Mack-Cali Realty (CLI) Misses Q2 EPS by 37c, Revenues Miss

Mack-Cali Realty (NYSE: CLI) reported Q2 EPS of ($0.41), $0.37 worse than the analyst estimate of ($0.04). Revenue for the quarter came in at $72.65 million versus the consensus estimate of $98.91 million.

SECOND QUARTER 2020 HIGHLIGHTS

• Reported net income (loss) of $(0.41) per diluted share for the second quarter 2020, as compared to $(0.43) per diluted share for the second quarter 2019; and net income (loss) of $(0.88) per diluted share for the six months ended June 30, 2020, as compared to $2.24 per diluted share for the same period in 2019;
• Achieved Core Funds from Operations per diluted share of $0.28 for the second quarter 2020, as compared to $0.40 for the second quarter 2019;
• Roseland's 6,524-unit multifamily stabilized portfolio was 92.6% leased at June 30, 2020, with an average rent of $3,020 per unit;
• Roseland's same-store portfolio, consisting of 4,838 units, experienced a 10.2% decrease in NOI over second quarter 2019. Over the same period, revenues decreased 5.2%, and expenses increased by 3.5%. Excluding a revenue write-off from a single corporate apartment provider of $0.9 million, same-store NOI would have been a decrease of 5.0% ;
• Roseland continued lease-up activities at The Emery at Overlook Ridge in the second quarter with 248 units delivered to date. As of July 27, 2020, delivered units were 81% leased;
• Leased 155,054 sq. ft. of commercial space: 54,734 sq. ft. on the Waterfront, 100,320 sq. ft. in class A suburban and suburban; growing Core portfolio office rental rates by 3.4% on a cash basis and 12.9% on a GAAP basis;
• Core office portfolio was 80.3% leased, with the Waterfront at 78.6%, class A suburban portfolio at 89.5%, and Suburban at 77.4% leased at June 30, 2020;
• The Company's office same-store portfolio, consisting of 4,508,801 sq. ft., experienced a 13.4% increase in Cash NOI and a 3.6% decrease in GAAP NOI in the second quarter 2020 over the second quarter 2019;
• Office collections averaged 96% in the second quarter 2020 and are 98% in July 2020; Residential collections averaged 98% in the second quarter 2020 and are 99% in July 2020;
• Declared regular $0.20 per share quarterly common stock dividend payable in cash; and
• Due to the uncertainty of the impacts of the COVID-19 pandemic, the Company continues to believe it is prudent to withdraw its guidance for full year 2020 EPS and Core FFO.

MaryAnne Gilmartin, Mack-Cali Board Chair and Interim Chief Executive Officer stated, "As the Board embarks upon its search for a permanent CEO, my focus will be to continue operating the Company at the highest level. We remain committed to ensuring that our tenants, our communities, and our team remain healthy as we work to overcome the challenges associated with the COVID-19 pandemic. Certainly our business and our results have been affected. In my time as a member of the Board, I have come to appreciate that we have a very talented and engaged team that is highly committed to ensuring the ongoing success of the Company. We have great assets, strong operations, and a solid financial core. In the coming quarters, my focus will be to empower the organization to provide excellent service to our tenants, dispose of non-core assets, collect rents, retain tenants and lease up our New Jersey waterfront properties in order to build long-term value for our shareholders."

For earnings history and earnings-related data on Mack-Cali Realty (CLI) click here.

You May Also Be Interested In

• Xylem names Andrea van der Berg as CFO, effective Sept. 2026
• BioMarin to acquire Alesta Therapeutics for $275M upfront
• ONE Nuclear Energy names CFO and nominates new board director