UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

 

Date of Report: August 2, 2016
(Date of earliest event reported)

 

MACK-CALI REALTY CORPORATION

(Exact name of Registrant as specified in its charter)

 

Maryland
(State or other jurisdiction of incorporation)

 

 

343 Thornall Street, Edison, New Jersey 08837-2206
(Address of Principal Executive Offices) (Zip Code)

 

(732) 590-1000
(Registrant’s telephone number, including area code)

 

N/A
(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

o	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

Item 2.02 Results of Operations and Financial Condition

 

On August 2, 2016, Mack-Cali Realty Corporation (the “Company”) issued a press release announcing its financial results for the second quarter 2016.  A copy of the press release is attached hereto as Exhibit 99.3.

 

Item 7.01 Regulation FD Disclosure

 

For the quarter ended June 30, 2016, the Company hereby makes available supplemental data regarding its operations, as well as supplemental data regarding its multi-family real estate platform. The Company is attaching such supplemental data as Exhibits 99.1 and 99.2 to this Current Report on Form 8-K.

 

In connection with the foregoing, the Company hereby furnishes the following documents:

 

Item 9.01                                           Financial Statements and Exhibits

 

(d)  Exhibits

 

Exhibit Number		Exhibit Title
99.1		Second Quarter 2016 Supplemental Operating and Financial Data.
99.2		Second Quarter 2016 Supplemental Operating and Financial Data for Roseland Residential Platform.
99.3		Second Quarter 2016 earnings press release of Mack-Cali Realty Corporation dated August 2, 2016.

 

The information included in this Current Report on Form 8-K (including the exhibits hereto) is being furnished under Item 2.02, “Results of Operations and Financial Condition,” Item 7.01, “Regulation FD Disclosure” and Item 9.01 “Financial Statements and Exhibits” of Form 8-K. As such, the information (including the exhibits) herein shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be incorporated by reference into a filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. This Current Report (including the exhibits hereto) will not be deemed an admission as to the materiality of any information required to be disclosed solely to satisfy the requirements of Regulation FD.

 

2

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	MACK-CALI REALTY CORPORATION
Date: August 2, 2016	By:	/s/  MITCHELL E. RUDIN
		Mitchell E. Rudin Chief Executive Officer
Date: August 2, 2016	By:	/s/  MICHAEL J. DEMARCO
		Michael J. DeMarco
		President and
		Chief Operating Officer
Date: August 2, 2016	By:	/s/  ANTHONY KRUG
		Anthony Krug Chief Financial Officer

 

EXHIBIT INDEX

 

Exhibit Number		Exhibit Title
99.1		Second Quarter 2016 Supplemental Operating and Financial Data.
99.2		Second Quarter 2016 Supplemental Operating and Financial Data for Roseland Residential Platform.
99.3		Second Quarter 2016 earnings press release of Mack-Cali Realty Corporation dated August 2, 2016.

 

3

Exhibit 99.1

 

 

 

SECOND QUARTER 2016

 

Supplemental Operating and Financial Data

 

 

INDEX

 

	PAGE(S)
Company Today	3
Focus List	4 - 6
Economic Incentives and Programs	7
Spotlight on:
Results	8 - 9
Leasing	10 - 14
Earnings	15 - 23
Financials	24 - 27
Portfolio	28 - 29
Details on:
Leasing	30 - 44
Earnings	45
Financials	46 - 50
Portfolio	51 - 57
Company Information	58 - 59

 

Mack-Cali Realty Corporation Supplemental Operating and Financial Data for the Quarter Ended June 30, 2016

 

2

 

Company Today

 

We are a two platform company — office and multi-family.

We own assets in the Hudson River Waterfront area and other transit-based locations.

 

REIT publicly traded on NYSE (“CLI”)

 

Substantial development opportunities for multi-family

 

Apartment platform managed by Roseland Residential Trust (“RRT”)

 

		2Q 2016			1Q 2016
Market capitalization:		$	5.0 billion		$	4.7 billion
Square feet of office space:		23.5 million			24.0 million
% leased for Core/Waterfront/Flex:		89.8		%	90.3		%
GAAP rental rate roll-up		27.3		%	18.4		%
Operating multi-family units:		5,434			5,644
% leased for stabilized multi-family:		97.7		%	96.5		%
Sr. unsecured debt ratings:
(S&P/Moody’s/Fitch)		BBB-/Baa3/BB+			BBB-/Baa3/BB+

 

101 Wood Avenue South, Iselin, NJ (Acquired June 2016)		Portside at East Pier, East Boston, MA (Full interest acquired April 2016)
The Chase at Overlook Ridge, Malden, MA (Full interest acquired January 2016)		101 Hudson Street, Jersey City, NJ

 

Mack-Cali Realty Corporation Supplemental Operating and Financial Data for the Quarter Ended June 30, 2016

 

3

 

Focus List

 

Our changes over the next 24 months

 

Completed/Underway (Generate Increased Cash Flow)

 

1.                          Staffing levels — reduced by 55 positions or $8M, with continued focus (completed)

 

2.                          Cost of operations — reduced by $7.5M (completed)

 

3.                          G&A expense — reduced by $3M (completed)

 

4.                          Refinance debt for savings — new 5-year term loan for $350M at 3.13% closed in Jan 2016 (completed)

 

5.                          In 2016 — continued expense reductions as we reduce the size of the office platform (underway)

 

Next 12 — 18 Months (Balance Sheet / Capital Expenditures / Long-term Cash Flow)

 

6.                          Increase occupancy — 86.7% at 6/30/16 and project a clear path to meeting objective of 90% leased by year end 2016. Was 86.2% at 12/31/15 and 84.2% at 12/31/14

 

7.                          Planned dispositions — $750M of assets. $400M closed by 7/31/16; remainder by end of year & early 2017

 

8.                          Reposition assets to “A” quality — six major capital investment programs currently in place

 

24 Months (Long-term Strategy Execution)

 

9.                          New capital investment — we look for 6% initial yield and 11% IRR on new investments. Purchased 101 Wood Avenue in Iselin, NJ and 111 River Street in Hoboken, NJ

 

10.                   Focus on our key markets — exited NYC, DC, and certain NJ suburban markets

 

11.                   Funding and growth of the Roseland operations — in the market with Eastdil - Selected certain investors

 

Mack-Cali Realty Corporation Supplemental Operating and Financial Data for the Quarter Ended June 30, 2016

 

4

 

Focus List - Net Debt to EBITDA Business Plan Effect

 

The Company has a plan with multiple options regarding its Net Debt to EBITDA leverage ratio. The Company expects to take steps to reduce the ratio to a more conservative level.

 

 

(a)         2Q 2016 Annualized EBITDA is calculated by taking 2Q 2016 EBITDA multiplied by 4.  Ratio reflects Net Debt of $2,222,064 as of June 30, 2016.  See calculation of EBITDA and Net Debt on page 15.

(b)         Assumes successful lease up and expense savings, translating into estimated $13 million in increased EBITDA.

(c)          Assumes projects in construction at June 30, 2016 going into service and stabilizing at a 10% return on equity, translating into estimated $32 million in increased EBITDA.

 

Mack-Cali Realty Corporation Supplemental Operating and Financial Data for the Quarter Ended June 30, 2016

 

5

 

Focus List - 2017 Lease Expirations

 

As of 6/30/16, 2017 is shaping up very well to have excellent cash and GAAP results.

 

·                  2017 expirations total 3.0 million square feet, or 15% of leased space (reduced from 3.6 million at 12/31/15).

·                  1.2 million square feet do not expire until the fourth quarter.

·                  Anticipate occupancy of approximately 89-90% at year-end 2016; at that level will backfill any vacant space quickly.

·                  As of now, 2017 is the size of a normal year for our expirations and by year end 2016, it will be reduced further.

 

·                  Progress on 2017 expirations has been made as follows:

 

(Square footage in 000’s)

 

	2017 expirations as of December 31, 2015		3,591
	Reduction in 2017 expirations, year-to-date 2016		(603	)
	2017 expirations as of June 30, 2016		2,988

 

Following is our approach to remaining 2017 expirations:

 

	(Square footage in 000’s)
		2,988		expiring
		(699	)	in properties we plan to sell
		(698	)	remaining on Waterfront, with a growing backlog of tenant demand
		(644	)	in Flex space, with historically high retention and occupancy rates
		947		remaining in Core suburban properties

 

·                  947,000 square feet expiring within Core suburban portfolio of 9.7 million square feet represents a manageable 9.8% rollover in 2017.

 

Mack-Cali Realty Corporation Supplemental Operating and Financial Data for the Quarter Ended June 30, 2016

 

6

 

Economic Incentives and Programs

 

The State of New Jersey currently offers a compelling incentive program to attract and retain businesses in the State through its “Grow New Jersey” program.  Below is a program summary and example of an incentive calculation.

 

Grow NJ

 

·                              Provides job-based tax credits for job creation and retention

 

·                              Tax credits of $5,000 to $9,750 per job/per year, for up to 10 years for new jobs to the state

 

·                              Limited to specific “Qualified Incentive Areas”

 

·                  Urban Transit Hub municipalities (“UTH”)

 

·                  ‘Mega projects’—logistics, manufacturing, energy, defense, or maritime businesses in a port district

 

·                  Distressed municipalities

 

·                  Projects in other priority areas

 

·                              Eligibility:

 

·                  Minimum 35 new jobs and/or 50 retained jobs for most commercial projects

 

Example — New Tenant to Jersey City

 

·                 New jobs at a 6 employees (EEs) per 1,000sf density

 

# of				Starting		Base
New EEs		SF		Rental Rate		Rent/yr
		60,000		$40/sf		$	2,400,000
360						(2,880,000		)
				Effective rent after incentive		(480,000		)

 

Base award (UTH)		$	5,000
Bonuses
Within 0.5 miles of transit station		$	2,000
251-400 jobs		500
Targeted Industry		500
		$	8,000	per job/per year
		or
		$	2,880,000	per year

 

·                  If occupancy is higher than 6 EEs per 1,000sf, the tenant receives the further benefit, which adds to their NOI

 

·                  Award based on targeted industry

 

·                  Tenant must commit to 1.5 years of term to qualify for 1 year of benefit

 

·                  Urban Transit Hub location

 

·                  Doesn’t include increases in fixed rent or additional rent payable under the lease

 

·                  Retention benefit could be substantially less than as illustrated

 

Mack-Cali Realty Corporation Supplemental Operating and Financial Data for the Quarter Ended June 30, 2016

 

7

 

Spotlight on Results

 

Operating Highlights

 

Net income available to common shareholders for the quarter ended June 30, 2016 amounted to $48.4 million, or $0.54 per share, as compared to $35.4 million, or $0.40 per share, for the quarter ended June 30, 2015.    For the six months ended June 30, 2016, net income to common shareholders equaled $110.6 million, or $1.23 per share, as compared to $32.9 million, or $0.37 per share, for the same period last year.  Included in net income for the quarter ended June 30, 2016 was $45.1 million of net gains from property-related transactions (net of noncontrolling interests in Operating Partnership of $5.3 million).  All per share amounts presented above are on a diluted basis.

 

Funds from operations (FFO) for the quarter ended June 30, 2016 amounted to $64.1 million, or $0.64 per share, as compared to $46.5 million, or $0.46 per share, for the quarter ended June 30, 2015.  For the six months ended June 30, 2016, FFO equaled $112.3 million, or $1.12 per share, as compared to $89.6 million, or $0.89 per share, for the same period last year.

 

For the current quarter, Core FFO was $0.55 per share after adjusting for a $12 million gain from extinguishment of debt, $2 million in acquisition related costs and $0.8 million of dead deal costs.  The quarter’s Core FFO per share of $0.55 increased from the same quarter last year primarily due to increased base rents and lower net property expenses in the current quarter.

 

Mack-Cali’s consolidated commercial in-service portfolio was 86.7 percent leased at June 30, 2016, as compared to 87.2 percent leased at March 31, 2016 and an increase of 4.4 percent as compared to June 30, 2015.

 

For the quarter ended June 30, 2016, the Company executed 74 leases at its consolidated in-service commercial portfolio totaling 660,373 square feet. Of these totals, 154,069 square feet were for new leases and 506,304 square feet were for lease renewals and other tenant retention transactions.  Lease transactions included 270,199 square feet in Core properties, 127,745 square feet in Waterfront properties, 150,786 square feet in Flex properties and 111,643 square feet in Non-Core properties. Lease spreads on a GAAP basis were 2.2 percent for new leases and 29.9 percent for renewed or retained leases, for an average of 27.3 percent for the quarter.

 

Rental Property Acquisitions

 

For the six months ended June 30, 2016

 

								Rentable
Acquisition						# of		Square		Acquisition
Date		Property/Address		Location		Buildings		Feet		Cost
4/4/16		11 Martine Avenue (a)		White Plains, New York		1		82,000		$	10,750
4/7/16		320, 321 University Avenue (b)		Newark, New Jersey		2		147,406		23,000
6/2/16		101 Wood Avenue South (c)		Iselin, New Jersey		1		262,841		82,300
Total Acquisitions:						4		492,247		$	116,050

 

(a)         Acquisition represented four units of condominium interests which collectively comprise floors 2 through 5.  The Company now owns the entire 14-story 262,000 square-foot building.  The acquisition was funded using available cash.

(b)         This acquisition was funded through borrowings under the Company’s unsecured revolving credit facility.

(c)          This acquisition was funded using available cash and through borrowings under the Company’s unsecured revolving credit facility.

 

On January 5, 2016, the Company, which held a 50 percent subordinated joint venture interest in the unconsolidated Overlook Ridge Apartment Investors LLC, 371-unit multi-family operating property located in Malden, Massachusetts, acquired the remaining interest for $39.8 million in cash plus the assumption of a first mortgage loan secured by the property with a principal balance of $52.7 million.  The cash portion of the acquisition was funded primarily through borrowings under the Company’s unsecured revolving credit facility.

 

On April 1, 2016, the Company, which held a 38.25 percent subordinated joint venture interest in the unconsolidated Portside Apartment Developers, LLC, a joint venture which owns a 175-unit operating multi-family property located in East Boston, Massachusetts, acquired the remaining interests of its joint venture partners for $38.6 million in cash plus the assumption of a first mortgage loan secured by the property with a principal balance of $42.5 million and interest at LIBOR plus 215 basis points, with a floor of 275 basis points, maturing in December 2017.  The cash portion of the acquisition was funded primarily through borrowings under the Company’s unsecured revolving credit facility.

 

On July 1, 2016, the Company acquired a 566,000 square-foot office property located Hoboken, New Jersey for approximately $235 million.

 

Mack-Cali Realty Corporation Supplemental Operating and Financial Data for the Quarter Ended June 30, 2016

 

8

 

Spotlight on Results

 

Rental Property Sales/Dispositions

(dollars in thousands)

 

For the six months ended June 30, 2016

 

								Rentable
Sale						# of		Square		Gross Sales			Realized
Date		Property/Address		Location		Buildings		Feet		Price			Gain (loss)
3/11/16		2 Independence Way (a)		Princeton, New Jersey		1		67,401		$	4,381		$	(164	)
3/24/16		1201 Connecticut Avenue, NW		Washington, D.C.		1		169,549		93,000			58,764
4/26/16		125 Broad Street (b)		New York, New York		1		524,476		202,000			(7,860		)
5/9/16		9200 Edmonston Road		Greenbelt, Maryland		1		38,690		4,083		(c)	246
5/18/16		1400 L Street		Washington, D.C.		1		159,000		70,000		(d)	38,346
Sub-total						5		959,116		$	373,464		$	89,332
Unrealized losses on properties held for sale						—		—		—			(3,615		)
Total Property Sales and Dispositions:						5		959,116		$	373,464		$	85,717

 

(a)         The Company recorded an impairment charge of $3.2 million on this property during the year ended December 31, 2015 as it estimated that the carrying value of the property may not be recoverable over its anticipated holding period.

(b)         The Company recorded impairment charges of $83.2 million on this property during the year ended December 31, 2015 as it estimated that the carrying value of the property may not be recoverable over its anticipated holding period.

(c)          The Company transferred the deed for this property to the lender in satisfaction of its obligations. The Company recorded an impairment charge of $3.0 million on this property during the year ended December 31, 2012 as it estimated that the carrying value of the property may not be recoverable over its anticipated holding period.

(d)         $28.5 million of the net sales proceeds are held by a qualified intermediary until such funds are used in acquisitions.

 

During the three months ended June 30, 2016, the Company signed agreements to dispose of five office properties totaling approximately 567,000 square feet, and one 220-unit multi-family rental property, subject to certain conditions.  The office and multi-family rental properties are located in Parsippany, New Jersey, Upper Saddle River, New Jersey and Andover, Massachusetts.  The Company identified these properties as held for sale at June 30, 2016.  The total estimated sales proceeds expected from the four separate sales are approximately $84 million.  The Company determined that the carrying amounts of four of the office properties were not expected to be recovered from estimated net sales proceeds and accordingly recognized an unrealized loss allowance of $3.6 million at June 30, 2016.  In July 2016, the Company completed the disposition of four of these office properties for sales proceeds of approximately $24.9 million.  All the remaining dispositions are expected to be completed in the third quarter of 2016.

 

Balance Sheet/Capital Markets

 

In January 2016, the Company obtained a new $350 million unsecured term loan, which matures in January 2019 with two one-year extension options.  The interest rate for the new term loan is currently 140 basis points over LIBOR, subject to adjustment on a sliding scale based on the Company’s unsecured debt ratings, or at the Company’s option, a defined leverage ratio. Mack-Cali entered into interest rate swap arrangements to fix LIBOR for the duration of the term loan. Including costs, the loan provides for a current all-in fixed rate of 3.13 percent. There is no premium or penalty associated with full or partial prepayment of the term loan.

 

Proceeds from the unsecured term loan were used primarily to repay outstanding borrowings on its $600 million unsecured revolving credit facility, and to repay the Company’s $200 million, 5.8 percent senior unsecured notes that matured on January 15, 2016.

 

As of June 30, 2016, the Company had total indebtedness of approximately $2.3 billion, with a weighted average annual interest rate of approximately 4.79 percent and a debt-to-undepreciated assets ratio of 40.3 percent. The Company had an interest coverage ratio of 3.4 times for the quarter ended June 30, 2016.

 

Dividends

 

In June, the Company’s Board of Directors declared a cash dividend of $0.15 per common share (indicating an annual rate of $0.60 per common share) for the second quarter 2016, which was paid on July 15, 2016 to shareholders of records as of July 6, 2016.

 

 

Mack-Cali Realty Corporation Supplemental Operating and Financial Data for the Quarter Ended June 30, 2016

 

9

 

Spotlight on Leasing - Quarter in Review

 

Consolidated Commercial Leasing Summary

 

The Company had another successful quarter of leasing with solid activity in the Core and Waterfront portfolios.

 

Portfolio Summary

 

		6/30/16		3/31/16		12/31/15
Number of buildings		212		215		217
Total square feet		23,463,605		23,974,930		24,211,880
Square feet leased		20,342,158		20,910,999		20,865,233
Square feet vacant		3,121,447		3,063,931		3,346,647
Number of tenants		1,542		1,588		1,611

 

Summary of Leasing Transaction Activity

 

For the three months ended June 30, 2016

 

																Wtd.			Wtd. Avg.
																Avg.			Costs Per
		Number of		Total		Sq. Ft.		Sq. Ft. Renewed		Average		Median		Weighted Avg.		Base			Sq. Ft.
		Transaction		Sq. Ft.		New Leases		and Other Retained		Sq. Ft.		Sq. Ft.		Term (Yrs)		Rent			Per Year
Core		32		270,199		43,523		226,676		8,444		3,788		6.5		$	26.21		$	3.07
Waterfront		2		127,745		1,829		125,916		63,873		63,873		2.0		54.20			2.71
Flex		23		150,786		38,719		112,067		6,556		5,410		4.4		18.32			1.83
Sub-Total		57		548,730		84,071		464,659		9,627		4,829		4.9		30.56			2.65
Non-Core		17		111,643		69,998		41,645		6,567		3,567		5.1		23.07			3.85
TOTALS		74		660,373		154,069		506,304		8,924		4,531		4.9		$	29.29		$	2.93

 

For the six months ended June 30, 2016

 

																Wtd.			Wtd. Avg.
																Avg.			Costs Per
		Number of		Total		Sq. Ft.		Sq. Ft. Renewed		Average		Median		Wtd. Avg.		Base			Sq. Ft.
		Transactions		Sq. Ft.		New Leases		and Other Retained		Sq. Ft.		Sq. Ft.		Term (Yrs.)		Rent			Per Year
Core		69		619,622		210,344		409,278		8,980		3,857		6.8		$	27.72		$	4.54
Waterfront		11		679,419		155,779		523,640		61,765		35,040		9.1		38.73			6.60
Flex		43		306,448		90,657		215,791		7,127		5,323		4.2		18.18			2.15
Sub-Total		123		1,605,489		456,780		1,148,709		13,053		5,097		7.3		30.56			4.77
Non-Core		33		179,024		82,947		96,077		5,425		4,015		4.2		23.10			3.53
TOTALS		156		1,784,513		539,727		1,244,786		11,439		4,501		7.0		$	29.81		$	5.26

 

Mack-Cali Realty Corporation Supplemental Operating and Financial Data for the Quarter Ended June 30, 2016

 

10

 

Spotlight on Leasing - Quarter in Review

 

Consolidated Commercial Leasing Summary (continued)

 

For the three months ended June 30, 2016

 

				Number of		Number of		Number of
		GAAP		Transactions		Transactions		Transactions
		Roll Up/(Down)		Rolled Up		Flat		Rolled Down		Total
New		2.2	%	11		—		1		12
Renew/Other Retained		29.9	%	41		1		7		49
TOTAL		27.3	%	52		1		8		61

 

For the six months ended June 30, 2016

 

				Number of		Number of		Number of
		GAAP		Transactions		Transactions		Transactions
		Roll Up/(Down)		Rolled Up		Flat		Rolled Down		Total
New		5.3	%	16		—		2		18
Renew/Other Retained		23.4	%	82		1		14		97
TOTAL		22.2	%	98		1		16		115

 

Mack-Cali Realty Corporation Supplemental Operating and Financial Data for the Quarter Ended June 30, 2016

 

11

 

Spotlight on Leasing - Rollforwards

 

(for the three months ended June 30, 2016)

 

Leasing Activity

See detail on pages 30-34

 

Progress was made on our plan to strategically dispose of non-core assets, and we acquired one leased Class-A property in a Core, transit-based submarket.

 

		Pct. Leased		Inventory		Sq. Ft. Leased		Inventory		Leased Sq. Ft.		Expiring/		Incoming		Net Leasing		Inventory		Sq. Ft. Leased		Pct. Leased
		03/31/16		03/31/16		03/31/16		Acquired/Disposed		Acquired/Disposed		Adj. Sq. Ft.		Sq. Ft.		Activity		6/30/16		6/30/16		6/30/16
Core		89.3	%	9,401,105		8,394,077		262,841		232,009		(383,683	)	270,199		(113,484	)	9,663,946		8,512,602		88.1	%
Waterfront		90.9	%	4,317,978		3,923,074		—		—		(127,745	)	127,745		—		4,317,978		3,923,074		90.9	%
Flex		91.6	%	5,207,813		4,771,078		—		—		(127,559	)	150,786		23,227		5,207,813		4,794,305		92.1	%
Sub-Total		90.3	%	18,926,896		17,088,229		262,841		232,009		(638,987	)	548,730		(90,257	)	19,189,737		17,229,981		89.8	%
Non-Core		75.7	%	5,048,034		3,822,770		(774,166	)	(722,166	)	(100,070	)	111,643		11,573		4,273,868		3,112,177		72.8	%
TOTALS		87.2	%	23,974,930		20,910,999		(511,325	)	(490,157	)	(739,057	)	660,373		(78,684	)	23,463,605		20,342,158		86.7	%

 

Percentage Leased

 

		Pct. Leased		Impact of		Impact of		Pct. Leased
		03/31/16		Portfolio Changes		Leasing Activity		6/30/16
Core		89.3	%	0.0	%	(1.2	)%	88.1	%
Waterfront		90.9	%	0.0	%	0.0	%	90.9	%
Flex		91.6	%	0.0	%	0.5	%	92.1	%
Sub-Total		90.3	%	0.0	%	(0.5	)%	89.8	%
Non-Core		75.7	%	(3.7	)%	0.3	%	72.8	%
TOTALS		87.2	%	(0.2	)%	(0.3	)%	86.7	%

 

“Core”	Long-term hold office properties (excluding Waterfront locations)
“Waterfront”	Office assets located on NJ Hudson River waterfront
“Flex”	Non-office commercial assets, primarily office/flex properties
“Non-Core”	Properties designated for eventual sale/disposition or repositioning

 

Mack-Cali Realty Corporation Supplemental Operating and Financial Data for the Quarter Ended June 30, 2016

 

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Spotlight on Leasing - Quarter Stats

 

Summary of Lease Expirations

 

(as of June 30, 2016)

 

See detail on pages 37-44

 

				Net Rentable		Pct of Leased		Annualized			Avg.			Pct of
		Number of		Area of		Sq. Ft.		Base Rental			Annualized			Annualized
Year of		Leases		Leases		Leases		Revenue			Base Rent			Base Rent
Expiration		Expiring		Expiring		Expiring		Expiring			Per Sq. Ft.			Expiring
July 1-December 31, 2016		131		713,535		3.6		$	16,455,432		$	23.06		3.4
2017		319		2,988,367		15.0		77,123,783			25.81			16.2
2018		306		2,814,806		14.1		62,378,169			22.16			13.1
2019		274		2,652,782		13.3		57,945,027			21.84			12.1
2020		222		1,840,020		9.2		41,253,436			22.42			8.6
2021 & beyond		569		8,928,962		44.8		222,327,235			24.90			46.6
TOTALS		1,821		19,938,472		100.0		$	477,483,082		$	23.95		100.0

 

Mack-Cali Realty Corporation Supplemental Operating and Financial Data for the Quarter Ended June 30, 2016

 

13

 

Spotlight on Leasing - Rental Rate Effects

 

The following schedule sets forth the percentage change in GAAP rent for transactions signed within the period.  Transactions signed for space which has been vacant for longer than 12 months are excluded.

 

		Transaction Type		1st Qtr ‘16		2nd Qtr ‘16		Year-to-Date 2016
Core
		New		2.7	%	6.9	%	3.4	%
		Renew/Other Retained		7.7	%	9.7	%	8.8	%
		Weighted Average		7.0	%	9.7	%	8.4	%
Waterfront
		New		N/A		23.3	%	23.3	%
		Renew/Other Retained		26.7	%	70.6	%	39.7	%
		Weighted Average		26.7	%	69.8	%	39.7	%
Flex		New		32.9	%	9.1	%	14.4	%
		Renew/Other Retained		12.9	%	6.7	%	9.8	%
		Weighted Average		14.9	%	7.4	%	10.7	%
Sub-Total		New		9.7	%	9.9	%	9.8	%
		Renew/Other Retained		19.9	%	32.1	%	24.9	%
		Weighted Average		19.4	%	30.5	%	24.0	%
Non-Core		New		10.3	%	(14.1	)%	(10.7	)%
		Renew/Other Retained		3.9	%	3.8	%	3.8	%
		Weighted Average		4.3	%	(1.6	)%	1.1	%
TOTAL		New		9.7	%	2.2	%	5.3	%
		Renew/Other Retained		18.9	%	29.9	%	23.4	%
		Weighted Average		18.4	%	27.3	%	22.2	%

 

Mack-Cali Realty Corporation Supplemental Operating and Financial Data for the Quarter Ended June 30, 2016

 

14