PR Newswire | Nov 4, 2020 06:53PM EST

11/04 17:52 CST

Mack-Cali Realty Corporation Reports Third Quarter 2020 Results JERSEY CITY, N.J., Nov. 4, 2020

JERSEY CITY, N.J., Nov. 4, 2020 /PRNewswire/ -- Mack-Cali Realty Corporation (NYSE: CLI) today reported its results for the quarter ended September 30, 2020.

THIRD QUARTER 2020 HIGHLIGHTS

* Net income (loss) of $(0.49) per diluted share for the third quarter 2020, as compared to $(0.65) per diluted share for the third quarter 2019; and net income (loss) of $(1.37) per diluted share for the nine months ended September 30, 2020, as compared to $1.59 per diluted share for the same period in 2019; * Core Funds from Operations per diluted share of $0.30 for the third quarter 2020, as compared to $0.38 for the third quarter 2019; * Roseland's 5,589-unit multifamily stabilized portfolio (excluding assets undergoing an active renovation program) was 91.7% leased; * Roseland's adjusted same-store portfolio (excluding assets undergoing an active renovation program), consisting of 3,903 units, experienced an 11.7% decrease in NOI over third quarter 2019. Over the same period, revenues decreased by 3.3%; * Roseland continued lease-up activities at The Emery at Overlook Ridge and finished the third quarter at 75.8% leased; 81.3% leased today; * Leased 153,827 sq. ft. of commercial space: 18,349 sq. ft. on the Waterfront, 107,438 sq. ft. in class A suburban and suburban and 28,040 sq. ft. in non-core; * Grew core portfolio office rental rates by 12.3% on a cash basis and 22.3% on a GAAP basis; * Core office portfolio was 78.2% leased; with the Waterfront at 76.9%, class A suburban portfolio at 89.0%, and Suburban at 70.0% leased; * Office same-store portfolio, consisting of 4.5 million sq. ft., experienced a 15.4% increase in Cash NOI and a 2.1% increase in GAAP NOI in the third quarter 2020 over the third quarter 2019, and * Collected 96.9% of rents from our office tenants and 99.5% of rents from our multifamily tenants in the third quarter.

MaryAnne Gilmartin, Mack-Cali Board Chair and Interim Chief Executive Officer commented, "The Company and Board are focused on pursuing actions that will maximize shareholder value, taking bold, creative measures and examining all of our options. We are making significant strides in exiting our non-core commercial assets and remain confident in completing this strategy, having already demonstrated a strong market for our suburban assets. On the waterfront, we have begun implementing a new strategy to realize the untapped potential of Harborside with a new market-leading leasing team and a new head of leasing to launch a thoughtful campaign that emphasizes the value of a campus approach, which is particularly well-positioned for a post-COVID world. With respect to our multifamily platform, we remain convinced of the long-term value proposition for Roseland, the temporary impact of the pandemic notwithstanding."

FINANCIAL HIGHLIGHTS

* All per share amounts presented below are on a diluted basis.

Net income (loss) available to common shareholders for the quarter ended September 30, 2020 amounted to $(42.2) million, or $(0.49) per share, as compared to $(55.9) million, or $(0.65) per share, for the quarter ended September 30, 2019. For the nine months ended September 30, 2020, net income (loss) available to common shareholders equaled $(117.0) million, or $(1.37) per share, as compared to $166.5 million, or $1.59 per share, for the same period last year.

Funds from operations (FFO) for the quarter ended September 30, 2020 amounted to $10.1 million, or $0.10 per share, as compared to $31.5 million, or $0.31 per share, for the quarter ended September 30, 2019. For the nine months ended September 30, 2020, FFO equaled $44.8 million, or $0.45 per share, as compared to $103.9 million, or $1.03 per share, for the same period last year.

For the third quarter 2020, Core FFO was $29.9 million, or $0.30 per share, as compared to $38.2 million, or $0.38 per share for the same period last year. For the nine months ended September 30, 2020, Core FFO equaled $91.1 million, or $0.91 per share, as compared to $119.0 million, or $1.18 per share, for the same period last year.

OPERATING HIGHLIGHTS

OfficeThe Company's consolidated Core office properties (including discontinued operations) were 78.2 percent leased at September 30, 2020, as compared to 80.3 percent leased at June 30, 2020 and 80.8 percent leased at September 30, 2019.

Third quarter 2020 same-store GAAP revenues for the office portfolio increased by 1.2 percent while same-store GAAP NOI increased by 2.1 percent from the same period in 2019. Third quarter 2020 same store cash revenues for the office portfolio increased by 8.4 percent while same store cash NOI grew by 15.4 percent from 2019. Same store cash revenues and same store cash NOI exclude straight-line rent and FAS 141 adjustments.

For the quarter ended September 30, 2020, the Company executed ten leases at its commercial office portfolio, totaling 153,827 square feet. Of these totals, ten leases for 153,827 square feet (100 percent) were lease renewals and other tenant retention transactions.

Rental rate roll-up for the Core portfolio for third quarter 2020 transactions was 12.3 percent on a cash basis and 22.3 percent on a GAAP basis.

MultifamilyRoseland's stabilized operating portfolio was 91.7 percent leased at September 30, 2020 (excluding assets undergoing an active renovation program). Roseland's overall operating portfolio was 89.5 percent leased at September 30, 2020 as compared to 92.6 percent at June 30, 2020 predominately based on a decrease in new lease traffic in the portfolio's urban markets. Roseland's same-store portfolio, consisting of 4,838 units, experienced a 17.4 percent decrease in NOI over third quarter 2019. Over the same period, revenues decreased by 8.2 percent, and expenses increased by 6.7 percent. Excluding assets undergoing an active renovation program, adjusted same-store revenues decreased by 3.3 percent resulting in a same-store net operating income decrease of 11.7 percent for the third quarter 2020, as compared to third quarter 2019. For the nine months ended September 30, 2020, adjusted same-store revenues increased 1.5 percent and NOI decreased 0.3 percent over the same period in 2019.

At quarter end, Roseland had 1,942 units under construction across five projects (inclusive of the Emery). This aggregate $1 billion construction portfolio has a projected stabilized yield of approximately 6.14 percent.

During the quarter, the Company received its share of proceeds from the sale of its URBY tax credit totaling $2.6 million.

TRANSACTION ACTIVITY

During the third quarter, the Company completed the Phase 1 sale of its Parsippany and Giralda Farms portfolio, comprising 11 office buildings totaling 1.6 million square feet in Morris County for a total of $167.6 million. In addition, the Company closed on the sale of 325 Columbia Turnpike, a 168,144-square-foot office building in Florham Park, NJ for $25.8 million, as well as the first asset of its Phase 2 sales tranche of its Parsippany and Giralda portfolio, 9 Campus Drive, a 156,495-square-foot office building in Parsippany, NJ for $21 million.

Subsequent to quarter-end, the Company completed the sale of 5 Vaughn Drive, a 98,500-square-foot office building in Princeton, NJ for a total of $7.5 million.

The Company's remaining suburban New Jersey office portfolios in Monmouth, Short Hills and MetroPark are actively being marketed or under contract and are expected to be sold by early 2021.

BALANCE SHEET/CAPITAL MARKETS

As of September 30, 2020, the Company had a debt-to-undepreciated assets ratio of 49.8 percent compared to 50.2 percent at June 30, 2020 and 47.6 percent at September 30, 2019. Net debt to adjusted EBITDA for the quarter ended September 30, 2020 was 12.1x compared to 11.4x for the quarter ended September 30, 2019. The Company's interest coverage ratio was 2.7x for the quarter ended September 30, 2020, compared to 2.9x for the quarter ended September 30, 2019.

DIVIDEND

On September 30, 2020, the Company announced that it was suspending its common dividends and distributions attributable to the third and fourth quarters 2020. As the Company's management estimated that as of September 2020 it had satisfied its dividends obligations as a REIT on taxable income expected for 2020, the Company made the strategic decision to suspend its common dividends and distributions for the remainder of 2020 in an effort to provide greater financial flexibility during the pandemic and to retain incremental capital to support leasing initiatives at its Harborside commercial office properties on the Jersey City waterfront.

CONFERENCE CALL/SUPPLEMENTAL INFORMATION

An earnings conference call with management is scheduled for November 5, 2020 at 8:00 a.m. Eastern Time, which will be broadcast live via the Internet at: https://edge.media-server.com/mmc/p/osdcbrgd

The live conference call is also accessible by calling (323) 289-6576 and requesting the Mack-Cali earnings conference call.

The conference call will be rebroadcast on Mack-Cali's website at http://investors.mack-cali.com/corporate-overview beginning at 10:00 a.m. Eastern Time on November 5, 2020.

A replay of the call will also be accessible November 5, 2020 through November 12, 2020 by calling (719) 457-0820 and using the pass code, 5243655.

Copies of Mack-Cali's Third Quarter 2020 Supplemental Operating and Financial Data is available on Mack-Cali's website, as follows:

Third Quarter 2020 Form 10-Q: http://investors.mack-cali.com/sec-filings

Third Quarter 2020 Supplemental Operating and Financial Data: http://investors.mack-cali.com/quarterly-supplementals

In addition, once filed, these items will be available upon request from:Mack-Cali Investor Relations DepartmentHarborside 3, 210 Hudson St., Ste. 400, Jersey City, New Jersey 07311

INFORMATION ABOUT FFO

Funds from operations ("FFO") is defined as net income (loss) before noncontrolling interests in Operating Partnership, computed in accordance with generally accepted accounting principles ("GAAP"), excluding gains or losses from depreciable rental property transactions (including both acquisitions and dispositions), and impairments related to depreciable rental property, plus real estate-related depreciation and amortization. The Company believes that FFO per share is helpful to investors as one of several measures of the performance of an equity REIT. The Company further believes that as FFO per share excludes the effect of depreciation, gains (or losses) from property transactions and impairments related to depreciable rental property (all of which are based on historical costs which may be of limited relevance in evaluating current performance), FFO per share can facilitate comparison of operating performance between equity REITs.

FFO per share should not be considered as an alternative to net income available to common shareholders per share as an indication of the Company's performance or to cash flows as a measure of liquidity. FFO per share presented herein is not necessarily comparable to FFO per share presented by other real estate companies due to the fact that not all real estate companies use the same definition. However, the Company's FFO per share is comparable to the FFO per share of real estate companies that use the current definition of the National Association of Real Estate Investment Trusts ("NAREIT"). A reconciliation of net income per share to FFO per share is included in the financial tables accompanying this press release.

Core FFO is defined as FFO, as adjusted for certain items to facilitate comparative measurement of the Company's performance over time. Core FFO is presented solely as supplemental disclosure that the Company's management believes provides useful information to investors and analysts of its results, after adjusting for certain items to facilitate comparability of its performance from period to period. Core FFO is a non-GAAP financial measure that is not intended to represent cash flow and is not indicative of cash flows provided by operating activities as determined in accordance with GAAP. As there is not a generally accepted definition established for Core FFO, the Company's measures of Core FFO may not be comparable to the Core FFO reported by other REITs. A reconciliation of net income per share to Core FFO in dollars and per share is included in the financial tables accompanying this press release.

ABOUT THE COMPANY

One of the country's leading real estate investment trusts (REITs), Mack-Cali Realty Corporation is an owner, manager and developer of premier office and multifamily properties in select waterfront and transit-oriented markets throughout New Jersey. Mack-Cali is headquartered in Jersey City, New Jersey, and is the visionary behind the city's flourishing waterfront, where the company is leading development, improvement and place-making initiatives for Harborside, a master-planned destination comprised of class A office, luxury apartments, diverse retail and restaurants, and public spaces.

A fully integrated and self-managed company, Mack-Cali has provided world-class management, leasing, and development services throughout New Jersey and the surrounding region for over two decades. By regularly investing in its properties and innovative lifestyle amenity packages, Mack-Cali creates environments that empower tenants and residents to reimagine the way they work and live.

Additional information on Mack-Cali Realty Corporation and the commercial real estate properties and multifamily residential communities available for lease can be found on the Company's website at www.mack-cali.com.

The information in this press release must be read in conjunction with, and is modified in its entirety by, the Quarterly Report on Form 10-Q (the "10-Q") filed by the Company for the same period with the Securities and Exchange Commission (the "SEC") and all of the Company's other public filings with the SEC (the "Public Filings"). In particular, the financial information contained herein is subject to and qualified by reference to the financial statements contained in the 10-Q, the footnotes thereto and the limitations set forth therein. Investors may not rely on the press release without reference to the 10-Q and the Public Filings.

We consider portions of this report, including the documents incorporated by reference, to be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of such act. Such forward-looking statements relate to, without limitation, our future economic performance, plans and objectives for future operations and projections of revenue and other financial items. Forward-looking statements can be identified by the use of words such as "may," "will," "plan," "potential," "projected," "should," "expect," "anticipate," "estimate," "target," "continue" or comparable terminology. Forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which we cannot predict with accuracy and some of which we might not even anticipate. Although we believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, we can give no assurance that such expectations will be achieved. Future events and actual results, financial and otherwise, may differ materially from the results discussed in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together with the additional factors under the heading "Disclosure Regarding Forward-Looking Statements" and "Risk Factors" in the Company's Annual Report on Form 10-K, as may be supplemented or amended by the Company's Quarterly Reports on Form 10-Q, which are incorporated herein by reference. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise, except as required under applicable law.

In addition, the extent to which the ongoing COVID-19 pandemic impacts us and our tenants will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures, among others.

Media Contact:

Jeremy Soffin

Mack-cali@berlinrosen.com

(646) 200-5318

Mack-Cali Realty Corporation

Consolidated Statements of Operations

(In thousands, except per share amounts) (unaudited)

Three Months Ended Nine Months Ended

September 30, September 30,

REVENUES 2020 2019 2020 2019

Revenue from leases $ 65,849 $ 72,538 $ 201,091 $ 224,947

Real estate services 2,876 3,411 8,624 10,783

Parking income 4,033 5,716 12,332 16,097

Hotel income 893 3,325 3,290 5,702

Other income 3,999 2,400 7,020 6,732

Total revenues 77,650 87,390 232,357 264,261

EXPENSES

Real estate taxes 10,816 11,151 32,326 33,813

Utilities 3,598 4,402 10,564 14,605

Operating services 18,942 18,109 50,639 52,821

Real estate services expenses 3,300 3,905 10,106 12,150

General and administrative 28,945 12,571 62,005 42,836

Depreciation and amortization 31,670 32,605 92,807 96,110

Property impairments 36,582 - 36,582 -

Land and other impairments 1,292 2,589 23,401 5,088

Total expenses 135,145 85,332 318,430 257,423

OTHER (EXPENSE) INCOME

Interest expense (20,265) (22,129) (61,795) (67,817)

Interest and other investment 3 188 42 1,526income (loss)

Equity in earnings (loss) of 1,373 (113) (281) (882)unconsolidated joint ventures

Gain on change of control of - - - 13,790interests

Realized gains (losses) andunrealized losses on - (34,666) (7,915) 233,698disposition of rental property,net

Gain (loss) on disposition of - 296 4,813 566developable land

Gain on sale of investment in - - - 903unconsolidated joint venture

Gain (loss) from extinguishment - (98) - 1,801of debt, net

Total other income (18,889) (56,522) (65,136) 183,585(expense)

Income (loss) from continuing (76,384) (54,464) (151,209) 190,423operations

Discontinued operations:

Income from discontinued 19,491 8,506 63,213 24,686operations

Realized gains (losses) andunrealized losses disposition 15,775 (10,063) (23,900) (15,865)of rental property andimpairments, net

Total discontinued operations, 35,266 (1,557) 39,313 8,821net

Net income (loss) (41,118) (56,021) (111,896) 199,244

Noncontrolling interests in 895 405 1,900 2,500consolidated joint ventures

Noncontrolling interest inOperating Partnership of income 7,874 6,005 16,166 (18,191)from continuing operations

Noncontrolling interests inOperating Partnership in (3,388) 154 (3,776) (896)discontinued operations

Redeemable noncontrolling (6,471) (6,471) (19,413) (16,144)interests

Net income (loss) available to $ (42,208) $ (55,928) $ (117,019) $ 166,513common shareholders

Basic earnings per commonshare:

Income (loss) from continuing $ (0.84) $ (0.63) $ (1.76) 1.50operations

Discontinued operations 0.35 (0.02) 0.39 0.09

Net income (loss) available to $ (0.49) $ (0.65) $ (1.37) $ 1.59common shareholders

Diluted earnings per commonshare:

Income (loss) from continuing $ (0.84) $ (0.63) $ (1.76) $ 1.50operations

Discontinued operations 0.35 (0.02) 0.39 0.09

Net income (loss) available to $ (0.49) $ (0.65) $ (1.37) $ 1.59common shareholders

Basic weighted average shares 90,671 90,584 90,639 90,539outstanding

Diluted weighted average shares 100,307 100,560 100,235 100,802outstanding

Mack-Cali Realty Corporation

Statements of Funds from Operations and Core FFO

(in thousands, except per share/unit amounts) (unaudited)

Three Months Ended Nine Months Ended

September 30, September 30,

2020 2019 2020 2019

Net income (loss)available to common $ (42,208) $ (55,928) $ (117,019) $ 166,513shareholders

Add (deduct):Noncontrolling interests (7,874) (6,005) (16,166) 18,191in Operating Partnership

Noncontrolling interests 3,388 (154) 3,776 896in discontinued operations

Real estate-relateddepreciation and 34,665 35,785 101,560 104,197amortization on continuingoperations (a)

Real estate-relateddepreciation and 1,366 16,797 4,271 50,418amortization ondiscontinued operations

Property Impairments on 36,582 - 36,582 -continuing operations

Property Impairments on - 5,894 - 11,696discontinued operations

Gain on change of control - - - (13,790)of interests

Gain on sale of investmentin unconsolidated joint - - - (903)venture

Continuing operations:Realized (gains) lossesand unrealized losses on - 34,666 7,915 (233,698)disposition of rentalproperty, net

Discontinued operations:Realized (gains) lossesand unrealized losses on (15,775) 413 23,900 413disposition of rentalproperty, net

Funds from operations (b) $ 10,144 $ 31,468 $ 44,819 $ 103,933

Add (Deduct):

(Gain) loss fromextinguishment of debt, - 98 - (1,801)net

Land and other impairments 1,292 6,345 23,401 8,844

(Gain) on disposition of - (296) (4,813) (566)developable land

Dead deal costs 2,583 271 2,860 271

Severance/separation costson management 8,900 277 11,738 1,839restructuring

Management contract - - - 1,021termination costs

Reporting systems - - 363 -conversion costs

Proxy fight costs 6,954 - 12,770 4,171

New payroll tax consulting - - - 1,313costs

Core FFO $ 29,873 $ 38,163 $ 91,138 $ 119,025

Diluted weighted averageshares/units outstanding 100,307 100,560 100,235 100,802(c)

Funds from operations per $ 0.10 $ 0.31 $ 0.45 $ 1.03share/unit-diluted

Core funds from operations $ 0.30 $ 0.38 $ 0.91 $ 1.18per share/unit diluted

Dividends declared per $ - $ 0.20 $ 0.40 $ 0.60common share

Supplemental Information:

Non-incremental revenuegenerating capitalexpenditures:

Building improvements $ 2,975 $ 3,091 $ 7,325 $ 6,406

Tenant improvements & $ 4,057 $ 7,245 $ 15,047 $ 19,976leasing commissions (d)

Tenant improvements &leasing commissions on $ 1,627 $ 6,138 $ 10,653 $ 13,836space vacant for more thana year

Straight-line rent $ 467 $ 3,625 $ 1,744 $ 10,532adjustments (e)

Amortization of (above)/below market lease $ 858 $ 1,057 $ 2,661 $ 3,152intangibles, net (f)

Amortization of stock $ 799 $ 2,061 $ 5,907 $ 6,289compensation

Amortization of lease $ (40) $ (108) $ 76 $ 475inducements

Non real estatedepreciation and $ 336 $ 611 $ 1,268 $ 1,661amortization

Amortization of deferred $ 1,074 $ 1,121 $ 3,158 $ 3,478financing costs

Includes the Company's share from unconsolidated joint ventures, and adjustments for noncontrolling interests, of $3,331 and $3,655 for the three months ended September 30, 2020 and 2019, respectively, and $10,020(a) and $9,341 for the nine months ended September 30, 2020 and 2019, respectively. Excludes non-real estate-related depreciation and amortization of $336 and $611 for the three months ended September 30, 2020 and 2019, respectively, and $1,268 and $1,661 for the nine months ended September 30, 2020 and 2019, respectively.

Funds from operations is calculated in accordance with the definition of(b) FFO of the National Association of Real Estate Investment Trusts (NAREIT). See "Information About FFO" in this release.

Calculated based on weighted average common shares outstanding, assuming redemption of Operating Partnership common units into common shares (9,396(c) and 9,852 shares for the three months ended September 30, 2020 and 2019, respectively, and 9,411and 9,960 for the nine months ended September 30, 2020 and 2019, respectively), plus dilutive Common Stock Equivalents (i.e. stock options).

(d) Excludes expenditures for tenant spaces that have not been owned for at least a year.

Includes free rent of $3,930 and $5,853 for the three months ended September 30, 2020 and 2019, respectively, and $10,187 and $16,095 for the nine months ended September 30, 2020 and 2019, respectively. Also,(e) includes the Company's share from unconsolidated joint ventures of $52 and $266 for the three months ended September 30, 2020 and 2019, respectively, and $69 and $(59) for the nine months ended September 30, 2020 and 2019, respectively.

Includes the Company's share from unconsolidated joint ventures of $0 and(f) $0 for the three months ended September 30, 2020 and 2019, respectively, and $0 and $0 for the nine months ended September 30, 2020 and 2019, respectively.

Statements of Funds from Operations (FFO) and Core FFO per Diluted Share

(amounts are per diluted share, except share counts in thousands) (unaudited)

Three Months Ended Nine Months Ended

September 30, September 30,

2020 2019 2020 2019

Net income (loss) available to $ (0.49) $ (0.65) $ (1.37) $ 1.59common shareholders

Add (deduct): Real estate-relateddepreciation and amortization on 0.35 0.36 1.01 1.03continuing operations (a)

Real estate-related depreciation andamortization on discontinued 0.01 0.17 0.04 0.50operations

Redemption value adjustment to 0.02 0.03 0.08 0.25redeemable noncontrolling interests

Property impairments on continuing 0.36 - 0.36 -operations

Property Impairments on discontinued - 0.06 - 0.12operations

Gain on change of control of - - - (0.14)interests

Gain on sale of investment in - - - (0.01)unconsolidated joint venture

Continuing operations: Realized(gains) losses and unrealized losses - 0.34 0.08 (2.32)on disposition of rental property,net

Discontinued operations: Realized(gains) losses and unrealized (0.16) - 0.24 -losses on disposition of rentalproperty, net

Noncontrolling interest/rounding 0.01 - 0.01 0.01adjustment

Funds from operations (b) $ 0.10 $ 0.31 $ 0.45 $ 1.03

Add (Deduct):

(Gain) loss from extinguishment of - - - (0.02)debt, net

Land and other impairments 0.01 0.06 0.23 0.09

Dead deal costs 0.03 - 0.03 -

(Gain) on disposition of developable - - (0.05) (0.01)land

Severance/separation costs on 0.09 - 0.12 0.02management restructuring

Management contract terminationcosts / reporting system conversion - - - 0.01costs

Proxy fight costs 0.07 - 0.13 0.04

New payroll tax consulting costs - - - 0.01

Noncontrolling interest/rounding - 0.01 - 0.01adjustment

Core FFO $ 0.30 $ 0.38 $ 0.91 $ 1.18

Diluted weighted average shares/ 100,307 100,560 100,235 100,802units outstanding (c)

Includes the Company's share from unconsolidated joint ventures of $0.04(a) and $0.04 for the three months ended September 30, 2020 and 2019, respectively, and $0.12 and $0.13 for the nine months ended September 30, 2020 and 2019, respectively.

Funds from operations is calculated in accordance with the definition of(b) FFO of the National Association of Real Estate Investment Trusts (NAREIT). See "Information About FFO" in this release.

Calculated based on weighted average common shares outstanding, assuming redemption of Operating Partnership common units into common shares (9,396(c) and 9,852 shares for the three months ended September 30, 2020 and 2019, respectively, and 9,411and 9,960 for the nine months ended September 30, 2020 and 2019, respectively), plus dilutive Common Stock Equivalents (i.e. stock options).

Mack-Cali Realty Corporation

Consolidated Balance Sheets

(in thousands, except per share amounts) (unaudited)

September 30, December 31,

Assets 2020 2019

Rental property

Land and leasehold interests $ 641,962 $ 653,231

Buildings and improvements 3,669,960 3,361,435

Tenant improvements 163,900 163,299

Furniture, fixtures and equipment 78,558 78,716

4,554,380 4,256,681

Less - accumulated depreciation and amortization (627,995) (558,617)

3,926,385 3,698,064

Rental property held for sale, net 714,404 966,497

Net investment in rental property 4,640,789 4,664,561

Cash and cash equivalents 22,872 25,589

Restricted cash 14,507 15,577

Investments in unconsolidated joint ventures 194,779 209,091

Unbilled rents receivable, net 86,818 95,686

Deferred charges, goodwill and other assets, net 220,194 275,102

Accounts receivable 10,784 7,192

Total assets $ 5,190,743 $ 5,292,798

Liabilities and Equity

Senior unsecured notes, net $ 572,360 $ 571,484

Unsecured revolving credit facility and term 156,000 329,000loans

Mortgages, loans payable and other obligations, 2,167,522 1,908,034net

Dividends and distributions payable 1,537 22,265

Accounts payable, accrued expenses and other 205,637 209,510liabilities

Rents received in advance and security deposits 36,575 39,463

Accrued interest payable 15,642 10,185

Total liabilities 3,155,273 3,089,941

Commitments and contingencies

Redeemable noncontrolling interests 511,352 503,382

Equity:

Mack-Cali Realty Corporation stockholders'equity:

Common stock, $0.01 par value, 190,000,000shares authorized,

90,712,055 and 90,595,176 shares outstanding 907 906

Additional paid-in capital 2,531,122 2,535,440

Dividends in excess of net earnings (1,195,909) (1,042,629)

Accumulated other comprehensive income (loss) - (18)

Total Mack-Cali Realty Corporation 1,336,120 1,493,699stockholders' equity

Noncontrolling interests in subsidiaries:

Operating Partnership 142,469 158,480

Consolidated joint ventures 45,529 47,296

Total noncontrolling interests in subsidiaries 187,998 205,776

Total equity 1,524,118 1,699,475

Total liabilities and equity $ 5,190,743 $ 5,292,798

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SOURCE Mack-Cali Realty Corporation