MACK CALI REALTY CORP - FORM 8-K - EX-99.1 - MACK-CALI REALTY CORP. - EXHIBIT 99.1 - October 22, 2014

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8-K - MACK-CALI REALTY CORP. - FORM 8-K - MACK CALI REALTY CORPform8k.htm
EX-99.2 - MACK-CALI REALTY CORP. - EXHIBIT 99.2 - MACK CALI REALTY CORPex992.htm

 
 
 

 
 

























THIRD QUARTER 2014


Supplemental Operating and Financial Data








This Supplemental Operating and Financial Data is not an offer to sell or solicitation to buy any securities of the Company. Any offers to sell or solicitations of the Company shall be made by means of a prospectus. The information in this Supplemental Package must be read in conjunction with, and is modified in its 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 and the limitations set forth therein. Investors may not rely on the Supplemental Package without reference to the 10-Q and the Public Filings. Any investors’ receipt of, or access to, the information contained herein is subject to this qualification.


Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
 
 

INDEX

   
   
 
PAGE(S)
I.  COMPANY BACKGROUND
  
·      About the Company / Other Corporate Data
5
·      Board of Directors / Executive Officers
6
·      Equity Research Coverage / Company Contact Information
7
   
II.  FINANCIAL HIGHLIGHTS
  
·      Quarterly Summary / Recent Transactions
9
·      Leasing
9 - 10
·      Information About FFO
10
·      Key Financial Data
11
·      Same-Store Results and Analysis
12
·      Select Financial Ratios
13
·      Debt Analysis:
  
(a) Debt Breakdown/Future Repayments
14
(b) Debt Maturities
15
(c) Debt Detail
16
   
III.  FINANCIAL INFORMATION
  
·      Consolidated Statements of Operations
18
·      Consolidated Balance Sheets
19
·      Consolidated Statement of Changes in Equity
20
·      Statements of Funds from Operations
21
·      Statements of Funds from Operations Per Diluted Share
22
·      Reconciliation of Basic-to-Diluted Shares/Units
23
·      Unconsolidated Joint Venture Information
24 - 26
   
IV.  PORTFOLIO SUMMARY
  
·      Operating Property Acquisitions
28
·      Properties Commencing Initial Operations
29
·      Rental Property Sales/Dispositions
30
·      Breakdown of Company Holdings
31
·      Consolidated Property Listing (by Property Type)
32 - 39
·      Unconsolidated Joint Venture Summary
40 - 42
·      Consolidated Portfolio Analyses:
  
                 Breakdown by:
  
                 (a) Number of Properties
43
                 (b) Square Footage
44
                 (c) Base Rental Revenue
45
                 (d) Percentage Leased
46
   
V.  MULTI-FAMILY RENTAL PORTFOLIO
  
·      Summary of Stabilized Operating Communities/Capitalization
48
·      Stabilizing Operating Communities-Repositioning
49
·      Summary of Communities in Lease-Up
50
·      Summary of Development Communities
51
·      Summary of Land Holdings/Pre-Development
52
   
VI.  OFFICE PORTFOLIO
  
·      Summary of Development Projects
54
·      Summary of Land Holdings
55
·      Leasing Statistics
56 -61
·      Market Diversification (MSAs)
62
·      Industry Diversification (Top 30 Tenant Industries)
63
·      Significant Tenants (Top 50 Tenants)
64 - 65
·      Schedules of Lease Expirations (by Property Type)
66 - 70




Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
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DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS

The Company considers portions of this information to be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of such act. Such forward-looking statements relate to, without limitation, our future economic performance, plans and objectives for future operations and projections of revenue and other financial items. Forward-looking statements can be identified by the use of words such as “may,” “will,” “plan,” “potential,” “projected,” “should,” “expect,” “anticipate,” “estimate,” “continue” or comparable terminology. Forward-looking statements are inherently subject to risks and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, the Company can give no assurance that such expectations will be achieved. Future events and actual results, financial and otherwise, may differ materially from the results discussed in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements.

Among the factors about which the Company has made assumptions are:

   
· 
risks and uncertainties affecting the general economic climate and conditions, which in turn may have a negative effect on the fundamentals of the Company’s business and the financial condition of the Company’s tenants and residents;
   
· 
the value of the Company’s real estate assets, which may limit the Company’s ability to dispose of assets at attractive prices or obtain or maintain debt financing secured by the Company’s properties or on an unsecured basis;
   
· 
the extent of any tenant bankruptcies or of any early lease terminations;
   
· 
the Company’s ability to lease or re-lease space at current or anticipated rents;
   
· 
changes in the supply of and demand for our properties;
   
· 
changes in interest rate levels and volatility in the securities markets;
   
· 
changes in operating costs;
   
· 
the Company’s ability to obtain adequate insurance, including coverage for terrorist acts;
   
· 
the availability of financing on attractive terms or at all, which may adversely impact the Company’s ability to pursue acquisition and development opportunities and refinance existing debt and the Company’s future interest expense;
   
· 
changes in governmental regulation, tax rates and similar matters; 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 or residents will not take occupancy or pay rent, or that development or operating costs may be greater than anticipated.
 

For further information on factors which could impact us and the statements contained herein, you are advised to consider the “Risk Factors” contained in the Company’s Annual Report on Form 10-K, as may be supplemented or amended in the Company’s Quarterly Reports on Form 10-Q, which are incorporated herein by reference. The Company assumes no obligation to update and supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise.


Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
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I.  COMPANY BACKGROUND


Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
4
 


I.  COMPANY BACKGROUND


About the Company

Mack-Cali Realty Corporation (NYSE: CLI) is one of the largest real estate investment trusts (REITs) in the United States with a total market capitalization of $4.2 billion at September 30, 2014. Mack-Cali has been involved in all aspects of commercial real estate development, management, and ownership for over 60 years and has been a publicly traded REIT since 1994. At September 30, 2014, Mack-Cali owned or had interests in 282 properties consisting of 266 office and office/flex properties totaling approximately 31.5 million square feet of commercial space and 16 multi-family rental properties containing 4,940 apartment homes, all located in the Northeast, as well as 1,042 apartment homes in lease-up, and 2,383 apartment homes in development and land to accommodate up to 5.7 million square feet of additional commercial space and 8,355 multi-family apartment homes – in addition to hotel development.

History

Established over 60 years ago, in 1994 the New Jersey-based firm, Cali Realty, became a publicly traded company listed on the New York Stock Exchange under the ticker symbol CLI. Through combinations with some of the top companies in the real estate industry—most notably New Jersey-based Mack Company and Westchester, New York-based Robert Martin Company—Mack-Cali has become one of the leading real estate companies in the country.

Strategy

Mack-Cali’s strategy is to be a significant real estate owner and operator in its core, high-barriers-to-entry markets, primarily in the Northeast.

Summary
(as of September 30, 2014)

   
Corporate Headquarters
Edison, New Jersey
Fiscal Year-End
12/31
Total Properties
282
Total Commercial Square Feet / Multi-family Units
31.5 million commercial square feet and 4,940 multi-family apartment homes
Geographic Diversity
Seven states and the District of Columbia
New Jersey Presence
21.6 million square feet of commercial space and 2,548 multi-family apartment homes
Northeast Presence
31.5 million square feet of commercial space and 4,940 multi-family apartment homes
Common Shares and
  
Units Outstanding
100.1 million
Dividend-- Quarter/Annualized
$0.15/$0.60
Dividend Yield
3.1%
Total Market Capitalization
$4.2 billion
Senior Debt Rating
BBB- (S&P and Fitch);
 
Baa2 (Moody’s)



Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
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Board of Directors

William L. Mack, Chairman of the Board
 
Alan S. Bernikow
David S. Mack
 
Kenneth M. Duberstein
Alan G. Philibosian
 
Nathan Gantcher
Irvin D. Reid
 
Mitchell E. Hersh
Vincent Tese
 
Jonathan Litt
 
Roy J. Zuckerberg
 
   







Executive Officers
 
Mitchell E. Hersh, President and Chief Executive Officer
 
Anthony Krug, Chief Financial Officer
 
Gary Wagner, Chief Legal Officer and Secretary
 
 
 
 

 

 

 



Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
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Equity Research Coverage


   
Bank of America Merrill Lynch
James C. Feldman
(646) 855-5808
ISI Group
Steve Sakwa
(212) 446-9462
Barclays Capital
Ross Smotrich
(212) 526-2306
J.P. Morgan
Anthony Paolone
(212) 622-6682
Citigroup
Michael Bilerman
(212) 816-1383
KeyBanc Capital Markets
Jordan Sadler
(917) 368-2280
Cowen and Company
James Sullivan
(646) 562-1380
Stifel, Nicolaus & Company, Inc.
John W. Guinee, III
(443) 224-1307
Deutsche Bank North America
Vin Chao
(212) 250-6799
UBS Investment Research
Ross T. Nussbaum
(212) 713-2484
Green Street Advisors
Michael Knott
(949) 640-8780
  
   






Company Contact Information

   
Mack-Cali Realty Corporation
Investor Relations Department
343 Thornall Street
Edison, New Jersey 08837-2206
Phone:    (732) 590-1000
Web:     www.mack-cali.com
Fax:         (732) 205-8237
E-mail:  investorrelations@mack-cali.com




Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
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II.  FINANCIAL HIGHLIGHTS









Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
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II.  FINANCIAL HIGHLIGHTS

Quarterly Summary


The following is a summary of the Company’s recent activity:



 
Funds from operations (FFO) for the quarter ended September 30, 2014 amounted to $48.0 million, or $0.48 per share. For the nine months ended September 30, 2014, FFO equaled $128.5 million, or $1.29 per share.
 
Net income available to common shareholders for the third quarter 2014 equaled $2.0 million, or $0.02 per share. For the nine months ended September 30, 2014, net income to common shareholders amounted to $37.8 million, or $0.43 per share.
 
All per share amounts presented above are on a diluted basis.
 
Total revenues for the third quarter 2014 were $155.5 million. For the nine months ended September 30, 2014 total revenues amounted to $485.4 million.
 
The Company had 89,055,220 shares of common stock, and 11,092,044 common operating partnership units outstanding as of September 30, 2014. The Company had a total of 100,147,264 common shares/common units outstanding at September 30, 2014.
 
As of September 30, 2014, the Company had total indebtedness of approximately $2.2 billion, with a weighted average annual interest rate of 5.62 percent.
 
The Company had a debt-to-undepreciated assets ratio of 39.0 percent at September 30, 2014. The Company had an interest coverage ratio of 2.8 times for the quarter ended September 30, 2014.

Recent Transactions



 
In the quarter, the Company completed the sale of the remaining seven office properties located in northern New Jersey, Westchester County, New York, and Stamford, Connecticut, aggregating 916,000 square feet, under its agreement with Keystone Property Group for approximately $104 million, comprised of: $77.9 million in cash; Company subordinated equity interests in each of the properties sold with capital accounts aggregating $18.8 million; and Company pari-passu equity interests in five of the properties sold aggregating $7.3 million. The purchasers of these properties are unconsolidated joint ventures formed between the Company and affiliates of the Keystone Property Group.


 
In August 2014, the Company acquired the equity interests of its joint venture partner in Overlook Ridge, L.L.C, Overlook Ridge JV, L.L.C. and Overlook Ridge JV 2C/3B, L.L.C. for $16.6 million. As a result, the Company increased its ownership to 100 percent of the developable land owned by those entities and acquired an additional 25 percent, for a total of 50 percent of its subordinated, unconsolidated interests in two operating multi-family properties owned by those entities. 

Leasing




   
Mack-Cali’s consolidated commercial in-service portfolio was 83.7 percent leased at September 30, 2014, unchanged from June 30, 2014.
   
For the quarter ended September 30, 2014, the Company executed 116 leases at its consolidated in-service portfolio totaling 621,077 square feet, consisting of 332,509 square feet of office space, 282,678 square feet of office/flex space and 5,890 square feet of industrial space. Of these totals, 265,636 square feet were for new leases and 355,441 square feet were for lease renewals and other tenant retention transactions.
   
Highlights of the quarter’s leasing transactions include:
   
NORTHERN NEW JERSEY:
-
First Data Corporation, a global payment processing company, signed a new lease for 24,179 square feet at 101 Hudson Street in Jersey City.  The 1,246,283 square-foot office building is 86.1 percent leased.
 



Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
9
 
 
 
   
-
Also at 101 Hudson Street in Jersey City, law firm Eltman, Eltman & Cooper, P.C. signed a new lease for 16,902 square feet.
   
-
Accounting firm KPMG LLP signed an expansion for 17,085 square feet at 300 Tice Boulevard in Woodcliff Lake.  The 230,000 square-foot office building is 100 percent leased.
   
CENTRAL NEW JERSEY:
-
Jacobs Engineering Group Inc., providers of technical professional and construction services, signed a new lease for 12,727 square feet at 100 Walnut Avenue in Clark.  The 182,555 square-foot office building is 90.1 percent leased.
   
WESTCHESTER COUNTY, NEW YORK:
-
Quintiles, Inc., a provider of biopharmaceutical development and commercial outsourcing services, signed a renewal for 18,620 square feet at 8 Skyline Drive in Hawthorne.  Located in Mid-Westchester Executive Park, the 50,000 square-foot office/flex building is 85.4 percent leased.
   
-
Internet grocer Peapod, LLC signed a new lease for 18,000 square feet at 175 Clearbrook Road in Elmsford.  Located in Cross Westchester Executive Park, the 98,900 square-foot office/flex building is 96.7 percent leased.
   
-
Also at 175 Clearbrook Road, Matthews International Corporation, a designer, manufacturer and marketer of memorialization products and brand solutions, signed a new lease for 13,000 square feet.
   
-
Wright Brothers Services, Inc., specializing in freight transportation, signed transactions totaling 12,120 square feet consisting of a 5,255 square-foot renewal at 150 Clearbrook Road and a 6,865 square-foot renewal at 200 Clearbrook Road in Elmsford.  Located in Cross Westchester Executive Park, 150 Clearbrook Road is a 74,900 square-foot office/flex building that is 99.3 percent leased and 200 Clearbrook Road is a 94,000 square-foot office/flex building that is 98.8 percent leased.
   
SOUTHERN NEW JERSEY:
-
EVO Merchant Services, LLC, a payments service provider, signed a renewal of 19,200 square feet at 102 Commerce Drive in Moorestown. Located in Moorestown West Corporate Center, the 38,400 square-foot office/flex building is 100 percent leased.
   
-
Tricomm Services Corporation, an IT technology service provider, is relocating within the building to 12,000 square feet at 1247 North Church Street in Moorestown.  The transaction represents an expansion of 7,200 square feet and extension of 4,800 square feet. Also located in Moorestown West Corporate Center, the 52,790 square-foot office/flex building is 86.7 percent leased.




Information About FFO

Funds from operations (“FFO”) is defined as net income (loss) before noncontrolling interest of unitholders, computed in accordance with generally accepted accounting principles (“GAAP”), excluding gains (or losses) from extraordinary items, sales of depreciable rental property, and impairments related to depreciable rental property, 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. The Company further believes that as FFO per share excludes the effect of depreciation, gains (or losses) from sales of properties and impairments related to depreciable rental property (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 available to common shareholders 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”). A reconciliation of net income per share to FFO per share is included in the financial tables on page 22.


Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
10
 


Key Financial Data

As of or for the three months ended




                     
                     
 
09/30/14
  
06/30/14
  
03/31/14
  
12/31/13
  
09/30/13
  
Shares and Units:
                    
Common Shares Outstanding
89,055,220
  
88,982,062
  
88,630,146
  
88,247,591
  
88,021,807
  
Common Units Outstanding
11,092,044
  
11,164,018
  
11,518,069
  
11,864,775
  
11,987,175
  
Combined Shares and Units
100,147,264
  
100,146,080
  
100,148,215
  
100,112,366
  
100,008,982
  
Weighted Average- Basic (a)
100,052,290
  
100,022,734
  
99,875,659
  
99,806,029
  
99,787,129
  
Weighted Average- Diluted (b)
100,052,290
  
100,022,734
  
99,875,659
  
99,806,029
  
99,787,129
  
                     
Common Share Price ($’s):
                    
At the end of the period
19.11
  
21.48
  
20.79
  
21.48
  
21.94
  
High during period
22.05
  
22.44
  
23.23
  
22.49
  
25.13
  
Low during period
18.95
  
19.98
  
19.75
  
19.05
  
20.60
  
                     
Market Capitalization:
                    
($’s in thousands, except ratios)
                    
Market Value of Equity (c)
1,977,334
  
2,205,844
  
2,137,042
  
2,205,697
  
2,250,247
  
Total Debt
2,238,641
  
2,208,268
  
2,232,287
  
2,362,766
  
2,368,681
  
Total Market Capitalization
4,215,975
  
4,414,112
  
4,369,329
  
4,568,463
  
4,618,928
  
Total Debt/ Total Market
                    
  Capitalization
53.10
%
50.03
%
51.09
%
51.72
%
51.28
%
                     
Financials:
                    
($’s in thousands, except ratios and
                    
   per share amounts)
                    
Total Assets
4,357,197
  
4,354,772
  
4,354,343
  
4,515,328
  
4,609,263
  
Gross Book Value of Real Estate Assets
4,909,727
  
4,966,633
  
5,172,017
  
5,129,933
  
5,113,940
  
Total Liabilities
2,452,914
  
2,438,892
  
2,483,223
  
2,596,873
  
2,598,601
  
Total Equity
1,904,283
  
1,915,880
  
1,871,120
  
1,918,455
  
2,010,662
  
Total Revenues
155,489
  
160,300
  
169,596
  
165,267
  
162,505
  
Capitalized Interest
4,158
  
3,351
  
3,141
  
2,623
  
3,514
  
Scheduled Principal Amortization
690
  
595
  
904
  
939
  
1,017
  
Interest Coverage Ratio
2.76
  
2.79
  
2.01
  
2.65
  
2.85
  
Fixed Charge Coverage Ratio
2.34
  
2.44
  
1.77
  
2.38
  
2.48
  
Net Income (Loss)
2,085
  
57,347
  
(17,628)
  
(61,770)
  
3,439
  
Net Income (Loss) Available to Common Shareholders
1,982
  
51,123
  
(15,298)
  
(54,179)
  
4,643
  
Earnings per Share—diluted
0.02
  
0.58
  
(0.17)
  
(0.62)
  
0.05
  
FFO per Share—diluted (d)
0.48
  
0.50
  
0.30
  
0.52
  
0.57
  
Dividends Declared per Share
0.15
  
0.15
  
0.30
  
0.30
  
0.30
  
FFO Payout Ratio—diluted (d)
31.24
%
29.80
%
99.40
%
57.46
%
52.42
%
                     
Portfolio Size:
                    
Properties
282
  
279
  
279
  
279
  
275
  
Total Commercial Square Footage
31,459,489
  
31,459,489
  
31,002,668
  
31,002,668
  
30,657,119
  
Commercial Sq. Ft. Leased at End of Period (e) (f) (g)
83.7
%
83.7
%
83.6
%
86.1
%
86.1
%
Apartment Homes
4,940
  
3,898
  
3,678
  
3,678
  
3,319
  
                     


(a)  
Calculated based on weighted average common shares outstanding, assuming redemption of operating partnership common units into common shares.
(b)  
Calculated based on shares and units included in basic per share/unit computation, plus dilutive Common Stock Equivalents (i.e. convertible preferred units, options and warrants).
(c)  
Includes any outstanding preferred units presented on a converted basis into common units and noncontrolling interests in consolidated joint ventures.
(d)  
Funds from Operations (“FFO”) is calculated in accordance with the definition of the National Association of Real Estate Investment Trusts (NAREIT). See “Information About FFO” on page 10.
(e)  
Percentage leased includes leases in effect as of the period end date, some of which have commencement dates in the future and leases that expire at the period end date.
(f)  
Reflects square feet leased at the Company’s consolidated in-service portfolio, excluding in-service properties in lease up (if any).
(g)  
The percent leased at March 31, 2014 includes the effects of the lease expirations that had been anticipated of Morgan Stanley & Co. and Credit Suisse (USA) at Harborside in Jersey City aggregating 371,000 square feet.


Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
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Same Store Results and Analysis
(dollars in thousands)




               
   
For the three months ended
      
   
September 30,
    
%
   
2014
  
2013
  
Change
Change
               
Total Property Revenues
$
141,209
$
140,476
$
733
0.5
               
Real Estate Taxes
  
21,253
  
18,407
  
2,846
15.5
Utilities
  
15,086
  
15,549
  
(463)
(3.0)
Operating Services
  
25,155
  
24,062
  
1,093
4.5
Total Property Expenses:
  
61,494
  
58,018
  
3,476
6.0
               
GAAP Net Operating Income
  
79,715
  
82,458
  
(2,743)
(3.3)
               
Less: straight-lining of rents adj.
  
1,022
  
432
  
590
136.6
               
Net Operating Income
$
78,693
$
82,026
$
(3,333)
(4.1)
               
Percentage Leased at
              
  Period End
  
83.7
%
86.2
%
    
               
Total Properties:
  
227
          
               
Total Square Footage:
  
25,340,920
          
               
Apartment Homes:
  
722
          
               



               
   
For the nine months ended
      
   
September 30,
    
%
   
2014
  
2013
  
Change
Change
               
Total Property Revenues
$
409,166
$
412,824
$
(3,658)
(0.9)
               
Real Estate Taxes
  
62,295
  
55,464
  
6,831
12.3
Utilities
  
51,152
  
40,737
  
10,415
25.6
Operating Services
  
74,133
  
68,979
  
5,154
7.5
Total Property Expenses:
  
187,580
  
165,180
  
22,400
13.6
               
GAAP Net Operating Income
  
221,586
  
247,644
  
(26,058)
(10.5)
               
Less: straight-lining of rents adj.
  
2,932
  
7,648
  
(4,716)
(61.7)
               
Net Operating Income
$
218,654
$
239,996
$
(21,342)
(8.9)
               
Percentage Leased at
              
  Period End
  
83.6
%
86.1
%
    
               
Total Properties:
  
224
          
               
Total Square Footage:
  
25,137,414
          
               
Apartment Homes:
  
0
          
               











Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
12
 


Select Financial Ratios



                   
Ratios Computed For Industry
            September 30,
          
Comparisons:
2014
  
2013
            
                   
Financial Position Ratios:
                  
Total Debt/ Total Book
 51.38
%
 51.39
%
          
   Capitalization
                  
   (Book value) (%)
                  
                   
Total Debt/ Total Market
 53.21
%
 51.28
%
          
   Capitalization
                  
   (Market value) (%)
                  
                   
Total Debt/ Total Undepreciated
39.02
%
 39.47
%
          
   Assets (%)
                  
                   
Secured Debt/ Total Undepreciated
 14.31
%
 12.54
%
          
   Assets (%)
                  
 
 
 
 
 
       Three Months Ended
    
Nine Months Ended
 
September 30,
  
September 30,
 
2014
  
2013
    
2014
  
2013
  
                   
Operational Ratios:
                  
Interest Coverage
 2.76
  
 2.85
    
 2.50
  
3.01
  
   (Funds from Operations+Interest
                  
    Expense)/Interest Expense (x)
                  
                   
Debt Service Coverage
 2.69
  
 2.76
    
2.44
  
2.92
  
   (Funds from Operations +
                  
   Interest Expense)/(Interest Expense
                  
   + Principal Amort.) (x)
                  
                   
Fixed Charge Coverage
 2.34
  
 2.48
    
2.17
  
2.63
  
   (Funds from Operations +
                  
   Interest Expense + Ground Lease Payments)/
                  
  (Interest Expense + Capitalized Interest + Pref. Div.
                  
   +Prin. Amort.+Ground Lease
                  
   Payments)(x)
                  
                   
FFO Payout
 31.24
%
 52.42
%
  
46.69
%
56.53
%
   (Dividends Declared/Funds from
                  
   Operations) (%)
                  
                   






Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
13
 


Debt Analysis
 
(as of September 30, 2014)


 
Debt Breakdown
 
(dollars in thousands)





               
     
%
  
Weighted Average
  
Weighted Average
   
Balance
of Total
  
Interest Rate (a)
  
Maturity in Years
Fixed Rate Unsecured Debt and
              
  Other Obligations
$
1,417,439
63.32%
  
4.92%
  
 4.87 
Fixed Rate Secured Debt
  
625,776
27.95%
  
7.73%
  
 2.77 
Variable Rate Secured Debt
  
195,426
8.73%
  
3.86%
  
 1.59 
               
Totals/Weighted Average:
$
2,238,641
100.00%
  
5.62%
(b)
 4.00 

(a)  
The actual weighted average LIBOR rate for the Company’s outstanding variable rate debt was 0.17 percent as of September 30, 2014, plus the applicable spread.
(b)  
Excludes amortized deferred financing costs pertaining to the Company’s unsecured revolving credit facility which amounted to $0.7 million and $2.0 million for the three and nine months ended September 30, 2014, respectively.

 
Future Repayments
 
(dollars in thousands)







                 
             
Weighted Average
  
   
Scheduled
  
Principal
    
Interest Rate of
  
Period
  
Amortization
  
Maturities
  
Total
Future Repayments (a)
  
October 1 – December 31, 2014
$
2,305
$
133,484
$
135,789
8.67%
  
2015
  
8,539
  
220,646
  
229,185
4.54%
  
2016
  
8,311
  
333,272
  
341,583
6.97%
  
2017
  
7,275
  
391,369
  
398,644
4.11%
  
2018
  
7,311
  
231,537
  
238,848
6.67%
  
Thereafter
  
658
  
906,566
  
907,224
5.32%
  
Sub-total
  
34,399
  
2,216,874
  
2,251,273
    
Adjustment for unamortized debt discount/premium and mark-to-market, net, as of September 30, 2014
  
(12,632)
  
 -
  
(12,632)
    
                 
Totals/Weighted Average:
$
21,767
$
2,216,874
$
2,238,641
5.62%
(b)

(a)  
The actual weighted average LIBOR rate for the Company’s outstanding variable rate debt was 0.17 percent as of September 30, 2014, plus the applicable spread.
(b)  
Excludes amortized deferred financing costs pertaining to the Company’s unsecured revolving credit facility which amounted to $0.7 million and $2.0 million for the three and nine months ended September 30, 2014, respectively.

 


Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
14
 


 
Debt Maturities
 
(dollars in thousands)




                                     
   
October 1-
                                
   
December 31,
                          
2022 and
    
   
2014
  
2015
  
2016
  
2017
  
2018
  
2019
2020
2021
  
Beyond
  
Totals
Secured Debt:
                                    
Port Imperial South 4/5
$
36,950
                            
$
36,950
6 Becker, 85 Livingston,75
Livingston, & 20 Waterview
  
65,035
                              
65,035
4 Sylvan Way
  
14,575
                              
14,575
10 Independence
  
16,924
                              
16,924
Port Imperial South
    
$
43,910
                          
43,910
9200 Edmonston Road
      
3,888
                          
3,888
Overlook-Site II B
      
5,748
                          
5,748
Overlook-Sites III D, III C, III A
      
17,100
                          
17,100
Curtis Center
        
$
64,000
                      
64,000
4 Becker
          
40,431
                      
40,431
5 Becker
          
14,574
                      
14,574
210 Clay
          
14,267
                      
14,267
Prudential Portfolio
            
$
141,151
                  
141,151
150 Main Street
              
218
                  
218
23 Main Street
                
$
26,567
              
26,567
Harborside Plaza 5
                  
204,970
              
204,970
100 Walnut Avenue
                    
$
17,280
          
17,280
One River Center
                      
39,586
          
39,586
Park Square
                      
24,700
          
24,700
Total Secured Debt:
$
133,484
$
70,646
$
133,272
$
141,369
$
231,537
$
81,566
 -
 -
  
 -
$
791,874
                                     
Unsecured Debt:
                                    
Unsecured credit facility
                                    
5.125% unsecured notes
                                    
 due 1/15
    
$
150,000
                        
$
150,000
5.80% unsecured notes
                                    
 due 1/16
        
$
200,000
                      
200,000
2.50% unsecured notes
                                    
 due 12/17
            
$
250,000
                  
250,000
7.75% unsecured notes
                                    
 due 8/19
                    
$
250,000
          
250,000
4.50% unsecured notes
                                    
 due 4/22
                            
$
300,000
  
300,000
3.15% unsecured notes
                                    
 due 5/23
                              
275,000
  
275,000
Total Unsecured Debt:
$
 -
$
150,000
$
200,000
$
250,000
  
 -
$
250,000
 -
 -
$
575,000
$
1,425,000
                                     
Total Debt:
$
133,484
$
220,646
$
333,272
$
391,369
$
231,537
$
331,566
 -
 -
$
575,000
$
2,216,874



Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
15
 


 
Debt Detail
 
(dollars in thousands)




                   
   
Effective
              
   
Interest
    
September 30,
  
December 31,
Date of
  
Property Name
Lender
Rate
    
2014
  
2013
Maturity
  
Senior Unsecured Notes: (a)
                  
5.125%, Senior Unsecured Notes
public debt
5.11%
    
 -
$
200,030
02/15/14
(b)
5.125%, Senior Unsecured Notes
public debt
5.30%
  
$
149,971
  
149,902
01/15/15
  
5.800%, Senior Unsecured Notes
public debt
5.81%
    
200,104
  
200,161
01/15/16
  
2.500%, Senior Unsecured Notes
public debt
2.80%
    
249,077
  
248,855
12/15/17
  
7.750%, Senior Unsecured Notes
public debt
8.02%
    
248,959
  
248,799
08/15/19
  
4.500%, Senior Unsecured Notes
public debt
4.61%
    
299,550
  
299,505
04/18/22
  
3.150%, Senior Unsecured Notes
public debt
3.52%
    
269,778
  
269,323
05/15/23
  
Total Senior Unsecured Notes:
      
$
1,417,439
$
1,616,575
    



                   
Revolving Credit Facilities:
                  
Unsecured Facility (c)
17 Lenders
LIBOR +1.100%
    
 -
  
 -
07/31/17
  
Total Revolving Credit Facilities:
      
 -
  
 -
    



                   
Property Mortgages: (d)
                  
6301 Ivy Lane (e)
RGA Reinsurance Company
5.52%
    
 -
$
5,447
 -
  
395 West Passaic (f)
State Farm Life Insurance Co.
6.00%
    
 -
  
9,719
 -
  
35 Waterview (g)
Wells Fargo CMBS
6.35%
    
 -
  
18,417
 -
  
233 Canoe Brook Road (h)
The Provident Bank
4.38%
    
 -
  
3,877
 -
  
6 Becker, 85 Livingston, 75 Livingston & 20 Waterview (i)
Wells Fargo CMBS
10.22%
  
$
65,035
  
64,233
08/11/14
(r)
4 Sylvan
Wells Fargo CMBS
10.19%
    
14,575
  
14,538
08/11/14
(r)
10 Independence (j)
Wells Fargo CMBS
12.44%
    
16,924
  
16,638
08/11/14
(j)
Port Imperial South 4/5
Wells Fargo Bank N.A.
LIBOR+3.50%
    
36,950
  
36,950
10/31/14
(t)
Overlook-Sites III D, III C, III A (s)
Wells Fargo Bank N.A.
LIBOR+3.50%
    
17,100
  
 -
03/02/15
  
Overlook-Site II B (Quarrystone I) (s)
Wells Fargo Bank N.A.
LIBOR+2.50%
    
5,748
  
 -
04/14/15
  
9200 Edmonston Road (k)
Principal Commercial Funding, L.L.C.
5.53%
    
3,996
  
4,115
05/01/15
  
Port Imperial South
Wells Fargo Bank N.A.
LIBOR+1.75%
    
43,910
  
43,278
09/19/15
  
4 Becker
Wells Fargo CMBS
9.55%
    
39,268
  
38,820
05/11/16
  
5 Becker (l)
Wells Fargo CMBS
12.83%
    
13,666
  
13,092
05/11/16
  
210 Clay
Wells Fargo CMBS
13.42%
    
13,182
  
12,767
05/11/16
  
Curtis Center (m)
CCRE & PRE FG
LIBOR+4.55%
(p)
  
64,000
  
 -
10/09/16
  
Various (n)
Prudential Insurance
6.33%
    
146,048
  
147,477
01/15/17
  
150 Main Street
Webster Bank
LIBOR+2.35%
    
218
  
 -
03/30/17
  
23 Main Street
JPMorgan CMBS
5.59%
    
29,373
  
29,843
09/01/18
  
Harborside Plaza 5
The Northwestern Mutual Life Insurance Co. & New York Life Insurance Co.
6.84%
    
222,480
  
225,139
11/01/18
  
100 Walnut Avenue
Guardian Life Ins. Co.
7.31%
    
18,606
  
18,792
02/01/19
  
One River Center (o)
Guardian Life Ins. Co.
7.31%
    
42,623
  
43,049
02/01/19
  
Park Square
Wells Fargo Bank N.A.
LIBOR+1.75%
(q)
  
27,500
  
 -
04/10/19
  
Total Mortgages, Loans Payable and Other Obligations:
    
$
821,202
$
746,191
    
                   
Total Debt:
      
$
2,238,641
$
2,362,766
    


(a)
Includes the cost of terminated treasury lock agreements (if any), offering and other transaction costs and the discount/premium on the notes, as applicable.
(b)
On February 17, 2014, the Company repaid these unsecured notes at their maturity using available cash and borrowings on the Company's unsecured revolving credit facility.
(c)
Total borrowing capacity under this facility is $600 million. On July 16, 2013, the Company amended and restated its unsecured revolving credit facility with a group of 17 lenders. The $600 million facility is expandable to $1 billion and matures in July 2017. It has two six-month extension options each requiring the payment of a 7.5 basis point fee. The interest rate on outstanding borrowings (not electing the Company’s competitive bid feature) and the facility fee on the current borrowing capacity payable quarterly in arrears are based upon the Operating Partnership’s unsecured debt ratings.
(d)
Reflects effective rate of debt, including deferred financing costs, comprised of the cost of terminated treasury lock agreements (if any), debt initiation costs, mark-to-market adjustment of acquired debt and other transaction costs, as applicable.
(e)
April 1, 2014, the Company repaid the mortgage loan at par, using available cash
(f)
May 1, 2014, the Company repaid the mortgage loan at par, using available cash.
(g)
On May 12, 2014, the Company repaid the mortgage loan at par, using borrowings on the Company’s unsecured revolving credit facility.
(h)
On April 30, 2014, the Company repaid the mortgage loan at par, using available cash.
(i)
Mortgage is cross collateralized by the four properties.
(j)
The Company is negotiating a deed-in-lieu of foreclosure in satisfaction of this mortgage loan.
(k)
The mortgage loan originally matured on May 1, 2013.  The maturity date was extended until May 1, 2015 with the same interest rate.  Excess cash flow, as defined, is being held by the lender for re-leasing costs.  The deed for the property was placed in escrow and is available to the lender in the event of default or non-payment at maturity.
(l)
The cash flow from this property is insufficient to cover operating costs and debt service.  Consequently, the Company notified the lender and suspended debt service payments in August 2013.  The Company has begun discussions with the lender regarding a deed-in-lieu of foreclosure and began remitting available cash flow to the lender effective August 2013.
(m)
The Company owns a 50 percent tenants-in-common interest in the Curtis Center Property.  The Company’s $64.0 million loan consists of its 50 percent interest in a $102 million senior loan with a current rate of 3.45 percent at September 30, 2014 and its 50 percent interest in a $26 million mezzanine loan (with a maximum borrowing capacity of $48 million) with a current rate of 9.65 percent at September 30, 2014.  The senior loan rate is based on a floating rate of one-month LIBOR plus 329 basis points and the mezzanine loan rate is based on a floating rate of one-month LIBOR plus 950 basis points.  Both loans have LIBOR caps for the period.  The loans provide for three one-year extension options.  As the Curtis Center Property loans closed on September 30, 2014 with the loan proceeds received on October 1, 2014, the Company recorded the loan and receivable on September 30, 2014.
(n)
Mortgage is collateralized by seven properties. The Operating Partnership has agreed, subject to certain conditions, to guarantee repayment of a portion of the loan.
(o)
Mortgage is collateralized by the three properties comprising One River Center.
(p)
Amortization of deferred financing costs adds 1.523 percent to the variable interest rate stated above.
(q)
Amortization of deferred financing costs adds 0.122 percent to the variable interest rate stated above.
(r)
The Company has begun discussions with the lender regarding the past due maturity of the loans.
(s)
On August 15, 2014, the Company assumed these loans as a result of its acquisition of interests which increased its ownership to 100 percent in certain previously unconsolidated joint ventures which owned developable land.
(t)
The Company is pursuing permanent financing at the maturity of the construction financing in October 2014.






Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
16
 












III. FINANCIAL INFORMATION



Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
17
 

III.  FINANCIAL INFORMATION

Mack-Cali Realty Corporation and Subsidiaries
Consolidated Statements of Operations
(in thousands, except per share amounts) (unaudited)




                       
   
Three Months Ended
    
Nine Months Ended
   
September 30,
    
September 30,
REVENUES
  
2014
    
2013
    
2014
    
2013
Base rents
$
125,793
  
$
134,882
  
$
 393,054
  
$
403,943
Escalations and recoveries from tenants
  
19,172
    
17,173
    
 61,736
    
54,117
Construction services
  
 -
    
678
    
 -
    
15,650
Real estate services
  
7,622
    
7,003
    
 21,323
    
20,088
Parking income
  
2,255
    
1,642
    
 6,605
    
4,631
Other income
  
647
    
1,127
    
 2,667
    
3,335
    Total revenues
  
 155,489
    
162,505
    
 485,385
    
501,764
                       
EXPENSES
                      
Real estate taxes
  
22,154
    
20,572
    
 69,880
    
62,055
Utilities
  
15,701
    
18,043
    
 58,555
    
48,070
Operating services
  
26,519
    
25,852
    
 83,581
    
76,487
Direct construction costs
  
 -
    
609
    
 -
    
14,945
Real estate services expenses
  
6,933
    
5,552
    
 20,213
    
15,809
General and administrative
  
12,665
    
12,151
    
 49,219
    
37,235
Depreciation and amortization
  
41,983
    
46,094
    
 131,679
    
135,122
Impairments
  
 -
    
48,700
    
 -
    
48,700
    Total expenses
  
 125,955
    
177,573
    
 413,127
    
438,423
Operating income (loss)
  
 29,534
    
(15,068)
    
 72,258
    
63,341
                       
OTHER (EXPENSE) INCOME
                      
Interest expense
  
(27,353)
    
(30,936)
    
 (85,458)
    
(92,075)
Interest and other investment income
  
908
    
187
    
 2,216
    
1,287
Equity in earnings (loss) of unconsolidated joint ventures
  
(1,268)
    
(229)
    
 (2,060)
    
(2,059)
Realized gains (losses) on disposition of rental property, net
  
264
    
 -
    
 54,848
    
 -
    Total other (expense) income
  
 (27,449)
    
(30,978)
    
 (30,454)
    
(92,847)
Income (loss) from continuing operations
  
 2,085
    
(46,046)
    
41,804
    
(29,506)
Discontinued operations:
                      
  Income from discontinued operations
  
 -
    
 2,164
    
 -
    
11,842
  Loss from early extinguishment of debt
  
 -
    
 -
    
 -
    
(703)
  Realized gains (losses) on disposition of rental property, net
  
 -
    
 47,321 
    
 -
    
61,079
Total discontinued operations
  
-
    
49,485
    
-
    
72,218
Net income
  
2,085
    
3,439
    
 41,804
    
42,712
  Noncontrolling interest in consolidated joint ventures
  
145
    
1,838
    
 757
    
1,962
  Noncontrolling interest in Operating Partnership
  
 (248)
    
5,314
    
 (4,754)
    
3,295
  Noncontrolling interest in discontinued operations
  
 -
    
(5,948)
    
 -
    
(8,699)
Net income available to common shareholders
$
 1,982
  
$
4,643
  
$
 37,807
  
$
39,270
                       
Basic earnings per common share:
                      
Income (loss) from continuing operations
$
0.02
  
$
(0.44)
  
$
 0.43
  
$
(0.28)
Discontinued operations
  
 -
    
0.49
    
 -
    
0.73
Net income available to common shareholders
$
 0.02
  
$
0.05
  
$
 0.43
  
$
0.45
                       
Diluted earnings per common share:
                      
Income (loss) from continuing operations
$
0.02
  
$
(0.44)
  
$
 0.43
  
$
(0.28)
Discontinued operations
  
 -
    
0.49
    
 -
    
0.73
Net income available to common shareholders
$
 0.02
  
$
0.05
  
$
 0.43
  
$
0.45
                       
Basic weighted average shares outstanding
  
88,875
    
87,793
    
 88,621
    
87,724
                       
Diluted weighted average shares outstanding
  
100,052
    
99,787
    
 100,014
    
99,778






Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
18
 




Mack-Cali Realty Corporation and Subsidiaries
Consolidated Balance Sheets
(in thousands, except per share amounts) (unaudited)

           
   
September 30,
    
December 31,
Assets
  
2014
    
2013
Rental property
          
  Land and leasehold interests
$
746,066
  
$
750,658
  Buildings and improvements
  
3,731,700
    
3,915,800
  Tenant improvements
  
421,291
    
456,003
  Furniture, fixtures and equipment
  
10,670
    
7,472
   
 4,909,727
    
5,129,933
Less – accumulated depreciation and amortization
  
(1,379,911)
    
(1,400,988)
Net investment in rental property
  
 3,529,816
    
3,728,945
Cash and cash equivalents
  
105,528
    
221,706
Investments in unconsolidated joint ventures
  
 239,767
    
181,129
Unbilled rents receivable, net
  
124,278
    
136,304
Deferred charges, goodwill and other assets
  
320,396
    
 218,519 
Restricted cash
  
26,571
    
19,794
Accounts receivable, net of allowance for doubtful accounts
          
of $1,408 and $2,832
  
10,841
    
8,931
           
Total assets
$
 4,357,197
  
$
4,515,328
           
Liabilities and Equity
          
Senior unsecured notes
$
1,417,439
  
$
1,616,575
Revolving credit facility
  
 -
    
 -
Mortgages, loans payable and other obligations
  
821,202
    
746,191
Dividends and distributions payable
  
15,188
    
29,938
Accounts payable, accrued expenses and other liabilities
  
126,580
    
121,286
Rents received in advance and security deposits
  
47,792
    
53,730
Accrued interest payable
  
24,713
    
29,153
   Total liabilities
  
 2,452,914
    
2,596,873
Commitments and contingencies
          
           
Equity:
          
Mack-Cali Realty Corporation stockholders’ equity:
          
Common stock, $0.01 par value, 190,000,000 shares authorized,
          
89,055,220 and 88,247,591 shares outstanding
  
891
    
882
Additional paid-in capital
  
2,556,948
    
2,539,326
Dividends in excess of net earnings
  
(913,389)
    
(897,849)
   Total Mack-Cali Realty Corporation stockholders’ equity
  
 1,644,450
    
1,642,359
           
Noncontrolling interests in subsidiaries:
          
Operating Partnership
  
204,820
    
220,813
Consolidated joint ventures
  
55,013
    
55,283
Total noncontrolling interests in subsidiaries
  
259,833
    
 276,096 
           
Total equity
  
 1,904,283
    
1,918,455
           
Total liabilities and equity
$
 4,357,197
  
$
4,515,328








Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
19
 


Mack-Cali Realty Corporation and Subsidiaries
Consolidated Statement of Changes in Equity
(in thousands) (unaudited)




                                   
               
Additional
    
Dividends in
    
Noncontrolling
      
   
Common Stock
    
Paid-In
    
Excess of
    
Interests
    
Total
   
   Shares
    
Par Value
    
Capital
    
Net Earnings
    
in Subsidiaries
    
Equity
Balance at January 1, 2014
  
 88,248 
  
$
 882 
  
$
 2,539,326 
  
$
 (897,849)
  
$
 276,096 
  
$
 1,918,455 
  Net income
  
 -
    
 -
    
 -
    
 37,807
    
3,997
    
 41,804
  Common stock dividends
  
 -
    
 -
    
 -
    
 (53,347)
    
 -
    
 (53,347)
  Common unit distributions
  
 -
    
 -
    
 -
    
 -
    
 (6,793)
    
 (6,793)
  Increase in noncontrolling interest
                                  
   in consolidated joint ventures
  
 -
    
 -
    
 -
    
 -
    
487
    
487
  Redemption of common units
                                  
   for common stock
  
 773
    
 8
    
 14,203
    
 -
    
 (14,211)
    
 -
  Shares issued under Dividend
                                  
   Reinvestment and Stock Purchase Plan
  
 5
    
 -
    
 102
    
 -
    
 -
    
 102
  Directors' deferred compensation plan
  
 -
    
 -
    
 310
    
 -
    
 -
    
 310
  Stock compensation
  
 29 
    
 1 
    
 3,264
    
 -
    
 -
    
 3,265
  Rebalancing of ownership percentage
                                  
   between parent and subsidiaries
  
 -
    
 -
    
 (257)
    
 -
    
 257
    
 -
Balance at September 30, 2014
  
 89,055
  
$
 891
  
$
 2,556,948
  
$
 (913,389)
  
$
 259,833
  
$
 1,904,283









Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
20
 


Mack-Cali Realty Corporation and Subsidiaries
Statements of Funds from Operations
(in thousands, except per share/unit amounts) (unaudited)



                             
 
Three Months Ended
  
Nine Months Ended
 
September 30,
  
September 30,
   
2014
    
2013
      
2014
      
2013
  
Net income available to common shareholders
$
 1,982
  
$
 4,643
    
$
 37,807
    
$
 39,270 
  
Add (deduct):  Noncontrolling interest in Operating Partnership
  
 248
    
 (5,314)
      
 4,754
      
 (3,295)
  
Noncontrolling interest in discontinued operations
  
 -
    
 5,948
      
 -
      
 8,699
  
Real estate-related depreciation and amortization on
                            
   continuing operations (a)
  
 46,071
    
 48,685
      
 140,810
      
 144,834
  
Real estate-related depreciation and amortization
                            
   on discontinued operations
  
 -
    
 1,769
      
 -
      
 8,196
  
Impairments
  
 -
    
 48,700 
      
 -
      
 72,551 
  
Deduct: Discontinued operations-realized (gains) losses
                            
   on disposition of rental property, net
  
 (264)
    
 (47,321)
      
 (54,848)
      
 (84,930)
  
Funds from operations available to common shareholders (b)
$
 48,037
  
$
 57,110 
    
$
 128,523
    
$
 185,325 
  
                             
Diluted weighted average shares/units outstanding (c)
  
 100,052
    
 99,787 
      
 100,014
      
 99,778 
  
                             
Funds from operations per share/unit-diluted
$
0.48
  
$
0.57
    
$
1.29
    
$
 1.86 
  
                             
Dividends declared per common share
$
0.15
  
$
0.30
    
$
0.60
    
$
 1.05 
  
                             
Dividend payout ratio:
                            
     Funds from operations-diluted
  
31.24
%
  
52.42
%
    
46.69
%
    
 56.53 
%
                             
Supplemental Information:
                            
Non-incremental revenue generating capital expenditures:
                            
     Building improvements
$
 8,010
  
$
 3,438 
    
$
 13,263
    
$
 11,476 
  
     Tenant improvements and leasing commissions (d)
$
 8,885
  
$
 11,421 
    
$
 33,220
    
$
 36,861 
  
Straight-line rent adjustments (e)
$
 998
  
$
 521 
    
$
 5,187
    
$
 10,172 
  
Amortization of (above)/below market lease intangibles, net (f)
$
 320
  
$
 659 
    
$
 902
    
$
 1,994 
  
Acquisition transaction costs (g)
  
 -
    
 -
    
$
 1,943
    
$
 214
  
Net effect of unusual electricity rate spikes (h)
  
 -
    
 -
    
$
 4,845
      
 -
  
EVP severance costs (g)
  
 -
    
 -
    
$
 11,044
      
 -
  
                             
 

   
(a)
Includes the Company’s share from unconsolidated joint ventures of $4,181 and $4,145 for the three months ended September 30, 2014 and 2013, respectively, and $9,396 and $11,417 for the nine months ended September 30, 2014 and 2013, respectively. Excludes non-real estate-related depreciation and amortization of $93 and $71 for the three months ended September 30, 2014 and 2013, respectively, and $265 and $222 for the nine months ended September 30, 2014 and 2013 respectively.
(b)
Funds from operations is calculated in accordance with the definition of FFO of the National Association of Real Estate Investment Trusts (NAREIT). See “Information About FFO” on page 10.
(c)
Calculated based on weighted average common shares outstanding, assuming redemption of Operating Partnership common units into common shares (11,120 and 11,995 shares for the three months ended September 30, 2014 and 2013, respectively, and 11,334 and 12,054 for the nine months ended September 30, 2014 and 2013, respectively), plus dilutive Common Stock Equivalents (i.e. stock options). See reconciliation of basic to diluted shares/units on page 23.
(d)
Excludes expenditures for tenant spaces that have not been owned for at least a year or were vacant for more than a year.
(e)
Includes the Company’s share from unconsolidated joint ventures of $12 and $82 for the three months ended September 30, 2014 and 2013, respectively, and $12 and $84 for the nine months ended September 30, 2014 and 2013, respectively.
(f)
Includes the Company’s share from unconsolidated joint ventures of $124 and $184 for the three months ended  September 30, 2014 and 2013, respectively, and $372 and $579 for the nine months ended September 30, 2014 and 2013, respectively.
(g)
Included in general and administrative expense.
(h)
Approximately $10 million in utilities expense, net of approximately $5 million in escalations and recoveries from tenants related to such costs.



Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
21
 




Mack-Cali Realty Corporation and Subsidiaries
Statements of Funds from Operations Per Diluted Share
(amounts are per diluted share, except share count in thousands) (unaudited)





                         
 
Three Months Ended
    
Nine Months Ended
 
September 30,
  
September 30,
   
2014
    
2013
    
2014
      
2013
Net income available to common shareholders
$
 0.02
  
$
 0.05 
  
$
 0.43
    
$
 0.45 
Add: Real estate-related depreciation and amortization on
                        
   continuing operations (a)
  
 0.46
    
 0.49 
    
 1.41
      
 1.45 
Real estate-related depreciation and amortization
                        
   on discontinued operations
  
 -
    
 0.02 
    
 -
      
 0.08 
Impairments
  
 -
    
 0.49 
    
 -
      
 0.73 
Deduct: Discontinued operations-realized (gains) losses
                        
   on disposition of rental property, net
  
-
    
 (0.47)
    
 (0.55)
      
 (0.85)
Rounding adjustment
  
 -
    
 (0.01)
    
-
      
 -
Funds from operations (b)
$
 0.48
  
$
 0.57 
  
$
 1.29
    
$
 1.86 
                         
Add: Net effect of unusual electricity rate spikes  (1st quarter 2014)
  
 -
    
 -
  
$
0.05
      
 -
   EVP severance costs (1st quarter 2014)
  
 -
    
 -
    
0.11
      
 -
Rounding adjustment
  
 -
    
 -
    
(0.01)
      
 -
FFO excluding certain items
$
 0.48
  
$
 0.57 
  
$
 1.44
    
$
 1.86 
                         
Diluted weighted average shares/units outstanding (c)
  
100,052
    
99,787
    
 100,014
      
99,778


   
(a)
Includes the Company’s share from unconsolidated joint ventures of $0.04 and $0.04 for the three months ended September 30, 2014 and 2013, respectively, and $0.09 and $0.11 for the nine months ended September 30, 2014 and 2013, respectively
(b)
Funds from operations is calculated in accordance with the definition of FFO of the National Association of Real Estate Investment Trusts (NAREIT). See “Information About FFO” on page 10.
(c)
Calculated based on weighted average common shares outstanding, assuming redemption of Operating Partnership common units into common shares (11,120 and 11,995 shares for the three months ended September 30, 2014 and 2013, respectively, and 11,334 and 12,054 for the nine months ended September 30, 2014 and 2013, respectively), plus dilutive Common Stock Equivalents (i.e. stock options). See reconciliation of basic to diluted shares/units on page 23.






Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
22
 



Mack-Cali Realty Corporation and Subsidiaries
Reconciliation of Basic-to-Diluted Shares/Units
(in thousands)


The following schedule reconciles the Company’s basic weighted average shares outstanding to basic and diluted weighted average shares/units outstanding for the purpose of calculating FFO per share:




           
 
Three Months Ended
  
          Nine Months Ended
 
September 30,
  
           September 30,
 
2014
2013
  
2014
2013
Basic weighted average shares outstanding:
88,875
87,793
  
88,621
87,724
Add: Weighted average common units
11,120
11,994
  
11,334
12,054
Basic weighted average shares/units:
99,995
99,787
  
99,955
99,778
Restricted Stock Awards
57
 -
  
 59
 -
           
Diluted weighted average shares/units outstanding:
100,052
99,787
  
100,014
99,778






Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
23
 


Unconsolidated Joint Venture Financial Information

The following is a summary of the financial position of the unconsolidated joint ventures in which the Company had investment interests as of September 30, 2014 and December 31, 2013, respectively: (dollars in thousands)



           
   
September 30,
    
December 31,
   
2014
    
2013
Assets:
          
   Rental property, net
$
 1,404,929
  
$
 755,049 
   Loan receivable
  
 -
    
 45,050 
   Other assets
  
 445,127
    
 582,990 
   Total assets
$
 1,850,056
  
$
 1,383,089 
Liabilities and partners'/
          
members' capital:
          
   Mortgages and loans payable
$
 992,434
  
$
 637,709 
   Other liabilities
  
 221,414
    
 87,231 
   Partners'/members' capital
  
 636,208
    
 658,149 
   Total liabilities and
          
   partners'/members' capital
$
 1,850,056
  
$
 1,383,089 



The following is a summary of the Company’s investment in unconsolidated joint ventures as of September 30, 2014 and December 31, 2013, respectively: (dollars in thousands)




           
   
September 30,
    
December 31,
Entity/Property Name
  
2014
    
2013
Multi-family
          
Marbella RoseGarden, L.L.C./ Marbella (c)
$
 15,784 
  
$
 15,797 
RoseGarden Monaco Holdings, L.L.C./ Monaco (North and South) (c)
  
 2,438 
    
 3,201 
Rosewood Lafayette Holdings, L.L.C./ Highlands at Morristown Station (c)
  
 275 
    
 857 
PruRose Port Imperial South 15, LLC /RiversEdge at Port Imperial (c)
  
 -
    
 -
Rosewood Morristown, L.L.C. / Metropolitan at 40 Park (c)
  
 6,127
    
 6,455 
Overlook Ridge JV, L.L.C./ Quarrystone (c)
  
 -
    
 -
Overlook Ridge JV 2C/3B, L.L.C./Overlook Ridge 2C & 3B (c)
  
 2,753 
    
 -
PruRose Riverwalk G, L.L.C./ RiverTrace at Port Imperial (c)
  
 1,332 
    
 3,117 
Elmajo Urban Renewal Associates, LLC / Lincoln Harbor (Bldg A&C) (c)
  
 -
    
 203 
Crystal House Apartments Investors LLC / Crystal House
  
 26,602
    
 26,838 
Portside Master Company, L.L.C./ Portside at Pier One - Bldg 7 (c)
  
 2,306
    
 3,207 
PruRose Port Imperial South 13, LLC / Port Imperial Bldg 13 (c)
  
 1,402
    
 2,206 
Roseland/Port Imperial Partners, L.P./ Riverwalk C (c)
  
 1,849
    
 2,068 
RoseGarden Marbella South, L.L.C./ Marbella II
  
 9,612
    
 7,567 
Estuary Urban Renewal Unit B, LLC / Lincoln Harbor (Bldg B) (c)
  
 -
    
 24 
Riverpark at Harrison I, L.L.C./ Riverpark at Harrison
  
 4,556 
    
 3,655 
Capitol Place Mezz LLC / Station Townhouses
  
 48,682 
    
 46,628 
Harborside Unit A Urban Renewal, L.L.C. / URL Harborside
  
 28,080 
    
 -
RoseGarden Monaco, L.L.C./ San Remo Land
  
 1,269 
    
 1,224 
Grand Jersey Waterfront URA, L.L.C./ Liberty Landing
  
 337 
    
 337 
Office
          
Red Bank Corporate Plaza, L.L.C./ Red Bank
  
 3,880 
    
 4,046 
12 Vreeland Associates, L.L.C./ 12 Vreeland Road
  
 5,680 
    
 5,514 
BNES Associates III / Offices at Crystal Lake
  
 2,026 
    
 1,753 
Hillsborough 206 Holdings, L.L.C./ Hillsborough 206
  
 1,962 
    
 1,962 
KPG-P 100 IMW JV, LLC / 100 Independence Mall West
  
 339 
    
 1,887 
Keystone-Penn (c)
  
 -
    
 -
Keystone-TriState (c) (d)
  
 5,725 
    
 -
KPG-MCG Curtis JV, L.L.C./ Curtis Center (a)
  
 60,440 
    
 -
Other
          
Plaza VIII & IX Associates, L.L.C./ Vacant land (parking operations)
  
 3,922 
    
 3,702 
Roseland/North Retail, L.L.C./ Riverwalk at Port Imperial (c)
  
 1,849 
    
 1,930 
South Pier at Harborside / Hyatt Regency Jersey City on the Hudson (b)
  
 -
    
 -
Stamford SM LLC / Senior Mezzanine Loan
  
 -
    
 36,258 
Other
  
 540 
    
 693 
Company's investment in unconsolidated joint ventures
$
 239,767
  
$
 181,129 

(a)  
Includes undivided interests in the same manner as investments in noncontrolled partnerships, pursuant to ASC 810.
(b)  
The negative investment balance for this joint venture of $2,582 and $1,706 as of September 30, 2014 and December 31, 2013, respectively, were included in accounts payable, accrued expenses and other liabilities.
(c)  
The Company's ownership interests in this venture are subordinate to its partner's preferred capital balance and the Company is not expected to meaningfully participate in the venture's cash flows in the near term.
(d)  
Includes Company's pari-passu interests of $6.5 million in five properties acquired in August 2014.




Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
24
 
 

 

The following is a summary of the results of operations of the unconsolidated joint ventures for the period in which the Company had investment interests for the three and nine months ended September 30, 2014 and 2013, respectively: (dollars in thousands)



                       
   
Three Months Ended
    
Nine Months Ended
   
September 30,
    
September 30,
   
2014
    
2013
    
2014
    
2013
Total revenues
$
 80,711
  
$
 99,117 
  
$
 224,822
  
$
 202,810 
Operating and other expenses
  
 (58,684)
    
 (48,621)
    
 (173,642)
    
 (137,889)
Depreciation and amortization
  
 (15,134)
    
 (11,556)
    
 (31,715)
    
 (24,730)
Interest expense
  
 (11,296)
    
 (3,934)
    
 (26,423)
    
 (9,256)
Net income (loss)
$
 (4,403)
  
$
 35,006 
  
$
 (6,958)
  
$
 30,935 

The following is a summary of the Company’s equity in earnings (loss) of unconsolidated joint ventures for the three and nine months ended September 30, 2014 and 2013, respectively: (dollars in thousands)


                       
   
Three Months Ended
    
Nine Months Ended
   
September 30,
    
September 30,
Entity/Property Name
  
2014
    
2013
    
2014
    
2013
Multi-family
                      
Marbella RoseGarden, L.L.C./ Marbella (a)
$
3 
  
$
 (170)
  
$
(13)
  
$
 (446)
RoseGarden Monaco Holdings, L.L.C./ Monaco (North and South) (a)
  
 (249)
    
(416)
    
 (764)
    
 (1,238)
Rosewood Lafayette Holdings, L.L.C./ Highlands at Morristown Station (a)
  
 (221)
    
(295)
    
 (639)
    
 (869)
PruRose Port Imperial South 15, LLC /RiversEdge at Port Imperial (a)
  
 -
    
 -
    
 -
    
 (606)
Rosewood Morristown, L.L.C. / Metropolitan at 40 Park (a)
  
 (90)
    
(152)
    
 (264)
    
 (393)
Overlook Ridge JV, L.L.C./ Quarrystone (a)
  
 -
    
 -
    
 -
    
 -
Overlook Ridge JV 2C/3B, L.L.C./Overlook Ridge 2C & 3B (a)
  
 (217)
    
 53 
    
 (155)
    
 204 
PruRose Riverwalk G, L.L.C./ RiverTrace at Port Imperial (a)
  
 (615)
    
 (198)
    
 (1,766)
    
 (576)
Elmajo Urban Renewal Associates, LLC / Lincoln Harbor (Bldg A&C) (a)
  
 -
    
(87)
    
 (203)
    
 (255)
Crystal House Apartments Investors LLC / Crystal House
  
 68 
    
(1,149)
    
 (206)
    
 (2,671)
Portside Master Company, L.L.C./ Portside at Pier One - Bldg 7 (a)
  
 (228)
    
(109)
    
 (661)
    
 (222)
PruRose Port Imperial South 13, LLC / Port Imperial Bldg 13 (a)
  
 (220)
    
(181)
    
 (638)
    
 (459)
Roseland/Port Imperial Partners, L.P./ Riverwalk C (a)
  
 (173)
    
 -
    
 (518)
    
 -
RoseGarden Marbella South, L.L.C./ Marbella II
  
 -
    
(20)
    
 -
    
 (57)
Estuary Urban Renewal Unit B, LLC / Lincoln Harbor (Bldg B) (a)
  
 -
    
 (44)
    
 (15)
    
 (107)
Riverpark at Harrison I, L.L.C./ Riverpark at Harrison
  
 -
    
 -
    
 -
    
 -
Capitol Place Mezz LLC / Station Townhouses
  
 -
    
 -
    
 -
    
 -
Harborside Unit A Urban Renewal, L.L.C. / URL Harborside
  
 -
    
 -
    
 (212)
    
 -
RoseGarden Monaco, L.L.C./ San Remo Land
  
 -
    
 -
    
 -
    
 -
Grand Jersey Waterfront URA, L.L.C./ Liberty Landing
  
 -
    
 -
    
 (54)
    
 -
Office
                      
Red Bank Corporate Plaza, L.L.C./ Red Bank
  
 101 
    
99
    
 306 
    
 306 
12 Vreeland Associates, L.L.C./ 12 Vreeland Road
  
 22 
    
(25)
    
 165 
    
 (1)
BNES Associates III / Offices at Crystal Lake
  
 127 
    
(37)
    
 273 
    
 (108)
Hillsborough 206 Holdings, L.L.C./ Hillsborough 206
  
 -
    
 -
    
 (5)
    
 -
KPG-P 100 IMW JV, LLC / 100 Independence Mall West
  
 (412)
    
 -
    
 (1,548)
    
 -
Keystone-Penn (a)
  
 -
    
 -
    
 -
    
-
Keystone-TriState (a)
  
 (733)
    
 -
    
 (733)
    
-
KPG-MCG Curtis JV, L.L.C./ Curtis Center
  
 113 
    
 -
    
 364 
    
 -
Other
                      
Plaza VIII & IX Associates, L.L.C./ Vacant land (parking operations)
  
 74 
    
24
    
 220 
    
 52 
Roseland/North Retail, L.L.C./ Riverwalk at Port Imperial (a)
  
 (34)
    
 (62)
    
 (81)
    
 (194)
South Pier at Harborside / Hyatt Regency Jersey City on the Hudson
  
 583 
    
835
    
 1,874 
    
 1,380 
Stamford SM LLC / Senior Mezzanine Loan
  
 493 
    
1,023
    
 2,337 
    
 2,805 
Other
  
 340 
    
682
    
 876 
    
 1,396 
Company's equity in earnings (loss) of unconsolidated joint ventures
$
 (1,268)
  
$
 (229)
  
$
 (2,060)
  
$
 (2,059)

(a)  
The Company's ownership interests in this venture are subordinate to its partner's preferred capital balance and the Company is not expected to meaningfully participate in the venture's cash flows in the near term.


Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
25
 

 
 


The following is a summary of the Company’s funds from operations of unconsolidated joint ventures for the three and nine months ended September 30, 2014 and 2013, respectively: (dollars in thousands)

                       
   
Three Months Ended
    
Nine Months Ended
   
September 30,
    
September 30,
Entity/Property Name
  
2014
    
2013
    
2014
    
2013
Multi-family
                      
Marbella RoseGarden, L.L.C./ Marbella (a)
$
 255
  
$
254
  
$
 734
  
$
 841
RoseGarden Monaco Holdings, L.L.C./ Monaco (North and South) (a)
  
 (16)
    
 (40)
    
 (65)
    
 (112)
Rosewood Lafayette Holdings, L.L.C./ Highlands at Morristown Station (a)
  
 4
    
 (6)
    
 34
    
 (6)
PruRose Port Imperial South 15, LLC /RiversEdge at Port Imperial (a)
  
 -
    
 -
    
 -
    
 101
Rosewood Morristown, L.L.C. / Metropolitan at 40 Park (a)
  
 4 
    
 (12)
    
 17 
    
 25 
Overlook Ridge JV, L.L.C./ Quarrystone (a)
  
 -
    
 -
    
 -
    
 -
Overlook Ridge JV 2C/3B, L.L.C./Overlook Ridge 2C & 3B (a)
  
 (49)
    
52
    
 50 
    
 203 
PruRose Riverwalk G, L.L.C./ RiverTrace at Port Imperial (a)
  
 (355)
    
 (198)
    
 (1,150)
    
 (576)
Elmajo Urban Renewal Associates, LLC / Lincoln Harbor (Bldg A&C) (a)
  
 -
    
 (87)
    
 (167)
    
 (255)
Crystal House Apartments Investors LLC / Crystal House
  
 361 
    
 553
    
 673 
    
 734
Portside Master Company, L.L.C./ Portside at Pier One - Bldg 7 (a)
  
 (228)
    
 (109)
    
 (661)
    
 (222)
PruRose Port Imperial South 13, LLC / Port Imperial Bldg 13 (a)
  
 (220)
    
 (181)
    
 (638)
    
 (459)
Roseland/Port Imperial Partners, L.P./ Riverwalk C (a)
  
 (173)
    
 -
    
 (518)
    
 -
RoseGarden Marbella South, L.L.C./ Marbella II
  
 -
    
 (20)
    
 -
    
 (57)
Estuary Urban Renewal Unit B, LLC / Lincoln Harbor (Bldg B) (a)
  
 -
    
 (45)
    
 (15)
    
 (108)
Riverpark at Harrison I, L.L.C./ Riverpark at Harrison
  
 -
    
 -
    
 -
    
 -
Capitol Place Mezz LLC / Station Townhouses
  
 -
    
 -
    
 -
    
 -
Harborside Unit A Urban Renewal, L.L.C. / URL Harborside
  
 -
    
 -
    
 (212)
    
 -
RoseGarden Monaco, L.L.C./ San Remo Land
  
 -
    
 -
    
 -
    
 -
Grand Jersey Waterfront URA, L.L.C./ Liberty Landing
  
 -
    
 -
    
 (54)
    
 -
Office
                      
Red Bank Corporate Plaza, L.L.C./ Red Bank
  
 217
    
 215
    
 655
    
 654
12 Vreeland Associates, L.L.C./ 12 Vreeland Road
  
 106 
    
 51 
    
 417 
    
 229 
BNES Associates III / Offices at Crystal Lake
  
 151 
    
 118 
    
 420 
    
 355 
Hillsborough 206 Holdings, L.L.C./ Hillsborough 206
  
 -
    
 -
    
 (5)
    
 -
KPG-P 100 IMW JV, LLC / 100 Independence Mall West
  
 (239)
    
 -
    
 (969)
    
 -
Keystone-Penn (a)
  
 -
    
 -
    
 -
    
 -
Keystone-TriState (a)
  
 (605)
    
 -
    
 (605)
    
 -
KPG-MCG Curtis JV, L.L.C./ Curtis Center
  
1,448
    
-
    
 1,813
    
 -
Other
                      
Plaza VIII & IX Associates, L.L.C./ Vacant land (parking operations)
  
 80 
    
 100 
    
 237 
    
 282 
Roseland/North Retail, L.L.C./ Riverwalk at Port Imperial (a)
  
 (13)
    
 (11)
    
 (19)
    
 (39)
South Pier at Harborside / Hyatt Regency Jersey City on the Hudson
  
 1,352 
    
 1,577 
    
 4,150 
    
 3,569 
Stamford SM LLC / Senior Mezzanine Loan
  
 493 
    
 1,023 
    
 2,338 
    
 2,805 
Other
  
 340 
    
 682 
    
 876 
    
 1,397 
Company's funds from operations of unconsolidated joint ventures
$
 2,913
  
$
 3,916
  
$
 7,336
  
$
 9,361

 
(a)  
The Company's ownership interests in this venture are subordinate to its partner's preferred capital balance and the Company is not expected to meaningfully participate in the venture's cash flows in the near term.




Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
26
 











IV.  PORTFOLIO SUMMARY


Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
27
 


IV. PORTFOLIO SUMMARY

Operating Property Acquisitions
(dollars in thousands)


 
For the nine months ended September 30, 2014

                 
Acquisition
    
# of
# of
Commercial
  
Investment
  
Date
Property
Location
Properties
Apartment Homes
Square Feet
  
By Company
  
Consolidated Multi-Family Rental (a):
                
04/10/14
Andover Place  (h)
Andover, Massachuesetts
1
220
  
$
37,700
(b)
Unconsolidated Commercial:
                
06/06/14
Curtis Center (c)
Philadelphia, Pennsylvania
1
 -
885,000
  
62,500
  
                 
Total
    
2
220
885,000
$
100,200
  


For the year ended December 31, 2013


                 
Acquisition
    
# of
# of
Commercial
  
Investment
  
Date
Property
Location
Properties
Apartment Units
Square Feet
  
By Company
  
Consolidated Multi-Family Rental: (a)
                
01/18/13
Alterra at Overlook Ridge 1A (h)
Revere, Massachusetts
1
310
  
$
61,250
(b)
04/04/13
Alterra at Overlook Ridge 1B (h)
Revere, Massachusetts
1
412
    
87,950
(b)
11/20/13
Park Square
Rahway, New Jersey
1
159
5,934
  
46,376
(d)
12/19/13
Richmond Court/Riverwatch Commons (h)
New Brunswick, New Jersey
2
200
    
40,983
(e)
Total Consolidated
    
5
1,081
5,934
$
236,559
  
                 
Unconsolidated Multi-Family Rental:
                
03/21/13
Crystal House (f) (h)
Arlington, Virginia
1
828
8,281
$
30,210
  
Unconsolidated Commercial:
                
12/09/13
100 Independence Mall West (g)
Philadelphia, Pennsylvania
1
 -
339,615
  
2,800
  
Total Unconsolidated
    
2
828
347,896
$
33,010
  
                 
Total
    
7
1,909
353,830
$
269,569
  

(a)  
The Company owns 100 percent of these properties.
(b)  
The acquisition cost was funded primarily through borrowings under the Company’s unsecured revolving credit facility.
(c)  
The Company holds a 50 percent interest in this property. The joint venture acquired the property for $125 million and plans to reposition the property into a mixed-use environment through the creation of luxury rental apartments within a portion of the existing office space.
(d)  
The acquisition cost consisted of $43.4 million in cash consideration and future purchase price earn out payment obligations, subject to conditions related to a real estate tax appeal, recorded at fair value of $3.0 million at closing. $42.6 million of the cash consideration was funded from funds held by a qualified intermediary, which were proceeds from the Company’s prior property sales. The remaining cash consideration was funded primarily from available cash on hand. $2.6 million of the earn-out obligation amount was paid in January 2014, with the remaining balance still potentially payable in the future.
(e)  
$12.7 million of the acquisition cost was funded from funds held by a qualified intermediary, which were proceeds from the Company’s prior property sales. The remaining acquisition cost was funded primarily from available cash on hand.
(f)  
The unconsolidated joint venture acquired the operating property, which is encumbered by a $165 million mortgage, for $247.5 million and a developable land parcel for $15 million. The Company owns 25 percent interest in the operating property and a 50 percent interest in the development parcel. On a capital event, the Company receives a promoted additional 25 percent interest over a 9.00 percent IRR.
(g)  
The Company holds a 33 percent interest in this property. The joint venture acquired the property, which is encumbered by a $61.5 million mortgage loan, for approximately $40.5 million. As part of a more than $20 million reinvestment strategy for this property, the joint venture is planning upgrades to the building’s common areas, as well as build-out offices and the conversion of approximately 55,000 square feet of lower-level space into a 110-space parking garage.
(h)  
The Company plans to reposition this property, which is targeted for additional investment by the Company, for unit and common area renovations. During repositioning, it is often necessary to take apartment homes offline for a short period of time to allow for renovations which can impact occupancy and operations.




Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
28
 


IV. PORTFOLIO SUMMARY

Properties Commencing Initial Operations
(dollars in thousands, except per square foot)

For the nine months September 30, 2014

None.




For the year ended December 31, 2013



                       
         
Rentable
Garage
  
Development
    
Development
       
# of
Square
Parking
  
Costs Incurred
    
Cost Per
Date
Property/Address
Location
Type
Properties
Feet
Spaces
  
By Company
    
Square Foot
Consolidated Commercial/Mixed-Use:
                    
06/05/13
14 Sylvan Way (c)
Parsippany, New Jersey
Office
1
203,506
 -
$
51,611
(a)
$
254
08/01/13
Port Imperial South 4/5 (d)
Weehawken, New Jersey
Parking/Retail
1
16,736
850
  
71,040
(b)
  
n/a
                       
Total Properties Commencing Initial Operations:
  
2
220,242
850
$
122,651
      

(a)  
Development costs included approximately $13.0 million in land costs and $4.3 million in leasing costs. Amounts are as of December 31, 2013.
(b)  
Development costs included approximately $13.1 million in land costs, and hotel development rights. Amounts are as of December 31, 2013.
(c)  
The Company owns 100 percent of this property.
(d)  
Consolidated joint venture-Company has 43.75 percent effective ownership interest.


Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
29
 


IV. PORTFOLIO SUMMARY

Rental Property Sales/Dispositions
(dollars in thousands)


For the nine months ended September 30, 2014
                     
       
Rentable
            
Sale
    
# of
Square
  
Net Sales
  
Realized
Capitalization
  
Date
Property/Address
Location
Buildings
Feet
  
Proceeds
  
Gain
Rate (c)
  
04/23/14
22 Sylvan Way
Parsippany, New Jersey
1
249,409
$
94,897
$
34,653
6.20
%
06/23/14
30 Knightsbridge Road (a)
Piscataway, New Jersey
4
680,350
  
54,641
  
2,280
11.90
%
06/23/14
470 Chestnut Ridge Road (a) (b)
Woodcliff Lake, New Jersey
1
52,500
  
7,195
  
86
9.42
%
06/23/14
530 Chestnut Ridge Road (a) (b)
Woodcliff Lake, New Jersey
1
57,204
  
6,299
  
64
7.74
%
06/27/14
400 Rella Boulevard
Suffern, New York
1
180,000
  
27,539
  
16,601
5.00
%
06/30/14
412 Mount Kemble Avenue (a)
Morris Township, New Jersey
1
475,100
  
44,751
  
900
5.70
%
07/29/14
17-17 Route 208 North (a) (b)
Fair Lawn, New Jersey
1
143,000
  
11,835
  
104
9.14
%
08/20/14
555,565, 570 Taxter Road (a)
Elmsford, New York
3
416,108
  
41,057
  
-
7.77
%
08/20/14
220 - 220 White Plains Road (a)
Tarrytown, New York
2
178,000
  
12,619
  
-
3.01
%
08/20/14
1266 East Main Street (a) (b)
Stamford, Connecticut
1
179,260
  
18,406
  
160
5.30
%
                     
Total Property Sales:
  
16
2,610,931
$
319,239
$
54,848
    

(a)  
The Company completed the sale of these properties for approximately $221 million, comprised of: $192.5 million in cash from a combination of affiliates of Keystone Property Group’s (“Keystone Entities”) senior and pari-passu equity and mortgage financing; Company subordinated equity interests in each of the properties sold with capital accounts aggregating $21.2 million; and Company pari-passu equity interests in five of the properties sold aggregating $7.3 million.  Net sale proceeds from the sale aggregated $196.8 million which was comprised of the $221 million gross sales price less the subordinated equity interests of $21.2 million and $3 million in closing costs.  The purchasers of these properties are unconsolidated joint ventures formed between the Company and the Keystone Entities.  The senior and pari-passu equity will receive a 15 percent internal rate of return (“IRR”) after which the subordinated equity will receive a 10 percent IRR and then all distributable cash flow will be split equally between the Keystone Entities and the Company.  In connection with certain of these partial sale transactions, because the buyer received a preferential return on certain of the ventures for which the Company received subordinated equity interests, the Company only recognized profit to the extent that they received net proceeds in excess of their entire carrying value of the properties, effectively reflecting their retained subordinated equity interest at zero.
(b)  
The Company recorded an impairment charge of $20.7 million on these properties at December 31, 2013 as it estimated that the carrying value of the properties may not be recoverable over their anticipated holding periods.
(c)  
Capitalization rate is calculated by dividing the projected net operating income for the 12 months forward from the closing date by the gross sales price.





For the year ended December 31, 2013




                       
       
Rentable
        
Net Realized
    
Sale
    
# of
Square
  
Net Sales
    
Gains/
Capitalization
  
Date
Property/Address
Location
Properties
Feet
  
Proceeds
    
(Losses) (a)
Rate (b)
  
04/10/13
19 Skyline Drive (c)
Hawthorne, New York
1
248,400
$
16,131
  
$
126
(7.90)
% (h)
04/26/13
55 Corporate Drive
Bridgewater, New Jersey
1
204,057
  
70,967
    
19,659
6.25
%
05/02/13
200 Riser Road
Little Ferry, New Jersey
1
286,628
  
31,775
    
16,923
7.38
%
05/13/13
777 Passaic Avenue
Clifton, New Jersey
1
75,000
  
5,640
    
1,927
7.36
%
05/30/13
16 and 18 Sentry Parkway West (d)
Blue Bell, Pennsylvania
2
188,103
  
19,041
    
(680)
15.60
%
05/31/13
51 Imclone Drive (e)
Branchburg, New Jersey
1
63,213
  
6,101
    
823
8.66
%
06/28/13
40 Richards Avenue
Norwalk, Connecticut
1
145,487
  
15,858
    
(1,169)
5.24
%
07/10/13
106 Allen Road
Bernards Township, New Jersey
1
132,010
  
17,677
    
2,596
3.70
%
08/27/13
Pennsylvania office portfolio (f) (g)
Suburban Philadelphia, Pennsylvania
15
1,663,511
  
207,425
    
43,166
9.90
%
                       
Total Property Sales:
24
3,006,409
$
390,615
(i)
$
83,371
    

(a)  
This amount, net of impairment charges recorded in 2013 of $23.9 million on certain of the properties prior to their sale (per Note [f] below), comprises the $59.5 million of realized gains (losses) and unrealized losses on disposition of rental property and impairments, net, for the year ended December 31, 2013.
(b)  
Capitalization rate is calculated by dividing the projected net operating income for the 12 months forward from the closing date by the gross sales price.
(c)  
The Company recognized a valuation allowance of $7.1 million on this property at December 31, 2012. In connection with the sale, the Company provided an interest-free note receivable to the buyer of $5 million (with a net present value of $3.7 million at closing) which matures in 2023 and requires monthly payments of principal.
(d)  
The Company recorded an $8.4 million impairment charge on these properties December 31, 2012. The Company has retained a subordinated interest in these properties.
(e)  
The property was encumbered by a mortgage which was satisfied by the Company at the time of the sale. The Company incurred $0.7 million in costs for the debt satisfaction, which was included in discontinued operations: loss from early retirement of debt for the year ended December 31, 2013.
(f)  
In order to reduce the carrying value of five of the properties to their estimated fair market values, the Company recorded impairment charges of $23.9 million at June 30, 2013. The fair value used in the impairment charges was based on the purchase and sale agreement for the properties ultimately sold.
(g)  
The Company completed the sale of this office portfolio and three developable land parcels for approximately $233 million: $201 million in cash ($55.3 million of which was held by a qualified intermediary until such funds were used in acquisitions), a $10 million mortgage on one of the properties ($8 million of which was funded at closing) and subordinated equity interests in each of the properties being sold with capital accounts aggregating $22 million. Net sale proceeds from the sale aggregated $207 million which was comprised of the $233 million gross sales price less the subordinated equity interests of $22 million and $4 million in closing costs.  The purchasers of the Pennsylvania office portfolio are joint ventures formed between the Company and affiliates of the Keystone Property Group (the “Keystone Affiliates”).  The mortgage loan has a term of two years with a one year extension option and bears interest at LIBOR plus six percent.  The Company's equity interests in the joint ventures will be subordinated to Keystone Affiliates receiving a 15 percent internal rate of return (“IRR”) after which the Company will receive a ten percent IRR on its subordinated equity and then all profit will be split equally.  In connection with these partial sale transactions, because the buyer receives a preferential return, the Company only recognized profit to the extent that they received net proceeds in excess of their entire carrying value of the properties, effectively reflecting their retained subordinate equity interest at zero. As part of the transaction, the Company has rights to own, after zoning-approval-subdivision, land at the 150 Monument Road property located in Bala Cynwyd, Pennsylvania, for a contemplated multi-family residential development.
(h)  
This property was vacant when sold.
(i)  
This amount excludes approximately $0.5 million of net closing prorations and related adjustments received from sellers at closing.



Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
30
 






IV. PORTFOLIO SUMMARY

Breakdown of Company Holdings
(dollars in thousands)


As of September 30, 2014



           
   
# of
Commercial
  
Garage
 
# of
Apartment
Square
  
Parking
Property
Properties
Homes
Feet
  
Spaces
MULTI-FAMILY RENTAL PORTFOLIO (Section V on pages 48-52)
          
Stabilized Operating Communities
          
Consolidated Properties
6
1,301
      
Unconsolidated Joint Venture Interests:
          
   Participating JVs
1
828
      
   Subordinated Interests
6
1,769
      
Total Stabilized Operating Communities - included in Property Count:
13
3,898
      
           
Communities in Lease-Up:
          
Unconsolidated Joint Venture Interests:
          
   Subordinated Interests
3
1,042
      
Total Properties in Lease-Up-Multi-Family:
3
1,042
      
           
Development Communities:
          
Consolidated Properties
n/a
108
      
Unconsolidated Joint Venture Interests:
          
   Participating JVs
 n/a
1,592
      
   Subordinated Interests
 n/a
683
      
Total Development Communities-Multi-Family:
  
2,383
      
           
Total Land Holdings/Pre-Development-Multi-Family:
n/a
8,355
      
           
OFFICE PORTFOLIO (Section VI on pages 54 to 70)
          
Stabilized Operating Properties
          
Consolidated Properties
226
  
25,363,590
  
850
Unconsolidated Joint Venture Interests:
          
   Participating JVs (incl. 350-room hotel)
9
  
2,061,735
    
   Subordinated Joint Ventures
31
  
4,025,572
    
Total Operating Properties - included in Property Count:
266
  
31,450,897
  
850
           
Total Land Holdings/Pre-Development-Office
 -
  
5,748,750
    






Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
31
 







             
IV. PORTFOLIO SUMMARY
             
Consolidated Property Listing
             
Office Properties
             
     
Percentage
2014
  
2014
   
Net
Leased
Base
  
Average
   
Rentable
as of
Rent
Percentage
Base Rent
 
Year
Area
9/30/14
($000’s)
of Total 2014
Per Sq. Ft.
Property Location
Built
(Sq. Ft.)
(%) (a)
 (b) (c)
Base Rent (%)
($) (c) (d)
             
BERGEN COUNTY, NEW JERSEY
            
Fort Lee
            
One Bridge Plaza
1981
200,000
93.1
4,757
0.96
25.55
2115 Linwood Avenue
1981
68,000
65.8
999
0.20
22.33
Lyndhurst
            
210 Clay Avenue
1981
121,203
82.4
2,385
0.48
23.88
Montvale
            
135 Chestnut Ridge Road
1981
66,150
66.6
926
0.19
21.02
Paramus
            
15 East Midland Avenue
1988
259,823
54.2
3,514
0.71
24.95
140 East Ridgewood Avenue
1981
239,680
77.3
4,025
0.81
21.72
461 From Road
1988
253,554
87.6
2,558
0.52
11.52
650 From Road
1978
348,510
86.7
6,439
1.30
21.31
61 South Paramus Road (e)
1985
269,191
60.1
4,392
0.89
27.15
Rochelle Park
            
120 West Passaic Street
1972
52,000
99.6
1,502
0.30
29.00
365 West Passaic Street
1976
212,578
79.9
3,619
0.73
21.31
395 West Passaic Street
1979
100,589
62.5
1,104
0.22
17.56
Upper Saddle River
            
1 Lake Street
1973/94
474,801
100.0
7,465
1.51
15.72
10 Mountainview Road
1986
192,000
75.1
3,086
0.62
21.40
Woodcliff Lake
            
400 Chestnut Ridge Road
1982
89,200
100.0
1,951
0.39
21.87
50 Tice Boulevard
1984
235,000
89.0
5,332
1.08
25.49
300 Tice Boulevard
1991
230,000
100.0
5,789
1.17
25.17
             
ESSEX COUNTY, NEW JERSEY
            
Millburn
            
150 J.F. Kennedy Parkway
1980
247,476
72.9
4,685
0.95
25.97
Borough of Roseland
            
4 Becker Farm Road
1983
281,762
94.9
6,976
1.41
26.09
5 Becker Farm Road
1982
118,343
73.1
1,863
0.38
21.54
6 Becker Farm Road
1982
129,732
78.3
2,575
0.52
25.35
101 Eisenhower Parkway
1980
237,000
83.5
4,680
0.95
23.65
103 Eisenhower Parkway
1985
151,545
68.2
2,565
0.52
24.82
105 Eisenhower Parkway
2001
220,000
58.9
2,670
0.54
20.61
75 Livingston Avenue
1985
94,221
60.6
1,266
0.26
22.17
85 Livingston Avenue
1985
124,595
81.8
2,602
0.53
25.53
             
HUDSON COUNTY, NEW JERSEY
            
Jersey City
            
Harborside Plaza 1
1983
400,000
100.0
11,328
2.29
28.32
Harborside Plaza 2
1990
761,200
48.3
12,699
2.57
34.54
Harborside Plaza 3
1990
725,600
78.4
20,058
4.05
35.26
Harborside Plaza 4-A
2000
207,670
100.0
6,617
1.34
31.86
Harborside Plaza 5
2002
977,225
87.7
31,665
6.40
36.95
101 Hudson Street
1992
1,246,283
86.1
28,557
5.77
26.61
             
MERCER COUNTY, NEW JERSEY
            
Hamilton Township
            
3 AAA Drive
1981
35,270
83.0
598
0.12
20.43
600 Horizon Drive
2002
95,000
100.0
1,191
0.24
12.54
700 Horizon Drive
2007
120,000
100.0
2,459
0.50
20.49
2 South Gold Drive
1974
33,962
72.0
483
0.10
19.75


Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
32
 



             
IV. PORTFOLIO SUMMARY
             
Consolidated Property Listing
             
Office Properties
(Continued)
             
     
Percentage
2014
  
2014
   
Net
Leased
Base
  
Average
   
Rentable
as of
Rent
Percentage
Base Rent
 
Year
Area
9/30/14
($000’s)
of Total 2014
Per Sq. Ft.
Property Location
Built
(Sq. Ft.)
(%) (a)
 (b) (c)
Base Rent (%)
($) (c) (d)
             
Princeton
            
103 Carnegie Center
1984
96,000
94.9
2,140
0.43
23.49
2 Independence Way
1981
67,401
100.0
1,537
0.31
22.80
3 Independence Way
1983
111,300
95.9
1,682
0.34
15.76
100 Overlook Center
1988
149,600
89.6
3,722
0.75
27.77
5 Vaughn Drive
1987
98,500
100.0
2,498
0.50
25.36
             
MIDDLESEX COUNTY, NEW JERSEY
            
East Brunswick
            
377 Summerhill Road
1977
40,000
100.0
372
0.08
9.30
Edison
            
343 Thornall Street (c)
1991
195,709
96.8
3,656
0.74
19.30
Plainsboro
            
500 College Road East (e)
1984
158,235
85.2
3,130
0.63
23.22
Woodbridge
            
581 Main Street
1991
200,000
97.6
5,110
1.03
26.18
             
MONMOUTH COUNTY, NEW JERSEY
            
Freehold
            
2 Paragon Way
1989
44,524
59.5
485
0.10
18.31
3 Paragon Way
1991
66,898
88.2
1,173
0.24
19.88
4 Paragon Way
2002
63,989
30.8
449
0.09
22.78
100 Willow Brook Road
1988
60,557
57.4
766
0.15
22.04
Holmdel
            
23 Main Street
1977
350,000
100.0
4,012
0.81
11.46
Middletown
            
One River Center Bldg 1
1983
122,594
96.6
2,849
0.58
24.06
One River Center Bldg 2
1983
120,360
97.5
2,585
0.52
22.03
One River Center Bldg 3 and 4
1984
214,518
93.3
4,682
0.95
23.39
Neptune
            
3600 Route 66
1989
180,000
96.1
2,725
0.55
15.75
Wall Township
            
1305 Campus Parkway
1988
23,350
92.4
501
0.10
23.22
1350 Campus Parkway
1990
79,747
99.9
983
0.20
12.34
             
MORRIS COUNTY, NEW JERSEY
            
Florham Park
            
325 Columbia Turnpike
1987
168,144
100.0
4,049
0.82
24.08
Morris Plains
            
250 Johnson Road
1977
75,000
 -
1,262
0.25
 -
201 Littleton Road
1979
88,369
75.4
1,295
0.26
19.44
Parsippany
            
4 Campus Drive
1983
147,475
68.0
2,190
0.44
21.84
6 Campus Drive
1983
148,291
76.8
2,437
0.49
21.40
7 Campus Drive
1982
154,395
86.3
2,818
0.57
21.15
8 Campus Drive
1987
215,265
67.4
3,667
0.74
25.27
9 Campus Drive
1983
156,495
29.1
1,021
0.21
22.42
4 Century Drive
1981
100,036
52.8
1,024
0.21
19.39
5 Century Drive
1981
79,739
61.4
935
0.19
19.10
6 Century Drive
1981
100,036
58.0
1,094
0.22
18.86
2 Dryden Way
1990
6,216
100.0
99
0.02
15.93
4 Gatehall Drive
1988
248,480
70.4
4,911
0.99
28.07



Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
33
 





             
IV. PORTFOLIO SUMMARY
             
Consolidated Property Listing
             
Office Properties
(Continued)
             
     
Percentage
2014
  
2014
   
Net
Leased
Base
  
Average
   
Rentable
as of
Rent
Percentage
Base Rent
 
Year
Area
9/30/14
($000’s)
of Total 2014
Per Sq. Ft.
Property Location
Built
(Sq. Ft.)
(%) (a)
 (b) (c)
Base Rent (%)
($) (c) (d)
             
2 Hilton Court
1991
181,592
100.0
6,528
1.32
35.95
1633 Littleton Road
1978
57,722
 -
660
0.13
 -
600 Parsippany Road
1978
96,000
89.6
1,649
0.33
19.17
1 Sylvan Way
1989
150,557
96.0
4,088
0.83
28.28
4 Sylvan Way
1984
105,135
100.0
1,464
0.30
13.92
5 Sylvan Way
1989
151,383
72.3
2,749
0.56
25.12
7 Sylvan Way
1987
145,983
 -
10
0.00
 -
14 Sylvan Way
2013
203,506
100.0
5,068
1.02
24.90
20 Waterview Boulevard
1988
225,550
93.8
4,727
0.96
22.34
35 Waterview Boulevard
1990
172,498
87.0
3,979
0.80
26.51
5 Wood Hollow Road
1979
317,040
68.8
5,455
1.10
25.01
             
PASSAIC COUNTY, NEW JERSEY
            
Totowa
            
999 Riverview Drive
1988
56,066
91.8
878
0.18
17.06
             
SOMERSET COUNTY, NEW JERSEY
            
Basking Ridge
            
222 Mt. Airy Road
1986
49,000
73.0
803
0.16
22.45
233 Mt. Airy Road
1987
66,000
67.5
678
0.14
15.22
Bridgewater
            
440 Route 22 East
1990
198,376
95.5
4,768
0.96
25.17
721 Route 202/206
1989
192,741
98.6
4,414
0.89
23.23
Warren
            
10 Independence Boulevard
1988
120,528
92.6
2,783
0.56
24.94
             
UNION COUNTY, NEW JERSEY
            
Clark
            
100 Walnut Avenue
1985
182,555
90.1
4,221
0.85
25.66
Cranford
            
6 Commerce Drive
1973
56,000
91.3
1,050
0.21
20.54
11 Commerce Drive
1981
90,000
84.8
1,824
0.37
23.90
12 Commerce Drive
1967
72,260
84.7
926
0.19
15.13
14 Commerce Drive
1971
67,189
88.3
1,150
0.23
19.38
20 Commerce Drive
1990
176,600
98.3
3,801
0.77
21.90
25 Commerce Drive
1971
67,749
91.6
1,313
0.27
21.16
65 Jackson Drive
1984
82,778
53.9
968
0.20
21.70
New Providence
            
890 Mountain Avenue
1977
80,000
77.1
1,224
0.25
19.84
             
Total New Jersey Office
  
17,115,194
81.5
344,417
69.61
24.70
             
NEW YORK COUNTY, NEW YORK
            
New York
            
125 Broad Street
1970
524,476
100.0
18,234
3.68
34.77
             
WESTCHESTER COUNTY, NEW YORK
            
Elmsford
            
100 Clearbrook Road (c)
1975
60,000
90.1
1,036
0.21
19.16
101 Executive Boulevard
1971
50,000
 -
49
0.01
 -
Hawthorne
            
1 Skyline Drive
1980
20,400
99.0
370
0.07
18.32
2 Skyline Drive
1987
30,000
100.0
543
0.11
18.10



Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
34
 









             
IV. PORTFOLIO SUMMARY
             
Consolidated Property Listing
             
Office Properties
(Continued)
             
     
Percentage
2014
  
2014
   
Net
Leased
Base
  
Average
   
Rentable
as of
Rent
Percentage
Base Rent
 
Year
Area
9/30/14
($000’s)
of Total 2014
Per Sq. Ft.
Property Location
Built
(Sq. Ft.)
(%) (a)
 (b) (c)
Base Rent (%)
($) (c) (d)
             
7 Skyline Drive
1987
109,000
78.4
2,052
0.41
24.01
17 Skyline Drive (e)
1989
85,000
100.0
1,411
0.29
16.60
White Plains
            
1 Barker Avenue
1975
68,000
85.9
1,559
0.32
26.69
3 Barker Avenue
1983
65,300
94.6
1,418
0.29
22.95
50 Main Street
1985
309,000
79.1
7,924
1.60
32.42
11 Martine Avenue
1987
180,000
77.7
4,347
0.88
31.08
1 Water Street
1979
45,700
66.9
792
0.16
25.90
Yonkers
            
1 Executive Boulevard
1982
112,000
100.0
2,917
0.59
26.04
3 Executive Boulevard
1987
58,000
100.0
1,688
0.34
29.10
             
Total New York Office
  
1,716,876
87.6
44,340
8.96
29.48
             
WASHINGTON, D.C.
            
1201 Connecticut Avenue, NW
1940
169,549
88.1
6,649
1.34
44.51
1400 L Street, NW
1987
159,000
100.0
5,882
1.19
36.99
             
Total District of Columbia Office
  
328,549
93.9
12,531
2.53
40.64
             
PRINCE GEORGE'S COUNTY, MARYLAND
            
Greenbelt
            
9200 Edmonston Road
1973
38,690
100.0
1,058
0.21
27.35
6301 Ivy Lane
1979
112,003
68.5
1,521
0.31
19.82
6303 Ivy Lane
1980
112,047
13.2
1,008
0.20
68.15
6305 Ivy Lane
1982
112,022
86.4
1,919
0.39
19.83
6404 Ivy Lane
1987
165,234
74.7
2,608
0.53
21.13
6406 Ivy Lane
1991
163,857
77.0
944
0.19
7.48
6411 Ivy Lane
1984
138,405
74.2
2,233
0.45
21.74
Lanham
            
4200 Parliament Place
1989
122,000
97.4
2,864
0.58
24.10
             
Total Maryland Office
  
964,258
72.4
14,155
2.86
20.28
             
TOTAL OFFICE PROPERTIES
  
20,124,877
81.8
415,443
83.96
25.24




Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
35
 



             
IV. PORTFOLIO SUMMARY
             
Consolidated Property Listing
             
Office/Flex Properties
             
     
Percentage
2014
  
2014
   
Net
Leased
Base
  
Average
   
Rentable
as of
Rent
Percentage
Base Rent
 
Year
Area
9/30/14
($000’s)
of Total 2014
Per Sq. Ft.
Property Location
Built
(Sq. Ft.)
(%) (a)
 (b) (c)
Base Rent (%)
($) (c) (d)
             
BURLINGTON COUNTY, NEW JERSEY
            
Burlington
            
3 Terri Lane
1991
64,500
100.0
426
0.09
6.60
5 Terri Lane
1992
74,555
100.0
621
0.12
8.33
Moorestown
            
2 Commerce Drive
1986
49,000
69.2
222
0.04
6.55
101 Commerce Drive
1988
64,700
100.0
275
0.06
4.25
102 Commerce Drive
1987
38,400
100.0
254
0.05
6.61
201 Commerce Drive
1986
38,400
50.0
41
0.01
2.14
202 Commerce Drive
1988
51,200
25.0
89
0.02
6.95
1 Executive Drive
1989
20,570
100.0
203
0.04
9.87
2 Executive Drive
1988
60,800
64.0
323
0.06
8.30
101 Executive Drive
1990
29,355
99.7
297
0.06
10.15
102 Executive Drive
1990
64,000
100.0
474
0.10
7.41
225 Executive Drive
1990
50,600
45.8
173
0.03
7.47
97 Foster Road
1982
43,200
100.0
170
0.03
3.94
1507 Lancer Drive
1995
32,700
100.0
147
0.03
4.50
1245 North Church Street
1998
52,810
50.5
187
0.04
7.01
1247 North Church Street
1998
52,790
86.7
257
0.05
5.62
1256 North Church Street
1984
63,495
100.0
477
0.10
7.51
840 North Lenola Road
1995
38,300
47.0
183
0.04
10.17
844 North Lenola Road
1995
28,670
100.0
203
0.04
7.08
915 North Lenola Road
1998
52,488
100.0
292
0.06
5.56
2 Twosome Drive
2000
48,600
100.0
404
0.08
8.31
30 Twosome Drive
1997
39,675
74.8
212
0.04
7.14
31 Twosome Drive
1998
84,200
100.0
429
0.09
5.10
40 Twosome Drive
1996
40,265
100.0
305
0.06
7.57
41 Twosome Drive
1998
43,050
100.0
282
0.06
6.55
50 Twosome Drive
1997
34,075
56.0
122
0.02
6.39
             
GLOUCESTER COUNTY, NEW JERSEY
            
West Deptford
            
1451 Metropolitan Drive
1996
21,600
100.0
127
0.03
5.88
             
MERCER COUNTY, NEW JERSEY
            
Hamilton Township
            
100 Horizon Center Boulevard
1989
13,275
100.0
180
0.04
13.56
200 Horizon Drive
1991
45,770
100.0
695
0.14
15.18
300 Horizon Drive
1989
69,780
53.2
525
0.11
14.14
500 Horizon Drive
1990
41,205
93.8
577
0.12
14.93
             
MONMOUTH COUNTY, NEW JERSEY
            
Wall Township
            
1325 Campus Parkway
1988
35,000
100.0
612
0.12
17.49
1340 Campus Parkway
1992
72,502
75.1
852
0.17
15.65
1345 Campus Parkway
1995
76,300
100.0
995
0.20
13.04
1433 Highway 34
1985
69,020
98.1
593
0.12
8.76
1320 Wyckoff Avenue
1986
20,336
100.0
222
0.04
10.92
1324 Wyckoff Avenue
1987
21,168
100.0
182
0.04
8.60
             
PASSAIC COUNTY, NEW JERSEY
            
Totowa
            
1 Center Court
1999
38,961
100.0
596
0.12
15.30
2 Center Court
1998
30,600
100.0
201
0.04
6.57
11 Commerce Way
1989
47,025
100.0
536
0.11
11.40
20 Commerce Way
1992
42,540
95.5
274
0.06
6.74
29 Commerce Way
1990
48,930
100.0
306
0.06
6.25
40 Commerce Way
1987
50,576
86.3
558
0.11
12.78
45 Commerce Way
1992
51,207
100.0
523
0.11
10.21



Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
36
 







             
IV. PORTFOLIO SUMMARY
             
Consolidated Property Listing
             
Office/Flex Properties
(Continued)
             
     
Percentage
2014
  
2014
   
Net
Leased
Base
  
Average
   
Rentable
as of
Rent
Percentage
Base Rent
 
Year
Area
9/30/14
($000’s)
of Total 2014
Per Sq. Ft.
Property Location
Built
(Sq. Ft.)
(%) (a)
 (b) (c)
Base Rent (%)
($) (c) (d)
             
60 Commerce Way
1988
50,333
100.0
426
0.09
8.46
80 Commerce Way
1996
22,500
63.8
241
0.05
16.79
100 Commerce Way
1996
24,600
100.0
263
0.05
10.69
120 Commerce Way
1994
9,024
100.0
106
0.02
11.75
140 Commerce Way
1994
26,881
99.5
316
0.06
11.81
             
Total New Jersey Office/Flex
  
2,189,531
87.6
16,974
3.43
8.85
             
WESTCHESTER COUNTY, NEW YORK
            
Elmsford
            
11 Clearbrook Road
1974
31,800
100.0
410
0.08
12.89
75 Clearbrook Road
1990
32,720
100.0
521
0.11
15.92
125 Clearbrook Road
2002
33,000
100.0
479
0.10
14.52
150 Clearbrook Road
1975
74,900
99.3
971
0.20
13.06
175 Clearbrook Road
1973
98,900
96.7
1,295
0.26
13.54
200 Clearbrook Road
1974
94,000
98.8
1,190
0.24
12.81
250 Clearbrook Road
1973
155,000
95.1
938
0.19
6.36
50 Executive Boulevard
1969
45,200
59.6
316
0.06
11.73
77 Executive Boulevard
1977
13,000
100.0
244
0.05
18.77
85 Executive Boulevard
1968
31,000
40.6
51
0.01
4.05
300 Executive Boulevard
1970
60,000
100.0
606
0.12
10.10
350 Executive Boulevard
1970
15,400
99.4
230
0.05
15.03
399 Executive Boulevard
1962
80,000
100.0
1,047
0.21
13.09
400 Executive Boulevard
1970
42,200
71.1
559
0.11
18.63
500 Executive Boulevard
1970
41,600
100.0
762
0.15
18.32
525 Executive Boulevard
1972
61,700
100.0
994
0.20
16.11
1 Westchester Plaza
1967
25,000
100.0
352
0.07
14.08
2 Westchester Plaza
1968
25,000
100.0
343
0.07
13.72
3 Westchester Plaza
1969
93,500
97.9
1,072
0.22
11.71
4 Westchester Plaza
1969
44,700
100.0
695
0.14
15.55
5 Westchester Plaza
1969
20,000
100.0
302
0.06
15.10
6 Westchester Plaza
1968
20,000
100.0
257
0.05
12.85
7 Westchester Plaza
1972
46,200
100.0
660
0.13
14.29
8 Westchester Plaza
1971
67,200
100.0
1,239
0.25
18.44
Hawthorne
            
200 Saw Mill River Road
1965
51,100
100.0
725
0.15
14.19
4 Skyline Drive
1987
80,600
93.0
1,294
0.26
17.26
5 Skyline Drive
1980
124,022
99.8
1,667
0.34
13.47
6 Skyline Drive
1980
44,155
72.8
576
0.12
17.92
8 Skyline Drive
1985
50,000
85.4
821
0.17
19.23
10 Skyline Drive
1985
20,000
100.0
392
0.08
19.60
11 Skyline Drive (e)
1989
45,000
100.0
997
0.20
22.16
12 Skyline Drive (e)
1999
46,850
71.7
555
0.11
16.52
15 Skyline Drive (e)
1989
55,000
55.5
196
0.04
6.42
Yonkers
            
100 Corporate Boulevard
1987
78,000
98.3
1,570
0.32
20.48
200 Corporate Boulevard South
1990
84,000
58.2
1,649
0.33
33.73
4 Executive Plaza
1986
80,000
100.0
1,386
0.28
17.33
6 Executive Plaza
1987
80,000
100.0
1,640
0.33
20.50
1 Odell Plaza
1980
106,000
100.0
1,541
0.31
14.54
3 Odell Plaza
1984
71,065
100.0
1,596
0.32
22.46
5 Odell Plaza
1983
38,400
99.6
649
0.13
16.97
7 Odell Plaza
1984
42,600
100.0
845
0.17
19.84
             
Total New York Office/Flex
  
2,348,812
93.1
33,632
6.79
15.39



Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
37
 





             
IV. PORTFOLIO SUMMARY
             
Consolidated Property Listing
             
Office/Flex Properties (continued)
and Industrial/Warehouse, Retail Properties, and Land Leases
             
     
Percentage
2014
  
2014
   
Net
Leased
Base
  
Average
   
Rentable
as of
Rent
Percentage
Base Rent
 
Year
Area
9/30/14
($000’s)
of Total 2014
Per Sq. Ft.
Property Location
Built
(Sq. Ft.)
(%) (a)
 (b) (c)
Base Rent (%)
($) (c) (d)
             
FAIRFIELD COUNTY, CONNECTICUT
            
Stamford
            
419 West Avenue
1986
88,000
100.0
1,576
0.32
17.91
500 West Avenue
1988
25,000
100.0
338
0.07
13.52
550 West Avenue
1990
54,000
81.3
795
0.16
18.11
600 West Avenue
1999
66,000
100.0
670
0.14
10.15
650 West Avenue
1998
40,000
100.0
490
0.10
12.25
             
Total Connecticut Office/Flex
  
273,000
96.3
3,869
0.79
14.72
             
             
TOTAL OFFICE/FLEX PROPERTIES
  
4,811,343
90.7
54,475
11.01
12.48
             
WESTCHESTER COUNTY, NEW YORK
            
Elmsford
            
1 Warehouse Lane (e)
1957
6,600
100.0
106
0.02
16.06
2 Warehouse Lane (e)
1957
10,900
100.0
158
0.03
14.50
3 Warehouse Lane (e)
1957
77,200
100.0
399
0.08
5.17
4 Warehouse Lane (e)
1957
195,500
97.0
1,908
0.39
10.06
5 Warehouse Lane (e)
1957
75,100
97.1
952
0.19
13.06
6 Warehouse Lane (e)
1982
22,100
100.0
555
0.11
25.11
             
Total Industrial/Warehouse Properties
  
387,400
97.9
4,078
0.82
10.75
             
HUDSON COUNTY, NEW JERSEY
            
Weehawken
            
500 Avenue at Port Imperial
2013
16,736
52.2
 -
 -
 -
             
Total New Jersey Retail Properties
  
16,736
52.2
 -
 -
 -
             
WESTCHESTER COUNTY, NEW YORK
            
Tarrytown
            
230 White Plains Road
1984
9,300
 -
 164
0.03
 -
Yonkers
            
2 Executive Boulevard
1986
8,000
100.0
305
0.06
38.13
             
Total New York Retail Properties
  
17,300
46.2
469
0.09
58.63
             
Total Retail Properties
  
34,036
49.2
469
0.09
28.02
             
WESTCHESTER COUNTY, NEW YORK
            
Elmsford
            
700 Executive Boulevard
 -
 -
 -
158
0.03
 -
Yonkers
            
1 Enterprise Boulevard
 -
 -
 -
185
0.04
 -
             
Total New York Land Leases
  
 -
 -
343
0.07
 -
             
PRINCE GEORGE'S COUNTY, MARYLAND
            
Greenbelt
            
Capital Office Park Parcel A
 -
 -
 -
153
0.03
 -
             
Total Maryland Land Leases
  
 -
 -
153
0.03
  
             
Total Land Leases
  
 -
 -
496
0.10
 -
             
TOTAL COMMERCIAL PROPERTIES
  
25,357,656
83.7
474,961
95.98
22.38



Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
38
 





                 
IV. PORTFOLIO SUMMARY
                 
Consolidated Property Listing
                 
Multi-Family Properties
                 
     
Commercial
          
   
Net
Percentage
  
Percentage
2014
  
2014
   
Rentable
Leased
  
Leased
Base
  
Average
   
Commercial
as of
  
as of
Rent
Percentage
Base Rent
 
Year
Area
9/30/14
Number
9/30/14
($000’s)
of Total 2014
Per Home
Multi-Family Properties
Built
(Sq. Ft.)
(%) (a)
of Units
(%) (a)
 (b) (c)
Base Rent (%)
($) (c) (j)
                 
MIDDLESEX COUNTY, NEW JERSEY
                
New Brunswick
                
Richmond Court (f) (g)
1997
 -
 -
82
100.0
1,156
0.24
1,499
Riverwatch Commons (f) (g)
1995
 -
 -
118
98.3
1,643
0.33
1,506
                 
UNION COUNTY, NEW JERSEY
                
Rahway
                
Park Square (f) (h)
2011
5,934
81.5
159
95.6
3,174
0.64
2,016
                 
Total New Jersey Multi-Family
  
5,934
81.5
359
97.5
5,973
1.21
1,726
                 
ESSEX COUNTY, MASSACHUSETTS
                
Andover
                
Andover Place (f) (i)
1988
 -
 -
220
96.4
1,529
0.31
1,261
                 
SUFFOLK COUNTY, MASSACHUSETTS
                
Revere
                
Alterra at Overlook Ridge 1A
2004
 -
 -
310
98.1
5,311
1.07
1,456
Alterra at Overlook Ridge 1B
2008
 -
 -
412
98.5
7,059
1.43
1,449
                 
Total Massachusetts Multi-Family
  
 -
 -
942
97.9
13,899
2.81
1,408
                 
Total Multi-Family Properties
  
5,934
  
1,301
97.8
19,872
4.02
1,496
                 
TOTAL PROPERTIES
  
25,363,590
  
1,301
  
494,833
100.00
  



   
(a)
Percentage leased includes all leases in effect as of the period end date, some of which have commencement dates in the future and leases expiring September 30, 2014 aggregating 160,152 square feet (representing 0.6 percent of the Company’s total net rentable square footage) for which no new leases were signed.
(b)
Total base rent for the 12 months ended September 30, 2014, determined in accordance with generally accepted accounting principles (“GAAP”). Substantially all of the commercial leases provide for annual base rents plus recoveries and escalation charges based upon the tenant’s proportionate share of and/or increases in real estate taxes and certain operating costs, as defined, and the pass through of charges for electrical usage. For the 12 months ended September 30, 2014, total escalations and recoveries from tenants were: $61,013, or $3.63 per leased square foot, for office properties; $9,515, or $2.18 per leased square foot, for office/flex properties; and $1,987, or $5.02 per leased square foot, for other properties.
(c)   
Excludes space leased by the Company.
(d)
Base rent for the 12 months ended September 30, 2014 divided by net rentable commercial square feet leased at September 30, 2014.
(e)   
This property is located on land leased by the Company.
(f)
As this property was acquired, commenced initial operations or initially consolidated by the Company during the 12 months ended September 30, 2014, the amounts represented in 2014 base rent reflect only that portion of those 12 months during which the Company owned or consolidated the property. Accordingly, these amounts may not be indicative of the property’s full year results.  For comparison purposes, the amounts represented in 2014 average base rent per sq. ft. and per unit for this property have been calculated by taking the 12 months ended September 30, 2014 base rent for such property and annualizing these partial-year results, dividing such annualized amounts by the net rentable square feet leased or occupied units at September 30, 2014. These annualized per square foot and per unit amounts may not be indicative of the property’s results had the Company owned or consolidated the property for the entirety of the 12 months ended September 30, 2014.
(g)
Acquired on December 19, 2013. Amounts reflect period of ownership.
(h)
Acquired on November 20, 2013. Amounts reflect period of ownership.
(i)
Acquired on April 10, 2014. Amounts reflect period of ownership.
(j)
Annualized base rent for the 12 months ended September 30, 2014 divided by units occupied at September 30, 2014, divided by 12.





Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
39
 

 

 
IV. PORTFOLIO SUMMARY

Unconsolidated Joint Ventures Summary
(as of September 30, 2014)

Breakdown of Unconsolidated Joint Ventures
(dollars in thousands)
 
                                                       
             
Company’s
    
Net Operating
                              
       
# of
  
Revenue
Effective
    
Income (c)
  
Property Debt
  
Preferred (d)
   
Year
Percent
Apartment
  
Per
Ownership
    
3 Mos
  
9 Mos
        
Maturity
Interest
    
Company
  
Capital
  
Return
    
Joint Venture / Property Name
Location
Built
Occupied
Homes
  
Unit (b)
%
    
09/30/14
  
09/30/14
    
Balance
  
Date
Rate
    
Balance (p)
  
Balance
  
Rate
  
Investor
Operating Multi-family Residential: (a)
                                                      
Marbella RoseGarden, L.L.C. / Marbella
Jersey City, NJ
2003
96.8%
 412
$
 2,794
24.27%
  
$
 2,115
$
 6,260
  
$
 95,000
  
05/01/18
4.99%
  
$
 134 (x)
$
 8,105
 
9.50%
  
Prudential
RoseGarden Monaco, L.L.C. / Monaco (North and South)
Jersey City, NJ
2011
97.1%
 523
  
 3,230
15.00%
    
 3,363
  
 9,883
    
 165,000
  
02/01/21
4.19%
    
 -
  
 80,653
  
9.00%
  
Prudential
Rosewood Morristown, L.L.C. / Metropolitan at 40 Park
Morristown, NJ
2010
97.0%
 130
  
 3,241
12.50%
    
 712
  
 2,207
    
 38,600
  
09/01/20
3.25%
    
 695 (e)
  
 21,008
  
9.00%
  
Prudential
Rosewood Lafayette Holdings, L.L.C. / Highlands at Morristown Station
Morristown, NJ
2009
97.3%
 217
  
 2,609
25.00%
    
 1,077
  
 3,262
    
 38,846
  
07/01/15
4.00%
    
 118 (y)
  
 33,403
 
9.00%
  
Prudential
PruRose Port Imperial South 15 LLC / RiversEdge at Port Imperial
Weehawken, NJ
2009
94.8%
 236
  
 2,972
50.00%
(f)
  
 981
  
 3,063
    
 57,500
  
09/01/20
4.32%
    
 -
  
 40,610
  
9.00%
  
Prudential
Overlook Ridge JV, L.L.C. / Quarrystone
Malden, MA
2008
96.9%
 251
  
 2,126
50.00%
    
 925
  
 2,866
    
 69,580
  
03/15/16
(g)
    
 -
  
 37,544
(h)
15.00%
  
Lennar
Crystal House Apartments Investors LLC / Crystal House
Arlington, VA
1962
91.5%
 828
  
 1,949
25.00%
(s)
  
 2,785
  
 7,863
    
 165,000
  
04/01/20
3.17%
    
 -
  
-
  
 -
  
 -
                                                       
Total Operating Multi-family Residential:
    
95.0%
 2,597
$
 2,571
    
$
11,958
$
35,404
  
$
629,526
        
$
947
$
221,323
        
                                             
 -
        
             
Company’s
    
Net Operating
                              
             
Effective
    
Income (c)
  
Property Debt
  
Preferred (d)
   
Year
Percent
Square
    
Ownership
    
3 Mos
  
9 Mos
        
Maturity
Interest
    
Company
  
Capital
  
Return
    
Joint Venture / Property Name
Location
Built
Leased
Feet
    
%
    
09/30/14
  
09/30/14
    
Balance
  
Date
Rate
    
Balance
  
Balance
  
Rate
  
Investor
Operating Commercial:
                                                      
Roseland/North Retail, L.L.C. / Riverwalk at Port Imperial
West New York, NJ
2008
64.0%
 30,745
    
20.00%
  
$
75
$
323
    
 -
  
 -
 -
      
$
 6,456
  
9.00%
  
Prudential
BNES Associates III / Offices at Crystal Lake
West Orange, NJ
2003
100.0%
 106,345
    
31.25%
    
328
  
1,189
  
$
 6,907
  
11/01/23
4.76%
    
 -
  
 -
  
 -
  
 -
Red Bank Corporate Plaza / Red Bank
Red Bank, NJ
2007
100.0%
 92,878
    
50.00%
    
607
  
1,819
    
 16,054
  
05/17/16
L+3.00%
(i)
  
 -
  
 -
  
 -
  
 -
12 Vreeland Realty L.L.C. / 12 Vreeland Road
Florham Park, NJ
1984
100.0%
 139,750
    
50.00%
    
351
  
1,192
    
 14,124
  
07/01/23
2.87%
    
 -
  
 -
  
 -
  
 -
Rosewood Morristown, L.L.C. / Shops at 40 Park
Morristown, NJ
2010
60.4%
 50,973
    
12.50%
    
205
  
 539
    
 6,500
  
08/28/18
3.63%
    
 -
  
 -
(e)
9.00%
  
Prudential
Keystone -Penn
Suburban Philadelphia, PA
Various
83.5%
 1,875,693
    
(q)
    
6,842
  
18,047
    
 201,606
  
(r)
(r)
    
 -
  
 33,014
  
15.00%
  
KPG
KPG-P 100 IMW JV, LLC / 100 Independence Mall West
Philadelphia, PA
1965
97.4%
 339,615
    
33.33%
    
514
  
1,123
    
 61,500
  
09/09/16
L+7.00%
    
 -
  
 -
  
 -
  
 -
KPG-MCG Curtis JV, LLC / Curtis Center (u)
Philadelphia, PA
(t)
87.5%
 885,000
    
50.00%
    
2,583
  
3,227
    
 -
  
 -
 -
    
 -
  
 -
  
 -
  
 -
Keystone-TriState
Northern NJ/NY/CT
Various
81.0%
 2,203,351
    
(aa)
    
6,303
  
 4,327
    
 204,548
  
(v)
(v)
    
 -
  
 33,391
  
15.00%
  
KPG
                                                       
Total Operating Commercial:
      
 5,724,350
        
$
17,808
$
31,786
  
$
 511,239
          
-
$
 72,861
        
                                                       
                                                       
             
Company’s
    
Net Operating
                              
       
Number
    
Effective
    
Income (c)
  
Property Debt
  
Preferred (d)
   
Year
  
of
    
Ownership
    
3 Mos
  
9 Mos
        
Maturity
Interest
    
Company
  
Capital
  
Return
    
Joint Venture/Property Name
Location
Built
  
Rooms
    
%
    
09/30/14
  
09/30/14
    
Balance
  
Date
Rate
    
Balance
  
Balance
  
Rate
  
Investor
Hotel:
                                                      
Harborside South Pier / Hyatt Regency Jersey City on the Hudson
Jersey City, NJ
2002
  
350
    
50.00%
  
$
3,742
$
11,473
  
$
 65,974
  
(j)
(j)
    
-
  
 -
  
 -
  
 -
                                                       
                                                       
             
Company’s
    
Net Operating
                              
             
Effective
    
Income (c)
  
Property Debt
  
Preferred (d)
             
Ownership
    
3 Mos
  
9 Mos
        
Maturity
Interest
    
Company
  
Capital
  
Return
    
Joint Venture/Property Name
Location
          
%
    
09/30/14
  
09/30/14
    
Balance
  
Date
Rate
    
Balance
  
Balance
  
Rate
  
Investor
Other Investment:
                                                      
Stamford SM L.L.C. / Senior Mezzanine Loan (w)
Stamford, CT
          
80.00%
  
$
652
$
2,957
    
 -
  
 -
 -
    
-
  
 -
  
 -
  
 -
 
See footnotes on page 42.

 


Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
40
 

 
 
IV. PORTFOLIO SUMMARY

Breakdown of Unconsolidated Joint Ventures
(dollars in thousands)
(continued)


                                               
             
Company’s
                                
   
Estimated
    
# of
  
Effective
    
Property Debt
  
Preferred (d)
   
Stabilization
Percent
  
Apartment
  
Ownership
          
Maturity
Interest
      
Company
  
Capital
  
Return
  
Joint Venture/Property Name
Location
Date
Leased
  
Homes
  
%
      
Balance
  
Date
Rate
      
Balance
  
Balance
  
Rate
Investor
Communities in Lease Up: (a)
                                              
PruRose Riverwalk G, L.L.C. / RiverTrace at Port Imperial
West New York, NJ
4Q-2014
93.7%
  
 316
  
25.00%
    
$
 79,053
  
07/15/21
6.00%
      
 -
$
 44,335
  
7.75%
UBS
Elmajo Urban Renewal Associates, L.L.C. / Lincoln Harbor (Bldg A&C)
Weehawken, NJ
4Q-2014
94.1%
  
 355
  
7.50%
      
 79,266
  
06/27/16
L+2.10%
      
 -
  
 61,332
  
8.50%
Hartz
Overlook Ridge JV 2C/3B, L.L.C. / Overlook Ridge 2C & 3B
Malden, MA
2Q-2015
75.2%
  
 371
  
50.00%
      
 47,872
  
12/26/15
L+2.50%
(k)
    
 -
  
 26,630
  
6.50%
UBS
                                               
Total Development Communities in Lease Up:
        
 1,042
        
$
 206,191
              
$
 132,297
      
                                               
                                               
   
Estimated
        
Company’s
                                
   
Initial
    
# of
  
Effective
    
Property Debt
  
Preferred (d)
   
Delivery
    
Apartment
  
Ownership
          
Maturity
Interest
      
Company
  
Capital
  
Return
  
Joint Venture/Property Name
Location
Date
    
Homes
  
%
      
Balance
  
Date
Rate
      
Balance
  
Balance
  
Rate
Investor
Development Communities: (a)
                                              
RiverPark at Harrison I Urban Renewal LLC / RiverPark at Harrison
Harrison, NJ
4Q-2014
    
 141
  
36.00%
    
$
 17,446
  
06/27/16
L+2.35%
    
$
 3,307
$
 4,933
  
7.25%
 -
Portside Master Company, LLC / Portside at Pier One – Bldg 7
East Boston, MA
4Q-2014
    
 176
  
38.25%
      
 32,693
  
12/04/15
L+2.50%
      
 -
  
 26,660
  
9.00%
Prudential
Prurose Port Imperial South 13, LLC / Port Imperial Bldg 13
Weehawken, NJ
1Q-2015
    
 280
  
20.00%
(f)
    
 37,355
  
06/27/16
L+2.15%
(l)
    
 2,147
  
 49,189
(m)
9.00%
Prudential
Estuary Urban Renewal Unit B, LLC / Lincoln Harbor (Bldg B)
Weehawken, NJ
1Q-2015
    
 227
  
75.00%
      
 30,830
  
01/25/17
L+2.10%
      
 -
  
 33,629
  
8.50%
Hartz
Capitol Place Mezz LLC / Station Townhouses
Washington, D.C.
1Q-2015
    
 377
  
50.00%
      
 55,414
  
07/01/33
4.82%
      
 -
  
 -
  
 -
 -
RoseGarden Marbella South, L.L.C. / Marbella II
Jersey City, NJ
4Q-2015
    
 311
  
24.27%
      
 19,626
  
03/30/17
L+2.25%
      
 5,915
  
 18,699
(n)
9.00%
Prudential
Harborside Unit A Urban Renewal, L.L.C. / URL Harborside
Jersey City, NJ
3Q-2016
    
 763
  
85.00%
      
 -
  
08/01/29
5.20%
      
-
  
-
  
-
-
                                               
Total In-Process Development Projects:
        
 2,275
        
$
 193,364
          
$
 11,369
$
 133,110
      
                                               
                                               
             
Company’s
                                
     
Potential
  
Potential
  
Effective
    
Property Debt
  
Preferred (d)
     
Apartment
  
Commercial
  
Ownership
          
Maturity
Interest
      
Company
  
Capital
  
Return
  
Joint Venture/Property Name
Location
  
Homes
  
Square Feet
  
%
      
Balance
  
Date
Rate
      
Balance
  
Balance
  
Rate
Investor
Land Holdings/Predevelopment: (a)
                                              
Hillsborough 206 Holdings, L.L.C. / Hillsborough 206
Hillsborough, NJ
  
n/a
  
 160,000
  
50.00%
      
 -
  
 -
 -
      
 -
  
 -
  
 -
 -
RoseGarden Monaco, L.L.C. / San Remo Land
Jersey City, NJ
  
 300
  
n/a
  
41.67%
      
 -
  
 -
 -
      
 -
  
 -
  
 -
 -
Grand Jersey Waterfront URA, L.L.C. / Liberty Landing
Jersey City, NJ
  
 1,000
  
n/a
  
50.00%
      
 -
  
 -
 -
      
 -
  
 -
  
 -
 -
RiverPark at Harrison I, L.L.C. / RiverPark at Harrison 5-8
Harrison, NJ
  
 141
  
n/a
  
Land Option
      
 -
  
 -
 -
      
 -
  
 -
  
 -
 -
Plaza VIII and IX Associates, L.L.C. / Vacant land/parking
Jersey City, NJ
  
n/a
  
 1,225,000
  
50.00%
      
 -
  
 -
 -
      
 -
  
 -
  
 -
 -
Roseland/Port Imperial Partners, L.P. / Port Imperial North
West New York, NJ
  
836
  
n/a
 
 20.00%      
 -
  
 -
 -
      
 -
  
 -
  
 -
 -
Crystal House Apartments Investors LLC / Crystal House
Arlington, VA
  
295
  
n/a
 
 50.00%      
 -
  
 -
 -
      
 -
  
 -
  
 -
 -
Rosewood Morristown, L.L.C. / Lofts at 40 Park
Morristown, NJ
  
 59
  
n/a
  
25.00%
    
$
 1,117
  
09/30/15
L+2.50 %
      
 -
  
 -
  
 -
 -
Roseland/Port Imperial Partners, L.P. / Riverwalk C
West New York, NJ
  
 363
  
n/a
  
20.00%
      
 -
  
 -
 -
      
 -
$
 25,018
(o)
10.00%
Prudential
                                               
Total Land Holdings/Predevelopment:
    
 2,994
  
 1,385,000
        
$
 1,117
            
-
$
 25,018
      

See footnotes on page 42.


 

Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
41
 



 
IV. PORTFOLIO SUMMARY

Breakdown of Unconsolidated Joint Ventures
(continued, dollars in thousands)

Footnotes for pages 40 and 41:


   
(a)
See additional details related to the multi-family joint ventures on pages 48-52.
(b)
Total apartment revenue for the quarter ended September 30, 2014 divided by the average percent leased for the quarter ended September 30, 2014, divided by the number of units and divided by 3.
(c) 
Net operating income equals total property revenues less real estate taxes, utilities and operating expenses.
(d)
Includes capital account balance and accrued unpaid preferred return where applicable.
(e)
Capital balances apply to both properties. Balance represents capital account held by Rosewood Morristown, L.L.C., of which the Company owns a 50 percent interest.
(f)
A third party has a 20 percent economic interest in net company distributions.
(g)
The senior loan, with a balance of $52,580 bears interest at LIBOR+2.00 percent and the junior loan, with a balance of $17,000, bears interest at LIBOR+0.90 percent.
(h)
Includes a priority partnership loan which has an accrued interest balance of $18,715 as of September 30, 2014.
(i)
On September 22, 2011, the venture entered into an interest rate swap agreement with a commercial bank. The swap agreement fixes the all-in rate to 3.99375 percent per annum on an initial notional amount of $13.65 million and then adjusting in accordance with an amortization schedule, which is effective from October 17, 2011 through loan maturity.
(j)
The balance includes: (i) mortgage loan, collateralized by the hotel property, has a balance of $61,850, bears interest of 6.15 percent and matures in November 2016, and (ii) loan with a balance of $4.1 million, bears interest at fixed rates ranging from 6.09 percent to 6.62 percent and matures in August 1, 2020.
(k)
On January 18, 2013, Overlook Apartments Investors entered into an interest rate swap agreement with a commercial bank. The swap agreement fixes the all-in rate to 3.0875 percent per annum on an initial notional amount of $1.84 million, increasing to $52 million, for the period from September 3, 2013 to November 2, 2015.
(l)
On December 28, 2012, PruRose 13 entered into an interest rate swap agreement with a commercial bank. The swap agreement fixes the all-in rate to 2.79 percent per annum on an initial notional amount of $1.62 million, increasing to $69.5 million, for the period  from July 1, 2013 to January 1, 2016.
(m)
Capital balance does not include MCRC land capital amount of $1,834 and accrued return balance of $313 as of September 30, 2014.
(n)
Does not include MC Roseland Marbella South, L.L.C. capital amount of $5,490 and accrued return balance of $425.
(o)
Does not include MCRC capital account of $180 and accrued return balance of $11.
(p)
Consists of preferred capital balances the Company is participating in.
(q)
The Company’s equity interests in the joint ventures will be subordinated to affiliates of the Keystone Property Group receiving a 15 percent internal rate of return (“IRR”) after which the Company will receive a ten percent IRR on its subordinate equity and then all profit will be split equally.
(r)
Principal balance of $127,600 bears interest at 5.114 percent and matures in August 27, 2023; principal balance of $63,581 bears interest at rates ranging from LIBOR+5.0 percent to LIBOR+5.75 percent and matures in August 27, 2016; principal balance of $10,425 bears interest at LIBOR+6.0 percent and matures in August 27, 2015.
(s)
On a capital event, the Company receives a promoted additional 25 percent interest over 9.00 percent IRR.
(t)
Property constructed between 1909 and 1921. Extensive renovation in 1988-2000.
(u)
The Company and Keystone plan to convert approximately 90,000 square feet of existing office space within the building into 90 luxury rental apartments, with possibilities to provide additional housing as office leases expire and additional space becomes available.
(v)
Principal balance of $41,240 bears interest at 4.95 percent and matures on July 1, 2017; principal balance of $70,608 bears interest at rates ranging from 5.65 percent to 6.75 percent and matures on September 9, 2017; principal balance of $14,250 bears interest at 4.88 percent and matures on July 6, 2024; principal balance of $63,400 bears interest at 4.93 percent and matures on July 6, 2024; principal balance of $15,050 bears interest at 4.71 percent and matures on August 6, 2044.
(w)
The joint venture collected net proceeds of $47.2 million at maturity, of which the Company received its share of $37.8 million on August 6, 2014.
(x)
Balance represents capital account held by Marbella Rosegarden, L.L.C., of which the Company owns a 48.53 percent interest.
(y)
Balance represents capital account held by Rosewood Lafayette Holdings, L.L.C., of which the Company owns a 50 percent interest.
(z)
Debt secured by interests in these assets (see Debt Detail - page 16).
(aa)
Includes the Company's pari-passu interests of $7.3 million in five properties and Company's subordinated equity interests to Keystone Entities receiving a 15 percent internal rate of return ("IRR") after which the Company will receive a 10 percent IRR on its subordinate equity and then all profit will be split equally.




 



Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
42
 

IV. PORTFOLIO SUMMARY
 

 
Consolidated Operating Portfolio Analysis (a)
 
(as of September 30, 2014)
 

Breakdown by Number of Properties
 

PROPERTY TYPE:
 


                             
             
Stand-
              
   
% of
  
% of
Industrial/
% of
Alone
% of
Land
% of
Multi-
% of
Totals
% of
STATE
Office
Total
Office/Flex
Total
Warehouse
Total
Retail
Total
Leases
Total
Family
Total
By State
Total
New Jersey
95
40.9%
49
21.1%
 -
-
1
0.4%
 -
 -
3
1.3%
148
63.7%
New York
14
6.0%
41
17.7%
6
2.6%
2
0.9%
2
0.9%
 -
 -
65
28.1%
Connecticut
 -
 -
5
2.2%
 -
 -
 -
 -
 -
 -
 -
 -
5
2.2%
Wash., D.C./Maryland
10
4.3%
 -
 -
 -
 -
 -
 -
1
0.4%
 -
 -
11
4.7%
Massachusetts
 -
 -
 -
 -
 -
 -
 -
 -
 -
 -
3
1.3%
3
1.3%
TOTALS
                            
    By Type:
119
51.2%
95
41.0%
6
2.6%
3
1.3%
3
1.3%
6
2.6%
232
100.0%



(a)  
Excludes 50 operating properties, aggregating approximately 6.1 million of commercial square feet and 3,639 apartment homes, which are not consolidated by the Company. See pages 40 and 41.
 


Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
43
 

IV. PORTFOLIO SUMMARY
 

 
Consolidated Operating Portfolio Analysis (a)
 
(as of September 30, 2014)
 

Breakdown by Square Footage for Commercial Properties

PROPERTY TYPE:




                     
             
Stand-
      
   
% of
  
% of
Industrial/
% of
Alone
% of
Totals
% of
STATE
Office
Total
Office/Flex
Total
Warehouse
Total
Retail
Total
By State
Total
New Jersey
17,115,194
67.5%
2,189,531
8.6%
 -
 -
16,736
0.1%
19,321,461
76.2%
New York
1,716,876
6.7%
2,348,812
9.3%
387,400
1.5%
17,300
0.1%
4,470,388
17.6%
Connecticut
-
 -
273,000
1.1%
 -
 -
 -
 -
273,000
1.1%
Wash., D.C./Maryland
1,292,807
5.1%
 -
 -
 -
 -
 -
 -
1,292,807
5.1%
TOTALS
                    
    By Type:
20,124,877
79.3%
4,811,343
19.0%
387,400
1.5%
34,036
0.2%
25,357,656
100.0%

(a)  
Excludes six consolidated operating multi-family properties, aggregating 1,301 apartment homes; as well as 50 operating properties, aggregating approximately 6.1 million commercial square feet and 3,639 apartment homes, which are not consolidated by the Company. See pages 40 and 41.


Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
44
 

IV. PORTFOLIO SUMMARY
 

 
Consolidated Operating Portfolio Analysis (a)
 
(Year ended September 30, 2014)
 

Breakdown by Base Rental Revenue (b)
(Dollars in thousands)

PROPERTY TYPE:
 




                                           
                     
Stand-
                    
     
% of
  
Office/
% of
  
Indust./
% of
  
Alone
% of
  
Land
% of
  
Multi-
% of
  
Totals
% of
STATE
  
Office
Total
  
Flex
Total
  
Warehouse
Total
  
Retail
Total
  
Leases
Total
  
Family
Total
  
By State
Total
                                           
New Jersey
$
344,417
69.6%
$
16,974
3.4%
  
 -
 -
  
 -
 -
  
 -
 -
$
5,973
1.2%
$
367,364
74.2%
New York
  
44,340
9.0%
  
33,632
6.8%
$
4,078
0.8%
$
469
0.1%
$
343
0.1%
  
 -
 -
  
82,862
16.8%
Connecticut
  
-
 -
  
3,869
0.8%
  
 -
 -
  
 -
 -
  
 -
 -
  
 -
 -
  
3,869
0.8%
Wash., D.C./Maryland
  
26,686
5.4%
  
 -
 -
  
 -
 -
  
 -
 -
  
153
 -
  
 -
 -
  
26,839
5.4%
Massachusetts
  
 -
 -
  
 -
 -
  
 -
 -
  
 -
 -
  
 -
 -
  
13,899
2.8%
  
13,899
2.8%
TOTALS
                                          
   By Type:
$
415,443
84.0%
$
54,475
11.0%
$
4,078
0.8%
$
469
0.1%
$
496
0.1%
$
19,872
4.0%
$
494,833
100.0%

 (a) Excludes 50 operating properties, aggregating approximately 6.1 million commercial square feet and 3,639 apartment homes, which are not consolidated by the Company. See pages 40 and 41.
(b) 
Total base rent for the year ended September 30, 2014, determined in accordance with GAAP. Substantially all of the commercial leases provide for annual base rents plus recoveries and escalation charges based upon the tenants’ proportionate share of and/or increases in real estate taxes and certain costs, as defined, and the pass through of charges for electrical usage.


Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
45
 

IV. PORTFOLIO SUMMARY

Consolidated Operating Portfolio Analysis (a) (b)
 
(as of September 30, 2014)
 
 
Breakdown by Percentage Leased for Commercial Properties
 

PROPERTY TYPE:




           
         
WEIGHTED AVG.
STATE
Office
Office/Flex
Industrial/Warehouse
Stand-Alone Retail
By State
New Jersey
81.5%
87.6%
 -
52.2%
82.2%
New York
87.6%
93.1%
97.9%
46.2%
91.2%
Connecticut
 -
96.3%
 -
 -
96.3%
Washington, D.C./ Maryland
77.9%
 -
 -
 -
77.9%
           
WEIGHTED AVG. By Type:
81.8%
90.7%
97.9%
49.2%
83.7%

(a)  
Excludes six consolidated operating multi-family properties, aggregating 1,301 apartment homes; as well as 50 operating properties, aggregating approximately 6.1 million commercial square feet and 3,639 apartment homes, which are not consolidated by the Company, and parcels of land leased to others. See pages 40 and 41.
(b)  
Percentage leased includes all commercial leases in effect as of the period end date, some of which have commencement dates in the future as well as leases expiring September 30, 2014, aggregating 160,152 square feet for which no new leases were signed.







Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
46
 











V.  MULTI-FAMILY RENTAL PORTFOLIO


Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
47
 
 
 
V. MULTI-FAMILY RENTAL PORTFOLIO

Summary of Stabilized Operating Communities
(dollars in thousands, except per home amounts)

As of September 30, 2014
                         
           
Company's
Results
   
Date Acquired/
    
# of
Effective
Percentage
Percentage
  
Revenue
  
Revenue
   
Placed in Service
Year
# of
Apartment
Ownership
Occupied
Occupied
  
per Home
  
per Home
Community
Location
by Company
Built
Properties
Homes
Percentage
9/30/2014
6/30/2014
  
9/30/14 (a)
  
6/30/14 (a)
Consolidated:
                        
Richmond Court (b)
New Brunswick, NJ
12/19/13
1997
1
82
100.00%
97.4%
97.1%
$
1,629
$
1,641
Riverwatch Commons (b)
New Brunswick, NJ
12/19/13
1995
1
118
100.00%
95.3%
98.0%
  
1,611
  
1,642
Park Square
Rahway, NJ
11/20/13
2011
1
159
100.00%
93.7%
94.2%
  
2,025
  
1,967
Alterra at Overlook Ridge 1A (b)
Revere, MA
01/18/13
2004
1
310
100.00%
93.7%
94.1%
  
1,793
  
1,635
Alterra at Overlook Ridge 1B (b)
Revere, MA
04/04/13
2008
1
412
100.00%
92.4%
95.2%
  
1,714
  
1,660
Andover Place (b)
Andover, MA
04/10/14
1988
1
220
100.00%
95.8%
94.1%
  
1,349
  
1,321
Total Consolidated
      
6
1,301
  
94.0%
95.0%
$
1,694
$
1,631
                         
Net operating income for the Consolidated Stabilized Operating Communities for the three and nine months ended September 30, 2014 was $3,188 and $9,617, respectively. Net operating income is defined as total revenues less the sum of real estate taxes, utilities and operating expenses.
                         
Unconsolidated Joint Venture Interests (See the schedule below for capitalization information):
              
Participating JVs
                        
Crystal House Apartments (b)
Arlington, VA
03/21/13
1962
1
828
25.00%
91.5%
85.8%
$
1,949
$
1,921
   Sub-total Participating JVs
      
1
828
25.00%
91.5%
85.8%
$
1,949
$
1,921
                         
Subordinated Interests (c)
                        
Marbella RoseGarden
Jersey City, NJ
10/23/12
2003
1
412
24.27%
96.8%
95.6%
$
2,794
$
2,724
RoseGarden Monaco
Jersey City, NJ
10/23/12
2011
1
523
15.00%
97.1%
96.3%
  
3,230
  
3,183
Rosewood Lafayette/ Highlands
Morristown, NJ
10/23/12
2009
1
217
25.00%
97.3%
98.7%
  
2,609
  
2,567
Rosewood Morristown/40 Park
Morristown, NJ
10/23/12
2010
1
130
12.50%
97.0%
98.4%
  
3,241
  
3,257
PruRose Port Imperial South 15
Weehawken, NJ
10/23/12
2009
1
236
50.00%
94.8%
94.4%
  
2,972
  
3,079
Overlook Ridge/Quarrystone
Malden, MA
10/23/12
2008
1
251
50.00%
96.9%
95.8%
  
2,126
  
2,120
   Sub-total Subordinated Interests
    
6
1,769
  
96.7%
96.3%
$
2,862
$
2,841
                         
Total Stabilized Operating Communities:
    
13
3,898
  
94.7%
93.6%
$
2,278
$
2,242

 
   
(a)
Total apartment revenue for the quarter divided by the average percent occupied for the quarter, divided by the number of apartment homes, and then divided by three.
(b)
The Company plans to reposition this property, which is targeted for additional investment by the Company, for unit and common area renovations. During repositioning, it is often necessary to take apartment homes off line for a short period of time to allow for renovations which can impact occupancy and operations. See "Stabilized Operating Communities-Repositioning" schedule on the next page for the Company's current Repositioning Program.
(c)
The Company participates in property cash flow and capital events after partner's preferred capital is serviced based on its effective ownership percentage. The Company is not expected to meaningfully participate in the venture's operating cash flows.


Summary of Stabilized Operating Communities-Capitalization of Unconsolidated Joint Venture Interests
(dollars in thousands)

As of September 30, 2014

                               
 
Company's
    
Net Operating
  
Property Debt
  
Preferred Capital
 
Effective
                        
Other
Preferred
 
Ownership
    
3 Mos
  
9 Mos
    
Maturity
Interest
  
Company
  
Partners'
Return
Community
Percentage
    
09/30/14
  
09/30/14
  
Amount
Date
Rate
  
Balance (c)
  
Balance
Rate
Unconsolidated Joint Venture Interests:
                              
Participating JVs
                              
Crystal House Apartments
25.00%
  
$
2,785
$
7,863
$
165,000
04/01/20
3.17%
  
 -
  
 -
 -
   Sub-total Participating JVs
25.00%
  
$
2,785
$
7,863
$
165,000
      
 -
  
 -
 -
                               
Subordinated Interests
                              
Marbella RoseGarden
24.27%
  
$
2,115
$
6,260
$
95,000
05/01/18
4.99%
$
134
$
8,105
9.5%
RoseGarden Monaco
15.00%
    
3,363
  
9,883
  
165,000
02/01/21
4.19%
  
 -
  
80,653
9.0%
Rosewood Morristown/40 Park
12.50%
    
712
  
2,207
  
38,600
09/01/20
3.25%
  
695
  
21,008
9.0%
Rosewood Lafayette/ Highlands
25.00%
    
1,077
  
3,262
  
38,846
07/01/15
4.00%
  
118
  
33,403
9.0%
PruRose Port Imperial South 15
50.00%
    
981
  
3,063
  
57,500
09/01/20
4.32%
  
 -
  
40,610
9.0%
Overlook Ridge/Quarrystone
50.00%
    
925
  
2,866
  
69,580
03/15/16
(a)
  
 -
  
37,544
(b)
   Sub-total Subordinated Interests
    
$
9,173
$
27,541
$
464,526
    
$
947
$
221,323
  
                               
Total Stabilized Operating Communities:
    
$
11,958
$
35,404
$
629,526
    
$
947
$
221,323
  

   
(a)
Property debt balance consists of: (i) the senior loan, collateralized by the Quarrystone property, which has a balance of $52,580 and bears interest at LIBOR plus 200 basis points and (ii) the junior loan, with a balance of $17,000 and bears interest at LIBOR plus 90 basis points, and is collateralized by a $17,000 letter of credit provided by an affiliate of the partner.
(b)
Partner capital balance consists of: $18,829 of principal, $3,000 of which earns interest at a rate of 20 percent; and $15,829 of which earns interest at a rate of 15 percent, and $18,715 of accrued unpaid return.
(c)
Consists of preferred capital balances in which the Company has an approximate 50 percent interest.

 

 

Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
48
 



V. MULTI-FAMILY RENTAL PORTFOLIO

Stabilized Operating Communities-Repositioning
(dollars in thousands, except per home amounts)

As of September 30, 2014

                                       
             
Projected Repositioning Results
  
Timing
                       
Company
              
       
Company's
Company's
            
Share of
      
Projected
      
   
Property
  
Share of
Effective
  
Estimated
    
Company
  
Costs Incurred
  
Pre-
  
Post-
  
Estimated
Estimated
   
Acquisition
  
Acquis.
Ownership
  
Repositioning
    
Share of
  
Through
  
Repositioning
  
Repositioned
  
Quarter
Quarter of
Property
  
Cost
  
Cost
Percentage
  
Budget
    
Budget
  
9/30/14 (c)
  
Rent/Home
  
Rent/Home
  
Complete
Stabilization
Consolidated:
                                      
Richmond Court
$
 20,492
$
 20,492
100.00%
$
 3,075
  
$
 3,075
$
 11
$
 1,541
$
 1,892
  
2Q-2017
3Q-2017
Riverwatch Commons
  
 20,493
  
 20,493
100.00%
  
 4,425
    
 4,425
  
 12
  
 1,507
  
 1,856
  
2Q-2017
3Q-2017
Alterra at Overlook Ridge 1A
  
 61,250
  
 61,250
100.00%
  
 5,800
    
 5,800
  
 1,437
  
 1,414
  
 1,600
  
4Q-2015
1Q-2016
Alterra at Overlook Ridge 1B
  
 87,950
  
 87,950
100.00%
  
 3,800
    
 3,800
  
 1,163
  
 1,499
  
 1,650
  
4Q-2015
1Q-2016
Andover Place
  
 37,700
  
 37,700
100.00%
  
 5,930
    
 5,930
  
 23
  
 1,345
  
 1,637
  
1Q-2017
2Q-2017
Total Consolidated
$
 227,885
$
 227,885
  
$
 23,030
  
$
 23,030
$
 2,646
$
1,450
$
 1,672
      
                                       
Unconsolidated Joint Venture Interests:
                                      
Participating JVs
                                      
Crystal House Apartments (a)
  
 262,500
  
 30,210
25.00%
$
 29,900
  
$
 7,475
$
 719
$
1,888
$
 2,282
  
1Q-2017
2Q-2017
Total Unconsolidated Joint Venture Interests
$
 262,500
$
 30,210
  
$
 29,900
  
$
 7,475
$
 719
$
1,888
$
 2,282
      
                                       
Total Stabilized Repositioning Communities:
$
 490,385
$
 258,095
  
$
 52,930
(b)
$
 30,505
$
 3,365
$
1,634
$
 1,928
      


   
(a)
The unconsolidated joint venture acquired the operating property, which is encumbered by a $165 million mortgage, for $247.5 million and a developable land parcel for $15 million. The Company owns a 25 percent interest in the operating property and a 50 interest in the 295 apartment home development-potential parcel.
(b)
The increase in weighted average projected net operating income yield of the stabilized operating communities-repositioning is estimated to be 100 basis points.
(c)
Company's share of costs remaining is $27.1 million at September 30, 2014.





Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
49
 

V. MULTI-FAMILY RENTAL PORTFOLIO

Summary of Communities in Lease-Up
(dollars in thousands)

As of September 30, 2014




                                                             
       
Company's
Timing
  
Costs
  
Company Share of Equity
            
Property Debt
  
Preferred Capital
     
# of
Effective
Commenced
    
Incurred
  
Total
          
Percentage
  
Projected
        
Maximum
          
Other
Preferred
   
# of
Apartment
Ownership
Initial
Stabilization
  
Through
  
Estimated
          
Leased
  
NOI
(b)
      
Borrowing
Maturity
Interest
  
Company
  
Partners'
Return
Community
Location
Properties
Homes
Percentage
Operations
Date
  
09/30/14
  
Costs
  
Incurred
  
Remaining
  
09/30/14
  
(Stabilized)
    
Amount
  
Capacity
Date
Rate
  
Balance
  
Balance
Rate
                                                             
Unconsolidated Joint Ventures:
                                                          
Subordinated Interests (a)
                                                            
RiverTrace at Port Imperial
West New York, NJ
1
316
25.00%
4Q-2013
4Q-2014
$
113,863
$
115,500
  
-
  
-
  
93.7%
$
7,750
  
$
79,053
$
83,100
07/15/21
6.00%
$
-
$
44,335
7.75%
Lincoln Harbor (Bldg A&C)
Weehawken, NJ
1
355
7.50%
1Q-2014
4Q-2014
  
129,139
  
136,800
  
-
  
-
  
94.1%
  
9,250
    
79,266
  
91,000
06/27/16
L+2.10%
  
-
  
61,332
8.50%
Overlook Ridge – 2C & 3B
Malden/Revere, MA
1
371
50.00%
1Q-2014
2Q-2015
  
75,304
  
77,500
  
-
  
-
  
75.2%
  
5,240
    
47,872
  
55,500
12/26/15
L+2.50%
  
-
  
26,630
6.50%
                                                             
Total Lease-Up Communities:
3
1,042
      
$
318,306
$
329,800
  
-
  
-
    
$
22,240
  
$
206,191
$
229,600
    
$
-
$
132,297
  

   
(a)
The Company participates in property cash flow and capital events after partner's preferred capital is serviced based on its effective ownership percentage. The Company is not expected to meaningfully participate in the venture's operating cash flows.
(b)
Net Operating Income is defined as total revenues less the sum of real estate taxes, utilities and operating expenses.













Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
50
 

V. MULTI-FAMILY RENTAL PORTFOLIO

Summary of Development Communities
(dollars in thousands)

As of September 30, 2014
                                                                 
     
Company's
  
Timing
    
Costs
    
Company Share of Equity
        
Property Debt
    
Preferred Capital
   
# of
Effective
  
Initial
        
Incurred
  
Estimated
    
Incurred
  
Estimate of
  
Projected
        
Maximum
            
Other
Preferred
   
Apartment
Ownership
  
Occupancy
Completion
Stabilization
    
Through
  
Total
    
Through
  
Remaining
  
NOI
(b)
      
Borrowing
Maturity
Interest
    
Company
  
Partners'
Return
Community
Location
Homes (a)
Percentage
  
Date
Date
Date
    
09/30/14
  
Costs
    
9/30/2014
  
Costs to Fund
  
(Stabilized)
    
Amount
  
Capacity
Date
Rate
    
Balance
  
Balance
Rate
                                                                 
Consolidated;
                                                                
150 Main Street
Eastchester, NY
108
76.25%
  
2Q-2016
2Q-2016
1Q-2017
  
$
12,232
$
49,950
  
$
11,571
$
9,370
$
3,300
  
$
218
$
28,800
03/30/17
L+2.35%
  
$
12,355
$
712
8.00%
Total Consolidated
  
108
            
$
12,232
$
49,950
  
$
11,571
$
9,370
$
3,300
  
$
218
$
28,800
      
$
12,355
$
712
  
                                                                 
Unconsolidated Joint Venture Interests:
                                                              
Participating JVs
                                                                
RiverPark at Harrison
Harrison, NJ
141
36.00%
  
4Q-2014
1Q-2015
3Q-2015
  
$
25,180
$
27,900
  
$
1,518
$
290
$
1,900
    
17,446
$
23,400
06/27/16
L+2.35%
  
$
3,307
$
4,933
7.25%
Station Townhouses
Washington, D.C.
377
50.00%
  
1Q-2015
2Q-2015
2Q-2016
    
104,013
  
143,414
    
46,500
  
 -
  
11,400
    
55,414
  
100,700
12/05/15
4.82%
    
(a)
  
 -
 -
Marbella II
Jersey City, NJ
311
24.27%
  
4Q-2015
2Q-2016
4Q-2016
    
49,061
  
132,100
    
5,489
  
7,781
  
8,470
    
19,626
  
77,400
03/30/17
L+2.25%
    
5,915
  
18,699
9.00%
URL Harborside
Jersey City, NJ
763
85.00%
  
4Q-2016
2Q-2017
3Q-2018
    
52,931
  
320,305
    
43,192
  
65,696
  
19,500
    
0
  
192,000
 -
5.20%
    
 -
  
 -
 -
   Sub-total Participating JVs
  
1,592
            
$
231,185
$
623,719
  
$
96,699
$
73,767
$
41,270
  
$
92,486
$
393,500
      
$
9,222
$
23,632
  
                                                                 
Subordinated Interests (a)
                                                                
Portside at Pier One – Bldg 7
East Boston, MA
176
38.25%
  
4Q-2014
1Q-2015
3Q-2015
  
$
59,069
$
66,300
    
 -
  
 -
$
4,300
    
32,693
$
42,500
12/05/15
L+2.50%
    
 -
$
26,660
9.00%
Port Imperial Building 13
Weehawken, NJ
280
20.00%
  
1Q-2015
3Q-2015
1Q-2016
    
67,409
  
96,400
    
 -
  
 -
  
6,700
  
$
37,355
  
73,400
06/27/16
L+2.15%
  
$
2,147
  
49,189
9.00%
Lincoln Harbor (Bldg B)
Weehawken, NJ
227
7.50%
  
4Q-2014
2Q-2015
4Q-2015
    
62,253
  
82,700
    
 -
  
 -
  
5,600
    
30,830
  
57,000
01/25/17
L+2.10%
    
 -
  
33,629
8.50%
   Sub-total Subordinated Interests
683
            
$
188,731
$
245,400
    
 -
  
 -
$
16,600
  
$
100,878
$
172,900
      
$
2,147
$
109,478
  
                                                                 
Total Unconsolidated Joint Venture Interests
2,275
            
$
419,916
$
869,119
  
$
96,699
$
73,767
$
57,870
  
$
193,364
$
566,400
      
$
11,369
$
133,110
  
                                                                 
Total Development Communities:
2,383
            
$
432,148
$
919,069
  
$
108,270
$
83,137
$
61,170
  
$
193,582
$
595,200
      
$
23,724
$
133,822
  



   
(a)
The Company participates in property cash flow and capital events after partner's preferred capital is serviced based on its effective ownership percentage. The Company is not expected to meaningfully participate in the venture's operating cash flow.
(b)
Net Operating Income is defined as total revenues less the sum of real estate taxes, utilities and operating expenses.









Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
51
 



V. MULTI-FAMILY RENTAL PORTFOLIO

Summary of Land Holdings/Pre-Development

As of September 30, 2014


                 
     
Potential
Company's
        
     
# of
Effective
Anticipated
  
PRE-DEVELOPMENT STAGE
     
Apartment
Ownership
Construction
  
Approved/
Design
Pre-Development
             Location
Homes (a)
Percentage
Start
  
Entitled
Development
Port Imperial 1/3 Garage/Retail (b)
Weehawken
NJ
-
50%
4Q-2014
  
X
X
Port Imperial South Hotel (c)
Weehawken
NJ
-
50%
1Q-2015
  
X
X
Conshohocken (d)
Conshohocken
PA
310
100%
1Q-2015
  
X
X
Lofts at 40 Park
Morristown
NJ
59
25%
2Q-2015
      
Riverwalk C (e)
West New York
NJ
363
20%
3Q-2015
  
X
X
Worcester (c)
Worcester
MA
357
100%
3Q-2015
      
LR Overlook Phase III
Malden
MA
240
100%
4Q-2015
  
X
  
Overlook Ridge II D
Malden
MA
210
100%
4Q-2015
  
X
  
Port Imperial South Building # 11 (e)
Weehawken
NJ
280
50%
2016
  
X
X
Portside at Pier One 5-6 (e)
East Boston
MA
267
50%
2016
  
X
X
Freehold (d)
Freehold
NJ
360
100%
2016
      
Crystal House III (f)
Arlington
VA
295
50%
2016
  
X
  
San Remo (f)
Jersey City
NJ
300
42%
2016
  
X
  
Port Imperial North J (f)
West New York
NJ
141
20%
2016
  
X
  
Port Imperial North I (f)
West New York
NJ
224
20%
2016
  
X
  
RiverPark at Harrison 5-8 (g)
Harrison
NJ
141
25%
2017
      
Portside at Pier One 1-4 (e)
East Boston
MA
160
85%
2017
  
X
  
Port Imperial South 8/9 (e)
Weehawken
NJ
275
50%
2017
  
X
  
Overlook Ridge III C
Malden
MA
252
100%
2017
  
X
  
Port Imperial North Riverbend 6 (f)
West New York
NJ
471
20%
2018
  
X
  
Overlook Ridge III A
Malden
MA
420
100%
2018
  
X
  
Port Imperial South Building 16 (e)
Weehawken
NJ
131
50%
2018
  
X
  
Port Imperial South Park Parcel (e)
Weehawken
NJ
262
50%
2019
  
X
  
Overlook Ridge 4
Malden
MA
45
100%
2020
  
X
  
Port Imperial South Building 2 (e)
Weehawken
NJ
200
50%
2021
  
X
  
Liberty Landing (f)
Jersey City
NJ
1,000
50%
TBD
      
Harborside (e)
Jersey City
NJ
1,592
85%
TBD
      
Total Land Holdings/Pre-Development
  
8,355
          


(a)  
Number of apartment homes are estimates and subject to change.
(b)  
Project contains an estimated 8,247 square feet of retail space and 741 garage parking spaces.
(c)  
Project is estimated to be a 364-key hotel.
(d)  
The Company has a signed agreement to acquire this land, subject to certain conditions.
(e)  
Land owned or controlled by a consolidated joint venture in which the Company has an interest.
(f)  
Land owned or controlled by an unconsolidated joint venture in which the Company has an interest.
(g)  
The Company and/or the joint venture holds an option to acquire this land.






Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
52
 











VI.  OFFICE PORTFOLIO



Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
53
 



VI. OFFICE PORTFOLIO

Summary of Development Projects
(dollars in thousands)

As of September 30, 2014







               
       
Costs
    
Estimated
       
Incurred
  
Total
Initial
       
Through
  
Estimated
Delivery
Property
Location
Type
  
09/30/14
  
Costs
Date
Consolidated;
              
Wegmans Food Markets
Hanover, NJ
Retail pad/Land Lease
$
7,016
$
15,700
3Q-2015
               
Total Land Development Projects:
  
$
7,016
$
15,700
  





Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
54
 



VI. OFFICE PORTFOLIO

Summary of Land Holdings

As of September 30, 2014



         
     
Potential
  
     
Commercial
  
Property
Location
State
Square Feet (a)
Type of Space
Office:
        
Capital Office Park
Greenbelt
MD
595,000
Office
Eastpoint II
Lanham
MD
122,000
Office/Hotel
3 & 5 AAA Drive (b)
Hamilton Township
NJ
112,000
Office
6 AAA Drive
Hamilton Township
NJ
32,000
Office
2 South Gold Drive (c)
Hamilton Township
NJ
75,000
Office
Hillsborough 206 (d)
Hillsborough
NJ
160,000
Office
Plaza VIII and IX Associates, L.L.C. (d)
Jersey City
NJ
1,225,000
Office
Harborside
Jersey City
NJ
1,067,000
Office
One Newark Center (d)
Newark
NJ
400,000
Office
3 Campus Drive
Parsippany
NJ
124,000
Office
Mack-Cali Business Campus
Parsippany & Hanover
NJ
150,000
Office/Retail
Princeton Metro
West Windsor
NJ
97,000
Office
Princeton Overlook II
West Windsor
NJ
149,500
Office
Mack-Cali Princeton Executive Park
West Windsor
NJ
760,000
Office/Hotel
Total Office:
    
5,068,500
  
         
Office/Flex:
        
Horizon Center
Hamilton Township
NJ
68,000
Office/Flex/Retail
Mack-Cali Commercenter
Totowa
NJ
30,000
Office/Flex
Mid-Westchester Executive Park
Hawthorne
NY
82,250
Office/Flex
South Westchester Executive Park (e)
Yonkers
NY
350,000
Office/Flex
South Westchester Executive Park
Yonkers
NY
50,000
Office/Flex
Total Office/Flex:
    
580,250
  
         
Industrial/Warehouse:
        
Elmsford Distribution Center (e)
Elmsford
NY
100,000
Industrial/Warehouse
Total Warehouse:
    
100,000
  
         
Total
    
5,748,750
  

(a)  
Amount of square feet is subject to change.
(b)  
This land parcel also includes an existing office building totaling 35,270 square feet.
(c)  
This land parcel also includes an existing office building totaling 33,962 square feet.
(d)  
Land owned or controlled by joint venture in which Mack-Cali is an equity partner.
(e)  
Mack-Cali holds an option to purchase this land.



Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
55
 



VI. OFFICE PORTFOLIO

Leasing Statistics
(For the three months ended September 30, 2014)
 
Consolidated Commercial In-Service Portfolio
 
 
SUMMARY OF SPACE LEASED
 




                 
     
LEASING ACTIVITY
      
 
Sq. Ft.
Leased
Expiring/
  
Net
Sq. Ft.
Pct.
Pct.
 
Leased
Sq. Ft.
Adjustment
Incoming
Leasing
Leased
Leased
Leased
Market
06/30/14
Acquired/Sold (a)
Sq. Ft. (b)
Sq. Ft.
Activity
09/30/14 (c)
09/30/14
06/30/14
                 
  Northern NJ
10,676,823
 (117,764)
(261,885)
232,088
(29,797)
10,529,262
78.9%
79.3%
  Central NJ
4,235,411
 -
(66,445)
97,792
31,347
4,266,758
90.8%
90.1%
  Westchester Co., NY
4,067,671
 (477,409)
(206,120)
168,659
(37,461)
3,552,801
90.0%
89.6%
  Manhattan
524,476
 -
 -
-
-
524,476
100.0%
100.0%
  Sub. Philadelphia
1,073,578
 -
(53,745)
61,642
7,897
1,081,475
84.4%
83.7%
  Fairfield, CT
397,909
 (139,348)
(11,549)
15,916
4,367
262,928
96.3%
88.0%
  Washington, DC/MD
999,618
 -
(37,895)
44,980
7,085
1,006,703
77.9%
77.3%
                 
Totals
21,975,486
(734,521)
(637,639)
621,077
(16,562)
21,224,403
83.7%
83.7%
                 

 
RECONCILIATION OF TOTAL PROPERTY SQUARE FOOTAGE
 



   
   
Total sq. ft. as of June 30, 2014
26,263,222
    Total sq. ft. of properties sold this period
 (899,632)
Total sq. ft. as of September 30, 2014
25,363,590
   

(a)  
Net gain/loss of leased square footage through properties sold, acquired or placed in service during the period.
(b)  
Represents the square footage of expiring leases and leases scheduled to expire in the future for which new leases or renewals were signed during the period, as well as internal administrative adjustments.
(c)  
Includes leases expiring September 30, 2014 aggregating 160,152 square feet for which no new leases were signed.



Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
56
 

VI. OFFICE PORTFOLIO
 
Leasing Statistics
 
(For the three months ended September 30, 2014)
 
Consolidated Commercial In-Service Portfolio (continued)
 
 
DETAIL OF TRANSACTION ACTIVITY
 




                   
Detail by Market
                  
           
Sq. Ft.
    
Leasing
           
Renewed And
Wtd. Avg.
Wtd. Avg.
Costs Per
   
# of
  
Total
Sq. Ft. New
Other
Term
Base
Sq. Ft. Per
Market
Property Type
Transactions
  
Sq. Ft.
Leases
Retained (a)
(yrs,)
Rent (b)
Year (c)
                   
Northern NJ
Office
39
  
189,918
74,758
115,160
7.1
27.31
4.52
 
Office/Flex
4
  
42,170
24,170
18,000
6.0
18.02
2.56
Central NJ
Office
13
  
65,650
34,397
31,253
4.6
24.48
3.65
 
Office/Flex
9
  
32,142
10,422
21,720
3.6
15.10
2.82
Westchester Co., NY
Office
8
  
27,594
-
27,594
1.4
21.06
0.68
 
Office/Flex
19
  
135,175
71,875
63,300
4.8
14.90
1.95
 
Industrial/Warehouse
1
  
5,890
5,890
-
5.0
12.78
1.32
Sub. Philadelphia
Office/Flex
7
  
61,642
25,767
35,875
4.4
11.54
1.98
Fairfield Co., CT
Office
1
  
4,367
4,367
-
3.1
24.81
6.91
 
Office/Flex
1
  
11,549
-
11,549
1.0
21.59
1.28
Washington, DC/MD
Office
14
  
44,980
13,990
30,990
6.1
23.30
4.61
                   
Totals
  
116
  
621,077
265,636
355,441
5.3
20.65
3.44
                   
Detail by Property Type
                  
 
Office
75
  
332,509
127,512
204,997
5.9
25.66
4.34
 
Office/Flex
40
  
282,678
132,234
150,444
4.6
14.93
2.15
 
Industrial/Warehouse
1
  
5,890
5,890
-
5.0
12.78
1.32
                   
Totals
  
116
  
621,077
265,636
355,441
5.3
20.65
3.44
                   
Tenant Retention:
Leases Retained
61.9
%
            
 
Sq. Ft. Retained
55.7
%
            
                   


(a)  
“Other Retained” transactions include existing tenants’ expansions and relocations within the same building.
(b)  
Equals triple net rent plus common area costs and real estate taxes, as applicable.
(c)  
Represents estimated workletter costs of $7,817,988 and commissions of $3,465,250 committed, but not necessarily expended, during the period for second generation space aggregating 617,077 square feet.



Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
57
 

VI. OFFICE PORTFOLIO

Leasing Statistics
(For the three months ended September 30, 2014)
 
Unconsolidated Commercial Joint Venture Properties
 
 
SUMMARY OF SPACE LEASED
 




                       
           
LEASING ACTIVITY
      
         
Leased
            
   
Inventory
  
Sq. Ft.
Sq. Ft.
Expiring/
Sq. Ft.
Net
Sq. Ft.
Pct.
Pct.
 
Inventory
Acquired/
Inventory
Leased
Acquired/
Adjustment
Incoming
Leasing
Leased
Leased
Leased
Market
06/30/14
Disposed
09/30/14
06/30/14
Sold (a)
Sq. Ft. (b)
Sq. Ft.
Activity
09/30/14
09/30/14
06/30/14
                       
   Northern NJ
1,248,558
150,477
1,399,035
1,052,966
126,500
(37,185)
13,725
(23,460)
1,156,006
82.6%
84.3%
   Central NJ
773,228
  
773,228
723,301
-
(2,450)
-
(2,450)
720,851
93.2%
93.5%
   Westchester, NY
-
594,108
594,108
-
484,195
-
-
-
484,195
81.5%
-
   Fairfield, CT
-
179,260
179,260
-
171,704
-
-
-
171,704
95.8%
-
   Sub. Philadelphia
1,842,820
-
1,842,820
1,538,739
-
(150,389)
217,885
67,496
1,606,235
87.2%
83.5%
   CBD Philadelphia
1,219,557
-
1,219,557
1,105,708
-
(81,562)
-
(81,562)
1,024,146
84.0%
90.7%
                       
Totals
5,084,163
923,845
6,008,008
4,420,714
782,399
(271,586)
231,610
(39,976)
5,163,137
85.9%
87.0%
                       


DETAIL OF TRANSACTION ACTIVITY



               
Detail by Market
      
Sq. Ft.
    
Leasing
       
Renewed
Wtd. Avg.
Wtd. Avg.
Costs Per
 
# of
Total
Sq. Ft. New
And Other
Term
Base
Sq. Ft. Per
Market
Transactions
Sq. Ft.
Leases
Retained (c)
(Yrs.)
Rent (d)
Year (e)
               
   Northern NJ
3
13,725
13,725
-
 4.9
 25.96
4.43
   Sub. Philadelphia
29
217,885
43,778
174,107
4.4
23.42
5.06
               
Totals
32
231,610
57,503
174,107
4.4
23.57
5.02
               

 
Unconsolidated Retail Joint Venture Properties
 
 
SUMMARY OF SPACE LEASED
 



                       
           
LEASING ACTIVITY
      
         
Leased
            
   
Inventory
  
Sq. Ft.
Sq. Ft.
Expiring/
Sq. Ft.
Net
Sq. Ft.
Pct.
Pct.
 
Inventory
Acquired/
Inventory
Leased
Acquired/
Adjustment
Incoming
Leasing
Leased
Leased
Leased
Market
06/30/14
Disposed
09/30/14
06/30/14
Sold (a)
Sq. Ft. (b)
Sq. Ft.
Activity
09/30/14
09/30/14
06/30/14
                       
   Northern NJ
81,516
 -
81,516
49,464
 -
 -
 -
 -
49,464
60.7%
60.7%
                       

DETAIL OF TRANSACTION ACTIVITY

 
None.

(a)  
Net gain/loss of leased square footage through properties sold, acquired or placed in service during the period.
(b)  
Represents the square footage of expiring leases and leases scheduled to expire in the future for which new leases or renewals were signed during the period, as well as internal administrative adjustments.
(c)  
“Other Retained” transactions include existing tenants’ expansions and relocations within the same building.
(d)  
Equals triple net rent plus common area costs and real estate taxes, as applicable.
(e)  
Represents estimated workletter costs of $2,893,0851 and commissions of $947,173 committed, but not necessarily expended, during the period for second generation space aggregating 164,448 square feet.


Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
58
 



VI. OFFICE PORTFOLIO

Leasing Statistics
(For the nine months ended September 30, 2014)
 
Consolidated Commercial In-Service Properties
 
 
SUMMARY OF SPACE LEASED
 


                 
     
LEASING ACTIVITY
      
 
Sq. Ft.
Leased
Expiring/
  
Net
Sq. Ft.
Pct.
Pct.
 
Leased
Sq. Ft.
Adjustment
Incoming
Leasing
Leased
Leased
Leased
Market
12/31/13
Acquired/Sold (a)
Sq. Ft. (b)
Sq. Ft.
Activity
09/30/14 (c)
09/30/14
12/31/13
                 
  Northern NJ
11,873,205
(762,935)
(1,499,821)
918,813
(581,008)
10,529,262
78.9%
83.0%
  Central NJ
4,840,020
 (630,423)
(306,168)
363,329
57,161
4,266,758
90.8%
90.0%
  Westchester Co., NY
4,077,672
(477,409)
(517,818)
470,356
(47,462)
3,552,801
90.0%
89.8%
  Manhattan
524,476
 -
 -
 -
 -
524,476
100.0%
100.0%
  Sub. Philadelphia
1,119,158
 -
(163,130)
125,447
(37,683)
1,081,475
84.4%
87.3%
  Fairfield, CT
384,702
(139,348)
(65,861)
83,435
17,574
262,928
96.3%
85.1%
  Washington, DC/MD
1,083,912
 -
(231,497)
154,288
(77,209)
1,006,703
77.9%
83.8%
  Rockland Co., NY
154,950
 (154,251)
(27,422)
26,723
(699)
n/a
n/a
86.1%
                 
Totals
24,058,095
(2,164,366)
(2,811,717)
2,142,391
(669,326)
21,224,403
83.7%
86.1%
                 


 
RECONCILIATION OF TOTAL PROPERTY SQUARE FOOTAGE
 



   
   
Total sq. ft. as of December 31, 2013
27,957,785
    Total sq. ft. of properties sold this period
 (2,594,195)
Total sq. ft. as of September 30, 2014
25,363,590
   


(a)  
Net gain/loss of leased square footage through properties sold, acquired or placed in service during the period.
(b)  
Represents the square footage of expiring leases and leases scheduled to expire in the future for which new leases or renewals were signed during the period, as well as internal administrative adjustments.
(c)  
Includes leases expiring September 30, 2014 aggregating 160,152 square feet for which no new leases were signed.



Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
59
 


VI. OFFICE PORTFOLIO
 
Leasing Statistics
 
(For the nine months ended September 30, 2014)
 
Consolidated Commercial In-Service Portfolio (continued)
 
 
DETAIL OF TRANSACTION ACTIVITY
 



                   
Detail by Market
                  
           
Sq. Ft.
    
Leasing
           
Renewed And
Wtd. Avg.
Wtd. Avg.
Costs Per
   
# of
  
Total
Sq. Ft. New
Other
Term
Base
Sq. Ft. Per
Market
Property Type
Transactions
  
Sq. Ft.
Leases
Retained (a)
(yrs,)
Rent (b)
Year (c)
                   
Northern NJ
Office
104
  
800,723
337,018
463,705
8.3
25.51
3.74
 
Office/Flex
11
  
118,090
65,228
52,862
5.6
17.66
2.58
Central NJ
Office
61
  
328,673
121,869
206,804
3.9
24.33
3.76
 
Office/Flex
10
  
34,656
10,422
24,234
3.5
15.30
2.71
Westchester Co., NY
Office
41
  
137,536
21,878
115,658
3.2
23.74
3.06
 
Office/Flex
40
  
273,230
114,843
158,387
5.1
17.06
1.95
 
Industrial
3
  
59,590
51,890
7,700
8.5
11.51
1.14
Sub. Philadelphia
Office/Flex
18
  
125,447
45,797
79,650
4.2
11.52
1.48
Fairfield Co., CT
Office
4
  
40,110
4,367
35,743
2.7
26.14
2.55
 
Office/Flex
4
  
43,325
28,776
14,549
3.2
14.82
3.55
Washington, DC/MD
Office
39
  
154,288
37,431
116,857
4.1
25.09
4.10
Rockland Co., NY
Office
3
  
26,723
 -
26,723
2.1
23.65
1.32
                   
Totals
  
338
  
2,142,391
839,519
1,302,872
5.8
22.07
3.24
                   
Detail by Property Type
                
 
Office
252
  
1,488,053
522,563
965,490
6.1
25.03
3.71
 
Office/Flex
83
  
594,748
265,066
329,682
4.8
15.75
2.12
 
Industrial
3
  
59,590
51,890
7,700
8.5
11.51
1.14
                   
Totals
  
338
  
2,142,391
839,519
1,302,872
5.8
22.07
3.24
                   
Tenant Retention:
Leases Retained
53.8
%
            
 
Sq. Ft. Retained
46.3
%
            
                   

(a)  
“Other Retained” transactions include existing tenants’ expansions and relocations within the same building.
(b)  
Equals triple net rent plus common area costs and real estate taxes, as applicable.
(c)  
Represents estimated workletter costs of $27,293,854 and commissions of $13,064,118 committed, but not necessarily expended, during the period for second generation space aggregating 2,137,284 square feet.






Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
60
 


VI. OFFICE PORTFOLIO

Leasing Statistics
(For the nine months ended September 30, 2014)
 
Unconsolidated Commercial Joint Venture Properties
 
 
SUMMARY OF SPACE LEASED
 




                       
           
LEASING ACTIVITY
      
         
Leased
            
   
Inventory
  
Sq. Ft.
Sq. Ft.
Expiring/
Sq. Ft.
Net
Sq. Ft.
Pct.
Pct.
 
Inventory
Acquired/
Inventory
Leased
Acquired/
Adjustment
Incoming
Leasing
Leased
Leased
Leased
Market
12/31/13
Disposed
09/30/14
12/31/13
Sold (a)
Sq. Ft. (b)
Sq. Ft.
Activity
09/30/14
09/30/14
12/31/13
                       
   Northern NJ
662,524
736,511
1,399,035
650,908
522,262
(59,509)
42,345
(17,164)
1,156,006
82.6%
98.2%
   Central NJ
92,878
680,350
773,228
92,878
630,423
(2,450)
-
(2,450)
720,851
93.2%
100.0%
   Westchester, NY
-
594,108
594,108
-
484,195
-
-
-
484,195
81.5%
-
   Fairfield, CT
-
179,260
179,260
-
171,704
-
-
-
171,704
95.8%
-
   Sub. Philadelphia
1,842,820
-
1,842,820
1,558,602
-
(292,974)
340,607
47,633
1,606,235
87.2%
84.6%
   CBD Philadelphia
339,615
879,942
1,219,557
330,952
769,680
(81,562)
5,076
(76,486)
1,024,146
84.0%
97.4%
                       
Totals
2,937,837
3,070,171
6,008,008
2,633,340
2,578,264
(436,495)
388,028
(48,467)
5,163,137
85.9%
89.6%
                       

DETAIL OF TRANSACTION ACTIVITY



               
Detail by Market
      
Sq. Ft.
    
Leasing
       
Renewed
Wtd. Avg.
Wtd. Avg.
Costs Per
 
# of
Total
Sq. Ft. New
And Other
Term
Base
Sq. Ft. Per
Market
Transactions
Sq. Ft.
Leases
Retained (c)
(Yrs.)
Rent (d)
Year (e)
               
   Northern NJ
5
42,345
16,271
26,074
5.2
28.67
3.15
   Sub. Philadelphia
54
340,607
76,247
264,360
4.5
23.55
3.89
   CBD Philadelphia
1
5,076
-
5,076
5.2
24.68
-
               
Totals
60
388,028
92,518
295,510
4.6
24.13
3.79
               

 
Unconsolidated Retail Joint Venture Properties
 
 
SUMMARY OF SPACE LEASED
 



                       
           
LEASING ACTIVITY
      
         
Leased
            
   
Inventory
  
Sq. Ft.
Sq. Ft.
Expiring/
Sq. Ft.
Net
Sq. Ft.
Pct.
Pct.
 
Inventory
Acquired/
Inventory
Leased
Acquired/
Adjustment
Incoming
Leasing
Leased
Leased
Leased
Market
12/31/13
Disposed
09/30/14
12/31/13
Sold (a)
Sq. Ft. (b)
Sq. Ft.
Activity
09/30/14
09/30/14
12/31/13
                       
   Northern NJ
81,516
 -
81,516
49,464
 -
 -
 -
 -
49,464
60.7%
60.7%
                       

DETAIL OF TRANSACTION ACTIVITY

 
None.

(a)  
Net gain/loss of leased square footage through properties sold, acquired or placed in service during the period.
(b)  
Represents the square footage of expiring leases and leases scheduled to expire in the future for which new leases or renewals were signed during the period, as well as internal administrative adjustments.
(c)  
“Other Retained” transactions include existing tenants’ expansions and relocations within the same building.
(d)  
Equals triple net rent plus common area costs and real estate taxes, as applicable.
(e)  
Represents estimated workletter costs of $4,717,211 and commissions of $1,725,685 committed, but not necessarily expended, during the period for second generation space aggregating 295,757 square feet.


Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
61
 


VI. OFFICE PORTFOLIO

Market Diversification


The following table lists the Company’s markets (MSAs), based on annualized commercial contractual base rent of the Consolidated Commercial Properties:


         
   
Percentage Of
    
   
Company
    
 
Annualized Base
Annualized
Total Property
  
 
Rental Revenue
Base Rental
Size Rentable
Percentage of
Market (MSA)
($) (a) (b) (c)
Revenue (%)
Area (b) (c)
Rentable Area (%)
Newark, NJ (Essex-Morris-Union Counties)
110,408,989
22.7
5,980,646
23.5
Jersey City, NJ
109,738,758
22.5
4,334,714
17.0
Bergen-Passaic, NJ
68,761,168
14.1
3,911,522
15.4
Westchester-Rockland, NY
67,428,012
13.8
3,945,912
15.6
Washington, DC-MD-VA-WV
28,294,077
5.8
1,292,807
5.1
Monmouth-Ocean, NJ
27,433,298
5.6
1,620,863
6.4
Middlesex-Somerset-Hunterdon, NJ
27,144,894
5.6
1,241,055
4.9
Trenton, NJ
19,609,526
4.0
956,597
3.8
New York (Manhattan)
17,801,543
3.6
524,476
2.1
Philadelphia, PA-NJ
7,532,629
1.5
1,281,998
5.1
Stamford-Norwalk, CT
4,140,344
0.8
273,000
1.1
         
Totals
488,293,238
100.0
25,363,590
100.0


(a)  
Annualized base rental revenue is based on actual September 30, 2014 billings times 12. For leases whose rent commences after October 1, 2014, annualized base rental revenue is based on the first full month’s billing times 12. As annualized base rental revenue is not derived from historical GAAP results, historical results may differ from those set forth above.
(b)  
Includes leases in effect as of the period end date, some of which have commencement dates in the future, and leases expiring September 30, 2014 aggregating 160,152 square feet and representing annualized rent of $3,362,603 for which no new leases were signed.
(c)  
Includes office, office/flex, industrial/warehouse and stand-alone retail tenants only.  Excludes leases for amenity, retail, parking and month-to-month tenants. Some tenants have multiple leases.



Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
62
 

VI. OFFICE PORTFOLIO

Industry Diversification

The following table lists the Company’s 30 largest industry classifications based on annualized commercial contractual base rent of the Consolidated Commercial Properties:


         
 
Annualized
Percentage of
  
Percentage of
 
Base Rental
Company
Square
Total Company
 
Revenue
Annualized Base
Feet Leased
Leased
Industry Classification (a)
($) (b) (c) (d)
Rental Revenue (%)
(c) (d)
Sq. Ft. (%)
Securities, Commodity Contracts & Other Financial
67,328,609
13.7
2,226,699
10.6
Insurance Carriers & Related Activities
49,507,684
10.0
1,829,895
8.8
Manufacturing
37,536,687
7.7
1,786,012
8.6
Legal Services
34,024,574
7.0
1,276,339
6.2
Credit Intermediation & Related Activities
31,062,821
6.4
1,028,314
5.0
Telecommunications
21,272,018
4.4
1,132,170
5.5
Computer System Design Svcs.
20,165,158
4.1
893,608
4.3
Health Care & Social Assistance
19,885,257
4.1
1,064,501
5.1
Accounting/Tax Prep.
19,132,522
3.9
723,415
3.5
Wholesale Trade
17,309,473
3.5
1,171,385
5.6
Scientific Research/Developmnt
15,472,222
3.2
503,953
2.4
Public Administration
14,362,713
2.9
530,258
2.6
Architectural/Engineering
13,599,016
2.8
521,774
2.5
Admin & Support, Waste Mgt. & Remediation Svcs.
12,253,448
2.5
599,412
2.9
Arts, Entertainment & Recreation
11,820,915
2.4
709,503
3.4
Other Professional
11,690,735
2.4
514,488
2.5
Other Services (except Public Administration)
11,063,806
2.3
454,892
2.2
Management/Scientific
10,512,628
2.2
415,679
2.0
Real Estate & Rental & Leasing
9,223,944
1.9
481,094
2.3
Advertising/Related Services
7,581,152
1.6
282,825
1.4
Retail Trade
7,408,718
1.5
460,968
2.2
Accommodation & Food Services
6,289,019
1.3
270,962
1.3
Transportation
5,584,370
1.1
282,731
1.4
Broadcasting
4,504,816
0.9
162,323
0.8
Construction
4,232,626
0.9
246,586
1.2
Utilities
4,227,246
0.9
292,220
1.4
Data Processing Services
4,078,478
0.8
143,679
0.7
Publishing Industries
3,895,685
0.8
206,023
1.0
Information Services
3,689,544
0.8
134,771
0.6
Educational Services
2,446,941
0.5
124,631
0.6
Other
7,130,413
1.5
273,937
1.4
         
TOTAL
488,293,238
100.0
20,745,047
100.0

(a)  
The Company’s tenants are classified according to the U.S. Government’s North American Industrial Classification System (NAICS).
(b)  
Annualized base rental revenue is based on actual September 30, 2014 billings times 12. For leases whose rent commences after October 1, 2014, annualized base rental revenue is based on the first full month’s billing times 12. As annualized base rental revenue is not derived from historical GAAP results, historical results may differ from those set forth above.
(c)  
Includes leases in effect as of the period end date, some of which have commencement dates in the future, and leases expiring September 30, 2014 aggregating 160,152 square feet and representing annualized rent of $3,362,603 for which no new leases were signed.
(d)  
Includes office, office/flex, industrial/warehouse and stand-alone retail tenants only. Excludes leases for amenity, retail, parking and month-to-month tenants. Some tenants have multiple leases.





Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
63
 

VI. OFFICE PORTFOLIO

Significant Tenants


The following table sets forth a schedule of the Company’s 50 largest tenants for the Consolidated Commercial Properties as of September 30, 2014, based upon annualized base rental revenue:




             
     
Percentage of
      
   
Annualized
Company
Square
Percentage
Year of
 
Number of
Base Rental
Annualized Base
Feet
Total Company
Lease
 
Properties
Revenue ($) (a)
Rental Revenue (%)
Leased
Leased Sq. Ft. (%)
Expiration
             
DB Services New Jersey, Inc.
2
12,335,217
2.5
409,166
2.0
2017
National Union Fire Insurance Company of Pittsburgh, PA
2
10,956,822
2.1
388,651
1.9
(b)
Bank Of Tokyo-Mitsubishi FUJI, Ltd.
1
10,540,716
2.1
282,606
1.4
(c)
Forest Research Institute, Inc.
1
9,070,892
1.9
215,659
1.0
2017
United States of America-GSA
11
8,803,753
1.8
285,343
1.4
(d)
Prentice-Hall, Inc.
1
8,643,699
1.8
474,801
2.3
2014
Montefiore Medical Center
7
7,303,249
1.5
312,824
1.5
(e)
ICAP Securities USA, LLC
1
6,904,128
1.4
159,834
0.8
2017
TD Ameritrade Online Holdings
1
6,294,189
1.3
188,776
0.9
2020
Daiichi Sankyo, Inc.
1
6,154,593
1.3
171,900
0.8
2022
Merrill Lynch Pierce Fenner
1
5,883,780
1.2
294,189
1.4
2017
New Cingular Wireless PCS, LLC
3
5,554,225
1.1
240,582
1.2
(f)
Wyndham Worldwide Operations
1
4,983,862
1.0
203,506
1.0
2029
KPMG, LLP
2
4,481,332
0.9
170,023
0.8
(g)
Vonage America, Inc.
1
4,427,500
0.9
350,000
1.7
2017
CohnReznick, LLP
2
4,333,954
0.9
155,056
0.7
(h)
HQ Gobal Workplace, LLC
14
4,177,984
0.9
228,214
1.1
(i)
Arch Insurance Company
1
4,005,563
0.8
106,815
0.5
2024
Morgan Stanley Smith Barney
3
3,985,510
0.8
130,007
0.6
(j)
AECOM Technology Corporation
1
3,707,752
0.8
91,414
0.4
2029
Allstate Insurance Company
6
3,218,020
0.7
141,164
0.7
(k)
SunAmerica Asset Management, LLC
1
3,167,756
0.6
69,621
0.3
2018
Tullett Prebon Holdings Corp.
1
3,127,970
0.6
100,759
0.5
2023
Alpharma, LLC
1
3,098,092
0.6
112,235
0.5
2018
Xand Operations, LLC
2
3,014,150
0.6
131,078
0.6
2024
Plymouth Rock Management Company of New Jersey
2
2,937,246
0.6
116,889
0.6
(l)
E*Trade Financial Corporation
1
2,930,757
0.6
106,573
0.5
2022
Natixis North America, Inc.
1
2,823,569
0.6
89,907
0.4
2021
Continental Casualty Company
2
2,784,736
0.6
100,712
0.5
(m)
AAA Mid-Atlantic, Inc.
2
2,772,589
0.6
129,784
0.6
(n)
Tradeweb Markets, LLC
1
2,711,760
0.6
64,976
0.3
2017
Connell Foley, LLP
2
2,657,218
0.5
97,822
0.5
2015
New Jersey Turnpike Authority
1
2,605,798
0.5
100,223
0.5
2017
Lowenstein Sandler LLP
1
2,540,933
0.5
98,677
0.5
2017
Savvis Communications Corporation
1
2,430,116
0.5
71,474
0.3
2025
Virgin Mobile USA, LP
1
2,427,776
0.5
93,376
0.5
2016
UBS Financial Services, Inc.
3
2,391,327
0.5
82,413
0.4
(o)
Sony Music Entertainment
1
2,359,986
0.5
97,653
0.5
2014
Tower Insurance Company of New York
1
2,306,760
0.5
76,892
0.4
2023
Bozzuto & Associates, Inc.
1
2,301,992
0.5
104,636
0.5
2025
Movado Group, Inc.
1
2,261,498
0.5
98,326
0.5
2018
Norris, McLaughlin & Marcus, PA
1
2,259,738
0.5
86,913
0.4
2017
Pitney Bowes Software, Inc.
1
2,253,645
0.5
73,379
0.4
2015
Bunge Management Services, Inc.
1
2,221,151
0.5
66,303
0.3
2020
Barr Laboratories, Inc.
1
2,209,107
0.5
89,510
0.4
2015
Sumitomo Mitsui Banking Corp.
2
2,170,167
0.4
71,153
0.3
2021
Herzfeld & Rubin, P.C.
1
2,140,236
0.4
56,322
0.3
2030
Syncsort, Inc.
1
1,991,439
0.4
73,757
0.4
2018
Jeffries, Inc.
1
1,945,653
0.4
62,763
0.3
2023
Sun Chemical Management, LLC
1
1,930,813
0.4
66,065
0.3
2019
Totals
  
208,540,718
42.7
7,590,721
36.6
  


See footnotes on subsequent page.


Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
64
 

VI. OFFICE PORTFOLIO

Significant Tenants
(Continued)



   
(a)
Annualized base rental revenue is based on actual September 2014 billings times 12. For leases whose rent commences after October 1, 2014, annualized base rental revenue is based on the first full month’s billing times 12. As annualized base rental revenue is not derived from historical GAAP results, historical results may differ from those set forth above.
(b)
271,533 square feet expire in 2018; 117,118 square feet expire in 2019.
(c) 
20,649 square feet expire in 2018; 24,607 square feet expire in 2019; 237,350 square feet expire in 2029.
(d)
221,148 square feet expire in 2015; 15,851 square feet expire in 2016; 7,046 square feet expire in 2018; 21,596 square feet expire in 2022; 19,702 square feet expire in 2023.
(e)
30,280 square feet expire in 2015; 11,542 square feet expire in 2016; 59,302 square feet expire in 2017; 36,385 square feet expire in 2018; 133,763 square feet expire in 2019; 8,600 square feet expire in 2020; 14,842 square feet expire in 2021; 9,610 square feet expire in 2022; 8,500 square feet expire in 2023.
(f)
27,766 square feet expire in 2014; 212,816 square feet expire in 2018.
(g)
10,877 square feet expire in 2014; 88,652 square feet expire in 2017; 70,494 square feet expire in 2019.
(h)
1,021 square feet expire in 2018; 154,035 square feet expire in 2020.
(i)
22,279 square feet expire in 2015; 12,407 square feet expire in 2017; 41,549 square feet expire in 2019; 21,008 square feet expire in 2020; 14,724 square feet expire in 2021; 36,158 square feet expire in 2023; 80,089 square feet expire in 2024.
(j)
26,834 square feet expire in 2014; 26,262 square feet expire in 2018; 34,516 square feet expire in 2025; 42,395 square feet expire in 2026.
(k)
5,348 square feet expire in 2015; 4,014 square feet expire in 2016; 75,740 square feet expire in 2017; 51,606 square feet expire in 2018; 4,456 square feet expire in 2019.
(l)
10,271 square feet expire in 2015; 106,618 square feet expire in 2020.
(m)
19,416 square feet expire in 2016; 81,296 square feet expire in 2031.
(n)
9,784 square feet expire in 2017; 120,000 square feet expire in 2022.
(o)
42,360 square feet expire in 2016; 13,340 square feet expire in 2022; 26,713 square feet expire in 2024.








Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
65
 

VI. OFFICE PORTFOLIO

Schedule of Lease Expirations

All Consolidated Commercial Properties

 
The following table sets forth a schedule of lease expirations for the total of the Company’s office, office/flex, industrial/warehouse and stand-alone retail properties included in the Consolidated Commercial Properties beginning October 1, 2014, assuming that none of the tenants exercise renewal or termination options (with a breakdown by market for 2014 through 2016 only):
 


             
         
Average Annualized
  
     
Percentage Of
  
 Base Rent Per
  
   
Net Rentable
Total Leased
Annualized
Net Rentable
Percentage Of
   
Area Subject
Square Feet
Base Rental
Square Foot
Annual Base
Year Of
Number Of
To Expiring
Represented By
Revenue Under
Represented
Rent Under
Expiration/
Leases
Leases
Expiring
Expiring
By Expiring
Expiring
Market
Expiring (a)
(Sq. Ft.)
Leases (%)
Leases ($) (b)
Leases ($)
Leases (%)
             
2014 (c)
            
   Northern  NJ
26
204,982
1.0
4,786,154
23.35
1.0
   Central NJ
18
86,881
0.4
1,851,577
21.31
0.4
   Westchester Co., NY
8
63,976
0.3
816,063
12.76
0.1
   Manhattan
-
-
-
-
-
-
   Sub. Philadelphia
1
4,800
(d)
43,200
9.00
(d)
   Fairfield, CT
-
-
-
-
-
-
   Washington, DC/MD
4
11,426
(d)
257,093
22.50
(d)
TOTAL – 2014
57
372,065
1.7
7,754,087
20.84
1.5
             
             
2015
            
   Northern  NJ
92
1,120,178
5.4
24,059,224
21.48
4.8
   Central NJ
67
416,417
2.0
9,594,318
23.04
2.0
   Westchester Co., NY
59
240,251
1.2
4,995,792
20.79
1.0
   Manhattan
-
-
-
-
-
-
   Sub. Philadelphia
25
255,905
1.2
1,858,462
7.26
0.4
   Fairfield, CT
2
43,928
0.2
808,034
18.39
0.2
   Washington, DC/MD
41
358,893
1.7
11,043,746
30.77
2.3
TOTAL – 2015
286
2,435,572
11.7
52,359,576
21.50
10.7
             
             
2016
            
   Northern  NJ
115
965,411
4.6
25,220,134
26.12
5.2
   Central NJ
67
617,011
3.0
14,319,814
23.21
2.9
   Westchester Co., NY
77
456,621
2.2
8,548,842
18.72
1.8
   Manhattan
-
-
-
-
-
-
   Sub. Philadelphia
12
141,693
0.7
948,988
6.70
0.2
   Fairfield, CT
3
117,649
0.6
2,034,809
17.30
0.4
   Washington, DC/MD
26
100,368
0.5
2,652,997
26.43
0.5
TOTAL – 2016
300
2,398,753
11.6
53,725,584
22.40
11.0

Schedule continued, with footnotes, on subsequent page.



Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
66
 

VI. OFFICE PORTFOLIO

Schedule of Lease Expirations

All Consolidated Commercial Properties
(continued)





             
         
Average Annualized
  
     
Percentage Of
  
 Base Rent Per
  
   
Net Rentable
Total Leased
Annualized
Net Rentable
Percentage Of
   
Area Subject
Square Feet
Base Rental
Square Foot
Annual Base
Year Of
Number Of
To Expiring
Represented By
Revenue Under
Represented
Rent Under
Expiration/
Leases
Leases
Expiring
Expiring
By Expiring
Expiring
Market
Expiring (a)
(Sq. Ft.)
Leases (%)
Leases ($) (b)
Leases ($)
Leases (%)
             
2017
276
3,434,153
16.6
82,370,155
23.99
16.9
             
2018
253
2,456,114
11.8
57,499,936
23.41
11.8
             
2019
218
2,188,428
10.6
46,671,493
21.33
9.6
             
2020
156
1,562,029
7.5
33,818,043
21.65
6.9
             
2021
83
1,167,432
5.6
31,142,558
26.68
6.4
             
2022
74
1,071,210
5.2
26,604,141
24.84
5.5
             
2023
42
1,010,479
4.9
26,041,150
25.77
5.3
             
2024
51
1,018,069
4.9
25,118,178
24.67
5.1
             
2025 and thereafter
46
1,630,743
7.9
45,188,337
27.71
9.3
Totals/Weighted
            
Average
1,842
20,745,047
100.0
488,293,238
23.54
100.0

(a)  
Includes office, office/flex, industrial/warehouse and stand-alone retail property tenants only. Excludes leases for amenity, retail, parking and month-to-month tenants.  Some tenants have multiple leases.
(b)  
Annualized base rental revenue is based on actual September 2014 billings times 12. For leases whose rent commences after October 1, 2014 annualized base rental revenue is based on the first full month’s billing times 12. As annualized base rental revenue is not derived from historical GAAP results, historical results may differ from those set forth above.
(c)  
Includes leases expiring September 30, 2014 aggregating 160,152 square feet and representing annualized rent of $3,362,603 for which no new leases were signed.
(d)  
Represents 0.05% or less.
(e)  
Reconciliation to Company’s total net rentable square footage is as follows:

   
 
Square Feet
Square footage leased to commercial tenants
20,745,047
Square footage used for corporate offices, management offices,
  
building use, retail tenants, food services, other ancillary
  
service tenants and occupancy adjustments
479,356
Square footage unleased
4,139,187
Total net rentable square footage (does not include land leases)
25,363,590



Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
67
 

VI. OFFICE PORTFOLIO

Schedule of Lease Expirations

Office Properties

The following table sets forth a schedule of lease expirations for the office properties beginning October 1, 2014, assuming that none of the tenants exercise renewal or termination options (with a breakdown by market for 2014 through 2016 only):




             
         
Average Annualized
  
     
Percentage Of
  
 Base Rent Per
  
   
Net Rentable
Total Leased
Annualized
Net Rentable
Percentage Of
   
Area Subject
Square Feet
Base Rental
Square Foot
Annual Base
Year Of
Number Of
To Expiring
Represented By
Revenue Under
Represented
Rent Under
Expiration/
Leases
Leases
Expiring
Expiring
By Expiring
Expiring
Market
Expiring (a)
(Sq. Ft.)
Leases (%)
Leases ($) (b)
Leases ($)
Leases (%)
             
2014 (c)
            
   Northern  NJ
22
174,446
1.1
4,467,718
25.61
1.0
   Central NJ
15
65,058
0.4
1,528,303
23.49
0.4
   Westchester Co., NY
2
2,091
(d)
53,256
25.47
(d)
   Manhattan
-
-
-
-
-
-
   Washington, DC/MD
4
11,426
0.1
257,093
22.50
(d)
TOTAL – 2014
43
253,021
1.6
6,306,370
24.92
1.4
             
2015
            
   Northern  NJ
86
1,070,649
6.7
23,492,044
21.94
5.5
   Central NJ
59
341,657
2.1
8,593,067
25.15
2.0
   Westchester Co., NY
34
104,535
0.7
3,058,410
29.26
0.7
   Manhattan
-
-
-
-
-
-
   Washington, DC/MD
41
358,893
2.2
11,043,746
30.77
2.6
TOTAL – 2015
220
1,875,734
11.7
46,187,267
24.62
10.8
             
2016
            
   Northern NJ
109
907,704
5.7
24,525,954
27.02
5.8
   Central NJ
56
496,940
3.1
12,473,443
25.10
2.9
   Westchester Co., NY
27
104,222
0.7
2,828,685
27.14
0.7
   Manhattan
-
-
-
-
-
-
   Washington, DC/MD
26
100,368
0.6
2,652,997
26.43
0.6
TOTAL – 2016
218
1,609,234
10.1
42,481,079
26.40
10.0
             
2017
207
2,907,024
18.2
75,222,326
25.88
17.7
             
2018
169
1,646,478
10.3
47,416,791
28.80
11.2
             
2019
160
1,445,509
9.0
36,333,967
25.14
8.5
             
2020
116
1,165,526
7.3
28,746,507
24.66
6.8
             
2021
69
1,008,232
6.3
28,916,532
28.68
6.8
             
2022
63
952,260
6.0
24,928,500
26.18
5.9
             
2023
33
807,351
5.0
23,241,256
28.79
5.5
             
2024
37
811,895
5.0
22,143,404
27.27
5.2
             
2025 and thereafter
37
1,521,221
9.5
43,353,793
28.50
10.2
Totals/Weighted
            
  Average
1,372
16,003,485
100.0
425,277,792
26.57
100.0

(a)  
Includes office tenants only. Excludes leases for amenity, retail, parking and month-to-month tenants. Some tenants have multiple leases.
(b)  
Annualized base rental revenue is based on actual September 2014 billings times 12. For leases whose rent commences after October 1, 2014 annualized base rental revenue is based on the first full month’s billing times 12. As annualized base rental revenue is not derived from historical GAAP results, historical results may differ from those set forth above.
(c)  
Includes leases expiring September 30, 2014 aggregating 98,960 square feet and representing annualized rent of $2,609,669 for which no new leases were signed.
(d)  
Represents 0.05% or less.


Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
68
 

VI. OFFICE PORTFOLIO

Schedule of Lease Expirations

Office/Flex Properties

The following table sets forth a schedule of lease expirations for the office/flex properties beginning October 1, 2014, assuming that none of the tenants exercise renewal or termination options (with a breakdown by market for 2014 through 2016 only):
 




             
         
Average Annualized
  
     
Percentage Of
  
 Base Rent Per
  
   
Net Rentable
Total Leased
Annualized
Net Rentable
Percentage Of
   
Area Subject
Square Feet
Base Rental
Square Foot
Annual Base
Year Of
Number Of
To Expiring
Represented By
Revenue Under
Represented
Rent Under
Expiration/
Leases
Leases
Expiring
Expiring
By Expiring
Expiring
Market
Expiring (a)
(Sq. Ft.)
Leases (%)
Leases ($) (b)
Leases ($)
Leases (%)
             
2014 (c)
            
   Northern  NJ
4
30,536
0.8
318,436
10.43
0.6
   Central NJ
2
21,063
0.5
305,414
14.50
0.5
   Westchester Co., NY
6
61,885
1.4
762,807
12.33
1.3
   Sub. Philadelphia
1
4,800
0.1
43,200
9.00
0.1
   Fairfield Co., CT
-
-
-
-
-
-
TOTAL – 2014
13
118,284
2.8
1,429,857
12.09
2.5
             
2015
            
   Northern  NJ
6
49,529
1.1
567,180
11.45
0.9
   Central NJ
6
71,746
1.7
929,551
12.96
1.6
   Westchester Co., NY
23
100,016
2.3
1,448,782
14.49
2.5
   Sub. Philadelphia
25
255,905
5.9
1,858,462
7.26
3.2
   Fairfield Co., CT
2
43,928
1.0
808,034
18.39
1.4
TOTAL – 2015
62
521,124
12.0
5,612,009
10.77
9.6
             
2016
            
   Northern NJ
6
57,707
1.3
694,180
12.03
1.2
   Central NJ
10
119,011
2.7
1,822,515
15.31
3.1
   Westchester Co., NY
46
321,411
7.4
5,373,363
16.72
9.2
   Sub. Philadelphia
12
141,693
3.3
948,988
6.70
1.6
   Fairfield Co., CT
3
117,649
2.7
2,034,809
17.30
3.5
TOTAL – 2016
77
757,471
17.4
10,873,855
14.36
18.6
             
2017
69
527,129
12.1
7,147,829
13.56
12.3
             
2018
81
716,153
16.5
9,487,172
13.25
16.3
             
2019
54
692,584
15.9
9,450,068
13.64
16.2
             
2020
39
349,271
8.0
4,397,063
12.59
7.5
             
2021
14
159,200
3.7
2,226,026
13.98
3.8
             
2022
11
118,950
2.7
1,675,641
14.09
2.9
             
2023
7
127,407
2.9
1,921,530
15.08
3.3
             
2024
13
160,174
3.7
2,558,014
15.97
4.4
             
2025 and thereafter
8
101,522
2.3
1,542,544
15.19
2.6
Totals/Weighted
            
  Average
448
4,349,269
100.0
58,321,608
13.41
100.0

(a)  
Includes office/flex tenants only.  Excludes leases for amenity, retail, parking and month-to-month tenants.  Some tenants have multiple leases.
(b)  
Annualized base rental revenue is based on actual September 2014 billings times 12. For leases whose rent commences after October 1, 2014, annualized base rental revenue is based on the first full month’s billing times 12. As annualized base rental revenue is not derived from historical GAAP results, historical results may differ from those set forth above. Includes office/flex tenants only.  Excludes leases for amenity, retail, parking and month-to-month tenants.  Some tenants have multiple leases.
(c)  
Includes leases expiring September 30, 2014 aggregating 60,432 square feet and representing annualized rent of $735,074 for which no new leases were signed.




Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
69
 

VI. OFFICE PORTFOLIO

Schedule of Lease Expirations

Industrial/Warehouse Properties

The following table sets forth a schedule of lease expirations for the industrial/warehouse properties beginning October 1, 2014, assuming that none of the tenants exercise renewal or termination options. All industrial/warehouse properties are located in the Westchester County, NY market:
 
               
           
Average Annualized
  
       
Percentage Of
  
 Base Rent Per
  
   
Net Rentable
  
Total Leased
Annualized
Net Rentable
Percentage Of
   
Area Subject
  
Square Feet
Base Rental
Square Foot
Annual Base
Year Of
Number Of
To Expiring
  
Represented By
Revenue Under
Represented
Rent Under
Expiration/
Leases
Leases
  
Expiring
Expiring
By Expiring
Expiring
Market
Expiring (a)
(Sq. Ft.)
  
Leases (%)
Leases ($) (b)
Leases ($)
Leases (%)
               
2015
2
35,700
  
9.4
488,600
13.69
11.4
               
2016
4
30,988
  
8.2
346,794
11.19
8.1
               
2018
3
93,483
  
24.6
595,973
6.38
13.9
               
2019
4
50,335
  
13.2
887,458
17.63
20.7
               
2020
1
47,232
  
12.5
674,473
14.28
15.7
               
2023
2
75,721
  
20.0
878,364
11.60
20.5
               
2024
1
46,000
  
12.1
416,760
9.06
9.7
Totals/Weighted
              
  Average
17
379,459
  
100.0
4,288,422
11.30
100.0

(a)  
Includes industrial/warehouse tenants only. Excludes leases for amenity, retail, parking and month-to-month industrial/warehouse tenants. Some tenants have multiple leases.
(b)  
Annualized base rental revenue is based on actual September 2014 billings times 12. For leases whose rent commences after October 1, 2014, annualized base rental revenue is based on the first full month’s billing times 12. As annualized base rental revenue is not derived from historical GAAP results, the historical results may differ from those set forth above.

Stand-Alone Retail Properties

The following table sets forth a schedule of lease expirations for the stand-alone retail properties beginning October 1, 2014, assuming that none of the tenants exercise renewal or termination options (with a breakdown by market for 2014 through 2016 only):
 
               
           
Average Annualized
  
       
Percentage Of
  
 Base Rent Per
  
   
Net Rentable
  
Total Leased
Annualized
Net Rentable
Percentage Of
   
Area Subject
  
Square Feet
Base Rental
Square Foot
Annual Base
Year Of
Number Of
To Expiring
  
Represented By
Revenue Under
Represented
Rent Under
Expiration/
Leases
Leases
  
Expiring
Expiring
By Expiring
Expiring
Market
Expiring (a)
(Sq. Ft.)
  
Leases (%)
Leases ($) (b)
Leases ($)
Leases (%)
               
2014 (c)
              
   Central NJ
1
760
  
5.9
17,860
23.50
4.4
TOTAL – 2014
1
760
  
5.9
17,860
23.50
4.4
               
2015
              
   Central NJ
2
3,014
  
23.5
71,700
23.79
17.7
TOTAL – 2015
2
3,014
  
23.5
71,700
23.79
17.7
               
2016
              
   Central NJ
1
1,060
  
8.3
23,856
22.51
5.9
TOTAL – 2016
1
1,060
  
8.3
23,856
22.51
5.9
               
2025 and thereafter
1
8,000
  
62.3
292,000
36.50
72.0
               
Totals/Weighted
              
  Average
5
12,834
  
100.0
405,416
31.59
100.0
(a)  
Includes stand-alone retail property tenants only.
(b)  
Annualized base rental revenue is based on actual September 2014 billings times 12. For leases whose rent commences after October1, 2014 annualized base rental revenue is based on the first full month’s billing times 12. As annualized base rental revenue is not derived from historical GAAP results, historical results may differ from those set forth above.
(c)  
Includes leases expiring September 30, 2014 aggregating 760 square feet and representing $17,860 for which no new leases were signed.


Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2014

 
 
70
 

MACK CALI REALTY CORP Reports