Mack-Cali Q2 net down 43%; revenue declines
By Victoria Stilwell
Mack-Cali Realty Corp.'s (NYSE:CLI) second-quarter profit fell 43% as the office landlord's revenue slid slightly and a smaller percentage of its portfolio was leased, though results still beat expectations.
The real estate investment trust recently has sought new ways to expand as stagnant office-space demand contributes to heightened competition for tenants. The company pursued multifamily properties for the first time in a decade through a joint venture disclosed last year to develop two luxury apartment towers on the Jersey City, N.J., waterfront.
Mack-Cali posted a profit of $10.1 million, or 11 cents a share, down from a year-earlier profit of $17.8 million, or 20 cents a share. Funds from operations, an important profitability measure for real estate investment trusts, fell to 62 cents from 69 cents. Revenue slid 0.4% to $178.5 million.
Analysts surveyed by Thomson Reuters recently expected per-share earnings of 10 cents and FFO of 60 cents on revenue of $177 million.
Total expenses rose 2% to $131.4 million, and the company logged a $4.4 million loss from early extinguishment of debt.
The company's portfolio was 87.6% leased as of June 30, slightly down from 87.9% in the prior quarter and 88.1% a year ago. During the quarter, the company executed 139 leases totaling 938,873 square feet.
Shares closed Wednesday at $28.14 and were inactive in premarket trade. The stock is off 18% in the past 12 months.
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