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Mack-Cali Realty Makes “Solid Progress Toward Disposition Goals”

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Mack-Cali Realty Corp. recently reported first quarter earnings, and the Jersey City, NJ-based REIT achieved core funds from operations per diluted share of $0.50 for the quarter. In addition, Michael J. DeMarco, Chief Executive Officer, said that the company has “made solid progress toward our disposition goals for the year, completing $232 million of non-core asset sales in the first quarter.”

DeMarco added that “We only have $170 million remaining for the rest of the year.  As we have stated previously, our core focus in 2018 is on leasing, and while we cannot control the timing we remain aggressive in our efforts.”

To that point, he explained that “interest from potential office users, and the waterfront in particular, has accelerated since year-end; however, the conversion cycle remains longer than preferred.  Our residential deliveries and lease-ups continue to meet our expectations and we anticipate higher velocity as we approach the height of leasing season in the coming months.”

Overall, he said, “the team is singularly focused on improving the portfolio’s collective occupancy and operational cash flows for our shareholders.”

Other first quarter highlights from the report include the following:

  • Reported net income of $0.45 per diluted share for the quarter;
  • Attained Adjusted Funds from Operations of $36.3 million for the quarter;
  • Leased 265,885 square feet of office space; Core portfolio 85.2% leased at quarter end;
  • Grew Core portfolio office rental rates by 5.1% on a cash basis and 10.7% on a GAAP basis;
  • Multifamily stabilized portfolio was 97.3% leased at March 31, 2018, as compared to 96.6% for the fourth quarter; 2017 lease-up properties containing 1,162 units were 97.6% leased at March 31, 2018;
  • Commenced multifamily leasing activities at three communities located in Worcester, Massachusetts, Morris Plains, New Jersey and the East Boston waterfront totaling 858 units;
  • Completed property sales of $232 million in the first quarter. Additional dispositions of $170 million expected to be completed by year end; and
  • Declared $0.20 per share quarterly common stock dividend.