Mack-Cali Realty Corp.
(
CLI
), a real estate investment trust (REIT), reported FFO (funds from
operations) of $68.1 million or 68 cents per share in the fourth
quarter of 2011, up considerably from $64.2 million or 69 cents per
share in the year-earlier quarter. Funds from operations, a widely
used metric to gauge the performance of REITs, is obtained after
adding depreciation and amortization and other non-cash expenses to
net income.
The reported FFO per share for fourth quarter 2011 marginally
beat the Zacks Consensus Estimate by a penny. Total revenues were
$179.7 million during the reported quarter versus $192.2 million in
the year-ago period.
For full year 2011, the company reported FFO of $277.4 million
or $2.80 per share, compared to $261.2 million or $2.81 per share
in the previous year. Total revenues for fiscal 2011 were $724.3
million versus $787.5 million in 2010.
Mack-Cali executed strong leasing activities during the reported
quarter. The company executed 126 leases for its consolidated
in-service portfolio spanning nearly 0.8 million square feet,
including 0.6 million square feet of office space and 0.2 million
square feet of office/flex space.
Of the total leased space, 0.2 million square feet were for new
leases and the remainder was for lease renewals and other tenant
retention transactions. The consolidated in-service portfolio of
the company was 88.3% leased at the end of the quarter compared
with 88.2% in the previous quarter.
For full year 2011, Mack-Cali executed 572 leases for its
consolidated in-service portfolio spanning 4.2 million square feet,
including 3.3 million square feet of office space and 0.9 million
square feet of office/flex space. About 1.2 million square feet of
the total leased space were for new leases and the remainder was
for lease renewals and other tenant retention transactions.
During the reported quarter, the company agreed to develop
luxury multi-family rental towers on the Jersey City Waterfront.
The first phase of the project includes two high-rise towers of
approximately 500 apartments each. Mack-Cali anticipates ground
breaking on the project in fourth quarter 2012.
During fourth quarter 2011, the company refinanced its unsecured
revolving credit facility with a consortium of 20 lenders. The
borrowing capacity of the $600 million unsecured facility can be
extended up to $1 billion. The credit facility has a four-year term
with a one-year extension option.
At year-end 2011, the company had a total debt of $1.9 billion,
with a debt-to-undepreciated assets ratio of 33.6%, an interest
coverage ratio of 3.3x, and cash and cash equivalents of $20.5
million.
We maintain our long-term Neutral recommendation on Mack-Cali,
which currently retains a Zacks #3 Rank that translates into a
short-term Hold rating. We also have a Neutral recommendation and a
Zacks #3 Rank for
Boston Properties Inc.
(
BXP
), one of the competitors of Mack-Cali.
BOSTON PPTYS (
BXP
): Free Stock Analysis Report
MACK CALI CORP (
CLI
): Free Stock Analysis Report
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