemable Redeemable Eligible for redemption under the terms of an indenture. perpetual PERPETUAL. That which is to last without limitation as to time; as, a perpetual statute, which is one without limit as to time, although not expressed to be so. preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. ($25,000 liquidation value Liquidation value Net amount that could be realized by selling the assets of a firm after paying the debt. per share), and 15,681,625 common operating partnership units outstanding as of June 30, 2006. The Company had a total of 78,042,013 common shares/common units outstanding at June 30, 2006. As of June 30, 2006, the Company had total indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. of approximately $2.4 billion, with a weighted average annual interest rate of 6.08 percent. The Company had a total market capitalization Total Market Capitalization The total market value of all of a firm's outstanding securities. of $6 billion and a debt-to-undepreciated assets ratio of 43.8 percent at June 30, 2006. The Company had an interest coverage ratio of 3.2 times for the quarter ended June 30, 2006. Mitchell Mitchell, city (1990 pop. 13,798), seat of Davison co., SE S.Dak.; inc. 1881. Mitchell is a trade, distribution, and shipping center for a dairy and livestock area. E. Hersh Hersh (Yiddish: הערש) refers to the first name and family names:
Northeast or north east is the ordinal direction halfway between north and east. It is the opposite of southwest. See boxing the compass. presence through our acquisitions of The Gale Real Estate Services Company and interests in a suburban Boston portfolio. We look forward to capitalizing on the growth opportunities resulting from these transactions. We were also able to profitably exit a non-core market with the sale of our sole Dutchess County, New York asset." The following is a summary of the Company's recent transactions: ACQUISITIONS On May 9, the Company completed the Gale/Green acquisitions which consisted of: --The Gale Company and related businesses, which specialize spe·cial·ize v. 1. To limit one's profession to a particular specialty or subject area for study, research, or treatment. 2. To adapt to a particular function or environment. in construction, property management, leasing and facilities management The management of a user's computer installation by an outside organization. All operations including systems, programming and the datacenter can be performed by the facilities management organization on the user's premises. services, for an initial purchase price of $22 million (subject to earn-out Earn-out Refers to an additional payment in a merger or acquisition that is not part of the original acquisition cost, which is based on the acquired company's future earnings relative to a level determined by the merger agreement. provisions for up to an additional $18 million); --Three office properties, aggregating 518,257 square feet and located in Parsippany, Ridgefield Park Ridgefield Park, village (1990 pop. 12,454), Bergen co., NE N.J., on the Hackensack River; inc. 1892. Chiefly residential, it manufactures some paper goods. and Edison, New Jersey Edison Township (usually known as Edison) is a township in Middlesex County, New Jersey, United States. As of the United States 2000 Census, the township had a total population of 97,687, making it at the time the fifth largest municipality in New Jersey. As of the U.S. for approximately $106 million; and --Indirect interests in a portfolio of 25 office properties, aggregating 3.5 million square feet, primarily located in New Jersey, for approximately $116 million. As part of the Gale transactions, the Company completed the acquisitions of interests in six land/development projects in New Jersey, and an interest in a 530,000 square-foot mixed-use mixed-use adj. Containing or zoned for commercial and residential facilities or development: a 40-story mixed-use tower; a mixed-use parcel of land. , office/retail complex in Plainsboro, New Jersey for a total investment of approximately $18 million. On June 1, the Company, through a joint venture with JPMorgan Chase's Special Situation Property Fund and Gale International, acquired an interest in a seven-building class A office portfolio aggregating 667,000 square feet, located in the Boston suburbs. Mack-Cali acquired its interest in the portfolio for approximately $5.2 million. The Special Situation Property Fund owns 70 percent of the venture acquiring the properties, with an entity between Mack-Cali and Gale International owning the other 30 percent. Mack-Cali owns 83.3 percent in the Mack-Cali/Gale International entity. Mack-Cali and Gale International are providing management, leasing and construction services for the portfolio. More recently, on July July: see month. 31, the Company acquired 395 West Passaic Passaic, city, United States Passaic (pəsā`ĭk), city (1990 pop. 58,041), Passaic co., NE N.J., a port on the Passaic River; settled 1678 by Dutch traders as Acquackanonk, named Passaic 1854, inc. as a city 1873. Street, a four-story, 100,589 square-foot, class A office building, located in Rochelle Park, New Jersey Rochelle Park is a township in Bergen County, New Jersey, United States. As of the United States 2000 Census, the township population was 5,528. Rochelle Park was formed as a township by an Act of the New Jersey Legislature on November 5, 1929, replacing Midland Township, for approximately $21 million. PROPERTY SALES In June, the Company sold 300 Westage Business Center Drive, a 118,727 square-foot class A office building in Fishkill, New York Fishkill is a village within the Town of Fishkill in Dutchess County, New York, USA. The population was 1,735 at the 2000 census. The Village of Fishkill is in the northeast part of the town on US 9. It is north of Interstate 84. NY 52 is the main street. , for $15.1 million. The 85.3 percent leased building was the Company's only asset in Dutchess County. DIVIDENDS In June, the Company's Board of Directors declared a cash dividend of $0.63 per common share (indicating an annual rate of $2.52 per common share) for the second quarter 2006, which was paid on July 17, 2006 to shareholders of record as of July 6, 2006. The Board also declared a cash dividend on its 8 percent Series C cumulative redeemable perpetual preferred stock ($25 liquidation value per depositary DEPOSITARY, contracts. He with whom a deposit is confided or made. 2. It is, the essence of the contract of deposits that it should be gratuitous on the part 'of the depositary. 9 M. R. 470. share, each representing 1/100th of a share of preferred stock) equal to $0.50 per depositary share for the period April 15, 2006 through July 14, 2006. The dividend was paid on July 17, 2006 to shareholders of record as of July 6, 2006. LEASING INFORMATION Mack-Cali's consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: in-service in-service In-service training adjective Referring to any form of on-the-job training noun In-service training of an employee portfolio was 90.7 percent leased at June 30, 2006, as compared to 90.4 percent at March 31, 2006. For the quarter ended June 30, 2006, the Company executed 167 leases totaling 1,204,609 square feet, consisting of 881,513 square feet of office space and 323,096 square feet of office/flex space. Of these totals, 459,758 square feet were for new leases and 744,851 square feet were for lease renewals and other tenant retention transactions. Highlights of the quarter's leasing transactions include: IN NORTHERN NEW JERSEY: --JPMorgan Chase Bank, NA, a global financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. firm, 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. its lease of 68,766 square feet for three years at 300 Tice Boulevard boulevard Broad landscaped avenue that typically permits several lanes of vehicular traffic as well as pedestrian walkways. The earliest boulevards originally followed the city walls (the word originally meant “bulwark”) and were built in the ancient Middle . The 230,000 square-foot office building, located in Woodcliff Lake, New Jersey Woodcliff Lake is a borough in Bergen County, New Jersey, United States. As of the United States 2000 Census, the borough population was 5,745. Woodcliff Lake is also the name of the reservoir that lies primarily within the town--a small part of it lies in neighboring , is 100 percent leased. --Syncsort Incorporated, a developer of business intelligence and data warehousing See data warehouse. data warehousing - data warehouse software, signed a 10-year renewal for 69,243 square feet at 50 Tice Boulevard in Woodcliff Lake, New Jersey. The 235,000 square-foot office building is 100 percent leased. --Mobile communications services provider Omnipoint Communications Inc., doing business as T-Mobile, signed a new lease for 48,875 square feet at 4 Campus Drive in Parsippany, New Jersey. The lease carries a term of eight years. 4 Campus Drive, located in the Mack-Cali Business Campus, is a 147,475 square-foot office building and is 96.8 percent leased. --Regulus Group, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , a billing services provider, renewed its lease of 21,500 square feet at 365 West Passaic Street in Rochelle Park, New Jersey for three years. The 212,578 square-foot office building is 94.8 percent leased. IN CENTRAL NEW JERSEY: --RadPharm, Inc., a provider of medical imaging and review services, signed a new five-year lease for 43,486 square feet at Princeton Princeton, borough (1990 pop. 12,016) and surrounding township (1990 pop. 13,198), Mercer co., W central N.J.; settled late 1600s, borough inc. 1813, township est. 1838. A leading education center, it is the seat of Princeton Univ. Overlook in Princeton, New Jersey
Princeton, New Jersey is located in Mercer County, New Jersey, United States. Princeton University has been sited in the town since 1756. . Princeton Overlook is a 149,600 square-foot office building located at 100 Overlook Center, and is fully leased. IN WESTCHESTER COUNTY, NEW YORK '' Westchester County is a primarily suburban county located in the U.S. state of New York with about 950,000 residents. It is part of the New York Metropolitan Area. It was named after Chester, in England, and the county seat is White Plains. : --CSC Holdings, Inc., the parent company of telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. and entertainment provider Cablevision For the unrelated Canadian company, see . Cablevision Systems Corporation is an American cable television company. It is the 5th largest cable provider in the USA, with most customers residing in New York, New Jersey, Connecticut, and Pennsylvania. Systems, signed a renewal of 38,900 square feet for six years at 6 Executive Plaza For the hotel in New York City, see . Plaza (IPA /'plaθa/ or /'plasa/ in Yonkers, New York Yonkers is the fourth largest city in the State of New York (it falls behind New York City, Buffalo, and Rochester), and the largest city in Westchester County, with a population of 196,086 (according to the 2000 census). . The 80,000 square-foot office/flex property, located in South Westchester Westchester is the name of some places in the United States of America:
--Vie de France Yamazaki Yamazaki (山崎, 山嵜, 山咲, etc.; the first of these being the commonest) can refer to several Japanese people, places and characters. The same characters are for some purposes pronounced Yamasaki. , Inc., the U.S. subsidiary of Yamazaki Banking Company, Ltd. of Tokyo Tokyo (tō`kēō), city (1990 pop. 8,163,573), capital of Japan and of Tokyo prefecture, E central Honshu, at the head of Tokyo Bay. , renewed 24,678 square feet at 525 Executive Boulevard in Elmsford, New York Elmsford is a village in Westchester County, New York, United States. The population was 4,676 at the 2000 census. As a village, it is located in the Town of Greenburgh. The village is named after a large elm tree that once grew in the community. for five years. The 61,700 square-foot office/flex property is located in the Cross Westchester Executive Park and is 83.6 percent leased. --Fabrication Enterprises, Inc., a supplier of physical and occupational therapy products, expanded by 20,717 square feet at 250 Clearbrook Road in Elmsford, New York for a term of seven years and one month. 250 Clearbrook Road is a 155,000 square-foot office/flex building in the Cross Westchester Executive Park and is 97.3 percent leased. IN FAIRFIELD COUNTY Fairfield County is the name of three counties in the United States:
--Fujifilm Medical Systems, USA, Inc. signed a five-year renewal of its lease for the entire 88,000 square-foot office/flex building located at 419 West Avenue at Stamford Stamford, town, England Stamford, town (1991 pop. 18,127), in the Parts of Kesteven, Lincolnshire, E central England, on the Welland River. It is a market town. Products include diesel engines, electrical equipment, bricks, and tiles. Executive Park in Stamford, Connecticut Stamford is a city in Fairfield County, Connecticut, United States. According to 2006 Census Bureau estimates, the population of the city is 119,261, making it the fourth largest city in the state. . --The William Carter For other persons named William Carter, see William Carter (disambiguation). William Carter (c. 1548 - 11 January 1584) was a Roman Catholic English printer and martyr. Biography William was born in London, 1548; suffered for treason at Tyburn on 11 January, 1584. Company, designers and manufacturers of children's clothing, signed a transaction totaling 41,033 square feet at 1000 Bridgeport Bridgeport, city (1990 pop. 141,686), Fairfield co., SW Conn., on Long Island Sound; inc. 1836. Long a chief industrial city in Connecticut, it makes electrical appliances, transportation equipment, clothing, ammunition, metal products, wiring devices, machinery, Avenue 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). . The transaction represents a one-year adj. 1. completing its life cycle within a year. Adj. 1. one-year - completing its life cycle within a year; "a border of annual flowering plants" annual phytology, botany - the branch of biology that studies plants renewal of 33,007 square feet and 18-month expansion of 8,026 square feet. 1000 Bridgeport Avenue is a 133,000 square-foot office building and is 88.1 percent leased. 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. : --Computer Sciences Corporation, a global information technology company, renewed leases for two entire office buildings at Expressway Corporate Center in Egg Harbor Township, New Jersey Egg Harbor Township is a township in Atlantic County, New Jersey, United States. As of the 2000 census, the township population was 30,726. The Census Bureau's 2004 population estimate for the township was 36,877, representing growth of nearly 20% since the previous enumeration. . The leases, which carry five-year terms, are for 41,600 square feet at 100 Decadon Drive and 41,250 square feet at 200 Decadon Drive. --The Commonwealth 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 , Office of Attorney General, signed a new 10-year and six-month lease for 32,933 square feet at 1000 Madison Avenue Madison Avenue, celebrated street of Manhattan, borough of New York City. It runs from Madison Square (23d St.) to the Madison Bridge over the Harlem River (138th St.). In the 1940s and 50s, some of the major U.S. in Lower Providence Providence, city (1990 pop. 160,728), state capital and seat of Providence co., NE R.I., a port at the head of Providence Bay; founded by Roger Williams 1636, inc. as a city 1832. , Pennsylvania. The 100,700 square-foot office building is 68.7 percent leased. IN WASHINGTON Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. , DC: --Public relations firm Qorvis Communications, LLC signed a new 11-year and four-month lease for 31,077 square feet at 1201 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). Avenue, N.W. in Washington, DC. The 169,549 square-foot office building is 100 percent leased. IN OTHER MARKETS: --Macrovision Corporation, a developer of software security applications, signed a new seven-year lease for 19,622 square feet at 795 Folsom Fol·som adj. Of or relating to a culture that flourished in western North America east of the Rocky Mountains during the late Pleistocene Epoch, notable chiefly for the use of grooved, leaf-shaped flint projectile points. Street in San Francisco, California “San Francisco” redirects here. For other uses, see San Francisco (disambiguation). The City and County of San Francisco (EN IPA: [sænfrənˈsɪskoʊ] . 795 Folsom is a 183,445 square-foot office building and is 96.0 percent leased. Included in the Company's Supplemental Operating and Financial Data for the second quarter 2006 are schedules highlighting the leasing statistics for both the Company's consolidated and joint venture properties. The supplemental information is available on Mack-Cali's website, as follows: http://www.mack-cali.com/graphics/shareholders/pdfs/ 2nd.quarter.sp.06.pdf (Due to the length of this URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. , it may be necessary to copy and paste To copy files from one location to another or to copy text and images from one document to another. All modern operating systems and applications have a copy and paste capability that is typically selected from an Edit menu. See cut and paste and Win Copy between windows. this hyperlink A predefined linkage between one object and another. See hypertext. hyperlink - anchor into your Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the browser's URL address field.) ADDITIONAL INFORMATION The Company expressed comfort with net income and FFO per diluted share for the third quarter and full year 2006, as follows:
Third Quarter Full Year
2006 Range 2006 Range
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Net income available to common
shareholders $0.25 - $0.27 $1.42 - $1.52
Deduct: Discontinued Operations -
realized (gains) losses, net of
minority interest -- (0.06)
Add: Real estate-related depreciation
and amortization 0.59 2.29
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Funds from operations available to
common shareholders $0.84 - $0.86 $3.65 - $3.75
======================================================================
These estimates reflect management's view of current market conditions and certain assumptions with regard to rental rates, 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 levels and other assumptions/projections. Actual results could differ from these estimates. An earnings conference call with management is scheduled for today, August 3, 2006 at 11:00 a.m. Eastern Time, which will be broadcast live via the Internet at: http://www.corporate-ir.net/ireye/ ir_site.zhtml?ticker ticker An automated quotation system on which security transactions are reported after they occur on an exchange floor. Even though the newer systems are electronic and no longer actually tick, the name of the old mechanical device has stuck. =CLI&script=1010&item_id=1360982 (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser's URL address field.) The live conference call is also accessible by calling (347) 284-6930 and requesting the Mack-Cali conference call. The conference call will be rebroadcast on Mack-Cali's website at http://www.mack-cali.com beginning at 2:00 p.m. Eastern Time on August 3, 2006 through August 10, 2006. A replay of the call will also be accessible during the same time period by calling (719) 457-0820 and using the pass code 4769582. Copies of Mack-Cali's 2006 Form 10-Q Form 10-Q See 10-Q. and Supplemental Operating and Financial Data are available on Mack-Cali's website, as follows: Second Quarter 2006 Form 10-Q: http://www.mack-cali.com/graphics/shareholders/pdfs/ 2nd.quarter.10q.06.pdf (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser's URL address field.) Second Quarter 2006 Supplemental Operating and Financial Data: http://www.mack-cali.com/graphics/shareholders/pdfs/ 2nd.quarter.sp.06.pdf (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser's URL address field.) In addition, these items are available upon request from: Mack-Cali Investor Relations Dept. 11 Commerce Drive, Cranford, NJ 07016-3501 (908) 272-8000 ext. 2484 INFORMATION ABOUT FFO Funds from operations ("FFO") is defined as net income (loss) before minority interest of unitholders, computed in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). "), excluding gains (or losses) from extraordinary items and sales of depreciable depreciable Of, relating to, or being a long-term tangible asset that is subject to depreciation. rental property (which the Company believes includes unrealized losses Unrealized Loss A loss that results from holding onto an asset rather than cashing it in and officially taking the loss. Notes: Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss. on properties held for sale), plus real estate-related depreciation and amortization. The Company believes that FFO per share is helpful to investors as one of several measures of the performance of an equity REIT Equity REIT A Real Estate Investment Trust that assumes ownership status in the property it invests in enabling investors of the REIT to earn dividends on rental income from the property and appreciation in property resale. Antithesis of a Mortgage REIT. . The Company further believes that by excluding the effect of depreciation and gains (or losses) from sales of properties (all of which are based on historical costs which may be of limited relevance in evaluating current performance), FFO per share can facilitate comparison of operating performance between equity REITs. FFO per share should not be considered as an alternative to net income per share as an indication of the Company's performance or to cash flows as a measure of liquidity. FFO per share presented herein is not necessarily comparable to FFO per share presented by other real estate companies due to the fact that not all real estate companies use the same definition. However, the Company's FFO per share is comparable to the FFO per share of real estate companies that use the current definition of the National Association of Real Estate Investment Trusts ("NAREIT NAREIT National Association of Real Estate Investment Trusts "). A reconciliation of net income per share to FFO per share is included in the financial tables accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. this press release. ABOUT THE COMPANY Mack-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 management, leasing, development, construction and other tenant-related services for its class A real estate portfolio. Mack-Cali owns or has interests in 320 properties, primarily office and office/flex buildings located in the Northeast, totaling approximately 35.9 million square feet. The properties enable the Company to provide a full complement of real estate opportunities to its diverse base of approximately 2,600 tenants. Additional information on Mack-Cali Realty Corporation is available on the Company's website at http://www.mack-cali.com. The information in this press release must be read in conjunction with, and is modified in its entirety The whole, in contradistinction to a moiety or part only. When land is conveyed to Husband and Wife, they do not take by moieties, but both are seised of the entirety. by, the Quarterly Report on Form 10-Q (the "10-Q") filed by the Company for the same period with the Securities and Exchange Commission (the "SEC") and all of the Company's other public filings with the SEC (the "Public Filings"). In particular, the financial information contained herein is subject to and qualified by reference to the financial statements contained in the 10-Q, the footnotes thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. and the limitations set forth therein. Investors may not rely on the press release without reference to the 10-Q and the Public Filings. Statements made in this press release may be 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 Section 21E of the Securities Exchange Act of 1934, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. . Forward-looking statements can be identified by the use of words such as "may," "will," "plan," "should," "expect," "anticipate," "estimate," "continue," or comparable terminology. Such forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate, and involve factors that may cause actual results to differ materially from those projected or suggested. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together with the additional factors under the headings "Disclosure Regarding Forward-Looking Statements" and "Risk Factors" in the Company's 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. , which are incorporated herein by reference. The Company assumes no obligation to update or supplement forward-looking statements that become untrue un·true adj. un·tru·er, un·tru·est 1. Contrary to fact; false. 2. Deviating from a standard; not straight, even, level, or exact. 3. Disloyal; unfaithful. because of subsequent events, new information or otherwise.
Mack-Cali Realty Corporation
Consolidated Statements of Operations
(in thousands, except per share amounts) (unaudited)
Quarter Ended
June 30,
Revenues 2006 2005
----------------------------------------------------------------------
Base rents $143,884 $136,141
Escalations and recoveries from tenants 25,248 20,647
Construction services 11,862 --
Payroll reimbursements 4,610 --
Real estate services 4,312 601
Other income 4,409 4,962
----------------------------------------------------------------------
Total revenues 194,325 162,351
----------------------------------------------------------------------
Expenses
----------------------------------------------------------------------
Real estate taxes 22,544 20,380
Utilities 14,238 12,346
Operating services 23,953 22,440
Direct construction costs 11,354 --
Real estate services salaries, wages and other
costs 5,360 --
General and administrative 11,957 8,306
Depreciation and amortization 42,610 38,298
----------------------------------------------------------------------
Total expenses 132,016 101,770
----------------------------------------------------------------------
Operating Income 62,309 60,581
Other (Expense) Income
----------------------------------------------------------------------
Interest expense (33,382) (30,363)
Interest and other investment income 399 121
Equity in earnings (loss) of unconsolidated joint
ventures (846) 542
Minority interest in consolidated joint ventures 30 --
----------------------------------------------------------------------
Total other (expense) income (33,799) (29,700)
----------------------------------------------------------------------
Income from continuing operations before
Minority interest in Operating Partnership 28,510 30,881
Minority interest in Operating Partnership (5,619) (5,591)
----------------------------------------------------------------------
Income from continuing operations 22,891 25,290
Discontinued operations (net of minority
interest):
Income from discontinued operations 322 1,479
Realized gains (losses) and unrealized losses on
disposition of rental property, net 3,921 9,771
----------------------------------------------------------------------
Total discontinued operations, net 4,243 11,250
----------------------------------------------------------------------
Net income 27,134 36,540
Preferred stock dividends (500) (500)
-------------------------------------------------- --------- ---------
Net income available to common shareholders $26,634 $36,040
======================================================================
PER SHARE DATA:
----------------------------------------------------------------------
Basic earnings per common share $0.43 $0.59
Diluted earnings per common share $0.43 $0.58
Dividends declared per common share $0.63 $0.63
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Basic weighted average shares outstanding 62,182 61,393
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Diluted weighted average shares outstanding 78,067 75,649
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Mack-Cali Realty Corporation
Consolidated Statements of Operations
(in thousands, except per share amounts) (unaudited)
Six Months Ended
June 30,
Revenues 2006 2005
----------------------------------------------------------------------
Base rents $281,866 $268,284
Escalations and recoveries from tenants 48,022 38,931
Construction services 11,862 --
Payroll reimbursements 4,610 --
Real estate services 4,940 1,217
Other income 6,362 6,107
----------------------------------------------------------------------
Total revenues 357,662 314,539
----------------------------------------------------------------------
Expenses
----------------------------------------------------------------------
Real estate taxes 44,610 39,404
Utilities 29,681 24,242
Operating services 46,293 43,684
Direct construction costs 11,354 --
Real estate services salaries, wages and other
costs 5,360 --
General and administrative 20,916 15,724
Depreciation and amortization 82,093 73,908
----------------------------------------------------------------------
Total expenses 240,307 196,962
----------------------------------------------------------------------
Operating Income 117,355 117,577
Other (Expense) Income
----------------------------------------------------------------------
Interest expense (64,805) (58,761)
Interest and other investment income 1,845 185
Equity in earnings (loss) of unconsolidated joint
ventures (599) 230
Minority interest in consolidated joint ventures 30 (74)
Gain on sale of investment in marketable
securities 15,060 --
Gain on sale of investment in unconsolidated joint
ventures -- 35
----------------------------------------------------------------------
Total other (expense) income (48,469) (58,385)
----------------------------------------------------------------------
Income from continuing operations before
Minority interest in Operating Partnership 68,886 59,192
Minority interest in Operating Partnership (13,106) (12,147)
----------------------------------------------------------------------
Income from continuing operations 55,780 47,045
Discontinued operations (net of minority
interest):
Income from discontinued operations 530 3,465
Realized gains (losses) and unrealized losses on
disposition of rental property, net 3,921 8,973
----------------------------------------------------------------------
Total discontinued operations, net 4,451 12,438
----------------------------------------------------------------------
Net income 60,231 59,483
Preferred stock dividends (1,000) (1,000)
----------------------------------------------------------------------
Net income available to common shareholders $59,231 $58,483
======================================================================
PER SHARE DATA:
----------------------------------------------------------------------
Basic earnings per common share $0.95 $0.95
Diluted earnings per common share $0.95 $0.95
Dividends declared per common share $1.26 $1.26
----------------------------------------------------------------------
Basic weighted average shares outstanding 62,085 61,289
----------------------------------------------------------------------
Diluted weighted average shares outstanding 77,359 72,478
----------------------------------------------------------------------
Mack-Cali Realty Corporation
Statements of Funds from Operations
(in thousands, except per share/unit amounts) (unaudited)
Quarter Ended
June 30,
2006 2005
----------------------------------------------------------------------
Net income available to common shareholders $26,634 $36,040
Add: Minority interest in Operating Partnership 5,619 5,591
Minority interest in discontinued operations 1,063 2,538
Real estate-related depreciation and amortization
on continuing operations (1) 45,987 39,008
Real estate-related depreciation and amortization
on discontinued operations 21 242
Add: Discontinued operations - Realized gains
(losses) and unrealized losses on disposition of
rental property, net (4,905) (11,975)
----------------------------------------------------------------------
Funds from operations available to common
shareholders (2) $74,419 $71,444
======================================================================
Diluted weighted average shares/units outstanding(3) 78,067 75,649
Funds from operations per share/unit - diluted $0.95 $0.94
Dividends declared per common share $0.63 $0.63
Dividend payout ratio:
Funds from operations-diluted 66.09% 66.71%
Supplemental Information:
Non-incremental revenue generating capital
expenditures:
Building improvements $2,436 $1,450
Tenant improvements and leasing commissions $18,706 $10,440
Straight-line rent adjustments (4) $6,208 $3,345
Amortization of (above)/below market lease
intangibles, net $361 $976
(1) Includes the Company's share from unconsolidated joint ventures of
$3,518 and $867 for 2006 and 2005, respectively.
(2) Funds from operations for both periods are calculated in
accordance with the National Association of Real Estate Investment
Trusts (NAREIT) definition. For further discussion, see
"Information About FFO" in this release.
(3) Calculated based on weighted average common shares outstanding,
assuming redemption of Operating Partnership common and preferred
units into common shares, (15,599 shares in 2006 and 13,846 shares
in 2005), plus dilutive Common Stock Equivalents (i.e. stock
options and warrants).
(4) Includes the Company's share from unconsolidated joint ventures of
$932 and $43 for 2006 and 2005, respectively.
Mack-Cali Realty Corporation
Statements of Funds from Operations
(in thousands, except per share/unit amounts) (unaudited)
Six Months Ended
June 30,
2006 2005
----------------------------------------------------------------------
Net income available to common shareholders $59,231 $58,483
Add: Minority interest in Operating Partnership 13,106 12,147
Minority interest in discontinued operations 1,111 2,688
Real estate-related depreciation and
amortization on continuing operations (1) 86,461 75,480
Real estate-related depreciation and
amortization on discontinued operations 181 832
Deduct: Gain on sale of investment in
unconsolidated joint venture -- (35)
Add: Discontinued operations - Realized gains
(losses) and unrealized losses on disposition of
rental property, net (4,905) (11,078)
----------------------------------------------------------------------
Funds from operations available to common
shareholders (2) $155,185 $138,517
======================================================================
Diluted weighted average shares/units outstanding
(3) 77,359 75,564
Funds from operations per share/unit - diluted $2.00 $1.83
Dividends declared per common share $1.26 $1.26
Dividend payout ratio:
Funds from operations-diluted 62.81% 68.74%
Supplemental Information:
Non-incremental revenue generating capital
expenditures:
Building improvements $4,391 $2,564
Tenant improvements and leasing commissions $30,676 $20,703
Straight-line rent adjustments (4) $12,601 $6,634
Amortization of (above)/below market lease
intangibles, net $1,025 $1,533
(1) Includes the Company's share from unconsolidated joint ventures of
$4,657 and $1,890 for 2006 and 2005, respectively.
(2) Funds from operations for both periods are calculated in
accordance with the National Association of Real Estate Investment
Trusts (NAREIT) definition. For further discussion, see
"Information About FFO" in this release.
(3) Calculated based on weighted average common shares outstanding,
assuming redemption of Operating Partnership common and preferred
units into common shares, (14,968 shares in 2006 and 10,752 shares
in 2005), plus dilutive Common Stock Equivalents (i.e. stock
options and warrants).
(4) Includes the Company's share from unconsolidated joint ventures of
$1,141 and $90 for 2006 and 2005, respectively.
Mack-Cali Realty Corporation
Statements of Funds from Operations Per Diluted Share
(amounts are per diluted share, except share count in thousands)
(unaudited)
Quarter Ended
June 30,
2006 2005
----------------------------------------------------------------------
Net income available to common shareholders $0.43 $0.58
Add: Real estate-related depreciation and amortization
on continuing operations (1) 0.59 0.52
Real estate-related depreciation and amortization
on discontinued operations -- --
Realized gains (losses) and unrealized losses on
disposition of rental property, net (0.06) (0.16)
Minority interest/rounding adjustment (0.01) --
----------------------------------------------------------------------
Funds from operations available to common shareholders
(2) $0.95 $0.94
======================================================================
Diluted weighted average shares/units outstanding (3) 78,067 75,649
----------------------------------------------------------------------
(1) Includes the Company's share from unconsolidated joint ventures of
$0.05 and $0.01 for 2006 and 2005, respectively.
(2) Funds from operations for both periods are calculated in
accordance with the National Association of Real Estate Investment
Trusts (NAREIT) definition. For further discussion, see
"Information About FFO" in this release.
(3) Calculated based on weighted average common shares outstanding,
assuming redemption of Operating Partnership common and preferred
units into common shares (15,599 shares in 2006 and 13,846 shares
in 2005), plus dilutive Common Stock Equivalents (i.e. stock
options and warrants).
Mack-Cali Realty Corporation
Statements of Funds from Operations Per Diluted Share
(amounts are per diluted share, except share count in thousands)
(unaudited)
Six Months Ended
June 30,
2006 2005
----------------------------------------------------------------------
Net income available to common shareholders $0.95 $0.95
Add: Real estate-related depreciation and
amortization on continuing operations (1) 1.12 1.00
Real estate-related depreciation and amortization
on discontinued operations -- 0.01
Realized gains (losses) and unrealized losses on
disposition of rental property, net (0.06) (0.15)
Minority interest/rounding adjustment (0.01) 0.02
----------------------------------------------------------------------
Funds from operations available to common
shareholders (2) $2.00 $1.83
======================================================================
Diluted weighted average shares/units outstanding (3) 77,359 75,564
----------------------------------------------------------------------
(1) Includes the Company's share from unconsolidated joint ventures of
$0.06 and $0.03 for 2006 and 2005, respectively.
(2) Funds from operations for both periods are calculated in
accordance with the National Association of Real Estate Investment
Trusts (NAREIT) definition. For further discussion, see
"Information About FFO" in this release.
(3) Calculated based on weighted average common shares outstanding,
assuming redemption of Operating Partnership common and preferred
units into common shares (14,968 shares in 2006 and 10,752 shares
in 2005), plus dilutive Common Stock Equivalents (i.e. stock
options and warrants).
Mack-Cali Realty Corporation
Consolidated Balance Sheets
(in thousands, except share amounts) (unaudited)
June 30, December 31,
2006 2005
----------------------------------------------------------------------
ASSETS:
Rental property
Land and leasehold interests $697,029 $637,653
Buildings and improvements 3,742,413 3,539,003
Tenant improvements 345,207 307,664
Furniture, fixtures and equipment 7,620 7,432
----------------------------------------------------------------------
4,792,269 4,491,752
Less-accumulated deprec. & amort. (779,587) (722,980)
----------------------------------------------------------------------
Net investment in rental property 4,012,682 3,768,772
Cash and cash equivalents 20,417 60,397
Marketable securities available for sale at
fair value -- 50,847
Investments in unconsolidated joint ventures 197,923 62,138
Unbilled rents receivable, net 104,027 92,692
Deferred charges and other assets, net 245,343 197,634
Restricted cash 16,341 9,221
Accounts receivable, net 25,689 5,801
----------------------------------------------------------------------
Total assets $4,622,422 $4,247,502
======================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY:
Senior unsecured notes $1,630,950 $1,430,509
Revolving credit facility 317,000 227,000
Mortgages, loans payable and other
obligations 419,659 468,672
Dividends and distributions payable 49,612 48,178
Accounts payable, accrued expenses and other
liabilities 121,964 85,481
Rents received in advance and security
deposits 50,598 47,685
Accrued interest payable 36,283 27,871
----------------------------------------------------------------------
Total liabilities 2,626,066 2,335,396
----------------------------------------------------------------------
Minority interests:
Operating Partnership 489,592 400,819
Consolidated joint ventures 2,169 --
----------------------------------------------------------------------
Total minority interests 491,761 400,819
----------------------------------------------------------------------
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value, 5,000,000
shares authorized, 10,000
and 10,000 shares outstanding, at
liquidation preference 25,000 25,000
Common stock, $0.01 par value, 190,000,000
shares authorized,
62,360,388 and 62,019,646 shares
outstanding 623 620
Additional paid-in capital 1,687,871 1,682,141
Unamortized stock compensation -- (6,105)
Dividends in excess of net earnings (208,899) (189,579)
Accumulated other comprehensive loss -- (790)
----------------------------------------------------------------------
Total stockholders' equity 1,504,595 1,511,287
----------------------------------------------------------------------
Total liabilities and stockholders' equity $4,622,422 $4,247,502
======================================================================
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