EDISON, NJ- NJ-Despite a challenging economic climate, Mack-Cali signed 141 second-quarter leases totaling 1,305,847 square feet, 1,020,537 square feet of which were office, followed by 269,710 square feet of office/flex space, 8,000 square feet of retail and 7,600 square feet of industrial. Of these totals, 402,544 square feet were for new leases and 903,303 square feet were for lease renewals and other tenant retention transactions.
The locally based REIT also revealed its second-quarter financial results during a conference call late last week. For the quarter, FFO available to common shareholders amounted to $66.1 million, or 71 cents per share, down only one cent from last quarter. Total revenues for Q2 2010 were $202.8 million, up from $195.9 million in the first quarter.
Mack-Cali’s portfolio was 88.9% leased at close of the quarter, up slightly from 88.8% at the end of Q1. “Market fundamentals remain under considerable pressure given the lack of meaningful job growth or corporate expansion,” said Mitchell E. Hersh, president and CEO.
“Notwithstanding these challenges, we have been successful in maintaining a high portfolio occupancy rate, including completing several major lease transactions that enhance the stability of our cash flows." Still, he continued, rents rolled down by 11.2%, compared to last quarter’s 8.1% roll down, further demonstrating that fundamentals remain under considerable pressure.
What’s more, added executive vice president Michael Grossman, new lead activity year-to-date through the second quarter was off of last year’s totals for that same time period by 18% on the number of leads. “Notwithstanding this decrease, inquiries for space in Bergen and Hudson counties remain above last year’s levels,” he said. There is still 895,000 square feet of space expected to expire by year’s end, which accounts for 3.2% of Mack-Cali’s portfolio.
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