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» Mack-Cali Realty Corporation Q1 2010 Earnings Call Transcript
» Mack-Cali Realty Corp. Q4 2009 Earnings Call Transcript
» Mack-Cali Realty Corp. Q1 2009 Earnings Call Transcript
FFO for the second quarter of 2010 was $0.71 per diluted share. We did have some significant leasing activity in the quarter, the total of in excess of 1.3 million square feet of lease transactions.Of these transactions, over 400,000 square feet were new leases and over 900,000 square feet were lease for renewals. Our retention rate within our portfolio was 71.4%, indicative of a business environment where tenants clearly preferred remain in place, with high caliber landlords and high quality assets. Overall, we ended the quarter at 88.9% lease, up slightly 10 basis points from last quarters 88.8%. However, rents did roll down this quarter by 11.2%, compared to last quarter's 8.1% roll down, further demonstrating that fundamentals remain under considerable pressure. Our leasing cost for the quarter were $2.30 per square foot per year, down from last quarter's $3 per square foot per year. For 2010, remaining rollovers are 3.4% of base rent or just under $22 million. And for 2011, we face rollovers of 10.9% of base rent or about $66.6 million. Despite a challenging environment, our portfolio continues to outperform most of the markets where we operate. With our leased rates exceeding market averages in Northern and Central New Jersey, in West Chester, in Suburban Philadelphia and in Washington D.C. And all of that indicates that Mack-Cali continues to be the preferred provider of office space in our key markets. We are more than pleased that we continue to expand our relationships with existing tenants and welcome many new businesses to our portfolio. Some of our more notable leasing transactions during the quarter included the following: we signed a new five year four month lease with Hanul Corporation, the lease is for 96,000 square feet at our Mack-Cali Airport Center located at 200 Riser Road in Little Ferry, New Jersey, adjacent to Teterboro Airport, this 286,000 square foot building is now 100% leased. This Cellco Partnership transaction commonly known on doing business as Verizon Wireless. They signed a new five year renewal for over 63,000 square foot of full building at 51 Imclone Drive in Branchburg, New Jersey.
We also did a strategic transaction with all state insurance company, totaling approximately 62,000 square feet and involving our 65 Jackson Drive building in Cranford Business Park, 36,000 square feet at our 1325 Campus Parkway in Wall Township, New Jersey, 4,500 square feet at Mack-Cali Center Four in Paramus, New Jersey and 4,000 square feet at our at our Capital Office Park in Greenbelt, Maryland.And as previously announced in one of the largest lease transactions in 2010, certainly in the New Jersey market place. We signed with National Union Fire Insurance Company of Pittsburgh, a subsidiary of AIG a renewal for almost 272,00 square feet at our magnificent 101 Hudson Street, in Jersey City extending the lease now through April of 2018. Year-after-year Mack-Cali is recognized for it's expertise in property management customer care as well as for our energy conservation efforts. This quarter a number of our properties received the Energy Star designation, an award given by the United States Environmental Protection Agency and the United States Department of Energy, signifying excellence in a building's energy performance and efficiency. Our buildings in Norwalk, Connecticut, Woodcliff Lake, two buildings in Paramus, and two buildings in Elmsford, New York received this prestigious award. With respect to our earnings guidance as you see in the press release, we've tightened the range now to $2.73 to $2.83 per share. And with that, now I'll turn the call over to Barry who will review our financial results for the quarter. Barry Lefkowitz For the second quarter of 2010 net income available of common shareholders amounted to $18.7 million or $0.24 per share, as compared to $20.4 million or $0.28 a share for the same quarter last year. FFO for the quarter amounted to $66.1 or $0.71 per share versus $76.5 million or $0.87 a share in 2009. Read the rest of this transcript for free on seekingalpha.com