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Mack-Cali Realty (CLI) Q2 FFO Beat, Revenues Miss Estimates

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Shares of Mack-Cali Realty Corp (CLI - Free Report) rose 1.24% during Jul 29 regular trading session, after the company reported better-than-expected core funds from operations (FFO) for second-quarter 2021.

The company’s second-quarter 2021 core FFO per share of 15 cents topped the Zacks Consensus Estimate of 12 cents. However, the figure compares unfavorably with the year-ago quarter’s 28 cents.

While results reflect a year-over-year rise in same-store net operating income (NOI) for the office portfolio, the same witnessed decline in the multi-family portfolio.

In fact, per management, “We are encouraged by the second quarter leasing activity and believe the quality of our multifamily portfolio, coupled with the live, work and play proposition of our office portfolio, makes us well positioned to continue capturing leasing demand as the economy reopens,”

Quarterly revenues of $81.25 million missed the Zacks Consensus Estimate of $83 million. The revenue figure, however, came in 9.5% higher than the prior-year quarter’s number.

Quarter in Detail

As of Jun 30, 2021, Mack-Cali’s consolidated core office properties were 74.7% leased, reflecting an improvement from 74.2% as of Mar 31, 2021. The Waterfront portfolio was 75.4% leased, up from the 74.2% seen as of the first-quarter end.

Same-store revenues for the office portfolio increased 3.6% and the same-store cash NOI was up 2.5% year over year, highlighting straight line rent adjustments in the current and prior periods.

In the reported quarter, Mack-Cali executed new or renewal/extension lease deals, spanning 88,600 square feet, in the company’s office portfolio.

Further, Roseland, the company’s subsidiary engaged in multi-family residential operations, reported that its overall operating portfolio was 94.4% leased as of Jul 25, up from the prior-quarter end’s 89.7%. The multi-family portfolio, which comprised 5,825 units, witnessed a same-store NOI decline of 12.7% from the prior-year period.

Portfolio Activity

In the second quarter, the company sold 1.8 million square feet of suburban office assets for $387 million.

Balance Sheet Position

Mack-Cali exited second-quarter 2021 with $37.6 million in cash, down from $38.1 million as of Dec 31, 2020.

The company’s net debt to adjusted EBITDA was 15.1X for the reported quarter compared with the prior-year quarter’s 13.0X.

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

MackCali Realty Corporation Price, Consensus and EPS Surprise MackCali Realty Corporation Price, Consensus and EPS Surprise

MackCali Realty Corporation price-consensus-eps-surprise-chart | MackCali Realty Corporation Quote

Performance of Other REITs

Prologis, Inc. (PLD - Free Report) came up with second-quarter core FFO per share of $1.01, surpassing the Zacks Consensus Estimate of 99 cents. Results underlined all-time low vacancies in its markets that aided rent growth and valuation increases.

Boston Properties Inc.’s (BXP - Free Report) second-quarter 2021 FFO per share of $1.72 beat the Zacks Consensus Estimate of $1.61. The quarterly figure also exceeded the mid-point of the company’s second-quarter guidance by 12 cents, highlighting an improved portfolio performance, and better-than-projected parking, hotel, retail and termination income.

Highwoods Properties, Inc.’s (HIW - Free Report) quarterly FFO per share of 93 cents topped the Zacks Consensus Estimate by a cent. Rental and other revenues of $185.5 million outpaced the consensus mark of $184.9 million.

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.