Mack-Cali Realty Enjoys 7.2% Rise in Q3 FFO Per Share

CRANFORD, NJ-Mack-Cali Realty, one of New Jersey’s largest real estate players, was buffeted by a failed acquisition of Texas-based Prentiss Properties, its stock price took a hit and there were rumors of dissention in the management ranks. But when the dust settled and the company’s bottom line numbers were announced for the third quarter, Mack-Cali did just fine.

Indeed, as EVP/CFO Barry Lefkowitz announced via teleconference yesterday, the REIT saw FFO per diluted share for the quarter increase 7.2% over ’99. FFO, after adjustment for straight-lining of rents and non-recurring charges, were $65 million for the quarter, 89 cents a share. For the quarter, the company did exclude non-recurring charges of $27.9 million relating to its failed merger with Prentiss. And for the nine months, FFO was $197.5 million, $2.70 a share, vs. $182.2 million, $2.46 a share, a 9.8% rise, according to Lefkowitz.

“We’re pleased with the results,” CEO Mitchell Hersh told teleconferencers. Beyond the numbers, “we are going to execute a highly focused growth strategy,” says Hersh, referring to the company’s well-publicized move back to its regional roots. “With our asset disposition program in non-core markets, we will build greater value for our shareholders by redeploying the proceeds in our core, high-barrier-to-entry Northeast markets.”