Mack-Cali Marginally Beats Estimates - Analyst Blog


Mack-Cali Realty Corp. ( CLI ), a real estate investment trust (REIT), reported FFO (funds from operations) of $62.1 million or 62 cents per share in the second quarter of 2012, compared with $69.1 million or 69 cents in the year-earlier quarter.

Reported FFO per share in the quarter beat the Zacks Consensus Estimate by a penny. Total revenue was $178.5 million during the reported quarter versus $179.2 million in the year-ago period.

Mack-Cali executed strong leasing activities during the quarter. The company executed 139 leases at its consolidated in-service portfolio spanning 0.9 million square feet, including 0.7 million square feet of office space and 0.2 million square feet of office/flex space.

Of the total leased space, 0.3 million square feet were for new leases and 0.6 million were for lease renewals and other tenant retention transactions. The consolidated in-service portfolio of the company was 87.6% leased at quarter end compared with 87.9% in the previous quarter.

Subsequent to the end of the quarter, Mack-Cali signed a ground lease with Wegmans Food Markets for a site in Hanover Township, New Jersey.

During the quarter, Mack-Cali completed the sale of $300 million worth of 4.50% senior unsecured notes scheduled to mature in April 18, 2022. The company utilized the net proceeds of $296.8 million to repay outstanding debt under its revolving credit facility.

Additionally, Mack-Cali redeemed $94.9 million of its 6.15% senior unsecured notes scheduled to mature in December 15, 2012 and $26.1 million of 5.82 % senior unsecured notes due March 15, 2013.  The company funded the redemption price of approximately $127.9 million from borrowing on its unsecured revolving credit facility as well as cash on hand.

During the reported quarter, Mack-Cali declared a quarterly cash dividend of 45 cents per share, which equates to an annualized distribution of $1.80  At quarter-end, the company had total debt of $1.9 billion, with a debt-to-undepreciated assets ratio of 33.9%, an interest coverage ratio of 3.0x, and cash and cash equivalents of $19.3 million. For fiscal 2012, the company expects FFO in the range of $2.52 -$2.62 per share.

Mack-Cali currently retains a Zacks #3 Rank, which translates into a short term Hold rating. We  maintain our long-term Neutral recommendation on the stock. One of its competitors, Boston Properties Inc ( BXP ) also holds a Zacks #3 Rank.

Note: FFO, 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.

BOSTON PPTYS (BXP): Free Stock Analysis Report
MACK CALI CORP (CLI): Free Stock Analysis Report

To read this article on click here.
Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: BXP , CLI

More from

Related Videos




Most Active by Volume

  • $18.16 ▲ 1.57%
  • $31.24 ▼ 14.50%
  • $15.21 ▲ 3.61%
  • $26 ▼ 0.65%
  • $96.99 ▲ 1.78%
  • $35.76 ▲ 1.16%
  • $19.87 ▲ 0.61%
  • $46.29 ▲ 2.10%
As of 7/29/2015, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by