QuickLinks -- Click here to rapidly navigate through this document
THIRD QUARTER 2003
Supplemental Operating and Financial Data
This Supplemental Operating and Financial Data is not an offer to sell or solicitation to buy any securities of the Company. Any offers to sell or solicitations of the Company shall be made by means of a prospectus. The information in this Supplemental Package 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 Supplemental Package without reference to the 10-Q and the Public Filings. Any investors' receipt of, or access to, the information contained herein is subject to this qualification.
Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2003
| | | | PAGE(S) | |
|---|---|---|---|---|
| I. COMPANY BACKGROUND | ||||
| • | About the Company/Other Corporate Data | 5 | ||
| • | Board of Directors/Executive Officers | 6 | ||
| • | Equity Research Coverage/Company Contact Information | 7 | ||
II. FINANCIAL HIGHLIGHTS | ||||
| • | Quarterly Summary/Acquisitions | 9 | ||
| • | Sales Activity/Financing Activity/Leasing Information | 10-11 | ||
| • | Information About FFO | 11 | ||
| • | Key Financial Data | 12 | ||
| • | Same-Store Results and Analysis | 13 | ||
| • | Unconsolidated Joint Ventures Summary | 14-17 | ||
| • | Select Financial Ratios | 18 | ||
| • | Debt Analysis: | |||
| • | Debt Breakdown/Future Repayments | 19 | ||
| • | Debt Maturities | 20 | ||
| • | Debt Detail | 21 | ||
III. FINANCIAL INFORMATION | ||||
| • | Consolidated Statements of Operations | 23 | ||
| • | Consolidated Balance Sheets | 24 | ||
| • | Consolidated Statement of Changes in Stockholders' Equity | 25 | ||
| • | Statements of Funds from Operations | 26 | ||
| • | Statements of Funds from Operations Per Diluted Share | 27 | ||
| • | Reconciliation of Basic-to-Diluted Shares/Units | 28 | ||
IV. VALUE CREATION PIPELINE | ||||
| • | Operating Property Acquisitions | 30 | ||
| • | Properties Commencing Initial Operations | 32 | ||
| • | Acquisition Property Profiles | 33-35 | ||
| • | Summary of Land Parcels | 36 | ||
| • | Rental Property Sales | 37 | ||
V. PORTFOLIO/ LEASING STATISTICS | ||||
| • | Leasing Statistics | 39-44 | ||
| • | Market Diversification (MSA's) | 45 | ||
| • | Industry Diversification (Top 30 Tenant Industries) | 46 | ||
| • | Consolidated Portfolio Analyses: | |||
| Breakdown by: | ||||
| (a) Number of Properties | 47 | |||
| (b) Square Footage | 48 | |||
| (c) Base Rental Revenue | 49 | |||
| (d) Percentage Leased | 50 | |||
| • | Consolidated Property Listing (by Property Type) | 51-60 | ||
| • | Significant Tenants (Top 20 Tenants) | 61 | ||
| • | Schedules of Lease Expirations (by Property Type) | 62-67 | ||
2
DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS
Certain information discussed in this literature may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the federal securities laws, including Section 21E of the Securities Exchange Act of 1934. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements relate to, without limitation, the Company's 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," "should," "expect," "anticipate," "estimate," "continue" or comparable terminology. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, it can give no assurance that its expectations will be achieved. Forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate. 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. Among the risks, trends and uncertainties are changes in the general economic conditions, including those affecting industries in which the Company's principal tenants compete; any failure of the general economy to recover timely from the current economic downturn; the extent of any tenant bankruptcies; the Company's ability to lease or re-lease space at current or anticipated rents; changes in the supply of and demand for office, office/flex and industrial/warehouse properties; changes in interest rate levels; changes in operating costs; the Company's ability to obtain adequate insurance, including coverage for terrorist acts; the availability of financing; and other risks associated with the development and acquisition of properties, including risks that the development may not be completed on schedule, that the tenants will not take occupancy or pay rent, or that development or operating costs may be greater than anticipated. For further information on factors which could impact the Company and the statements contained herein, reference should be made to the Company's filings with the Securities and Exchange Commission including Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and Annual Reports on Form 10-K. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
3
4
Mack-Cali Realty Corporation (NYSE: CLI) is one of the largest real estate investment trusts (REITs) in the United States with a total market capitalization of $4.5 billion at September 30, 2003. Mack-Cali has been involved in all aspects of commercial real estate development, management and ownership for over 50 years and has been a publicly-traded REIT since 1994. Mack-Cali owns or has interests in 265 properties, primarily class A office and office/flex buildings, totaling approximately 28.5 million square feet, serving as home to approximately 2,100 tenants. The properties are located primarily in suburban markets of the Northeast, many with adjacent, Company-controlled developable land sites able to accommodate up to 8.3 million square feet of additional commercial space.
Established over 50 years ago, in 1994 the New Jersey-based firm became a publicly-traded company listed on the New York Stock Exchange under the ticker symbol CLI. Through combinations with some of the top companies in the real estate industry—most notably New Jersey-based Mack Company and Westchester, New York-based Robert Martin Company—Mack-Cali has become one of the leading real estate companies in the country.
Mack-Cali's strategy is to be a significant real estate owner and operator in its core, high-barriers-to-entry markets, primarily in the Northeast.
Summary
(as of September 30, 2003)
| Corporate Headquarters | Cranford, New Jersey | |
| Fiscal Year-End | 12/31 | |
| Total Properties | 265 | |
| Total Square Feet | 28.5 million square feet | |
| Geographic Diversity | Eight states and the District of Columbia | |
| New Jersey Presence | 15.6 million square feet | |
| Northeast Presence | 24.5 million square feet | |
| Common Shares and Units Outstanding | 72.2 million | |
| Dividend—Quarter/Annualized | $0.63/$2.52 | |
| Dividend Yield | 6.4% | |
| Total Market Capitalization | $4.5 billion | |
| Insider Ownership | 16.5% | |
| Senior Debt Rating | BBB (S&P and Fitch); Baa2 (Moody's) |
5
Board of Directors
William L. Mack,Chairman of the Board
Martin S. Berger | Earle I. Mack | |
Brendan T. Byrne | Alan G. Philibosian | |
John R. Cali | Irvin D. Reid | |
Nathan Gantcher | Vincent Tese | |
Martin D. Gruss | Roy J. Zuckerberg | |
Mitchell E. Hersh |
Mitchell E. Hersh,Chief Executive Officer
Timothy M. Jones,President
Barry Lefkowitz,Executive Vice President and Chief Financial Officer
Roger W. Thomas,Executive Vice President, General Counsel and Secretary
Michael A. Grossman,Executive Vice President
6
| Advest, Inc. Sheila K. McGrath (908) 598-1180 | Green Street Advisors John Lutzius (949) 640-8780 | |
Banc of America Securities Lee T. Schalop/ Alexis Hughes (212) 847-5677/ (212) 847-5705 | Lehman Brothers David Shulman (212) 526-3413 | |
Bear, Stearns & Co., Inc. Ross Smotrich (212) 272-8046 | Morgan Stanley Dean Witter Gregory Whyte (212) 761-6331 | |
CS First Boston Jay Habermann (212) 538-5250 | Prudential Securities James Sullivan (212) 778-2515 | |
Deutsche Bank-North America Louis Taylor (212) 469-4912 | Smith Barney Citigroup Jonathan Litt/ Gary Boston (212) 816-0231/ (212) 816-1383 | |
Friedman, Billings, Ramsey & Co. David Loeb (703) 469-1289 | Wachovia Securities Christopher Haley (443) 263-6773 | |
Goldman Sachs Carey Callaghan (212) 902-4351 |
Mack-Cali Realty Corporation
Investor Relations Department
11 Commerce Drive
Cranford, New Jersey 07016-3599
| Phone: | (908) 272-8000 | Web: | www.mack-cali.com | |||
| Fax: | (908) 272-6755 | E-mail: | investorrelations@mack-cali.com |
7
8
Funds from operations (FFO) available to common shareholders for the quarter ended September 30, 2003 amounted to $69.6 million, or $0.96 per share, versus $72.6 million, or $1.01 per share, for the quarter ended September 30, 2002. For the nine months ended September 30, 2003, FFO available to common shareholders amounted to $209.2 million, or $2.91 per share, versus $213.5 million, or $2.98 per share, for the same period last year.
Net income available to common shareholders for the third quarter 2003 equaled $50.4 million, or $0.84 per share, versus $34.2 million, or $0.59 per share, for the same quarter last year, a per share increase of 42.4 percent. For the nine months ended September 30, 2003, net income available to common shareholders equaled $114.0 million, or $1.96 per share, versus $109.9 million, or $1.91 per share, for the same period last year, an increase of 2.6 percent on a per share basis.
Total revenues for the third quarter 2003 increased 3.6 percent to $147.4 million as compared to $142.3 million for the same quarter last year. For the nine months ended September 30, 2003, total revenues amounted to $440.7 million, an increase of 3.6 percent over total revenues of $425.4 million for the same period last year.
All per share amounts presented above are on a diluted basis; basic earnings per share is included in the financial tables on page 23.
The Company had 58,182,631 shares of common stock, 10,000 shares of cumulative redeemable perpetual preferred stock, 7,795,498 common operating partnership units and 215,456 $1,000-face-value preferred operating partnership units outstanding as of quarter end.
The outstanding preferred units are convertible into 6,218,066 common operating partnership units. Assuming conversion of all preferred units into common units, the Company had a total of 72,196,195 shares/common units outstanding at September 30, 2003.
As of September 30, 2003, the Company had total indebtedness of approximately $1.6 billion, with a weighted average annual interest rate of 7.10 percent. Mack-Cali had a total market capitalization of $4.5 billion and a debt-to-undepreciated assets ratio of 38.5 percent at September 30, 2003. The Company had an interest coverage ratio of 3.4 times for the quarter ended September 30, 2003.
The following is a summary of the Company's recent activity:
During the quarter, the Company acquired three office properties, aggregating 202,184 square feet, for approximately $24.5 million, as follows:
- •
- In August, the Company acquired 3 Odell Plaza, a 71,065 square-foot office/flex building in Yonkers, New York. The property, located at Mack-Cali's South Westchester Executive Park, was purchased from the Schott Corporation for approximately $6 million. Simultaneously, the Company announced that Montefiore Medical Center leased 44,590 square feet for 15 years at the property. In addition, the seller of the property, Schott Corporation, signed a 10-year lease for 16,815 square feet for its U.S. corporate headquarters at Mack-Cali's 555 Taxter Road property in Taxter Corporate Park in Elmsford, New York;
- •
- In September, the Company acquired 4 Sentry Parkway, a 63,930 square-foot class A office building located in the Sentry Park office campus in Blue Bell, Pennsylvania for approximately $10.2 million; and
9
- •
- Also in September, the Company acquired 14 Commerce Drive, a 67,189 square-foot office building located in Cranford, New Jersey, for approximately $8.3 million.
On September 29, 2003, the Company sold its interest in American Financial Exchange LLC, a joint venture which developed Harborside Financial Center Plaza 10, a 577,575 square-foot class A office building 100 percent pre-leased to Charles Schwab & Co., which is located in Jersey City, New Jersey. The Company received approximately $162.1 million in net sales proceeds from the transaction, which it used primarily to repay outstanding borrowing under its revolving credit facility. The Company recognized a gain on the sale of approximately $23.1 million, which is recorded in gain on sale of investment in unconsolidated joint venture for the three and nine months ended September 30, 2003. The Company will continue to manage the property for the new owner.
More recently in October, the Company sold Riverview Tower, a 248,153 square-foot office building located in San Antonio, Texas, for approximately $11.025 million.
In September, the Company's Board of Directors declared a cash dividend of $0.63 per common share (indicating an annual rate of $2.52 per common share) for the third quarter 2003, which was paid on October 20, 2003 to shareholders of record as of October 3, 2003. The Board of Directors also declared a cash dividend of $0.50 per depositary share, each representing 1/100th of a share of 8 percent Series C cumulative redeemable perpetual preferred stock ($25 liquidation value per depositary share) for the period July 15, 2003 through October 14, 2003. The preferred stock dividend was paid on October 15, 2003 to shareholders of record as of October 3, 2003.
Mack-Cali's consolidated portfolio of stabilized operating properties, before the effect of adding Harborside Financial Center Plaza 5, was 92.0 percent leased at September 30, 2003, compared to 92.2 percent leased at June 30, 2003. Adding, for the first time, Plaza 5 (56.2 percent leased at quarter end previously classified as a development property in lease up) resulted in a decrease of 1.3 percent in the Company's consolidated portfolio of stabilized operating properties to 90.7 percent at September 30, 2003.
For the quarter ended September 30, 2003, the Company executed 183 leases totaling 1,242,817 square feet, consisting of 766,848 square feet of office space, 331,587 square feet of office/flex space and 144,382 square feet of industrial/warehouse space. Of these totals, 444,398 square feet were for new leases and 798,419 square feet were for lease renewals and other tenant retention transactions.
Highlights of the quarter's leasing transactions include:
- •
- San Mar Laboratories, Inc., a private label manufacturer of cosmetic products, signed a 12-year 122,282 square-foot renewal at 4 Warehouse Lane in Elmsford, New York. The 195,500 square-foot industrial/warehouse property, located in the Elmsford Distribution Center, is 100 percent leased.
- •
- ClubCorp, Inc., an owner/operator of private golf and business clubs, signed a 12-year renewal for 88,256 square feet at 3030 LBJ Freeway in Dallas, Texas. The 367,018 square-foot class A office property is 81.6 percent leased.
- •
- Rock Bottom Restaurants, Inc. a national restaurant owner and operator, signed a renewal and expansion totaling 39,322 square feet at 248 Centennial Parkway in Louisville, Colorado. The
10
- •
- Citigroup Global Markets, Inc., a division of financial services provider Citigroup, Inc., renewed its lease for 26,834 square feet at 150 JFK Parkway in Short Hills, New Jersey for 10 years. The 247,476 square-foot class A office building is 98.7 percent leased.
- •
- Coram Alternate Site Services, a provider of home health care, leased 36,370 square feet at two office/flex buildings at Mack-Cali Commercenter in Totowa, New Jersey. The company renewed its lease for 26,125 square feet at 11 Commerce Way for five years and signed a new lease for 10,245 square feet at 20 Commerce Way for six years. Both buildings are 100 percent leased.
- •
- Cap Gemini Telecom Media & Networks U.S., Inc., a division of Cap Gemini Ernst & Young, renewed its lease for 23,175 square feet at 100 Walnut Avenue in Clark, New Jersey for a term of five years. The 182,555 square-foot class A office property is 100 percent leased.
- •
- The Artina Group, Inc., a distributor of software-compatible forms, renewed its lease for 22,141 square feet at 250 Clearbrook Road in the Cross Westchester Executive Park in Elmsford, New York for five years. The 155,000 square-foot office/flex building is 95.1 percent leased.
- •
- National Association of Securities Dealers, Inc. (NASD), a private-sector provider of financial regulatory services, signed a 10-year lease transaction totaling 19,832 square feet. The deal represented a 13,932 square-foot renewal and expansion of 5,900 square feet at 581 Main Street in Woodbridge, New Jersey. The 200,000 square-foot class A office property is 100 percent leased.
- •
- WithumSmith+Brown, a public accounting firm, signed a new 10-year lease for 19,407 square feet at 5 Vaughn Drive in Princeton, New Jersey. 5 Vaughn Drive, a 98,500 square-foot class A office property, is 98.1 percent leased.
transaction expands the tenant's existing lease by 16,326 square feet for five years. Rock Bottom Restaurants now leases 100 percent of the building.
Also during the third quarter 2003, the Company signed a new five-year lease with Moody's Investors Service, Inc. for 43,344 square feet at Harborside Financial Center Plaza 5 in Jersey City, New Jersey. More recently, the Company signed a new lease at Plaza 5 with the Office of Thrift Supervision, a bureau of the U.S. Department of Treasury, for 20,664 square feet which brought the 980,000 square-foot class A office property to 58.3 percent leased.
Funds from operations ("FFO") is defined as net income (loss) before minority interest of unitholders, computed in accordance with generally accepted accounting principles ("GAAP"), excluding gains (or losses) from extraordinary items and sales of depreciable rental property, plus real estate-related depreciation and amortization. The Company believes that FFO is helpful to investors as one of several measures of the performance of an equity REIT. The Company further believes that by excluding the effect of depreciation and gains (or losses) from sales of properties (all of which are based on historical costs which may be of limited relevance in evaluating current performance), FFO can facilitate comparison of operating performance between equity REITs. FFO should not be considered as an alternative to net income as an indication of the Company's performance or to cash flows as a measure of liquidity. FFO presented herein is not necessarily comparable to FFO 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 is comparable to the FFO of real estate companies that use the current definition of the National Association of Real Estate Investment Trusts ("NAREIT"). A reconciliation of net income to FFO is included in the financial tables on page 26.
11
| | As of or for the three months ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| | 9/30/03 | 6/30/03 | 3/31/03 | 12/31/02 | 9/30/02 | ||||||
| Shares and Units: | |||||||||||
| Common Shares Outstanding | 58,182,631 | 58,011,329 | 57,592,309 | 57,318,478 | 57,669,818 | ||||||
| Common Units Outstanding(a) | 14,013,564 | 14,018,563 | 14,042,537 | 14,044,513 | 14,045,513 | ||||||
| Combined Shares and Units | 72,196,195 | 72,029,892 | 71,634,846 | 71,362,991 | 71,715,331 | ||||||
| Preferred Shares Outstanding | 10,000 | 10,000 | 10,000 | 0 | 0 | ||||||
| Weighted Average—Basic(b) | 65,668,258 | 65,330,939 | 65,040,080 | 65,139,781 | 65,371,622 | ||||||
| Weighted Average—Diluted(c) | 72,465,396 | 71,980,343 | 71,376,595 | 71,568,463 | 71,886,994 | ||||||
Common Share Price ($'s): | |||||||||||
| At the end of the period | 39.2000 | 36.3800 | 30.9700 | 30.3000 | 32.1300 | ||||||
| High during period | 39.2100 | 36.5000 | 31.3800 | 31.7000 | 34.9600 | ||||||
| Low during period | 35.3500 | 30.9400 | 27.3500 | 27.0300 | 26.6500 | ||||||
Market Capitalization:($'s in thousands, except ratios) | |||||||||||
| Market Value of Equity(d) | 2,855,091 | 2,645,447 | 2,243,531 | 2,162,299 | 2,304,214 | ||||||
| Total Debt | 1,630,930 | 1,727,635 | 1,755,992 | 1,752,372 | 1,757,235 | ||||||
| Total Market Capitalization | 4,486,021 | 4,373,082 | 3,999,523 | 3,914,671 | 4,061,449 | ||||||
| Total Debt/ Total Market Capitalization | 36.36 | % | 39.51 | % | 43.91 | % | 44.76 | % | 43.27 | % | |
Financials:($'s in thousands, except ratios and per share amounts) | |||||||||||
| Total Assets | 3,711,515 | 3,794,873 | 3,809,480 | 3,796,429 | 3,812,330 | ||||||
| Gross Book Value of Real Estate Assets | 3,941,814 | 3,897,327 | 3,876,959 | 3,857,657 | 3,771,087 | ||||||
| Total Liabilities | 1,777,015 | 1,881,724 | 1,904,422 | 1,912,199 | 1,912,782 | ||||||
| Total Minority Interests | 429,791 | 428,045 | 429,155 | 430,036 | 438,422 | ||||||
| Total Stockholders' Equity | 1,504,709 | 1,485,104 | 1,475,903 | 1,454,194 | 1,461,126 | ||||||
| Total Revenues | 147,386 | 145,324 | 147,943 | 140,843 | 142,308 | ||||||
| Capitalized Interest | 1,717 | 2,336 | 2,328 | 2,494 | 5,524 | ||||||
| Scheduled Principal Payments | 1,705 | 1,444 | 1,345 | 976 | 824 | ||||||
| Interest Coverage Ratio | 3.41 | 3.46 | 3.34 | 3.32 | 3.75 | ||||||
| Fixed Charge Coverage Ratio | 2.66 | 2.67 | 2.65 | 2.65 | 2.69 | ||||||
| Net Income | 50,892 | 34,260 | 29,981 | 29,836 | 34,232 | ||||||
| Net Income Available to Common Shareholders | 50,392 | 33,588 | 29,981 | 29,836 | 34,232 | ||||||
| Earnings per Share—diluted | 0.84 | 0.58 | 0.52 | 0.52 | 0.59 | ||||||
| Funds from Operations(e) Available to Common Shareholders | 69,582 | 70,680 | 68,972 | 68,296 | 72,581 | ||||||
| FFO per Share—diluted(e) | 0.96 | 0.98 | 0.97 | 0.95 | 1.01 | ||||||
| Dividends Declared per Share | 0.63 | 0.63 | 0.63 | 0.63 | 0.63 | ||||||
| FFO Payout Ratio—diluted(e) | 65.61 | % | 64.16 | % | 65.20 | % | 66.02 | % | 62.40 | % | |
Portfolio Size: | |||||||||||
| Properties | 265 | 263 | 264 | 265 | 262 | ||||||
| Total Square Footage | 28,505,696 | 28,883,862 | 29,157,056 | 29,260,745 | 28,988,801 | ||||||
| Sq. Ft. Leased at End of Period(f) | 90.7 | % | 92.2 | % | 92.4 | % | 92.3 | % | 93.0 | % | |
- (a)
- Includes preferred units on a converted basis into common units.
- (b)
- Calculated based on weighted average common shares outstanding, assuming redemption of operating partnership common units into common shares.
- (c)
- Calculated based on shares and units included in basic per share/unit computation, plus dilutive Common Stock Equivalents (i.e. convertible preferred units, options and warrants).
- (d)
- Includes preferred units on a converted basis into common units and minority interests in partially-owned properties.
- (e)
- Funds from Operations ("FFO") is calculated in accordance with the National Association of Real Estate Investment Trusts (NAREIT) definition, as published in October 1999.
- (f)
- Reflects square feet leased at the Company's consolidated in-service portfolio, excluding in-service development properties in lease up (if any).
12
Same Store Results and Analysis
(dollars in thousands)
| | For the three months ended September 30 | | | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | % Change | ||||||||||
| | 2003 | 2002 | Change | |||||||||
| Total Property Revenues | $ | 130,918 | $ | 132,284 | $ | (1,366 | ) | (1.0 | ) | |||
| Real Estate Taxes | 15,752 | 14,925 | 827 | 5.5 | ||||||||
| Utilities | 10,854 | 9,883 | 971 | 9.8 | ||||||||
| Operating Services | 15,907 | 15,760 | 147 | 0.9 | ||||||||
| Total Property Expenses: | 42,513 | 40,568 | 1,945 | 4.8 | ||||||||
| GAAP Net Operating Income | 88,405 | 91,716 | (3,311 | ) | (3.6 | ) | ||||||
| Less: straight-lining of rents adj. | 1,951 | 1,797 | 154 | 8.6 | ||||||||
| Net Operating Income | $ | 86,454 | $ | 89,919 | $ | (3,465 | ) | (3.9 | ) | |||
| Percentage Leased at Period End | 92.4 | % | 93.4 | % | ||||||||
| Total Properties: | 246 | |||||||||||
| Total Square Footage: | 25,187,919 | |||||||||||
| | For the nine months ended September 30, | | | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | % Change | ||||||||||
| | 2003 | 2002 | Change | |||||||||
| Total Property Revenues | $ | 395,305 | $ | 396,113 | $ | (808 | ) | (0.2 | ) | |||
| Real Estate Taxes | 45,660 | 44,392 | 1,268 | 2.9 | ||||||||
| Utilities | 29,145 | 27,896 | 1,249 | 4.5 | ||||||||
| Operating Services | 49,733 | 45,146 | 4,587 | 10.2 | ||||||||
| Total Property Expenses: | 124,538 | 117,434 | 7,104 | 6.0 | ||||||||
| GAAP Net Operating Income | 270,767 | 278,679 | (7,912 | ) | (2.8 | ) | ||||||
| Less: straight-lining of rents adj. | 6,344 | 5,642 | 702 | 12.4 | ||||||||
| Net Operating Income | $ | 264,423 | $ | 273,037 | $ | (8,614 | ) | (3.2 | ) | |||
| Percentage Leased at Period End | 93.1 | % | 93.9 | % | ||||||||
| Total Properties: | 245 | |||||||||||
| Total Square Footage: | 25,154,919 | |||||||||||
13
Unconsolidated Joint Ventures Summary
Breakdown of Unconsolidated Joint Ventures
| Joint Venture Name | Property | Number of Buildings | Location | Percent Leased | Square Feet | Company's Effective Ownership % | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Office Properties: | |||||||||||||
| G&G Martco | Convention Plaza | 1 | San Francisco, CA | 88.2 | % | 305,618 | 50.0 | % | |||||
| Ashford Loop Associates, LP | 1001 South Dairy Ashford | 1 | Houston, TX | 52.3 | % | 130,000 | 20.0 | % | |||||
| Ashford Loop Associates, LP | 2100 West Loop South | 1 | Houston, TX | 77.0 | % | 168,000 | 20.0 | % | |||||
| HPMC | Pacific Plaza Phase I | 1 | Daly City, CA | 88.0 | % | 364,384 | 32.5 | % | |||||
Office/Flex Properties: | |||||||||||||
| Ramland Realty Associates, L.L.C. | One Ramland Road | 1 | Orangeburg, NY | 7.3 | % | 232,000 | 50.0 | % | |||||
Mixed-Use: | |||||||||||||
| HPMC | Pacific Plaza Phase II(a) | 1 | Daly City, CA | 100.0 | % | 100,740 | 32.5 | % | |||||
Hotel: | |||||||||||||
| Harborside South Pier | Hyatt Regency South Pier | 1 | Jersey City, NJ | n/a | 350 rooms | 50.0 | % | ||||||
Land: | |||||||||||||
| Plaza VIII and IX Associates, L.L.C. | Vacant land/parking | — | Jersey City, NJ | n/a | n/a | 50.0 | % |
- (a)
- Property consists of a three-story theater and retail complex.
14
Unconsolidated Joint Venture Financial Information
The following is a summary of the financial position of the unconsolidated joint ventures in which the Company had investment interests as of September 30, 2003 and December 31, 2002:
| | September 30, 2003 | ||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | HPMC | G&G Martco | American Financial Exchange | Plaza VIII & IX Associates | Ramland Realty | Ashford Loop | ARCap | MC-SJP Morris Realty | Harborside South Pier | Combined Total | |||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||
| Rental property, net | — | $ | 7,481 | — | $ | 13,424 | $ | 13,397 | $ | 36,052 | — | $ | 16,636 | $ | 87,144 | $ | 174,134 | ||||||||||||
| Other assets | $ | 13,734 | 2,858 | — | 4,865 | 824 | 332 | — | 30 | 10,086 | 32,729 | ||||||||||||||||||
| Total assets | $ | 13,734 | $ | 10,339 | — | $ | 18,289 | $ | 14,221 | $ | 36,384 | — | $ | 16,666 | $ | 97,230 | $ | 206,863 | |||||||||||
| Liabilities and partners'/ members' capital (deficit): | |||||||||||||||||||||||||||||
| Mortgages and loans payable | — | $ | 42,559 | — | — | $ | 14,935 | — | — | $ | 17,983 | $ | 73,122 | $ | 148,599 | ||||||||||||||
| Other liabilities | $ | 3 | 1,006 | — | $ | 4,814 | 74 | $ | 806 | — | 48 | 4,060 | 10,811 | ||||||||||||||||
| Partners'/members capital (deficit) | 13,731 | (33,226 | ) | — | 13,475 | (788 | ) | 35,578 | — | (1,365 | ) | 20,048 | 47,453 | ||||||||||||||||
| Total liabilities and partners'/ members' capital (deficit) | $ | 13,734 | $ | 10,339 | — | $ | 18,289 | $ | 14,221 | $ | 36,384 | — | $ | 16,666 | $ | 97,230 | $ | 206,863 | |||||||||||
| Company's investment in unconsolidated joint ventures, net | $ | 12,830 | $ | 5,881 | — | $ | 6,708 | $ | — | $ | 7,588 | — | $ | 316 | $ | 13,033 | $ | 46,356 | |||||||||||
| | December 31, 2002 | ||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | HPMC | G&G Martco | American Financial Exchange | Plaza VIII & IX Associates | Ramland Realty | Ashford Loop | ARCap | MC-SJP Morris Realty | Harborside South Pier | Combined Total | |||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||
| Rental property, net | — | $ | 8,329 | $ | 105,195 | — | $ | 13,803 | $ | 36,520 | — | $ | 17,364 | $ | 90,407 | $ | 271,618 | ||||||||||||
| Other assets | $ | 16,242 | 3,813 | 26,486 | — | 1,900 | 730 | — | 1,211 | 5,610 | 55,992 | ||||||||||||||||||
| Total assets | $ | 16,242 | $ | 12,142 | $ | 131,681 | — | $ | 15,703 | $ | 37,250 | — | $ | 18,575 | $ | 96,017 | $ | 327,610 | |||||||||||
| Liabilities and partners'/members' capital (deficit): | |||||||||||||||||||||||||||||
| Mortgages and loans payable | — | $ | 50,000 | — | — | $ | 15,282 | $ | 87 | — | $ | 17,983 | $ | 69,475 | $ | 152,827 | |||||||||||||
| Other liabilities | $ | 18 | 1,789 | $ | 6,243 | — | 97 | 942 | — | 48 | 4,084 | 13,221 | |||||||||||||||||
| Partners'/members' capital (deficit) | 16,224 | (39,647 | ) | 125,438 | — | 324 | 36,221 | — | 544 | 22,458 | 161,562 | ||||||||||||||||||
| Total liabilities and partners'/ members' capital (deficit) | $ | 16,242 | $ | 12,142 | $ | 131,681 | — | $ | 15,703 | $ | 37,250 | — | $ | 18,575 | $ | 96,017 | $ | 327,610 | |||||||||||
| Company's investment in unconsolidated joint ventures, net | $ | 15,900 | $ | 2,794 | $ | 134,158 | — | $ | 1,232 | $ | 7,652 | — | $ | 289 | $ | 14,772 | $ | 176,797 | |||||||||||
15
The following is a summary of the results of operations of the unconsolidated joint ventures for the period in which the Company had investment interests during the three months ended September 30, 2003 and 2002:
| | Three Months Ended September 30, 2003 | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | HPMC | G&G Martco | American Financial Exchange | Plaza VIII & IX Associates | Ramland Realty | Ashford Loop | ARCap | MC-SJP Morris Realty | Harborside South Pier | Minority Interest in Operating Partnership | Combined Total | ||||||||||||||||||||
| Total revenues | $ | 11 | $ | 2,950 | $ | 5,614 | — | $ | 65 | $ | 955 | — | — | $ | 6,692 | — | $ | 16,287 | |||||||||||||
| Operating and other expenses | (244 | ) | (1,033 | ) | (1,156 | ) | — | (220 | ) | (800 | ) | — | — | (4,278 | ) | — | (7,731 | ) | |||||||||||||
| Depreciation and amortization | — | (380 | ) | (1,111 | ) | — | (139 | ) | (244 | ) | — | — | (1,614 | ) | — | (3,488 | ) | ||||||||||||||
| Interest expense | — | (350 | ) | — | — | (107 | ) | — | — | — | (761 | ) | — | (1,218 | ) | ||||||||||||||||
| Net income (loss) | $ | (233 | ) | $ | 1,187 | $ | 3,347 | — | $ | (401 | ) | $ | (89 | ) | — | — | $ | 39 | — | $ | 3,850 | ||||||||||
| Company's equity in earnings (loss) of unconsolidated joint ventures | $ | (77 | ) | $ | 593 | $ | 3,157 | — | $ | (100 | ) | $ | (17 | ) | — | — | $ | 19 | $ | (424 | ) | $ | 3,151 | ||||||||
| | Three Months Ended September 30, 2002 | |||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | HPMC | G&G Martco | American Financial Exchange | Plaza VIII & IX Associates | Ramland Realty | Ashford Loop | ARCap | MC-SJP Morris Realty | Harborside South Pier | Minority Interest in Operating Partnership | Combined Total | |||||||||||||||||||||
| Total revenues | $ | 1 | $ | 3,307 | $ | 1,001 | — | $ | 63 | $ | 1,113 | $ | 48,913 | — | $ | 616 | — | $ | 55,014 | |||||||||||||
| Operating and other expenses | (442 | ) | (1,170 | ) | (176 | ) | — | (220 | ) | (728 | ) | (7,510 | ) | — | (1,296 | ) | — | (11,542 | ) | |||||||||||||
| Depreciation and amortization | — | (407 | ) | (138 | ) | — | (223 | ) | (244 | ) | — | — | (1,248 | ) | — | (2,260 | ) | |||||||||||||||
| Interest expense | — | (475 | ) | — | — | (181 | ) | — | (6,739 | ) | — | (804 | ) | — | (8,199 | ) | ||||||||||||||||
| Net income (loss) | $ | (441 | ) | $ | 1,255 | $ | 687 | — | $ | (561 | ) | $ | 141 | $ | 34,664 | — | $ | (2,732 | ) | — | $ | 33,013 | ||||||||||
| Company's equity in earnings (loss) of unconsolidated joint ventures | $ | (5 | ) | $ | 592 | $ | 687 | — | $ | (281 | ) | $ | 28 | $ | 2,670 | — | $ | (1,486 | ) | $ | (264 | ) | $ | 1,941 | ||||||||
16
The following is a summary of the results of operations of the unconsolidated joint ventures for the period in which the Company had investment interests during the nine months ended September 30, 2003 and 2002:
| | Nine Months Ended September 30, 2003 | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | HPMC | G&G Martco | American Financial Exchange | Plaza VIII & IX Associates | Ramland Realty | Ashford Loop | ARCap | MC-SJP Morris Realty | Harborside South Pier | Minority Interest in Operating Partnership | Combined Total | ||||||||||||||||||||
| Total revenues | $ | 4,660 | $ | 9,680 | $ | 17,398 | — | $ | 183 | $ | 2,920 | — | — | $ | 16,383 | — | $ | 51,224 | |||||||||||||
| Operating and other expenses | (315 | ) | (2,995 | ) | (3,040 | ) | — | (737 | ) | (2,528 | ) | — | — | (11,726 | ) | — | (21,341 | ) | |||||||||||||
| Depreciation and amortization | — | (1,215 | ) | (2,912 | ) | — | (416 | ) | (731 | ) | — | — | (4,711 | ) | — | (9,985 | ) | ||||||||||||||
| Interest expense | — | (1,199 | ) | — | — | (343 | ) | — | — | — | (2,356 | ) | — | (3,898 | ) | ||||||||||||||||
| Net income (loss) | $ | 4,345 | $ | 4,271 | $ | 11,446 | — | $ | (1,313 | ) | $ | (339 | ) | — | — | $ | (2,410 | ) | — | $ | 16,000 | ||||||||||
| Company's equity in earnings (loss) of unconsolidated joint ventures | $ | 2,346 | $ | 2,012 | $ | 11,342 | — | $ | (1,332 | ) | $ | (39 | ) | — | — | $ | (1,555 | ) | $ | (1,524 | ) | $ | 11,250 | ||||||||
| | Nine Months Ended September 30, 2002 | |||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | HPMC | G&G Martco | American Financial Exchange | Plaza VIII & IX Associates | Ramland Realty | Ashford Loop | ARCap | MC-SJP Morris Realty | Harborside South Pier | Minority Interest in Operating Partnership | Combined Total | |||||||||||||||||||||
| Total revenues | $ | 12,106 | $ | 10,067 | $ | 1,181 | — | $ | 1,803 | $ | 3,398 | $ | 88,411 | — | $ | 616 | — | $ | 117,582 | |||||||||||||
| Operating and other expenses | (1,107 | ) | (2,907 | ) | (197 | ) | — | (2,339 | ) | (2,017 | ) | (16,671 | ) | — | (1,306 | ) | — | (26,544 | ) | |||||||||||||
| Depreciation and amortization | (641 | ) | (1,219 | ) | (157 | ) | — | (1,749 | ) | (731 | ) | — | — | (1,248 | ) | — | (5,745 | ) | ||||||||||||||
| Interest expense | (233 | ) | (1,469 | ) | — | — | (579 | ) | — | (19,707 | ) | — | (804 | ) | — | (22,792 | ) | |||||||||||||||
| Net income (loss) | $ | 10,125 | $ | 4,472 | $ | 827 | — | $ | (2,864 | ) | $ | 650 | $ | 52,033 | — | $ | (2,742 | ) | — | $ | 62,501 | |||||||||||
| Company's equity in earnings (loss) of unconsolidated joint ventures | $ | 6,015 | $ | 2,218 | $ | 827 | — | $ | (1,432 | ) | $ | 176 | $ | 3,956 | — | $ | (1,486 | ) | $ | (1,244 | ) | $ | 9,030 | |||||||||
17
| | September 30, | |||||
|---|---|---|---|---|---|---|
| Ratios Computed For Industry Comparisons: | ||||||
| 2003 | 2002 | |||||
| Financial Position Ratios: | ||||||
| Total Debt/ Total Book Capitalization (Book value) (%) | 43.94 | % | 46.09 | % | ||
Total Debt/ Total Market Capitalization (Market value) (%) | 36.36 | % | 43.27 | % | ||
Total Debt/ Total Undepreciated Assets (%) | 38.54 | % | 41.51 | % | ||
Secured Debt/ Total Undepreciated Assets (%) | 11.89 | % | 12.78 | % | ||
| | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
|---|---|---|---|---|---|---|---|---|---|
| | 2003 | 2002 | 2003 | 2002 | |||||
| Operational Ratios: | |||||||||
| Interest Coverage (Funds from Operations + Interest Expense)/Interest Expense(x) | 3.41 | 3.75 | 3.40 | 3.72 | |||||
Debt Service Coverage (Funds from Operations + Interest Expense)/(Interest Expense + Principal Amort.) (x) | 3.22 | 3.63 | 3.23 | 3.61 | |||||
Fixed Charge Coverage (Funds from Operations + Interest Expense)/(Interest Expense + Capitalized Interest + Pref. Div. + Prin. Amort. + Ground Lease Payments)(x) | 2.66 | 2.69 | 2.66 | 2.65 | |||||
FFO Payout (Dividends Declared/Funds from Operations) (%) | 65.61 | % | 62.40 | % | 64.99 | % | 62.85 | % | |
18
Debt Analysis
(as of September 30, 2003)
Debt Breakdown
(dollars in thousands)
| | Balance | % of Total | Weighted Average Interest Rate(a) | Weighted Average Maturity in Years | |||||
|---|---|---|---|---|---|---|---|---|---|
| Fixed Rate Unsecured Notes | $ | 1,127,580 | 69.14 | % | 7.22 | % | 5.42 | ||
| Fixed Rate Secured Debt | 471,172 | 28.89 | % | 7.16 | % | 2.51 | |||
| Variable Rate Secured Debt | 32,178 | 1.97 | % | 2.01 | % | 5.33 | |||
| Totals/Weighted Average: | $ | 1,630,930 | 100.00 | % | 7.10 | % | 4.58 | ||
Future Repayments
(dollars in thousands)
| Period | Scheduled Amortization | Principal Maturities | Total | Weighted Average Interest Rate of Future Repayments(a) | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
10/1–12/31/2003 | $ | 3,431 | — | $ | 3,431 | 7.35 | % | |||||
2004 | 8,096 | $ | 309,863 | 317,959 | 7.33 | % | ||||||
2005 | 7,508 | 253,249 | 260,757 | 7.13 | % | |||||||
2006 | 991 | 144,642 | 145,633 | 7.36 | % | |||||||
2007 | 874 | 9,364 | 10,238 | 6.96 | % | |||||||
Thereafter | 4,894 | 898,320 | 903,214 | 6.99 | % | |||||||
Sub-total | 25,794 | 1,615,438 | 1,641,232 | 7.10 | % | |||||||
Adjustment for unamortized debt discount/premium, net, as of September 30, 2003 | (10,302 | ) | — | (10,302 | ) | — | ||||||
Totals/Weighted Average: | $ | 15,492 | $ | 1,615,438 | $ | 1,630,930 | 7.10 | % | ||||
- (a)
- Actual weighted average LIBOR contract rates relating to the Company's outstanding debt as of September 30, 2003 of 1.36 percent was used in calculating revolving credit facility and other variable rate debt interest rates.
19
Debt Maturities
(dollars in thousands)
| | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | TOTALS | ||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Secured Debt: | ||||||||||||||||||||||||||||||||||||
| 400 Chestnut Ridge | $ | 9,863 | $ | 9,863 | ||||||||||||||||||||||||||||||||
| Mack-Cali Centre VI | $ | 35,000 | 35,000 | |||||||||||||||||||||||||||||||||
| Prudential Portfolio | 150,000 | 150,000 | ||||||||||||||||||||||||||||||||||
| Mack-Cali Bridgewater I | 23,000 | 23,000 | ||||||||||||||||||||||||||||||||||
| Mack-Cali Woodbridge II | 17,500 | 17,500 | ||||||||||||||||||||||||||||||||||
| Mack-Cali Short Hills | 22,089 | 22,089 | ||||||||||||||||||||||||||||||||||
| 500 West Putnam Ave | 5,660 | 5,660 | ||||||||||||||||||||||||||||||||||
| Harborside Financial Center—Plazas 2 & 3 | $ | 144,642 | 144,642 | |||||||||||||||||||||||||||||||||
| Mack-Cali Airport | $ | 9,364 | 9,364 | |||||||||||||||||||||||||||||||||
| Kemble Plaza I | $ | 32,178 | 32,178 | |||||||||||||||||||||||||||||||||
| 2200 Renaissance Boulevard | $ | 15,234 | 15,234 | |||||||||||||||||||||||||||||||||
| Soundview Plaza | $ | 14,889 | 14,889 | |||||||||||||||||||||||||||||||||
| Total Secured Debt: | $ | — | $ | 9,863 | $ | 253,249 | $ | 144,642 | $ | 9,364 | $ | — | $ | 32,178 | $ | — | $ | — | $ | 15,234 | $ | 14,889 | $ | 479,419 | ||||||||||||
| Unsecured Debt: | ||||||||||||||||||||||||||||||||||||
| 7.000% unsecured notes due 3/04 | $ | 300,000 | $ | 300,000 | ||||||||||||||||||||||||||||||||
| 7.250% unsecured notes due 3/09 | $ | 300,000 | 300,000 | |||||||||||||||||||||||||||||||||
| 7.835% unsecured notes due 12/10 | $ | 15,000 | 15,000 | |||||||||||||||||||||||||||||||||
| 7.750% unsecured notes due 2/11 | $ | 300,000 | 300,000 | |||||||||||||||||||||||||||||||||
| 6.150% unsecured notes due 12/12 | $ | 94,914 | 94,914 | |||||||||||||||||||||||||||||||||
| 5.820% unsecured notes due 3/13 | $ | 26,105 | 26,105 | |||||||||||||||||||||||||||||||||
| 4.600% unsecured notes due 6/13 | 100,000 | 100,000 | ||||||||||||||||||||||||||||||||||
| Total Unsecured Debt: | $ | — | $ | 300,000 | $ | — | $ | — | $ | — | $ | — | $ | 300,000 | $ | 15,000 | $ | 300,000 | $ | 94,914 | $ | 126,105 | $ | 1,136,019 | ||||||||||||
| Total Debt: | $ | — | $ | 309,863 | $ | 253,249 | $ | 144,642 | $ | 9,364 | $ | — | $ | 332,178 | $ | 15,000 | $ | 300,000 | $ | 110,148 | $ | 140,994 | $ | 1,615,438 | ||||||||||||
20
Debt Detail
(dollars in thousands)
| | | | Principal Balance at | | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Property Name | Lender | Effective Interest Rate | September 30, 2003 | December 31, 2002 | Date of Maturity | |||||||
| Senior Unsecured Notes:(a) | ||||||||||||
| 7.180%, $95,283 Face Amount Notes | public debt | 7.230 | % | — | $ | 95,283 | — | |||||
| 7.000%, $300,000 Face Amount Notes | public debt | 7.270 | % | $ | 299,963 | 299,904 | 03/15/04 | |||||
| 7.250%, $300,000 Face Amount Notes | public debt | 7.490 | % | 298,718 | 298,542 | 03/15/09 | ||||||
| 7.835%, $15,000 Face Amount Notes | public debt | 7.950 | % | 15,000 | 15,000 | 12/15/10 | ||||||
| 7.750%, $300,000 Face Amount Notes | public debt | 7.930 | % | 298,732 | 298,602 | 02/15/11 | ||||||
| 6.150%, $94,914 Face Amount Notes | public debt | 6.894 | % | 90,384 | 90,015 | 12/15/12 | ||||||
| 5.820%, $26,105 Face Amount Notes | public debt | 6.448 | % | 25,061 | — | 03/15/13 | ||||||
| 4.600%, $100,000 Face Amount Notes | public debt | 4.742 | % | 99,722 | — | 06/15/13 | ||||||
| Total Senior Unsecured Notes: | $ | 1,127,580 | $ | 1,097,346 | ||||||||
| Revolving Credit Facilities: | ||||||||||||
| 2002 Unsecured Facility(b) | 15 Lenders | LIBOR+0.700 | % | — | $ | 73,000 | 09/27/05 | |||||
| Total Revolving Credit Facilities: | — | $ | 73,000 | |||||||||
| Property Mortgages:(c) | ||||||||||||
| Harborside—Plaza 1 | U.S. West Pension Trust | 4.359 | % | — | $ | 61,722 | — | |||||
| Mack-Cali Willowbrook | CIGNA | 8.670 | % | — | 7,658 | — | ||||||
| 1633 Littleton Road | First Union/Maher Partners | 3.870 | % | — | 3,504 | — | ||||||
| 400 Chestnut Ridge | Prudential Insurance Co. | 9.440 | % | $ | 10,768 | 11,611 | 07/01/04 | |||||
| Mack-Cali Centre VI | Principal Life Insurance Co. | 6.865 | % | 35,000 | 35,000 | 04/01/05 | ||||||
| Various(d) | Prudential Insurance Co. | 7.100 | % | 150,000 | 150,000 | 05/15/05 | ||||||
| Mack-Cali Bridgewater I | New York Life Ins. Co. | 7.000 | % | 23,000 | 23,000 | 09/10/05 | ||||||
| Mack-Cali Woodbridge II | New York Life Ins. Co. | 7.500 | % | 17,500 | 17,500 | 09/10/05 | ||||||
| Mack-Cali Short Hills | Prudential Insurance Co. | 7.740 | % | 23,870 | 24,470 | 10/01/05 | ||||||
| 500 West Putnam Avenue | New York Life Ins. Co. | 6.520 | % | 7,731 | 8,417 | 10/10/05 | ||||||
| Harborside—Plazas 2 and 3 | Northwestern/Principal | 7.365 | % | 155,038 | 158,140 | 01/01/06 | ||||||
| Mack-Cali Airport | Allstate Life Insurance Co. | 7.050 | % | 10,092 | 10,226 | 04/01/07 | ||||||
| Kemble Plaza I | Mitsubishi Tr & Bk Co. | LIBOR+0.650 | % | 32,178 | 32,178 | 01/31/09 | ||||||
| 2200 Renaissance Boulevard | TIAA | 5.888 | % | 18,902 | 19,100 | 12/01/12 | ||||||
| Soundview Plaza | TIAA | 6.015 | % | 19,271 | 19,500 | 01/01/13 | ||||||
| Total Property Mortgages: | $ | 503,350 | $ | 582,026 | ||||||||
| Total Debt: | $ | 1,630,930 | $ | 1,752,372 | ||||||||
- (a)
- Interest rate for unsecured notes reflects effective rate of debt, including cost of terminated treasury lock agreements (if any), offering and other transaction costs and the discount on the notes, as applicable.
- (b)
- Total borrowing capacity under this facility is $600.0 million.
- (c)
- Effective interest rate for mortgages and loans payable reflects effective rate of debt, including deferred financing costs, comprised of the cost of terminated treasury lock agreements (if any), debt initiation costs and other transaction costs, as applicable.
- (d)
- The Company has the option to convert the mortgage loan, which is secured by 10 properties, to unsecured debt, subject to, amongst other things, the Company having an investment grade rating from two rating agencies (at least one of which must be from S&P or Moody's) at the time of conversion.
21
22
Mack-Cali Realty Corporation and Subsidiaries
Consolidated Statements of Operations
(in thousands, except per share amounts) (unaudited)
| | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenues | |||||||||||||||
| 2003 | 2002 | 2003 | 2002 | ||||||||||||
| Base rents | $ | 126,120 | $ | 119,779 | $ | 380,209 | $ | 367,699 | |||||||
| Escalations and recoveries from tenants | 16,285 | 15,088 | 46,309 | 42,674 | |||||||||||
| Parking and other | 4,981 | 7,441 | 14,135 | 15,033 | |||||||||||
| Total revenues | 147,386 | 142,308 | 440,653 | 425,406 | |||||||||||
Expenses | |||||||||||||||
| Real estate taxes | 16,677 | 15,112 | 48,723 | 45,715 | |||||||||||
| Utilities | 11,658 | 10,016 | 32,095 | 29,350 | |||||||||||
| Operating services | 17,329 | 16,660 | 55,694 | 49,197 | |||||||||||
| General and administrative | 8,661 | 5,513 | 22,333 | 20,108 | |||||||||||
| Depreciation and amortization | 29,511 | 28,902 | 88,066 | 80,374 | |||||||||||
| Interest expense | 28,910 | 26,429 | 87,143 | 78,384 | |||||||||||
| Interest income | (244 | ) | (742 | ) | (835 | ) | (1,527 | ) | |||||||
| Loss on early retirement of debt, net | — | — | 2,372 | — | |||||||||||
| Total expenses | 112,502 | 101,890 | 335,591 | 301,601 | |||||||||||
| Income from continuing operations before minority interest and equity in earnings of unconsolidated joint ventures | 34,884 | 40,418 | 105,062 | 123,805 | |||||||||||
| Minority interest in Operating Partnership | (7,535 | ) | (8,301 | ) | (22,762 | ) | (25,347 | ) | |||||||
| Equity in earnings of unconsolidated joint ventures (net of minority interest), net | 3,151 | 1,941 | 11,250 | 9,030 | |||||||||||
| Gain on sale of investment in unconsolidated joint venture (net of minority interest) | 20,392 | — | 20,392 | — | |||||||||||
| Income from continuing operations | 50,892 | 34,058 | 113,942 | 107,488 | |||||||||||
| Discontinued operations (net of minority interest): | |||||||||||||||
| Income from discontinued operations | — | (227 | ) | 26 | 22 | ||||||||||
| Realized gain on disposition of rental property | — | — | 1,165 | — | |||||||||||
| Total discontinued operations, net | — | (227 | ) | 1,191 | 22 | ||||||||||
| Realized gains (losses) and unrealized losses on disposition of rental property (net of minority interest), net | — | 401 | — | 2,376 | |||||||||||
| Net income | 50,892 | 34,232 | 115,133 | 109,886 | |||||||||||
| Preferred stock dividends | (500 | ) | — | (1,172 | ) | — | |||||||||
| Net income available to common shareholders | $ | 50,392 | $ | 34,232 | $ | 113,961 | $ | 109,886 | |||||||
Basic earnings per common share: | |||||||||||||||
| Income from continuing operations | $ | 0.87 | $ | 0.60 | $ | 1.96 | $ | 1.92 | |||||||
| Discontinued operations | — | — | 0.02 | — | |||||||||||
| Net income available to common shareholders | $ | 0.87 | $ | 0.60 | $ | 1.98 | $ | 1.92 | |||||||
Diluted earnings per common share: | |||||||||||||||
| Income from continuing operations | $ | 0.84 | $ | 0.59 | $ | 1.94 | $ | 1.91 | |||||||
| Discontinued operations | — | — | 0.02 | — | |||||||||||
| Net income available to common shareholders | $ | 0.84 | $ | 0.59 | $ | 1.96 | $ | 1.91 | |||||||
| Dividends declared per common share | $ | 0.63 | $ | 0.63 | $ | 1.89 | $ | 1.87 | |||||||
| Basic weighted average shares outstanding | 57,870 | 57,534 | 57,545 | 57,194 | |||||||||||
| Diluted weighted average shares outstanding | 72,465 | 65,656 | 71,943 | 71,764 | |||||||||||
23
Mack-Cali Realty Corporation and Subsidiaries
Consolidated Balance Sheets
(in thousands, except per share amounts)
| | September 30, 2003 | December 31, 2002 | ||||||
|---|---|---|---|---|---|---|---|---|
| | (unaudited) | | ||||||
| Assets | ||||||||
| Rental property | ||||||||
| Land and leasehold interests | $ | 551,280 | $ | 544,176 | ||||
| Buildings and improvements | 3,194,772 | 3,141,003 | ||||||
| Tenant improvements | 188,102 | 164,945 | ||||||
| Furniture, fixtures and equipment | 7,660 | 7,533 | ||||||
| 3,941,814 | 3,857,657 | |||||||
| Less—accumulated depreciation and amortization | (520,423 | ) | (445,569 | ) | ||||
| Net investment in rental property | 3,421,391 | 3,412,088 | ||||||
| Cash and cash equivalents | 35,294 | 1,167 | ||||||
| Investments in unconsolidated joint ventures, net | 46,356 | 176,797 | ||||||
| Unbilled rents receivable, net | 70,599 | 64,759 | ||||||
| Deferred charges and other assets, net | 125,127 | 127,551 | ||||||
| Restricted cash | 7,780 | 7,777 | ||||||
| Accounts receivable, net of allowance for doubtful accounts of $1,516 and $1,856 | 4,968 | 6,290 | ||||||
| Total assets | $ | 3,711,515 | $ | 3,796,429 | ||||
Liabilities and Stockholders' Equity | ||||||||
| Senior unsecured notes | $ | 1,127,580 | $ | 1,097,346 | ||||
| Revolving credit facilities | — | 73,000 | ||||||
| Mortgages and loans payable | 503,350 | 582,026 | ||||||
| Dividends and distributions payable | 46,034 | 45,067 | ||||||
| Accounts payable and accrued expenses | 48,147 | 50,774 | ||||||
| Rents received in advance and security deposits | 41,197 | 39,038 | ||||||
| Accrued interest payable | 10,707 | 24,948 | ||||||
| Total liabilities | 1,777,015 | 1,912,199 | ||||||
| Minority interest in Operating Partnership | 429,791 | 430,036 | ||||||
Commitments and contingencies | ||||||||
| Stockholders' equity: | ||||||||
| Preferred stock, $0.01 par value, 5,000,000 shares authorized, 10,000 and no shares outstanding, at liquidation preference | 25,000 | — | ||||||
| Common stock, $0.01 par value, 190,000,000 shares authorized, 58,182,631 and 57,318,478 shares outstanding | 582 | 573 | ||||||
| Additional paid-in capital | 1,552,710 | 1,525,479 | ||||||
| Dividends in excess of net earnings | (64,589 | ) | (68,966 | ) | ||||
| Unamortized stock compensation | (8,994 | ) | (2,892 | ) | ||||
| Total stockholders' equity | 1,504,709 | 1,454,194 | ||||||
| Total liabilities and stockholders' equity | $ | 3,711,515 | $ | 3,796,429 | ||||
24
Mack-Cali Realty Corporation and Subsidiaries
Consolidated Statement of Changes in Stockholders' Equity
For the nine months ended September 30, 2003
(in thousands) (unaudited)
| | Preferred Stock | Common Stock | | | | | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | Additional Paid-In Capital | Dividends in Excess of Net Earnings | Unamortized Stock Compensation | Total Stockholders' Equity | ||||||||||||||||||||
| | Shares | Amount | Shares | Par Value | ||||||||||||||||||||
| Balance at January 1, 2003 | — | — | 57,318 | $ | 573 | $ | 1,525,479 | $ | (68,966 | ) | $ | (2,892 | ) | $ | 1,454,194 | |||||||||
| Net income | — | — | — | — | — | 115,133 | — | 115,133 | ||||||||||||||||
| Preferred stock dividends | — | — | — | — | — | (1,172 | ) | — | (1,172 | ) | ||||||||||||||
| Common stock dividends | — | — | — | — | — | (109,584 | ) | — | (109,584 | ) | ||||||||||||||
| Issuance of preferred stock | 10 | $ | 25,000 | — | — | (164 | ) | — | — | 24,836 | ||||||||||||||
| Redemption of common units for shares of common stock | — | — | 31 | — | 936 | — | — | 936 | ||||||||||||||||
| Proceeds from stock options exercised | — | — | 626 | 6 | 17,232 | — | — | 17,238 | ||||||||||||||||
| Proceeds from stock warrants exercised | — | — | 68 | 1 | 2,226 | — | — | 2,227 | ||||||||||||||||
| Stock options expense | — | — | — | — | 139 | — | — | 139 | ||||||||||||||||
| Deferred compensation plan for directors | — | — | — | — | 169 | — | — | 169 | ||||||||||||||||
| Issuance of Restricted Stock Awards | — | — | 175 | 2 | 5,250 | — | (5,212 | ) | 40 | |||||||||||||||
| Amortization of stock compensation | — | — | — | — | — | — | 1,583 | 1,583 | ||||||||||||||||
| Adjustment to fair value of Restricted Stock Awards | — | — | — | — | 2,488 | — | (2,488 | ) | — | |||||||||||||||
| Cancellation of Restricted Stock Awards | — | — | — | — | (15 | ) | — | 15 | — | |||||||||||||||
| Repurchase of common stock | — | — | (35 | ) | — | (1,030 | ) | — | — | (1,030 | ) | |||||||||||||
| Balance at September 30, 2003 | 10 | $ | 25,000 | 58,183 | $ | 582 | $ | 1,552,710 | $ | (64,589 | ) | $ | (8,994 | ) | $ | 1,504,709 | ||||||||
25
Statements of Funds from Operations
(in thousands, except per share/unit amounts) (unaudited)
| | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | 2003 | 2002 | 2003 | 2002 | |||||||||||
| Net income available to common shareholders | $ | 50,392 | $ | 34,232 | $ | 113,961 | $ | 109,886 | |||||||
| Add: Minority interest in Operating Partnership | 7,535 | 8,301 | 22,762 | 25,347 | |||||||||||
| Minority interest in equity in earnings of unconsolidated joint ventures | 424 | 264 | 1,524 | 1,244 | |||||||||||
| Minority interest in gain on sale of investment in unconsolidated joint venture | 2,748 | — | 2,748 | — | |||||||||||
| Minority interest in income from discontinued operations | — | (31 | ) | 4 | 4 | ||||||||||
| Real estate-related depreciation and amortization on continuing operations(a) | 31,623 | 29,819 | 94,911 | 81,805 | |||||||||||
| Real estate-related depreciation and amortization on discontinued operations | — | 397 | 56 | 400 | |||||||||||
| Deduct: Gain on sale of investment in unconsolidated joint venture | (23,140 | ) | — | (23,140 | ) | — | |||||||||
| Discontinued Operations—Realized (gains) losses and unrealized losses (net of minority interest), net | — | — | (1,165 | ) | — | ||||||||||
| Realized (gains) losses and unrealized losses on disposition of rental property (net of minority interest), net(b) | — | (401 | ) | — | (1,659 | ) | |||||||||
| Equity in earnings from gain on sale | — | — | (2,427 | ) | (3,506 | ) | |||||||||
| Funds from operations available to common shareholders(c) | $ | 69,582 | $ | 72,581 | $ | 209,234 | $ | 213,521 | |||||||
| Diluted weighted average shares/units outstanding(d) | 72,465 | 71,887 | 71,943 | 71,764 | |||||||||||
| Funds from operations per share/unit—diluted | $ | 0.96 | $ | 1.01 | $ | 2.91 | $ | 2.98 | |||||||
| Dividend declared per common share | $ | 0.63 | $ | 0.63 | $ | 1.89 | $ | 1.87 | |||||||
Dividend payout ratios: | |||||||||||||||
| Funds from operations—diluted | 65.61 | % | 62.40 | % | 64.99 | % | 62.85 | % | |||||||
Supplemental Information: | |||||||||||||||
| Non-incremental revenue generating capital expenditures: | |||||||||||||||
| Building improvements | $ | 1,982 | $ | 1,771 | $ | 5,530 | $ | 4,036 | |||||||
| Tenant improvements and leasing commissions | $ | 12,887 | $ | 7,100 | $ | 32,033 | $ | 24,635 | |||||||
| Straight-line rent adjustments(e) | $ | 1,293 | $ | 2,112 | $ | 8,882 | $ | 5,035 | |||||||
- (a)
- Includes the Company's share from unconsolidated joint ventures of $2,272 and $1,125 for the three months ended September 30, 2003 and 2002, respectively and $7,344 and $2,078 for the nine months ended September 30, 2003 and 2002, respectively.
- (b)
- Net of gain on sale of land of $717 for the nine month period ended September 30, 2002.
- (c)
- Funds from operations for both periods are calculated in accordance with the National Association of Real Estate Investment Trusts (NAREIT) definition, as published in October 1999. See "Information About FFO" on page 11.
- (d)
- Calculated based on weighted average common shares outstanding, assuming redemption of Operating Partnership common and preferred units into common shares (14,016 shares and 14,069 shares for the three months ended September 30, 2003 and 2002, respectively and 14,027 shares and 14,213 shares for the nine months ended September 30, 2003 and 2002, respectively), plus dilutive Common Stock Equivalents (i.e. stock options and warrants).
- (e)
- Includes the Company's share from unconsolidated joint ventures of $951 and $124 for the three months ended September 30, 2003 and 2002, respectively and $2,903 and $(829) for the nine months ended September 30, 2003 and 2002, respectively.
26
Statements of Funds from Operations Per Diluted Share
(amounts are per diluted share, except share count in thousands) (unaudited)
| | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | 2003 | 2002 | 2003 | 2002 | |||||||||||
| Net income available to common shareholders | $ | 0.84 | $ | 0.59 | $ | 1.96 | $ | 1.91 | |||||||
| Add: Real estate-related depreciation and amortization on continuing operations(a) | 0.44 | 0.41 | 1.32 | 1.14 | |||||||||||
| Real estate-related depreciation and amortization on discontinued operations | — | 0.01 | — | 0.01 | |||||||||||
| Deduct: Gain on sale of investment in unconsolidated joint venture | (0.32 | ) | — | (0.32 | ) | — | |||||||||
| Realized (gains) losses and unrealized losses on disposition of rental property (net of minority interest), net(b) | — | (0.01 | ) | — | (0.02 | ) | |||||||||
| Discontinued operations—realized (gains) losses and unrealized losses (net of minority interest), net | — | — | (0.02 | ) | — | ||||||||||
| Equity in earnings from gain on sale | — | — | (0.03 | ) | (0.05 | ) | |||||||||
| Rounding adjustment | — | 0.01 | — | (0.01 | ) | ||||||||||
| Funds from operations available to common shareholders(c) | $ | 0.96 | $ | 1.01 | $ | 2.91 | $ | 2.98 | |||||||
| Diluted weighted average shares/units outstanding(d) | 72,465 | 71,887 | 71,943 | 71,764 | |||||||||||
- (a)
- Includes the Company's share from unconsolidated joint ventures of $0.03 and $0.02 for the three months ended September 30, 2003 and 2002, respectively and $0.10 and $0.03 for the nine months ended September 30, 2003 and 2002, respectively.
- (b)
- Net of gain on sale of land of $0.01 for the nine month period ended September 30, 2002.
- (c)
- Funds from operations for both periods are calculated in accordance with the National Association of Real Estate Investment Trusts (NAREIT) definition, as published in October 1999. See "Information About FFO" on page 11.
- (d)
- Calculated based on weighted average common shares outstanding, assuming redemption of Operating Partnership common and preferred units into common shares (14,016 shares and 14,069 shares for the three months ended September 30, 2003 and 2002, respectively and 14,027 shares and 14,213 shares for the nine months ended September 30, 2003 and 2002, respectively), plus dilutive Common Stock Equivalents (i.e. stock options and warrants).
27
Reconciliation of Basic-to-Diluted Shares/Units
(in thousands)
The following schedule reconciles the Company's basic weighted average shares outstanding to basic and diluted weighted average shares/units outstanding:
| | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
|---|---|---|---|---|---|---|---|---|---|
| | 2003 | 2002 | 2003 | 2002 | |||||
| Basic weighted average shares outstanding: | 57,870 | 57,534 | 57,545 | 57,194 | |||||
| Add: Weighted average common units | 7,798 | 7,838 | 7,804 | 7,905 | |||||
| Basic weighted average shares/units: | 65,668 | 65,372 | 65,349 | 65,099 | |||||
| Add: Weighted average preferred units (after conversion to common units) | 6,218 | 6,231 | 6,223 | 6,307 | |||||
| Stock options | 559 | 284 | 364 | 355 | |||||
| Stock warrants | 20 | — | 7 | 3 | |||||
| Diluted weighted average shares/units outstanding: | 72,465 | 71,887 | 71,943 | 71,764 | |||||
28
29
Operating Property Acquisitions
(dollars in thousands)
For the nine months ended September 30, 2003
| Acquisition Date | Property/Address | Location | # of Bldgs. | Rentable Square Feet | Investment by Company(a) | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Office: | |||||||||||
| 9/12/03 | 4 Sentry Parkway | Blue Bell, Montgomery County, PA | 1 | 63,930 | $ | 10,395 | |||||
| 9/23/03 | 14 Commerce Drive | Cranford, Union County, NJ | 1 | 67,189 | 8,382 | ||||||
| Total Office Property Acquisitions: | 2 | 131,119 | 18,777 | ||||||||
Office/Flex: | |||||||||||
| 8/19/03 | 3 Odell Plaza | Yonkers, Westchester County, NY | 1 | 71,065 | 6,047 | ||||||
Total Property Acquisitions: | 3 | 202,184 | $ | 24,824 | |||||||
For the year ended December 31, 2002
| Acquisition Date | Property/Address | Location | # of Bldgs. | Rentable Square Feet | Investment by Company(b) | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Office: | |||||||||||
| 08/09/02 | 25 Commerce Drive | Cranford, Union County, NJ | 1 | 67,749 | $ | 7,706 | |||||
| 08/09/02 | 3 Skyline Drive(c) | Hawthorne, Westchester County, NY | 1 | 75,668 | 9,460 | ||||||
| 11/01/02 | 1633 Littleton Road(d) | Parsippany, Morris County, NJ | 1 | 57,722 | 11,833 | ||||||
| 11/05/02 | 1266 East Main Street | Stamford, Fairfield County, CT | 1 | 179,260 | 33,205 | ||||||
| 12/11/02 | 2200 Renaissance Boulevard | King of Prussia, Montgomery County, PA | 1 | 174,124 | 26,800 | ||||||
| 12/31/02 | 16 & 18 Sentry Park West | Blue Bell, Montgomery County, PA | 2 | 188,103 | 34,466 | ||||||
Total Office Property Acquisitions: | 7 | 742,626 | $ | 123,470 | |||||||
- (a)
- Transactions were funded primarily through borrowings on the Company's revolving credit facility, from net proceeds received in the sale or sales of rental property, and/or from the Company's cash reserves. Amounts are as of September 30, 2003.
- (b)
- Transactions were funded primarily through borrowings on the Company's revolving credit facility, from net proceeds received in the sale or sales of rental property, and/or from the Company's cash reserves. Amounts are as of December 31, 2002.
30
- (c)
- On August 9, 2002, the Company acquired an undivided 68.1 percent interest (75,668 square feet) in 3 Skyline Drive, a 113,098 square-foot office property. The property was acquired as tenants-in-common with the intention that, soon after the completion of the acquisition, the individual interests would be converted into separate condominium units. On September 27, 2002, the Company executed a condominium agreement and deed to formalize the conversion of its undivided interest in the property into a condominium interest. The Company has accounted for its interest in the property as if the condominium was in place since the date of acquisition.
- (d)
- In connection with the acquisition of the 1633 Littleton Road property, the Company assumed a mortgage loan, which was recorded at $3.5 million and bore an effective interest rate of 3.87 percent.
31
Properties Commencing Initial Operations
(dollars in thousands)
For the nine months ended September 30, 2003
No Activity.
For the year ended December 31, 2002
| Date | Property/Address | Location | # of Bldgs. | Rentable Square Feet | Investment by Company(a) | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Office: | ||||||||||||
| 09/03/02 | Harborside Plaza 5 | Jersey City, Hudson County, NJ | 1 | 977,225 | $ | 196,610 | (b) | |||||
| 11/18/02 | 600 Horizon Drive | Hamilton Township, Mercer County, NJ | 1 | 95,000 | 7,549 | |||||||
| Total Office Properties Commencing Initial Operations: | 2 | 1,072,225 | 204,159 | |||||||||
| Office/Flex: | ||||||||||||
| 04/01/02 | 125 Clearbrook Road | Elmsford, Westchester County, NY | 1 | 33,000 | 4,985 | (c) | ||||||
| Total Properties Commencing Initial Operations: | 3 | 1,105,225 | $ | 209,144 | ||||||||
- (a)
- Development costs were funded primarily through draws on the Company's revolving credit facility. Amounts are as of December 31, 2002.
- (b)
- Amount consists of $176,900 included in rental property and $19,710 of leasing commissions and other deferred leasing costs, which are included in deferred charges and other assets.
- (c)
- Amount consists of $4,731 included in rental property and $254 of leasing commissions, which is included in deferred charges and other assets.
32
| Property Name: | 3 Odell Plaza | |
Product Type: | Office/Flex Building | |
Location: | Yonkers, Westchester County, New York | |
Description: | Class A, three-story office/flex building | |
Size: | 71,065 square feet | |
Year Constructed: | 1984 | |
Closing Date: | August 19, 2003 | |
Acquisition Cost: | $6.0 million | |
Funding Source: | Proceeds from sale of office property | |
Percentage Leased: | 62.7% | |
Number of Tenants: | 1 | |
Tenant: | Schott Corporation (38,000 square feet) |
33
| Property Name: | 4 Sentry Parkway | |
Product Type: | Office Building | |
Location: | Blue Bell, Montgomery County, Pennsylvania | |
Description: | Class A, three-story office building | |
Size: | 63,930 square feet | |
Year Constructed: | 1982 | |
Closing Date: | September 12, 2003 | |
Acquisition Cost: | $10.4 million | |
Funding Source: | Proceeds from sale of office property | |
Percentage Leased: | 94.0% | |
Number of Tenants: | 4 | |
Significant Tenants: | Nelson Levine DeLuca & Horst (23,009 square feet) | |
Progress Bank Corp. (22,028 square feet) |
34
| Property Name: | 14 Commerce Drive | |
Product Type: | Office Building | |
Location: | Cranford, Union County, New Jersey | |
Description: | Class A, four-story office building | |
Size: | 67,189 square feet | |
Year Constructed: | 1971 | |
Closing Date: | September 23, 2003 | |
Acquisition Cost: | $8.4 million | |
Funding Source: | Proceeds from sale of office property | |
Percentage Leased: | 100.0% | |
Number of Tenants: | 13 | |
Significant Tenants: | Fleet Insurance Services (27,306 square feet) | |
Purepac Pharmaceuticals (15,688 square feet) |
35
| Site | Town/City | State | Acres | Development Potential (Sq. Ft.) | Type of Space | |||||
|---|---|---|---|---|---|---|---|---|---|---|
Horizon Center | Hamilton | NJ | 33.5 | 300,000 | Office/Flex/Retail | |||||
Plaza VIII and IX Associates, L.L.C.(a) | Jersey City | NJ | 3.6 | 1,225,000 | Office | |||||
Harborside Financial Center(b) | Jersey City | NJ | 6.5 | 3,113,500 | Office | |||||
Mack-Cali Business Campus | Parsippany & Hanover | NJ | 110.0 | 1,350,000 | Office | |||||
Commercenter | Totowa | NJ | 5.8 | 30,000 | Office/Flex | |||||
Princeton Metro | West Windsor | NJ | 10.0 | 97,000 | Office | |||||
Princeton Overlook II | West Windsor | NJ | 10.0 | 149,500 | Office | |||||
Elmsford Distribution Center(c) | Elmsford | NY | 14.5 | 100,000 | Warehouse | |||||
Mid-Westchester Executive Park | Hawthorne | NY | 7.2 | 82,250 | Office/Flex | |||||
One Ramland Road(a) | Orangeburg | NY | 20.0 | 100,000 | Office/Flex | |||||
South Westchester Executive Park(c) | Yonkers | NY | 60.0 | 500,000 | Office/Flex | |||||
South Westchester Executive Park | Yonkers | NY | 2.7 | 50,000 | Office/Flex | |||||
Airport Business Center | Lester | PA | 12.6 | 135,000 | Office | |||||
Eastpoint II | Lanham | MD | 4.8 | 122,000 | Office/Hotel | |||||
Tri West Plaza II(c) | Dallas | TX | 4.5 | 500,000 | Office | |||||
Hilltop Business Center | Littleton | CO | 7.1 | 128,000 | Office | |||||
Pacific Plaza Phase III(d) | Daly City | CA | 2.5 | 270,000 | Office | |||||
Total: | 315.3 | 8,252,250 | ||||||||
- (a)
- Land owned by unconsolidated joint venture in which Mack-Cali is an equity partner.
- (b)
- In addition, there are 21 acres of riparian property.
- (c)
- Mack-Cali holds an option to purchase this land.
- (d)
- Unconsolidated joint venture, in which Mack-Cali is an equity partner, holds an option to purchase this land.
36
Rental Property Sales
(dollars in thousands)
For the nine months ended September 30, 2003
| Sale Date | Property/Address | Location | # of Bldgs. | Rentable Square Feet | Net Sales Proceeds | Net Book Value | Realized Gain/(Loss) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Office: | |||||||||||||||||
| 03/28/03 | 1770 St. James Place | Houston, Harris County, TX | 1 | 103,689 | $ | 5,469 | $ | 4,145 | $ | 1,324 | |||||||
| Total Property Sales: | 1 | 103,689 | $ | 5,469 | $ | 4,145 | $ | 1,324 | |||||||||
For the year ended December 31, 2002
| Sale Date | Property/Address | Location | # of Bldgs. | Rentable Square Feet | Net Sales Proceeds | Net Book Value | Realized Gain/(Loss) | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Office: | ||||||||||||||||||
| 05/13/02 | Dallas Portfolio(a) | Metro Dallas, TX | 4 | 488,789 | $ | 33,115 | $ | 34,760 | $ | (1,645 | ) | |||||||
| 05/29/02 | 750 South Richfield Street | Aurora, Arapahoe County, CO | 1 | 108,240 | 20,631 | 21,291 | (660 | ) | ||||||||||
| 06/06/02 | Houston Portfolio(b) | Houston, Harris County, TX | 3 | 413,107 | 25,482 | 24,393 | 1,089 | |||||||||||
| 07/15/02 | 501 Kennedy Boulevard | Tampa, Hillsborough County, FL | 1 | 297,429 | 22,915 | 22,459 | 456 | |||||||||||
| 10/16/02 | Arizona Portfolio(c) | Maricopa County, AZ | 3 | 416,967 | 42,764 | 42,719 | 45 | |||||||||||
| Total Office Property Sales: | 12 | 1,724,532 | 144,907 | 145,622 | (715 | ) | ||||||||||||
| Residential: | ||||||||||||||||||
| 01/30/02 | 25 Martine Avenue | White Plains, Westchester County, NY | 1 | 124 units | 17,559 | 10,461 | 7,098 | |||||||||||
Land: | ||||||||||||||||||
| 04/25/02 | Horizon Center Land | Hamilton Township, Mercer County, NJ | — | 0.756 acres | 758 | 41 | 717 | |||||||||||
| Total Property Sales: | 13 | 1,724,532 | $ | 163,224 | $ | 156,124 | $ | 7,100 | ||||||||||
- (a)
- On May 13, 2002, the Company sold 3100 Monticello, 2300 Valley View, 150 West Parkway and 555 Republic Place in a single transaction with one buyer, Brookview Properties, L.P., an entity that includes a partner, whose principals include Paul A. Nussbaum, a former member of the Board of Directors of the Company. The Company provided the purchaser with a $5,000 subordinated loan that bore interest at 15 percent with a current rate of 11 percent, which was repaid in full by September 30, 2003.
- (b)
- On June 6, 2002, the Company sold 1717 St. James Place, 5300 Memorial Drive and 10497 Town & Country Way in a single transaction with one buyer, Parkway Properties LP.
- (c)
- On October 16, 2002 the Company sold 9060 East Via Linda Boulevard, 19640 North 31st Street and 5551 West Talavi Boulevard in a single transaction with one buyer, Summit Commercial Properties, Inc.
37
V. PORTFOLIO/ LEASING STATISTICS
38
V. PORTFOLIO/ LEASING STATISTICS
Leasing Statistics
(For the three months ended September 30, 2003)
Consolidated In-Service Portfolio
SUMMARY OF SPACE LEASED
| | | | LEASING ACTIVITY | | | | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Leased Sq. Ft. Acquired/ Sold(a) | | | | |||||||||||||
| Region/Market | Sq. Ft. Leased 6/30/03 | Expiring/ Adjustment Sq. Ft.(b) | Incoming Sq. Ft. | Net Leasing Activity | Sq. Ft. Leased 9/30/03(c) | Pct. Leased 9/30/03 | Pct. Leased 6/30/03 | |||||||||||
| Northeast | ||||||||||||||||||
| Northern NJ | 9,419,347 | 506,190 | (202,035 | ) | 268,998 | 66,963 | 9,992,500 | 90.5 | % | 93.6 | % | |||||||
| Central NJ | 2,726,966 | 67,189 | (97,929 | ) | 122,489 | 24,560 | 2,818,715 | 93.6 | % | 92.6 | % | |||||||
| Westchester Co., NY | 4,590,487 | 38,000 | (423,683 | ) | 446,333 | 22,650 | 4,651,137 | 95.6 | % | 95.8 | % | |||||||
| Sub. Philadelphia | 3,017,222 | 60,064 | (162,376 | ) | 106,426 | (55,950 | ) | 3,021,336 | 86.4 | % | 87.9 | % | ||||||
| Fairfield, CT | 784,343 | — | (20,270 | ) | 9,342 | (10,928 | ) | 773,415 | 90.8 | % | 92.1 | % | ||||||
| Washington, DC/MD | 435,768 | — | — | — | — | 435,768 | 96.7 | % | 96.7 | % | ||||||||
| Dutchess/Nassau/Rockland Co., NY | 573,830 | — | (22,785 | ) | 16,172 | (6,613 | ) | 567,217 | 95.9 | % | 97.0 | % | ||||||
| Total Northeast | 21,547,963 | 671,443 | (929,078 | ) | 969,760 | 40,682 | 22,260,088 | 91.6 | % | 93.2 | % | |||||||
| Southwest/West | ||||||||||||||||||
| Texas | 730,602 | — | (125,354 | ) | 107,247 | (18,107 | ) | 712,495 | 80.5 | % | 82.5 | % | ||||||
| Colorado | 1,281,053 | — | (161,968 | ) | 151,272 | (10,696 | ) | 1,270,357 | 81.2 | % | 81.8 | % | ||||||
| San Francisco | 438,174 | — | (22,275 | ) | 14,538 | (7,737 | ) | 430,437 | 95.5 | % | 97.2 | % | ||||||
| Total Southwest/West | 2,449,829 | — | (309,597 | ) | 273,057 | (36,540 | ) | 2,413,289 | 83.2 | % | 84.4 | % | ||||||
Company Totals | 23,997,792 | 671,443 | (1,238,675 | ) | 1,242,817 | 4,142 | 24,673,377 | 90.7 | % | 92.2 | % | |||||||
RECONCILIATION OF TOTAL PROPERTY SQUARE FOOTAGE
| Total sq. ft. as of June 30, 2003 | 26,025,545 | ||
| Total sq. ft. of properties added this period | 1,179,409 | ||
| Total sq. ft. of properties sold this period | — | ||
| Total sq. ft. as of September 30, 2003 | 27,204,954 | ||
- (a)
- Net gain/loss of leased square footage through properties sold, acquired or placed in service during the period.
- (b)
- Represents the square footage of expiring leases and leases scheduled to expire in the future for which new leases or renewals were signed during the period, as well as internal administrative adjustments.
- (c)
- Includes leases expiring September 30, 2003 aggregating 80,743 square feet for which no new leases were signed.
39
Leasing Statistics
(For the three months ended September 30, 2003)
Consolidated In-Service Portfolio(continued)
DETAIL OF TRANSACTION ACTIVITY
| Detail by Region/Market Region/Market | Property Type | of # Trans- Actions | Total Sq. Ft. | Sq. Ft. New Leases | Sq. Ft. Renewed And Other Retained (a) | Wtd. Avg. Term (Yrs.) | Wtd. Avg. Base Rent (b) | Leasing Costs Per Sq. Ft. Per Year (c) | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Northeast | |||||||||||||||||
| Northern NJ | Office | 27 | 212,088 | 130,094 | 81,994 | 6.4 | 24.00 | 2.60 | |||||||||
| Office/Flex | 4 | 56,910 | — | 56,910 | 4.6 | 14.05 | 0.79 | ||||||||||
| Central NJ | Office | 16 | 105,246 | 35,949 | 69,297 | 5.7 | 24.53 | 3.40 | |||||||||
| Office/Flex | 2 | 17,243 | 4,164 | 13,079 | 6.1 | 16.62 | 4.37 | ||||||||||
| Westchester Co., NY | Office | 20 | 130,537 | 49,055 | 81,482 | 5.4 | 22.82 | 2.91 | |||||||||
| Office/Flex | 19 | 171,414 | 82,869 | 88,545 | 7.0 | 16.73 | 1.58 | ||||||||||
| Industrial/Warehouse | 2 | 144,382 | — | 144,382 | 10.6 | 13.14 | 1.39 | ||||||||||
| Sub. Philadelphia | Office | 7 | 20,406 | 8,953 | 11,453 | 4.6 | 23.31 | 3.12 | |||||||||
| Office/Flex | 6 | 86,020 | 9,600 | 76,420 | 2.1 | 10.42 | 0.44 | ||||||||||
| Fairfield, CT | Office | 4 | 9,342 | 3,490 | 5,852 | 4.0 | 26.80 | 3.34 | |||||||||
| Dutchess/Nassau/Rockland Co., NY | Office | 8 | 16,172 | 6,211 | 9,961 | 4.5 | 24.86 | 4.50 | |||||||||
| Total Northeast | 115 | 969,760 | 330,385 | 639,375 | 6.4 | 19.10 | 2.28 | ||||||||||
| Southwest/West | |||||||||||||||||
| Texas | Office | 8 | 107,247 | 13,320 | 93,927 | 10.7 | 16.26 | 2.64 | |||||||||
| Colorado | Office | 16 | 151,272 | 94,793 | 56,479 | 6.4 | 13.86 | 3.32 | |||||||||
| San Francisco | Office | 44 | 14,538 | 5,900 | 8,638 | 2.8 | 27.27 | 2.63 | |||||||||
| Total Southwest/West | 68 | 273,057 | 114,013 | 159,044 | 7.9 | 15.52 | 3.10 | ||||||||||
| Company Totals | 183 | 1,242,817 | 444,398 | 798,419 | 6.7 | 18.32 | 2.49 | ||||||||||
Detail by Property Type | |||||||||||||||||
| Office | 150 | 766,848 | 347,765 | 419,083 | 6.5 | 20.89 | 3.23 | ||||||||||
| Office/Flex | 31 | 331,587 | 96,633 | 234,954 | 5.3 | 14.63 | 1.51 | ||||||||||
| Industrial/Warehouse | 2 | 144,382 | — | 144,382 | 10.6 | 13.14 | 1.39 | ||||||||||
| Company Totals | 183 | 1,242,817 | 444,398 | 798,419 | 6.7 | 18.32 | 2.49 | ||||||||||
Tenant Retention: | Leases Retained | 52.9 | % | ||||||||||||||
| Sq. Ft. Retained | 64.5 | % | |||||||||||||||
- (a)
- "Other Retained" transactions include existing tenants' expansions and relocations within the same building.
- (b)
- For Office/Flex properties, equals triple net rent plus common area costs and real estate taxes.
- (c)
- Represents estimated workletter costs of $14,515,124 and commissions of $5,039,547 committed, but not necessarily expended, during the period for second generation space aggregating 1,170,607 square feet.
40
Leasing Statistics
(For the three months ended September 30, 2003)
Unconsolidated Joint Venture Properties
SUMMARY OF SPACE LEASED
| | | | LEASING ACTIVITY | | | | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Leased Sq. Ft. Acquired/ Sold(a) | | | | ||||||||||||
| State | Sq. Ft. Leased 6/30/03 | Expiring/ Adjustment Sq. Ft.(b) | Incoming Sq. Ft. | Net Leasing Activity | Sq. Ft. Leased 9/30/03 | Pct. Leased 9/30/03 | Pct. Leased 6/30/03 | ||||||||||
| New Jersey | 577,575 | (577,575 | ) | — | — | — | — | N/A | 100.0 | % | |||||||
| New York | 17,000 | — | — | — | — | 17,000 | 7.3 | % | 7.3 | % | |||||||
| Texas | 190,255 | — | (35,358 | ) | 42,383 | 7,025 | 197,280 | 66.2 | % | 63.8 | % | ||||||
| California | 725,538 | — | (88,247 | ) | 53,456 | (34,791 | ) | 690,747 | 89.6 | % | 94.1 | % | |||||
| Totals | 1,510,368 | (577,575 | ) | (123,605 | ) | 95,839 | (27,766 | ) | 905,027 | 69.6 | % | 80.4 | % | ||||
RECONCILIATION OF TOTAL PROPERTY SQUARE FOOTAGE
| Total sq. ft. as of June 30, 2003 | 1,878,317 | |||
| Total sq. ft. of properties added this period | — | |||
| Total sq. ft. of properties sold this period | (577,575 | ) | ||
| Total sq. ft. as of September 30, 2003 | 1,300,742 | |||
DETAIL OF TRANSACTION ACTIVITY
| State | # of Transactions | Total Sq. Ft. | Sq. Ft. New Leases | Sq. Ft. Renewed And Other Retained(c) | Wtd. Avg. Term (Yrs.) | Wtd. Avg. Base Rent($) | Leasing Costs Per Sq. Ft. Per Year ($)(d) | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Texas | 5 | 42,383 | 24,640 | 17,743 | 4.3 | 13.39 | 1.48 | |||||||
| California | 1 | 53,456 | — | 53,456 | 15.3 | 25.10 | 2.84 | |||||||
| Totals | 6 | 95,839 | 24,640 | 71,199 | 10.4 | 19.92 | 2.59 |
- (a)
- Net gain/loss of leased square footage through properties sold, acquired or placed in service during the period.
- (b)
- Represents the square footage of expiring leases or leases scheduled to expire in the future for which new leases or renewals were signed during the period, as well as internal administrative adjustments.
- (c)
- "Other Retained" transactions include existing tenants' expansions and relocations within the same building.
- (d)
- Represents estimated workletter costs of $1,796,609 and commissions of $795,596 committed, but not necessarily expended, during the period for second generation space aggregating 95,839 square feet.
Mack-Cali Realty Corporation
Supplemental Operating and Financial Data for the Quarter Ended September 30, 2003
41
Leasing Statistics
(For the nine months ended September 30, 2003)
Consolidated In-Service Portfolio
SUMMARY OF SPACE LEASED
| | | | LEASING ACTIVITY | | | | | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Leased Sq. Ft. Acquired/ Sold (a) | | | | | ||||||||||||
| Region/Market | Sq. Ft. Leased 12/31/02 | Expiring/ Adjustment Sq. Ft. (b) | Incoming Sq. Ft. | Net Leasing Activity | Sq. Ft. Leased 9/30/03 (c) | Pct. Leased 9/30/03 | Pct. Leased 12/31/02 | |||||||||||
| Northeast | ||||||||||||||||||
| Northern NJ | 9,367,129 | 506,190 | (639,610 | ) | 758,791 | 119,181 | 9,992,500 | 90.5 | % | 93.1 | % | |||||||
| Central NJ | 2,739,460 | 67,189 | (431,700 | ) | 443,766 | 12,066 | 2,818,715 | 93.6 | % | 93.1 | % | |||||||
| Westchester Co., NY | 4,629,256 | 38,000 | (859,382 | ) | 843,263 | (16,119 | ) | 4,651,137 | 95.6 | % | 96.6 | % | ||||||
| Sub. Philadelphia | 3,052,372 | 60,064 | (420,772 | ) | 329,672 | (91,100 | ) | 3,021,336 | 86.4 | % | 88.9 | % | ||||||
| Fairfield, CT | 819,846 | — | (109,542 | ) | 63,111 | (46,431 | ) | 773,415 | 90.8 | % | 96.2 | % | ||||||
| Washington, DC/MD | 450,366 | — | (14,598 | ) | — | (14,598 | ) | 435,768 | 96.7 | % | 100.0 | % | ||||||
| Dutchess/Nassau/Rockland Co., NY | 583,529 | — | (36,383 | ) | 20,071 | (16,312 | ) | 567,217 | 95.9 | % | 98.6 | % | ||||||
| �� | ||||||||||||||||||
| Total Northeast | 21,641,958 | 671,443 | (2,511,987 | ) | 2,458,674 | (53,313 | ) | 22,260,088 | 91.6 | % | 93.6 | % | ||||||
| Southwest/West | ||||||||||||||||||
| Texas | 793,186 | (88,391 | ) | (266,817 | ) | 274,517 | 7,700 | 712,495 | 80.5 | % | 80.2 | % | ||||||
| Colorado | 1,248,488 | — | (418,087 | ) | 439,956 | 21,869 | 1,270,357 | 81.2 | % | 79.8 | % | |||||||
| San Francisco | 438,553 | — | (56,258 | ) | 48,142 | (8,116 | ) | 430,437 | 95.5 | % | 97.3 | % | ||||||
| Total Southwest/West | 2,480,227 | (88,391 | ) | (741,162 | ) | 762,615 | 21,453 | 2,413,289 | 83.2 | % | 82.5 | % | ||||||
| Company Totals | 24,122,185 | 583,052 | (3,253,149 | ) | 3,221,289 | (31,860 | ) | 24,673,377 | 90.7 | % | 92.3 | % | ||||||
RECONCILIATION OF TOTAL PROPERTY SQUARE FOOTAGE
| Total sq. ft. as of December 31, 2002 | 26,129,234 | |||
| Total sq. ft. of properties added this period | 1,179,409 | |||
| Total sq. ft. of properties sold this period | (103,689 | ) | ||
| Total sq. ft. as of September 30, 2003 | 27,204,954 | |||
- (a)
- Net gain/loss of leased square footage through properties sold, acquired or placed in service during the period.
- (b)
- Represents the square footage of expiring leases and leases scheduled to expire in the future for which new leases or renewals were signed during the period, as well as internal administrative adjustments.
- (c)
- Includes leases expiring September 30, 2003 aggregating 80,743 square feet for which no new leases were signed.
42
Leasing Statistics
(For the nine months ended September 30, 2003)
Consolidated In-Service Portfolio(continued)
DETAIL OF TRANSACTION ACTIVITY
| Detail by Region/Market Region/Market | Property Type | # of Trans- Actions | Total Sq. Ft. | Sq. Ft. New Leases | Sq. Ft. Renewed And Other Retained(a) | Wtd. Avg. Term (Yrs.) | Wtd.Avg. Base Rent ($)(b) | Leasing Costs Per Sq. Ft. Per Year(c) | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Northeast | |||||||||||||||||
| Northern NJ | Office | 81 | 687,025 | 425,559 | 261,466 | 7.2 | 24.13 | 3.19 | |||||||||
| Office/Flex | 6 | 71,766 | — | 71,766 | 5.0 | 14.45 | 1.76 | ||||||||||
| Central NJ | Office | 34 | 377,135 | 68,385 | 308,750 | 7.5 | 19.35 | 2.79 | |||||||||
| Office/Flex | 7 | 66,631 | 16,364 | 50,267 | 3.9 | 16.45 | 2.85 | ||||||||||
| Westchester Co., NY | Office | 78 | 297,258 | 118,193 | 179,065 | 5.1 | 23.57 | 2.65 | |||||||||
| Office/Flex | 46 | 359,457 | 139,932 | 219,525 | 5.5 | 16.65 | 1.58 | ||||||||||
| Industrial/Warehouse | 5 | 186,548 | 5,890 | 180,658 | 9.5 | 12.82 | 1.23 | ||||||||||
| Sub. Philadelphia | Office | 24 | 111,741 | 41,621 | 70,120 | 4.9 | 22.46 | 4.46 | |||||||||
| Office/Flex | 22 | 217,931 | 66,706 | 151,225 | 2.8 | 9.39 | 1.15 | ||||||||||
| Fairfield, CT | Office | 15 | 63,111 | 11,490 | 51,621 | 3.2 | 28.93 | 4.42 | |||||||||
| Dutchess/Nassau/Rockland Co., NY | Office | 9 | 20,071 | 6,211 | 13,860 | 3.9 | 23.82 | 4.18 | |||||||||
| Total Northeast | 327 | 2,458,674 | 900,351 | 1,558,323 | 6.1 | 19.63 | 2.64 | ||||||||||
Southwest/West | |||||||||||||||||
| Texas | Office | 43 | 274,517 | 63,590 | 210,927 | 8.5 | 15.69 | 2.36 | |||||||||
| Colorado | Office | 33 | 439,956 | 234,713 | 205,243 | 7.5 | 14.09 | 2.80 | |||||||||
| San Francisco | Office | 103 | 48,142 | 9,526 | 38,616 | 3.2 | 27.88 | 2.13 | |||||||||
| Total Southwest/West | 179 | 762,615 | 307,829 | 454,786 | 7.6 | 15.53 | 2.67 | ||||||||||
Company Totals | 506 | 3,221,289 | 1,208,180 | 2,013,109 | 6.5 | 18.66 | 2.65 | ||||||||||
Detail by Property Type | |||||||||||||||||
| Office | 420 | 2,318,956 | 979,288 | 1,339,668 | 6.8 | 20.50 | 3.03 | ||||||||||
| Office/Flex | 81 | 715,785 | 223,002 | 492,783 | 4.5 | 14.20 | 1.62 | ||||||||||
| Industrial/Warehouse | 5 | 186,548 | 5,890 | 180,658 | 9.5 | 12.82 | 1.23 | ||||||||||
| Company Totals | 506 | 3,221,289 | 1,208,180 | 2,013,109 | 6.5 | 18.66 | 2.65 | ||||||||||
Tenant Retention: | Leases Retained | 56.6% | |||||||||||||||
| Sq. Ft. Retained | 61.9% | ||||||||||||||||
- (a)
- "Other Retained" transactions include existing tenants' expansions and relocations within the same building.
- (b)
- For Office/Flex properties, equals triple net rent plus common area costs and real estate taxes.
- (c)
- Represents estimated workletter costs of $37,398,655 and commissions of $16,662,578 committed, but not necessarily expended, during the period for second generation space aggregating 3,145,777 square feet.
43
Leasing Statistics
(For the nine months ended September 30, 2003)
Unconsolidated Joint Venture Properties
SUMMARY OF SPACE LEASED
| | | | LEASING ACTIVITY | | | | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| State | Sq. Ft. Leased 12/31/02 | Leased Sq. Ft. Acquired/ Sold (a) | Expiring/ Adjustment Sq. Ft. (b) | Incoming Sq. Ft. | Net Leasing Activity | Sq. Ft. Leased 9/30/03 | Pct. Leased 9/30/03 | Pct. Leased 12/31/02 | |||||||||
| New Jersey | 577,575 | (577,575 | ) | — | — | — | — | N/A | 100.0 | % | |||||||
| New York | 17,000 | — | — | — | — | 17,000 | 7.3 | % | 7.3 | % | |||||||
| Texas | 193,660 | — | (46,461 | ) | 50,081 | 3,620 | 197,280 | 66.2 | % | 65.0 | % | ||||||
| California | 987,138 | (262,864 | ) | (104,942 | ) | 71,415 | (33,527 | ) | 690,747 | 89.6 | % | 94.6 | % | ||||
| Totals | 1,775,373 | (840,439 | ) | (151,403 | ) | 121,496 | (29,907 | ) | 905,027 | 69.6 | % | 82.5 | % | ||||
RECONCILIATION OF TOTAL PROPERTY SQUARE FOOTAGE
| Total sq. ft. as of December 31, 2002 | 2,151,511 | |||
| Total sq. ft. of properties added this period | — | |||
| Total sq. ft. of properties sold this period | (850,769 | ) | ||
| Total sq. ft. as of September 30, 2003 | 1,300,742 | |||
DETAIL OF TRANSACTION ACTIVITY
| State | # of Transactions | Total Sq. Ft. | Sq. Ft. New Leases | Sq. Ft. Renewed And Other Retained (c) | Wtd. Avg. Term (Yrs.) | Wtd. Avg. Base Rent ($) | Leasing Costs Per Sq. Ft. Per Year ($) (d) | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Texas | 9 | 50,081 | 27,608 | 22,473 | 4.3 | 13.79 | 1.76 | |||||||
| California | 2 | 71,415 | — | 71,415 | 14.5 | 25.76 | 2.51 | |||||||
| Totals | 11 | 121,496 | 27,608 | 93,888 | 10.3 | 20.83 | 2.38 | |||||||
- (a)
- Net gain/loss of leased square footage through properties sold, acquired or placed in service during the period.
- (b)
- Represents the square footage of expiring leases or leases scheduled to expire in the future for which new leases or renewals were signed during the period, as well as internal administrative adjustments.
- (c)
- "Other Retained" transactions include existing tenants' expansions and relocations within the same building.
- (d)
- Represents estimated workletter costs of $1,958,774 and commissions of $1,013,664 committed, but not necessarily expended, during the period for second generation space aggregating 121,496 square feet.
44
The following table lists the Company's markets (MSAs), based on annualized contractual base rent of the Consolidated Properties:
| Market (MSA) | Annualized Base Rental Revenue ($) (a) (b) (c) | Percentage of Company Annualized Base Rental Revenue (%) | Total Property Size Rentable Area | Percentage of Rentable Area (%) | ||||
|---|---|---|---|---|---|---|---|---|
| New York, NY (Westchester-Rockland Counties) | 90,178,984 | 18.0 | 5,044,088 | 18.4 | ||||
| Newark, NJ (Essex-Morris-Union Counties) | 88,989,364 | 17.8 | 4,309,519 | 15.8 | ||||
| Bergen-Passaic, NJ | 87,907,762 | 17.6 | 4,530,091 | 16.7 | ||||
| Jersey City, NJ | 65,832,823 | 13.2 | 3,071,695 | 11.3 | ||||
| Philadelphia, PA-NJ | 47,932,540 | 9.6 | 3,417,953 | 12.6 | ||||
| Trenton, NJ (Mercer County) | 15,743,670 | 3.1 | 767,365 | 2.8 | ||||
| Middlesex-Somerset-Hunterdon, NJ | 14,727,114 | 2.9 | 791,051 | 2.9 | ||||
| Denver, CO | 14,157,936 | 2.8 | 1,084,945 | 4.0 | ||||
| Stamford-Norwalk, CT | 13,512,026 | 2.7 | 706,510 | 2.6 | ||||
| Washington, DC-MD-VA | 12,890,667 | 2.6 | 450,549 | 1.7 | ||||
| San Francisco, CA | 11,919,183 | 2.4 | 450,891 | 1.7 | ||||
| Monmouth-Ocean, NJ | 7,540,945 | 1.5 | 577,423 | 2.1 | ||||
| Dallas, TX | 6,479,444 | 1.3 | 449,594 | 1.7 | ||||
| Nassau-Suffolk, NY | 6,373,398 | 1.3 | 292,849 | 1.1 | ||||
| San Antonio, TX | 4,853,803 | 1.0 | 435,465 | 1.6 | ||||
| Bridgeport, CT | 2,880,061 | 0.6 | 145,487 | 0.5 | ||||
| Dutchess County, NY | 2,244,331 | 0.4 | 118,727 | 0.4 | ||||
| Boulder-Longmont, CO | 2,129,482 | 0.4 | 270,421 | 1.0 | ||||
| Atlantic-Cape May, NJ | 1,862,601 | 0.4 | 80,344 | 0.3 | ||||
| Colorado Springs, CO | 1,861,381 | 0.4 | 209,987 | 0.8 | ||||
| Totals | 500,017,515 | 100.0 | 27,204,954 | 100.0 | ||||
- (a)
- Annualized base rental revenue is based on actual September 2003 billings times 12. For leases whose rent commences after October 1, 2003, annualized base rental revenue is based on the first full month's billing times 12. As annualized base rental revenue is not derived from historical GAAP results, historical results may differ from those set forth above.
- (b)
- Includes leases expiring September 30, 2003 aggregating 80,743 square feet and representing annualized rent of $1,642,953 for which no new leases were signed.
- (c)
- Includes office, office/flex, industrial/warehouse and stand-alone retail tenants only. Excludes leases for amenity, retail, parking and month-to-month tenants. Some tenants have multiple leases.
45
The following table lists the Company's 30 largest industry classifications based on annualized contractual base rent of the Consolidated Properties:
| Industry Classification (a) | Annualized Base Rental Revenue ($) (b) (c) (d) | Percentage of Company Annualized Base Rental Revenue (%) | Square Feet Leased (e) | Percentage of Total Company Leased Sq. Ft. (%) | ||||
|---|---|---|---|---|---|---|---|---|
| Securities, Commodity Contracts & Other Financial | 73,817,367 | 14.8 | 2,703,257 | 11.0 | ||||
| Manufacturing | 48,829,745 | 9.8 | 2,531,422 | 10.4 | ||||
| Insurance Carriers & Related Activities | 30,123,535 | 6.0 | 1,410,564 | 5.8 | ||||
| Telecommunications | 28,671,588 | 5.7 | 1,456,441 | 6.0 | ||||
| Computer System Design Svcs. | 28,330,408 | 5.7 | 1,439,272 | 5.9 | ||||
| Legal Services | 25,543,807 | 5.1 | 996,393 | 4.1 | ||||
| Credit Intermediation & Related Activities, | 23,609,425 | 4.7 | 1,225,399 | 5.0 | ||||
| Health Care & Social Assistance | 19,767,090 | 4.0 | 1,019,849 | 4.2 | ||||
| Scientific Research/Development | 19,505,141 | 3.9 | 973,501 | 4.0 | ||||
| Wholesale Trade | 18,777,119 | 3.8 | 1,268,084 | 5.2 | ||||
| Accounting/Tax Prep. | 16,145,709 | 3.2 | 689,546 | 2.8 | ||||
| Retail Trade | 15,728,171 | 3.1 | 848,782 | 3.5 | ||||
| Publishing Industries | 13,826,261 | 2.8 | 600,405 | 2.5 | ||||
| Other Professional | 13,604,636 | 2.7 | 678,717 | 2.8 | ||||
| Information Services | 11,406,063 | 2.3 | 500,858 | 2.1 | ||||
| Architectural/Engineering | 10,000,027 | 2.0 | 450,620 | 1.9 | ||||
| Other Service (except Public Administration) | 9,646,636 | 1.9 | 623,581 | 2.6 | ||||
| Advertising/Related Services | 9,607,114 | 1.9 | 401,513 | 1.7 | ||||
| Arts, Entertainment & Recreation | 9,305,881 | 1.9 | 632,108 | 2.6 | ||||
| Management of Companies & Finance | 8,327,657 | 1.7 | 348,003 | 1.4 | ||||
| Real Estate Rental & Leasing | 7,627,677 | 1.5 | 427,238 | 1.8 | ||||
| Transportation | 6,527,644 | 1.3 | 425,719 | 1.8 | ||||
| Management/Scientific | 6,067,073 | 1.2 | 274,478 | 1.1 | ||||
| Data Processing Services | 5,530,323 | 1.1 | 231,879 | 1.0 | ||||
| Construction | 5,389,847 | 1.1 | 280,876 | 1.2 | ||||
| Utilities | 5,089,863 | 1.0 | 266,526 | 1.1 | ||||
| Educational Services | 4,859,630 | 1.0 | 259,797 | 1.1 | ||||
| Public Administration | 4,396,820 | 0.9 | 222,063 | 0.9 | ||||
| Specialized Design Services | 3,979,737 | 0.8 | 245,765 | 1.0 | ||||
| Admin & Support, Waste Mgt. & Remediation Svcs. | 3,817,816 | 0.8 | 274,980 | 1.1 | ||||
| Other | 12,157,705 | 2.3 | 606,813 | 2.4 | ||||
| Totals | 500,017,515 | 100.0 | 24,314,449 | 100.0 | ||||
- (a)
- The Company's tenants are classified according to the U.S. Government's North American Industrial Classification System (NAICS) which has replaced the Standard Industrial Code (SIC) system.
- (b)
- Annualized base rental revenue is based on actual September 2003 billings times 12. For leases whose rent commences after October 1, 2003, annualized base rental revenue is based on the first full month's billing times 12. As annualized base rental revenue is not derived from historical GAAP results, historical results may differ from those set forth above.
- (c)
- Includes office, office/flex, industrial/warehouse and stand-alone retail tenants only. Excludes leases for amenity, retail, parking and month-to-month tenants. Some tenants have multiple leases.
- (d)
- Includes leases expiring September 30, 2003 aggregating 80,743 square feet and representing annualized rent of $1,642,953 for which no new leases were signed.
- (e)
- Excludes all unleased space as of September 30, 2003.
46
Consolidated Portfolio Analysis(a)
(as of September 30, 2003)
Breakdown by Number of Properties
PROPERTY TYPE:
| STATE | Office | % of Total | Office/Flex | % of Total | Industrial/ Warehouse | % of Total | Stand- Alone Retail | % of Total | Land Leases | % of Total | TOTALS By State | % of Total | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| New Jersey | 77 | 29.8 | % | 50 | 19.4 | % | — | — | — | — | 1 | 0.4 | % | 128 | 49.6 | % | |||||||||
| New York | 24 | 9.2 | % | 41 | 15.9 | % | 6 | 2.3 | % | 2 | 0.8 | % | 2 | 0.8 | % | 75 | 29.0 | % | |||||||
| Pennsylvania | 17 | 6.5 | % | — | — | — | — | — | — | — | — | 17 | 6.5 | % | |||||||||||
| Connecticut | 4 | 1.6 | % | 5 | 1.9 | % | — | — | — | — | — | — | 9 | 3.5 | % | ||||||||||
| Wash., D.C./Maryland | 3 | 1.2 | % | — | — | — | — | — | — | — | — | 3 | 1.2 | % | |||||||||||
| Sub-total Northeast: | 125 | 48.3 | % | 96 | 37.2 | % | 6 | 2.3 | % | 2 | 0.8 | % | 3 | 1.2 | % | 232 | 89.8 | % | |||||||
| Texas | 4 | 1.6 | % | — | — | — | — | — | — | — | — | 4 | 1.6 | % | |||||||||||
| California | 2 | 0.8 | % | — | — | — | — | — | — | — | — | 2 | 0.8 | % | |||||||||||
| Colorado | 20 | 7.8 | % | — | — | — | — | — | — | — | — | 20 | 7.8 | % | |||||||||||
| TOTALS By Type: | 151 | 58.5 | % | 96 | 37.2 | % | 6 | 2.3 | % | 2 | 0.8 | % | 3 | 1.2 | % | 258 | 100.0 | % | |||||||
- (a)
- Excludes seven properties, aggregating approximately 1.3 million square feet, which are not consolidated by the Company.
47
Consolidated Portfolio Analysis(a)
(as of September 30, 2003)
Breakdown by Square Footage
PROPERTY TYPE:
| STATE | Office | % of Total | Office/Flex | % of Total | Industrial/ Warehouse | % of Total | Stand- Alone Retail | % of Total | TOTALS By State | % of Total | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| New Jersey | 13,367,955 | 49.0 | % | 2,277,531 | 8.4 | % | — | — | — | — | 15,645,486 | 57.4 | % | ||||||||
| New York | 2,702,152 | 9.9 | % | 2,348,812 | 8.6 | % | 387,400 | 1.4 | % | 17,300 | 0.1 | % | 5,455,664 | 20.0 | % | ||||||
| Pennsylvania | 1,899,955 | 7.0 | % | — | — | — | — | — | — | 1,899,955 | 7.0 | % | |||||||||
| Connecticut | 578,997 | 2.1 | % | 273,000 | 1.0 | % | — | — | — | — | 851,997 | 3.1 | % | ||||||||
| Wash., D.C./Maryland | 450,549 | 1.7 | % | — | — | — | — | — | — | 450,549 | 1.7 | % | |||||||||
| Sub-total Northeast | 18,999,608 | 69.7 | % | 4,899,343 | 18.0 | % | 387,400 | 1.4 | % | 17,300 | 0.1 | % | 24,303,651 | 89.2 | % | ||||||
| Texas | 885,059 | 3.3 | % | — | — | — | — | — | — | 885,059 | 3.3 | % | |||||||||
| California | 450,891 | 1.7 | % | — | — | — | — | — | — | 450,891 | 1.7 | % | |||||||||
| Colorado | 1,565,353 | 5.8 | % | — | — | — | — | — | — | 1,565,353 | 5.8 | % | |||||||||
| TOTALS By Type: | 21,900,911 | 80.5 | % | 4,899,343 | 18.0 | % | 387,400 | 1.4 | % | 17,300 | 0.1 | % | 27,204,954 | 100.0 | % | ||||||
- (a)
- Excludes seven properties, aggregating approximately 1.3 million square feet, which are not consolidated by the Company.
48
Consolidated Portfolio Analysis(a)
(Year ended September 30, 2003)
Breakdown by Base Rental Revenue(b)
(Dollars in thousands)
PROPERTY TYPE:
| STATE | Office | % of Total | Office/ Flex | % of Total | Indust./ Ware- house | % of Total | Stand- Alone Retail | % of Total | Land Leases | % of Total | TOTALS By State | % of Total | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| New Jersey | 275,295 | 54.0 | % | 18,949 | 3.7 | % | — | — | — | — | 298 | 0.1 | % | 294,542 | 57.8 | % | |||||||||
| New York | 59,860 | 11.8 | % | 33,885 | 6.6 | % | 3,901 | 0.8 | % | 290 | 0.1 | % | 258 | 0.1 | % | 98,194 | 19.4 | % | |||||||
| Pennsylvania | 39,615 | 7.8 | % | — | — | — | — | — | — | — | — | 39,615 | 7.8 | % | |||||||||||
| Connecticut | 13,080 | 2.6 | % | 3,798 | 0.7 | % | — | — | — | — | — | — | 16,878 | 3.3 | % | ||||||||||
| Wash., D.C./ Maryland | 14,323 | 2.8 | % | — | — | — | — | — | — | — | — | 14,323 | 2.8 | % | |||||||||||
| Sub-total Northeast: | 402,173 | 79.0 | % | 56,632 | 11.0 | % | 3,901 | 0.8 | % | 290 | 0.1 | % | 556 | 0.2 | % | 463,552 | 91.1 | % | |||||||
| Texas | 10,963 | 2.2 | % | — | — | — | — | — | — | — | — | 10,963 | 2.2 | % | |||||||||||
| California | 15,088 | 3.0 | % | — | — | — | — | — | — | — | — | 15,088 | 3.0 | % | |||||||||||
| Colorado | 19,582 | 3.7 | % | — | — | — | — | — | — | — | — | 19,582 | 3.7 | % | |||||||||||
| TOTALS By Type: | 447,806 | 87.9 | % | 56,632 | 11.0 | % | 3,901 | 0.8 | % | 290 | 0.1 | % | 556 | 0.2 | % | 509,185 | 100.0 | % | |||||||
- (a)
- Excludes seven properties, aggregating approximately 1.3 million square feet, which are not consolidated by the Company.
- (b)
- Total base rent for the 12 months ended September 30, 2003, determined in accordance with GAAP. Substantially all of the leases provide for annual base rents plus recoveries and escalation charges based upon the tenants' proportionate share of and/or increases in real estate taxes and certain costs, as defined, and the pass through of charges for electrical usage.
49
Consolidated Portfolio Analysis(a) (b)
(as of September 30, 2003)
Breakdown by Percentage Leased
PROPERTY TYPE:
| STATE | Office | Office/Flex | Industrial/Warehouse | Stand-Alone Retail | WEIGHTED AVG. By State | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| New Jersey | 91.0 | % | 90.8 | % | — | — | 91.0 | % | |||
| New York | 95.6 | % | 95.1 | % | 99.3 | % | 100.0 | % | 95.7 | % | |
| Pennsylvania | 84.4 | % | — | — | — | 84.4 | % | ||||
| Connecticut | 86.4 | % | 100.0 | % | — | — | 90.8 | % | |||
| Washington, D.C./ Maryland | 96.7 | % | — | — | — | 96.7 | % | ||||
| Sub-total Northeast | 91.0 | % | 93.4 | % | 99.3 | % | 100.0 | % | 91.6 | % | |
| Texas | 80.5 | % | — | — | — | 80.5 | % | ||||
| California | 95.5 | % | — | — | — | 95.5 | % | ||||
| Colorado | 81.2 | % | — | — | — | 81.2 | % | ||||
| WEIGHTED AVG. By Type: | 89.9 | % | 93.4 | % | 99.3 | % | 100.0 | % | 90.7 | % | |
- (a)
- Excludes seven properties, aggregating approximately 1.3 million square feet, which are not consolidated by the Company, and parcels of land leased to others.
- (b)
- Percentage leased includes all leases in effect as of the period end date, some of which have commencement dates in the future, as well as leases expiring September 30, 2003 aggregating 80,743 square feet for which no new leases were signed.
50
| Property Location | Year Built | Net Rentable Area (Sq. Ft.) | Percentage Leased as of 9/30/03 (%)(a) | 2003 Base Rent ($000's)(b) | Percentage of Total 2003 Office, Office/Flex and Industrial/ Warehouse Base Rent(%) | 2003 Average Base Rent Per Sq. Ft. ($)(c) | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ATLANTIC COUNTY, NEW JERSEY | ||||||||||||
| Egg Harbor | ||||||||||||
| 100 Decadon Drive | 1987 | 40,422 | 100.0 | 951 | 0.19 | 23.53 | ||||||
| 200 Decadon Drive | 1991 | 39,922 | 100.0 | 913 | 0.18 | 22.87 | ||||||
BERGEN COUNTY, NEW JERSEY | ||||||||||||
| Fair Lawn | ||||||||||||
| 17-17 Route 208 North | 1987 | 143,000 | 100.0 | 3,361 | 0.66 | 23.50 | ||||||
| Fort Lee | ||||||||||||
| One Bridge Plaza | 1981 | 200,000 | 86.2 | 4,767 | 0.94 | 27.65 | ||||||
| 2115 Linwood Avenue | 1981 | 68,000 | 71.2 | 1,583 | 0.31 | 32.70 | ||||||
| Little Ferry | ||||||||||||
| 200 Riser Road | 1974 | 286,628 | 100.0 | 2,250 | 0.44 | 7.85 | ||||||
| Montvale | ||||||||||||
| 95 Chestnut Ridge Road | 1975 | 47,700 | 100.0 | 566 | 0.11 | 11.87 | ||||||
| 135 Chestnut Ridge Road | 1981 | 66,150 | 100.0 | 1,561 | 0.31 | 23.60 | ||||||
| Paramus | ||||||||||||
| 15 East Midland Avenue | 1988 | 259,823 | 100.0 | 6,717 | 1.32 | 25.85 | ||||||
| 461 From Road | 1988 | 253,554 | 99.8 | 6,080 | 1.20 | 24.03 | ||||||
| 650 From Road | 1978 | 348,510 | 92.0 | 7,805 | 1.54 | 24.34 | ||||||
| 140 Ridgewood Avenue | 1981 | 239,680 | 94.1 | 4,940 | 0.97 | 21.90 | ||||||
| 61 South Paramus Avenue | 1985 | 269,191 | 100.0 | 6,727 | 1.32 | 24.99 | ||||||
| Rochelle Park | ||||||||||||
| 120 Passaic Street | 1972 | 52,000 | 99.6 | 1,397 | 0.27 | 26.97 | ||||||
| 365 West Passaic Street | 1976 | 212,578 | 92.7 | 4,043 | 0.80 | 20.52 | ||||||
| Upper Saddle River | ||||||||||||
| 1 Lake Street | 1973/94 | 474,801 | 100.0 | 7,465 | 1.47 | 15.72 | ||||||
| 10 Mountainview Road | 1986 | 192,000 | 95.8 | 3,861 | 0.76 | 20.99 | ||||||
| Woodcliff Lake | ||||||||||||
| 400 Chestnut Ridge Road | 1982 | 89,200 | 100.0 | 2,137 | 0.42 | 23.96 | ||||||
| 470 Chestnut Ridge Road | 1987 | 52,500 | 100.0 | 1,192 | 0.23 | 22.70 | ||||||
| 530 Chestnut Ridge Road | 1986 | 57,204 | 100.0 | 1,166 | 0.23 | 20.38 | ||||||
| 50 Tice Boulevard | 1984 | 235,000 | 100.0 | 5,875 | 1.16 | 25.00 | ||||||
| 300 Tice Boulevard | 1991 | 230,000 | 100.0 | 5,961 | 1.17 | 25.92 | ||||||
BURLINGTON COUNTY, NEW JERSEY | ||||||||||||
| Moorestown | ||||||||||||
| 224 Strawbridge Drive | 1984 | 74,000 | 100.0 | 1,418 | 0.28 | 19.16 | ||||||
| 228 Strawbridge Drive | 1984 | 74,000 | 100.0 | 1,368 | 0.27 | 18.49 | ||||||
ESSEX COUNTY, NEW JERSEY | ||||||||||||
| Millburn | ||||||||||||
| 150 J.F. Kennedy Parkway | 1980 | 247,476 | 98.7 | 6,293 | 1.24 | 25.76 | ||||||
| Roseland | ||||||||||||
| 101 Eisenhower Parkway | 1980 | 237,000 | 88.0 | 4,879 | 0.96 | 23.39 | ||||||
| 103 Eisenhower Parkway | 1985 | 151,545 | 95.2 | 3,355 | 0.66 | 23.25 | ||||||
| 105 Eisenhower Parkway | 2001 | 220,000 | 62.1 | 1,155 | 0.23 | 8.45 | ||||||
HUDSON COUNTY, NEW JERSEY | ||||||||||||
| Jersey City | ||||||||||||
| Harborside Financial Center Plaza 1 | 1983 | 400,000 | 99.0 | 4,237 | 0.83 | 10.70 |
51
| Property Location | Year Built | Net Rentable Area (Sq. Ft.) | Percentage Leased as of 9/30/03 (%)(a) | 2003 Base Rent ($000's)(b) | Percentage of Total 2003 Office, Office/Flex and Industrial/ Warehouse Base Rent(%) | 2003 Average Base Rent Per Sq. Ft. ($)(c) | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Harborside Financial Center Plaza 2 | 1990 | 761,200 | 100.0 | 19,188 | 3.77 | 25.21 | ||||||
| Harborside Financial Center Plaza 3 | 1990 | 725,600 | 100.0 | 18,289 | 3.60 | 25.21 | ||||||
| Harborside Financial Center Plaza 4-A | 2000 | 207,670 | 94.0 | 7,132 | 1.40 | 36.54 | ||||||
| Harborside Financial Center Plaza 5 | 2002 | 977,225 | 56.2 | 19,167 | 3.77 | 34.90 | ||||||
MERCER COUNTY, NEW JERSEY | ||||||||||||
| Hamilton Township | ||||||||||||
| 600 Horizon Drive(d) | 2002 | 95,000 | 100.0 | 1,374 | 0.27 | 14.46 | ||||||
| Princeton | ||||||||||||
| 103 Carnegie Center | 1984 | 96,000 | 84.8 | 2,053 | 0.40 | 25.22 | ||||||
| 100 Overlook Center | 1988 | 149,600 | 100.0 | 4,100 | 0.81 | 27.41 | ||||||
| 5 Vaughn Drive | 1987 | 98,500 | 98.1 | 2,019 | 0.40 | 20.89 | ||||||
MIDDLESEX COUNTY, NEW JERSEY | ||||||||||||
| East Brunswick | ||||||||||||
| 377 Summerhill Road | 1977 | 40,000 | 100.0 | 373 | 0.07 | 9.33 | ||||||
| Plainsboro | ||||||||||||
| 500 College Road East | 1984 | 158,235 | 100.0 | 3,706 | 0.73 | 23.42 | ||||||
| South Brunswick | ||||||||||||
| 3 Independence Way | 1983 | 111,300 | 29.3 | 762 | 0.15 | 23.37 | ||||||
| Woodbridge | ||||||||||||
| 581 Main Street | 1991 | 200,000 | 100.0 | 4,877 | 0.96 | 24.39 | ||||||
MONMOUTH COUNTY, NEW JERSEY | ||||||||||||
| Neptune | ||||||||||||
| 3600 Route 66 | 1989 | 180,000 | 100.0 | 2,410 | 0.47 | 13.39 | ||||||
| Wall Township | ||||||||||||
| 1305 Campus Parkway | 1988 | 23,350 | 92.4 | 398 | 0.08 | 18.45 | ||||||
| 1350 Campus Parkway | 1990 | 79,747 | 99.9 | 1,492 | 0.29 | 18.73 | ||||||
MORRIS COUNTY, NEW JERSEY | ||||||||||||
| Florham Park | ||||||||||||
| 325 Columbia Turnpike | 1987 | 168,144 | 100.0 | 4,485 | 0.88 | 26.67 | ||||||
| Morris Plains | ||||||||||||
| 250 Johnson Road | 1977 | 75,000 | 100.0 | 1,594 | 0.31 | 21.25 | ||||||
| 201 Littleton Road | 1979 | 88,369 | 86.3 | 1,508 | 0.30 | 19.77 | ||||||
| Morris Township | ||||||||||||
| 340 Mt. Kemble Avenue | 1985 | 387,000 | 100.0 | 5,530 | 1.09 | 14.29 | ||||||
| Parsippany | ||||||||||||
| 4 Campus Drive | 1983 | 147,475 | 96.4 | 3,467 | 0.68 | 24.39 | ||||||
| 6 Campus Drive | 1983 | 148,291 | 38.9 | 1,289 | 0.25 | 22.35 | ||||||
| 7 Campus Drive | 1982 | 154,395 | 100.0 | 2,037 | 0.40 | 13.19 | ||||||
| 8 Campus Drive | 1987 | 215,265 | 87.8 | 5,117 | 1.01 | 27.07 | ||||||
| 9 Campus Drive | 1983 | 156,495 | 93.9 | 4,508 | 0.89 | 30.68 | ||||||
| 2 Dryden Way | 1990 | 6,216 | 100.0 | 92 | 0.02 | 14.80 | ||||||
| 4 Gatehall Drive | 1988 | 248,480 | 81.7 | 5,791 | 1.14 | 28.53 | ||||||
| 2 Hilton Court | 1991 | 181,592 | 83.5 | 4,494 | 0.88 | 29.64 | ||||||
| 1633 Littleton Road(d) | 1978 | 57,722 | 100.0 | 1,133 | 0.22 | 19.63 | ||||||
| 600 Parsippany Road | 1978 | 96,000 | 44.8 | 1,008 | 0.20 | 23.44 |
52
| Property Location | Year Built | Net Rentable Area (Sq. Ft.) | Percentage Leased as of 9/30/03 (%)(a) | 2003 Base Rent ($000's)(b) | Percentage of Total 2003 Office, Office/Flex and Industrial/ Warehouse Base Rent(%) | 2003 Average Base Rent Per Sq. Ft. ($)(c) | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 Sylvan Way | 1989 | 150,557 | 100.0 | 3,433 | 0.68 | 22.80 | ||||||
| 5 Sylvan Way | 1989 | 151,383 | 100.0 | 3,963 | 0.78 | 26.18 | ||||||
| 7 Sylvan Way | 1987 | 145,983 | 100.0 | 2,925 | 0.58 | 20.04 | ||||||
PASSAIC COUNTY, NEW JERSEY | ||||||||||||
| Clifton | ||||||||||||
| 777 Passaic Avenue | 1983 | 75,000 | 96.1 | 1,505 | 0.30 | 20.88 | ||||||
| Totowa | ||||||||||||
| 999 Riverview Drive | 1988 | 56,066 | 94.8 | 788 | 0.16 | 14.83 | ||||||
| Wayne | ||||||||||||
| 201 Willowbrook Boulevard | 1970 | 178,329 | 54.1 | 1,793 | 0.35 | 18.58 | ||||||
SOMERSET COUNTY, NEW JERSEY | ||||||||||||
| Basking Ridge | ||||||||||||
| 222 Mt. Airy Road | 1986 | 49,000 | 100.0 | 741 | 0.15 | 15.12 | ||||||
| 233 Mt. Airy Road | 1987 | 66,000 | 100.0 | 1,315 | 0.26 | 19.92 | ||||||
| Bernards | ||||||||||||
| 106 Allen Road | 2000 | 132,010 | 66.7 | 2,206 | 0.43 | 25.05 | ||||||
| Bridgewater | ||||||||||||
| 721 Route 202/206 | 1989 | 192,741 | 100.0 | 4,763 | 0.94 | 24.71 | ||||||
UNION COUNTY, NEW JERSEY | ||||||||||||
| Clark | ||||||||||||
| 100 Walnut Avenue | 1985 | 182,555 | 100.0 | 4,871 | 0.96 | 26.68 | ||||||
| Cranford | ||||||||||||
| 6 Commerce Drive | 1973 | 56,000 | 100.0 | 1,164 | 0.23 | 20.79 | ||||||
| 11 Commerce Drive(e) | 1981 | 90,000 | 100.0 | 1,021 | 0.20 | 11.34 | ||||||
| 12 Commerce Drive | 1967 | 72,260 | 88.7 | 874 | 0.17 | 13.64 | ||||||
| 14 Commerce Drive(d) | 1971 | 67,189 | 100.0 | 1,460 | 0.29 | 21.73 | ||||||
| 20 Commerce Drive | 1990 | 176,600 | 100.0 | 4,410 | 0.86 | 24.97 | ||||||
| 25 Commerce Drive | 1971 | 67,749 | 100.0 | 1,341 | 0.26 | 19.79 | ||||||
| 65 Jackson Drive | 1984 | 82,778 | 88.7 | 1,737 | 0.34 | 23.66 | ||||||
| New Providence | ||||||||||||
| 890 Mountain Avenue | 1977 | 80,000 | 89.6 | 1,569 | 0.31 | 21.89 | ||||||
Total New Jersey Office | 13,367,955 | 91.0 | 275,295 | 54.16 | 22.64 | |||||||
DUTCHESS COUNTY, NEW YORK | ||||||||||||
| Fishkill | ||||||||||||
| 300 Westage Business Center Drive | 1987 | 118,727 | 87.6 | 2,284 | 0.45 | 21.96 | ||||||
NASSAU COUNTY, NEW YORK | ||||||||||||
| North Hempstead | ||||||||||||
| 600 Community Drive | 1983 | 237,274 | 100.0 | 5,476 | 1.08 | 23.08 | ||||||
| 111 East Shore Road | 1980 | 55,575 | 100.0 | 1,518 | 0.30 | 27.31 | ||||||
ROCKLAND COUNTY, NEW YORK | ||||||||||||
| Suffern | ||||||||||||
| 400 Rella Boulevard | 1988 | 180,000 | 94.7 | 4,060 | 0.80 | 23.82 |
53
| Property Location | Year Built | Net Rentable Area (Sq. Ft.) | Percentage Leased as of 9/30/03 (%)(a) | 2003 Base Rent ($000's)(b) | Percentage of Total 2003 Office, Office/Flex and Industrial/ Warehouse Base Rent(%) | 2003 Average Base Rent Per Sq. Ft. ($)(c) | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| WESTCHESTER COUNTY, NEW YORK | ||||||||||||
| Elmsford | ||||||||||||
| 100 Clearbrook Road(e) | 1975 | 60,000 | 100.0 | 1,064 | 0.21 | 17.73 | ||||||
| 101 Executive Boulevard | 1971 | 50,000 | 74.0 | 826 | 0.16 | 22.32 | ||||||
| 555 Taxter Road | 1986 | 170,554 | 99.7 | 3,800 | 0.75 | 22.35 | ||||||
| 565 Taxter Road | 1988 | 170,554 | 85.3 | 3,586 | 0.71 | 24.65 | ||||||
| 570 Taxter Road | 1972 | 75,000 | 90.0 | 1,595 | 0.31 | 23.63 | ||||||
| Hawthorne | ||||||||||||
| 1 Skyline Drive | 1980 | 20,400 | 99.0 | 392 | 0.08 | 19.41 | ||||||
| 2 Skyline Drive | 1987 | 30,000 | 85.6 | 483 | 0.10 | 18.81 | ||||||
| 3 Skyline Drive(f) | 1981 | 75,668 | 100.0 | 1,893 | 0.37 | 25.02 | ||||||
| 7 Skyline Drive | 1987 | 109,000 | 96.6 | 1,855 | 0.36 | 17.62 | ||||||
| 17 Skyline Drive | 1989 | 85,000 | 100.0 | 1,360 | 0.27 | 16.00 | ||||||
| 19 Skyline Drive | 1982 | 248,400 | 100.0 | 4,471 | 0.88 | 18.00 | ||||||
| Tarrytown | ||||||||||||
| 200 White Plains Road | 1982 | 89,000 | 86.0 | 1,859 | 0.37 | 24.29 | ||||||
| 220 White Plains Road | 1984 | 89,000 | 100.0 | 1,995 | 0.39 | 22.42 | ||||||
| White Plains | ||||||||||||
| 1 Barker Avenue | 1975 | 68,000 | 99.0 | 1,693 | 0.33 | 25.15 | ||||||
| 3 Barker Avenue | 1983 | 65,300 | 100.0 | 1,632 | 0.32 | 24.99 | ||||||
| 50 Main Street | 1985 | 309,000 | 96.9 | 8,511 | 1.67 | 28.42 | ||||||
| 11 Martine Avenue | 1987 | 180,000 | 92.9 | 4,411 | 0.87 | 26.38 | ||||||
| 1 Water Street | 1979 | 45,700 | 89.2 | 959 | 0.19 | 23.53 | ||||||
| Yonkers | ||||||||||||
| 1 Executive Boulevard | 1982 | 112,000 | 100.0 | 2,836 | 0.56 | 25.32 | ||||||
| 3 Executive Plaza | 1987 | 58,000 | 100.0 | 1,301 | 0.26 | 22.43 | ||||||
| Total New York Office | 2,702,152 | 95.6 | 59,860 | 11.79 | 23.17 | |||||||
CHESTER COUNTY,PENNSYLVANIA | ||||||||||||
| Berwyn | ||||||||||||
| 1000 Westlakes Drive | 1989 | 60,696 | 87.3 | 1,447 | 0.28 | 27.31 | ||||||
| 1055 Westlakes Drive | 1990 | 118,487 | 67.5 | 1,822 | 0.36 | 22.78 | ||||||
| 1205 Westlakes Drive | 1988 | 130,265 | 92.8 | 3,058 | 0.60 | 25.30 | ||||||
| 1235 Westlakes Drive | 1986 | 134,902 | 59.7 | 2,164 | 0.43 | 26.87 | ||||||
DELAWARE COUNTY, PENNSYLVANIA | ||||||||||||
| Lester | ||||||||||||
| 100 Stevens Drive | 1986 | 95,000 | 100.0 | 2,551 | 0.50 | 26.85 | ||||||
| 200 Stevens Drive | 1987 | 208,000 | 100.0 | 5,613 | 1.10 | 26.99 | ||||||
| 300 Stevens Drive | 1992 | 68,000 | 53.0 | 875 | 0.17 | 24.28 | ||||||
| Media | ||||||||||||
| 1400 Providence Road—Center I | 1986 | 100,000 | 94.4 | 2,186 | 0.43 | 23.16 | ||||||
| 1400 Providence Road—Center II | 1990 | 160,000 | 85.1 | 3,212 | 0.63 | 23.59 | ||||||
| MONTGOMERY COUNTY, PENNSYLVANIA | ||||||||||||
| Blue Bell | ||||||||||||
| 4 Sentry Parkway(d) | 1982 | 63,930 | 94.0 | 1,402 | 0.28 | 23.33 | ||||||
| 16 Sentry Parkway(d) | 1988 | 93,093 | 89.0 | 2,071 | 0.41 | 25.00 | ||||||
| 18 Sentry Parkway(d) | 1988 | 95,010 | 84.9 | 2,022 | 0.40 | 25.07 |
54
| Property Location | Year Built | Net Rentable Area (Sq. Ft.) | Percentage Leased as of 9/30/03 (%)(a) | 2003 Base Rent ($000's)(b) | Percentage of Total 2003 Office, Office/Flex and Industrial/ Warehouse Base Rent(%) | 2003 Average Base Rent Per Sq. Ft. ($)(c) | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| King of Prussia | ||||||||||||
| 2200 Renaissance Boulevard(d) | 1985 | 174,124 | 89.5 | 3,806 | 0.75 | 24.42 | ||||||
| Lower Providence | ||||||||||||
| 1000 Madison Avenue | 1990 | 100,700 | 31.1 | 1,141 | 0.22 | 36.43 | ||||||
| Plymouth Meeting | ||||||||||||
| 1150 Plymouth Meeting Mall | 1970 | 167,748 | 94.4 | 3,519 | 0.69 | 22.22 | ||||||
| Five Sentry Parkway East | 1984 | 91,600 | 100.0 | 1,904 | 0.37 | 20.79 | ||||||
| Five Sentry Parkway West | 1984 | 38,400 | 100.0 | 822 | 0.16 | 21.41 | ||||||
| Total Pennsylvania Office | 1,899,955 | 84.4 | 39,615 | 7.78 | 24.71 | |||||||
FAIRFIELD COUNTY, CONNECTICUT | ||||||||||||
| Greenwich | ||||||||||||
| 500 West Putnam Avenue | 1973 | 121,250 | 100.0 | 2,945 | 0.58 | 24.29 | ||||||
| Norwalk | ||||||||||||
| 40 Richards Avenue | 1985 | 145,487 | 80.7 | 3,305 | 0.65 | 28.15 | ||||||
| Shelton | ||||||||||||
| 1000 Bridgeport Avenue | 1986 | 133,000 | 64.9 | 2,056 | 0.40 | 23.82 | ||||||
| Stamford | ||||||||||||
| 1266 East Main Street(d) | 1984 | 179,260 | 97.8 | 4,774 | 0.94 | 27.23 | ||||||
| Total Connecticut Office | 578,997 | 86.4 | 13,080 | 2.57 | 26.14 | |||||||
WASHINGTON, D.C. | ||||||||||||
| 1201 Connecticut Avenue, NW | 1940 | 169,549 | 92.9 | 5,345 | 1.05 | 33.93 | ||||||
| 1400 L Street, NW | 1987 | 159,000 | 100.0 | 6,142 | 1.21 | 38.63 | ||||||
| Total District of Columbia Office | 328,549 | 96.3 | 11,487 | 2.26 | 36.29 | |||||||
PRINCE GEORGE'S COUNTY, MARYLAND | ||||||||||||
| Lanham | ||||||||||||
| 4200 Parliament Place | 1989 | 122,000 | 97.8 | 2,836 | 0.56 | 23.77 | ||||||
| Total Maryland Office | 122,000 | 97.8 | 2,836 | 0.56 | 23.77 | |||||||
BEXAR COUNTY, TEXAS | ||||||||||||
| San Antonio | ||||||||||||
| 84 N.E. Loop 410 | 1971 | 187,312 | 82.3 | 2,744 | 0.54 | 17.80 | ||||||
| 111 Soledad | 1918 | 248,153 | 71.1 | 2,126 | 0.42 | 12.05 | ||||||
DALLAS COUNTY, TEXAS | ||||||||||||
| Dallas | ||||||||||||
| 3030 LBJ Freeway(e) | 1984 | 367,018 | 81.6 | 5,486 | 1.08 | 18.32 | ||||||
| Richardson | ||||||||||||
| 1122 Alma Road | 1977 | 82,576 | 100.0 | 607 | 0.12 | 7.35 | ||||||
| Total Texas Office | 885,059 | 80.5 | 10,963 | 2.16 | 15.38 | |||||||
ARAPAHOE COUNTY, COLORADO | ||||||||||||
| Denver | ||||||||||||
| 400 South Colorado Boulevard | 1983 | 125,415 | 75.7 | 1,992 | 0.39 | 20.98 |
55
Property Listing
Office Properties
(continued)
| Property Location | Year Built | Net Rentable Area (Sq. Ft.) | Percentage Leased as of 9/30/03 (%)(a) | 2003 Base Rent ($000's)(b) | Percentage of Total 2003 Office, Office/Flex and Industrial/ Warehouse Base Rent(%) | 2003 Average Base Rent Per Sq. Ft. ($)(c) | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Englewood | ||||||||||||
| 9359 East Nichols Avenue | 1997 | 72,610 | 100.0 | 834 | 0.16 | 11.49 | ||||||
| 5350 South Roslyn Street | 1982 | 63,754 | 89.3 | 941 | 0.19 | 16.53 | ||||||
BOULDER COUNTY, COLORADO | ||||||||||||
| Broomfield | ||||||||||||
| 105 South Technology Court | 1997 | 37,574 | 67.0 | 292 | 0.06 | 11.60 | ||||||
| 303 South Technology Court-A | 1997 | 34,454 | 100.0 | 90 | 0.02 | 2.61 | ||||||
| 303 South Technology Court-B | 1997 | 40,416 | 100.0 | 105 | 0.02 | 2.60 | ||||||
| Louisville | ||||||||||||
| 248 Centennial Parkway | 1996 | 39,266 | 100.0 | 400 | 0.08 | 10.19 | ||||||
| 1172 Century Drive | 1996 | 49,566 | 38.0 | 504 | 0.10 | 26.76 | ||||||
| 285 Century Place | 1997 | 69,145 | 100.0 | 1,133 | 0.22 | 16.39 | ||||||
DENVER COUNTY, COLORADO | ||||||||||||
| Denver | ||||||||||||
| 3600 South Yosemite | 1974 | 133,743 | 100.0 | 1,387 | 0.27 | 10.37 | ||||||
| 8181 East Tufts Avenue | 2001 | 185,254 | 97.4 | 3,752 | 0.74 | 20.79 | ||||||
DOUGLAS COUNTY, COLORADO | ||||||||||||
| Centennial | ||||||||||||
| 5975 South Quebec Street(e) | 1996 | 102,877 | 76.0 | 798 | 0.16 | 10.21 | ||||||
| Englewood | ||||||||||||
| 400 Inverness Parkway | 1997 | 111,608 | 92.7 | 2,112 | 0.42 | 20.41 | ||||||
| 67 Inverness Drive East | 1996 | 54,280 | 60.6 | 225 | 0.04 | 6.84 | ||||||
| 384 Inverness Parkway | 1985 | 51,523 | 84.3 | 658 | 0.13 | 15.15 | ||||||
| Parker | ||||||||||||
| 9777 Mount Pyramid Court | 1995 | 120,281 | 32.0 | 625 | 0.12 | 16.24 | ||||||
EL PASO COUNTY, COLORADO | ||||||||||||
| Colorado Springs | ||||||||||||
| 8415 Explorer | 1998 | 47,368 | 94.1 | 596 | 0.12 | 13.37 | ||||||
| 1975 Research Parkway | 1997 | 115,250 | 47.7 | 1,458 | 0.29 | 26.52 | ||||||
| 2375 Telstar Drive | 1998 | 47,369 | 100.0 | 596 | 0.12 | 12.58 | ||||||
JEFFERSON COUNTY, COLORADO | ||||||||||||
| Lakewood | ||||||||||||
| 141 Union Boulevard | 1985 | 63,600 | 95.5 | 1,084 | 0.21 | 17.85 | ||||||
| Total Colorado Office | 1,565,353 | 81.2 | 19,582 | 3.86 | 15.42 | |||||||
SAN FRANCISCO COUNTY, CALIFORNIA | ||||||||||||
| San Francisco | ||||||||||||
| 795 Folsom Street | 1977 | 183,445 | 100.0 | 6,987 | 1.36 | 38.09 | ||||||
| 760 Market Street | 1908 | 267,446 | 92.4 | 8,101 | 1.59 | 32.78 | ||||||
| Total California Office | 450,891 | 95.5 | 15,088 | 2.95 | 35.04 | |||||||
| TOTAL OFFICE PROPERTIES | 21,900,911 | 89.9 | 447,806 | 88.09 | 22.74 | |||||||
56
| Property Location | Year Built | Net Rentable Area (Sq. Ft.) | Percentage Leased as of 9/30/03 (%)(a) | 2003 Base Rent ($000's)(b) | Percentage of Total 2003 Office, Office/Flex and Industrial/ Warehouse Base Rent(%) | 2003 Average Base Rent Per Sq. Ft. ($)(c) | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| BURLINGTON COUNTY, NEW JERSEY | ||||||||||||
| Burlington | ||||||||||||
| 3 Terri Lane | 1991 | 64,500 | 85.3 | 341 | 0.07 | 6.20 | ||||||
| 5 Terri Lane | 1992 | 74,555 | 92.0 | 489 | 0.10 | 7.13 | ||||||
| Moorestown | ||||||||||||
| 2 Commerce Drive | 1986 | 49,000 | 100.0 | 417 | 0.08 | 8.51 | ||||||
| 101 Commerce Drive | 1988 | 64,700 | 0.0 | 252 | 0.05 | 0.00 | ||||||
| 102 Commerce Drive | 1987 | 38,400 | 100.0 | 181 | 0.04 | 4.71 | ||||||
| 201 Commerce Drive | 1986 | 38,400 | 75.0 | 136 | 0.03 | 4.72 | ||||||
| 202 Commerce Drive | 1988 | 51,200 | 25.3 | 125 | 0.02 | 9.65 | ||||||
| 1 Executive Drive | 1989 | 20,570 | 100.0 | 221 | 0.04 | 10.74 | ||||||
| 2 Executive Drive | 1988 | 60,800 | 85.0 | 420 | 0.08 | 8.13 | ||||||
| 101 Executive Drive | 1990 | 29,355 | 75.2 | 240 | 0.05 | 10.87 | ||||||
| 102 Executive Drive | 1990 | 64,000 | 100.0 | 356 | 0.07 | 5.56 | ||||||
| 225 Executive Drive | 1990 | 50,600 | 86.2 | 335 | 0.07 | 7.68 | ||||||
| 97 Foster Road | 1982 | 43,200 | 100.0 | 183 | 0.04 | 4.24 | ||||||
| 1507 Lancer Drive | 1995 | 32,700 | 100.0 | 155 | 0.03 | 4.74 | ||||||
| 1510 Lancer Drive | 1998 | 88,000 | 100.0 | 370 | 0.07 | 4.20 | ||||||
| 1245 North Church Street | 1998 | 52,810 | 100.0 | 383 | 0.08 | 7.25 | ||||||
| 1247 North Church Street | 1998 | 52,790 | 100.0 | 463 | 0.09 | 8.77 | ||||||
| 1256 North Church Street | 1984 | 63,495 | 100.0 | 367 | 0.07 | 5.78 | ||||||
| 840 North Lenola Road | 1995 | 38,300 | 100.0 | 265 | 0.05 | 6.92 | ||||||
| 844 North Lenola Road | 1995 | 28,670 | 58.6 | 86 | 0.02 | 5.12 | ||||||
| 915 North Lenola Road | 1998 | 52,488 | 91.8 | 259 | 0.05 | 5.38 | ||||||
| 2 Twosome Drive | 2000 | 48,600 | 100.0 | 391 | 0.08 | 8.05 | ||||||
| 30 Twosome Drive | 1997 | 39,675 | 100.0 | 215 | 0.04 | 5.42 | ||||||
| 31 Twosome Drive | 1998 | 84,200 | 100.0 | 438 | 0.09 | 5.20 | ||||||
| 40 Twosome Drive | 1996 | 40,265 | 93.4 | 267 | 0.05 | 7.10 | ||||||
| 41 Twosome Drive | 1998 | 43,050 | 77.7 | 299 | 0.06 | 8.94 | ||||||
| 50 Twosome Drive | 1997 | 34,075 | 100.0 | 277 | 0.05 | 8.13 | ||||||
| West Deptford | ||||||||||||
| 1451 Metropolitan Drive | 1996 | 21,600 | 100.0 | 148 | 0.03 | 6.85 | ||||||
MERCER COUNTY, NEW JERSEY | ||||||||||||
| Hamilton Township | ||||||||||||
| 100 Horizon Drive | 1989 | 13,275 | 100.0 | 192 | 0.04 | 14.46 | ||||||
| 200 Horizon Drive | 1991 | 45,770 | 100.0 | 530 | 0.10 | 11.58 | ||||||
| 300 Horizon Drive | 1989 | 69,780 | 100.0 | 1,138 | 0.22 | 16.31 | ||||||
| 500 Horizon Drive | 1990 | 41,205 | 100.0 | 589 | 0.12 | 14.29 | ||||||
MONMOUTH COUNTY, NEW JERSEY | ||||||||||||
| Wall Township | ||||||||||||
| 1325 Campus Parkway | 1988 | 35,000 | 100.0 | 466 | 0.09 | 13.31 | ||||||
| 1340 Campus Parkway | 1992 | 72,502 | 98.2 | 848 | 0.17 | 11.91 | ||||||
| 1345 Campus Parkway | 1995 | 76,300 | 100.0 | 782 | 0.15 | 10.25 |
57
Office/Flex Properties
(continued)
| Property Location | Year Built | Net Rentable Area (Sq. Ft.) | Percentage Leased as of 9/30/03 (%)(a) | 2003 Base Rent ($000's)(b) | Percentage of Total 2003 Office, Office/Flex and Industrial/ Warehouse Base Rent(%) | 2003 Average Base Rent Per Sq. Ft. ($)(c) | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1433 Highway 34 | 1985 | 69,020 | 65.1 | 517 | 0.10 | 11.51 | ||||||
| 1320 Wyckoff Avenue | 1986 | 20,336 | 100.0 | 176 | 0.03 | 8.65 | ||||||
| 1324 Wyckoff Avenue | 1987 | 21,168 | 100.0 | 223 | 0.04 | 10.53 | ||||||
PASSAIC COUNTY, NEW JERSEY | ||||||||||||
| Totowa | ||||||||||||
| 1 Center Court | 1999 | 38,961 | 100.0 | 494 | 0.10 | 12.68 | ||||||
| 2 Center Court | 1998 | 30,600 | 99.3 | 348 | 0.07 | 11.45 | ||||||
| 11 Commerce Way | 1989 | 47,025 | 100.0 | 549 | 0.11 | 11.67 | ||||||
| 20 Commerce Way | 1992 | 42,540 | 100.0 | 441 | 0.09 | 10.37 | ||||||
| 29 Commerce Way | 1990 | 48,930 | 100.0 | 749 | 0.15 | 15.31 | ||||||
| 40 Commerce Way | 1987 | 50,576 | 100.0 | 682 | 0.13 | 13.48 | ||||||
| 45 Commerce Way | 1992 | 51,207 | 100.0 | 508 | 0.10 | 9.92 | ||||||
| 60 Commerce Way | 1988 | 50,333 | 93.1 | 539 | 0.11 | 11.50 | ||||||
| 80 Commerce Way | 1996 | 22,500 | 100.0 | 321 | 0.06 | 14.27 | ||||||
| 100 Commerce Way | 1996 | 24,600 | 100.0 | 352 | 0.07 | 14.31 | ||||||
| 120 Commerce Way | 1994 | 9,024 | 100.0 | 107 | 0.02 | 11.86 | ||||||
| 140 Commerce Way | 1994 | 26,881 | 99.5 | 319 | 0.06 | 11.93 | ||||||
Total New Jersey Office/Flex | 2,277,531 | 90.8 | 18,949 | 3.73 | 9.16 | |||||||
WESTCHESTER COUNTY, NEW YORK | ||||||||||||
| Elmsford | ||||||||||||
| 11 Clearbrook Road | 1974 | 31,800 | 100.0 | 413 | 0.08 | 12.99 | ||||||
| 75 Clearbrook Road | 1990 | 32,720 | 100.0 | 816 | 0.16 | 24.94 | ||||||
| 125 Clearbrook Road | 2002 | 33,000 | 100.0 | 712 | 0.14 | 21.58 | ||||||
| 150 Clearbrook Road | 1975 | 74,900 | 75.3 | 944 | 0.19 | 16.74 | ||||||
| 175 Clearbrook Road | 1973 | 98,900 | 89.6 | 1,423 | 0.28 | 16.06 | ||||||
| 200 Clearbrook Road | 1974 | 94,000 | 99.8 | 1,215 | 0.24 | 12.95 | ||||||
| 250 Clearbrook Road | 1973 | 155,000 | 95.1 | 1,365 | 0.27 | 9.26 | ||||||
| 50 Executive Boulevard | 1969 | 45,200 | 78.4 | 391 | 0.08 | 11.03 | ||||||
| 77 Executive Boulevard | 1977 | 13,000 | 100.0 | 220 | 0.04 | 16.92 | ||||||
| 85 Executive Boulevard | 1968 | 31,000 | 99.4 | 474 | 0.09 | 15.38 | ||||||
| 300 Executive Boulevard | 1970 | 60,000 | 100.0 | 603 | 0.12 | 10.05 | ||||||
| 350 Executive Boulevard | 1970 | 15,400 | 98.8 | 296 | 0.06 | 19.45 | ||||||
| 399 Executive Boulevard | 1962 | 80,000 | 100.0 | 1,024 | 0.20 | 12.80 | ||||||
| 400 Executive Boulevard | 1970 | 42,200 | 100.0 | 637 | 0.13 | 15.09 | ||||||
| 500 Executive Boulevard | 1970 | 41,600 | 100.0 | 688 | 0.14 | 16.54 | ||||||
| 525 Executive Boulevard | 1972 | 61,700 | 80.9 | 869 | 0.17 | 17.41 | ||||||
| 1 Westchester Plaza | 1967 | 25,000 | 100.0 | 314 | 0.06 | 12.56 | ||||||
| 2 Westchester Plaza | 1968 | 25,000 | 100.0 | 489 | 0.10 | 19.56 | ||||||
| 3 Westchester Plaza | 1969 | 93,500 | 94.6 | 1,325 | 0.26 | 14.98 | ||||||
| 4 Westchester Plaza | 1969 | 44,700 | 99.8 | 658 | 0.13 | 14.75 | ||||||
| 5 Westchester Plaza | 1969 | 20,000 | 77.1 | 280 | 0.06 | 18.16 | ||||||
| 6 Westchester Plaza | 1968 | 20,000 | 100.0 | 326 | 0.06 | 16.30 | ||||||
| 7 Westchester Plaza | 1972 | 46,200 | 100.0 | 682 | 0.13 | 14.76 | ||||||
| 8 Westchester Plaza | 1971 | 67,200 | 96.7 | 906 | 0.18 | 13.94 | ||||||
| Hawthorne | ||||||||||||
| 200 Saw Mill River Road | 1965 | 51,100 | 97.8 | 707 | 0.14 | 14.15 | ||||||
| 4 Skyline Drive | 1987 | 80,600 | 100.0 | 1,441 | 0.28 | 17.88 | ||||||
| 5 Skyline Drive | 1980 | 124,022 | 100.0 | 1,619 | 0.31 | 13.05 |
58
Office/Flex Properties
(continued)
| Property Location | Year Built | Net Rentable Area (Sq. Ft.) | Percentage Leased as of 9/30/03 (%)(a) | 2003 Base Rent ($000's)(b) | Percentage of Total 2003 Office, Office/Flex and Industrial/ Warehouse Base Rent(%) | 2003 Average Base Rent Per Sq. Ft. ($)(c) | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 6 Skyline Drive | 1980 | 44,155 | 100.0 | 718 | 0.14 | 16.26 | ||||||
| 8 Skyline Drive | 1985 | 50,000 | 98.7 | 897 | 0.18 | 18.18 | ||||||
| 10 Skyline Drive | 1985 | 20,000 | 79.1 | 180 | 0.04 | 11.38 | ||||||
| 11 Skyline Drive | 1989 | 45,000 | 100.0 | 791 | 0.16 | 17.58 | ||||||
| 12 Skyline Drive | 1999 | 46,850 | 100.0 | 798 | 0.16 | 17.03 | ||||||
| 15 Skyline Drive | 1989 | 55,000 | 100.0 | 1,187 | 0.23 | 21.58 | ||||||
| Yonkers | ||||||||||||
| 100 Corporate Boulevard | 1987 | 78,000 | 98.2 | 1,446 | 0.28 | 18.88 | ||||||
| 200 Corporate Boulevard South | 1990 | 84,000 | 99.8 | 1,369 | 0.27 | 16.33 | ||||||
| 4 Executive Plaza | 1986 | 80,000 | 99.0 | 1,227 | 0.24 | 15.49 | ||||||
| 6 Executive Plaza | 1987 | 80,000 | 100.0 | 1,325 | 0.26 | 16.56 | ||||||
| 1 Odell Plaza | 1980 | 106,000 | 99.9 | 1,433 | 0.28 | 13.53 | ||||||
| 3 Odell Plaza(d) | 1984 | 71,065 | 62.7 | 433 | 0.09 | 9.72 | ||||||
| 5 Odell Plaza | 1983 | 38,400 | 99.6 | 628 | 0.12 | 16.42 | ||||||
| 7 Odell Plaza | 1984 | 42,600 | 76.0 | 616 | 0.12 | 19.03 | ||||||
| Total New York Office/Flex | 2,348,812 | 95.1 | 33,885 | 6.67 | 15.17 | |||||||
FAIRFIELD COUNTY, CONNECTICUT | ||||||||||||
| Stamford | ||||||||||||
| 419 West Avenue | 1986 | 88,000 | 100.0 | 1,153 | 0.23 | 13.10 | ||||||
| 500 West Avenue | 1988 | 25,000 | 100.0 | 447 | 0.09 | 17.88 | ||||||
| 550 West Avenue | 1990 | 54,000 | 100.0 | 884 | 0.17 | 16.37 | ||||||
| 600 West Avenue | 1999 | 66,000 | 100.0 | 759 | 0.15 | 11.50 | ||||||
| 650 West Avenue | 1998 | 40,000 | 100.0 | 555 | 0.11 | 13.88 | ||||||
| Total Connecticut Office/Flex | 273,000 | 100.0 | 3,798 | 0.75 | 13.91 | |||||||
| TOTAL OFFICE/FLEX PROPERTIES | 4,899,343 | 93.4 | 56,632 | 11.15 | 12.38 | |||||||
59
Industrial/Warehouse Properties
| Property Location | Year Built | Net Rentable Area (Sq. Ft.) | Percentage Leased as of 9/30/03 (%) (a) | 2003 Base Rent ($000's) (b) | Percentage of Total 2003 Office, Office/Flex and Industrial/ Warehouse Base Rent (%) | 2003 Average Base Rent Per Sq. Ft. ($) (c) | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| WESTCHESTER COUNTY, NEW YORK | ||||||||||||
| Elmsford | ||||||||||||
| 1 Warehouse Lane | 1957 | 6,600 | 100.0 | 72 | 0.01 | 10.91 | ||||||
| 2 Warehouse Lane | 1957 | 10,900 | 96.3 | 140 | 0.03 | 13.34 | ||||||
| 3 Warehouse Lane | 1957 | 77,200 | 100.0 | 293 | 0.06 | 3.80 | ||||||
| 4 Warehouse Lane | 1957 | 195,500 | 100.0 | 2,000 | 0.39 | 10.23 | ||||||
| 5 Warehouse Lane | 1957 | 75,100 | 97.1 | 883 | 0.17 | 12.11 | ||||||
| 6 Warehouse Lane | 1982 | 22,100 | 100.0 | 513 | 0.10 | 23.21 | ||||||
| Total Industrial/Warehouse Properties | 387,400 | 99.3 | 3,901 | 0.76 | 10.14 | |||||||
| TOTAL OFFICE, OFFICE/FLEX, AND INDUSTRIAL/WAREHOUSE PROPERTIES | 27,187,654 | 90.7 | 508,339 | 100.00 | 20.62 | |||||||
- (a)
- Based on all leases in effect as of September 30, 2003, including leases expiring September 30, 2003 aggregating 80,743 square feet for which no new leases were signed.
- (b)
- Total base rent for 12 months ended September 30, 2003, determined in accordance with generally accepted accounting principles ("GAAP"). Substantially all of the leases provide for annual base rents plus recoveries and escalation charges based upon the tenant's proportionate share of and/or increases in real estate taxes and certain operating costs, as defined, and the pass through of charges for electrical usage.
- (c)
- Base Rent for 12 months ended September 30, 2003 divided by net rentable square feet leased at September 30, 2003. For those properties acquired or placed in service during the 12 months ended September 30, 2003, amounts are annualized, as per Note (d).
- (d)
- As this property was acquired or placed in service by the Company during the 12 months ended September 30, 2003, the amounts represented for base rent are annualized. These amounts may not be indicative of the property's results had the Company owned or placed such a property in service for the entire 12 months ended September 30, 2003.
- (e)
- Excludes space leased by the Company.
- (f)
- Represents the Company's 68.1 percent condominium interest (75,668 square feet) in the 113,098 square-foot office property.
60
The following table sets forth a schedule of the Company's 20 largest tenants for the Consolidated Properties as of September 30, 2003, based upon annualized base rents:
| | Number of Properties | Annualized Base Rental Revenue ($) (a) | Percentage of Company Annualized Base Rental Revenue (%) | Square Feet Leased | Percentage Total Company Leased Sq. Ft. (%) | Year of Lease Expiration | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AT&T Wireless Services | 2 | 9,856,447 | 1.9 | 395,955 | 1.5 | 2007 | (b) | ||||||
| Credit Suisse First Boston | 1 | 8,382,273 | 1.7 | 271,953 | 1.1 | 2012 | (c) | ||||||
| AT&T Corporation | 3 | 7,395,575 | 1.5 | 455,064 | 1.9 | 2009 | (d) | ||||||
| Keystone Mercy Health Plan | 2 | 7,124,001 | 1.4 | 303,149 | 1.2 | 2015 | |||||||
| Prentice-Hall Inc. | 1 | 6,744,495 | 1.3 | 474,801 | 2.0 | 2014 | |||||||
| IBM Corporation | 3 | 6,270,924 | 1.3 | 353,617 | 1.5 | 2007 | (e) | ||||||
| Toys 'R' Us — NJ Inc. | 1 | 6,072,651 | 1.2 | 242,518 | 1.0 | 2012 | |||||||
| Nabisco Inc. | 3 | 6,066,357 | 1.2 | 340,746 | 1.4 | 2006 | (f) | ||||||
| American Institute of Certified Public Accountants | 1 | 5,817,181 | 1.2 | 249,768 | 1.0 | 2012 | |||||||
| Forest Laboratories Inc. | 2 | 5,733,035 | 1.1 | 166,405 | 0.7 | 2017 | (g) | ||||||
| Allstate Insurance Company | 9 | 5,479,229 | 1.1 | 238,435 | 1.0 | 2009 | (h) | ||||||
| Waterhouse Securities Inc. | 1 | 5,443,760 | 1.1 | 184,222 | 0.8 | 2015 | |||||||
| Bankers Trust Harborside | 1 | 4,950,000 | 1.0 | 385,000 | 1.6 | 2004 | |||||||
| Dean Witter Trust Company | 1 | 4,856,901 | 1.0 | 221,019 | 0.9 | 2008 | |||||||
| CMP Media, Inc. | 1 | 4,817,298 | 1.0 | 237,274 | 1.0 | 2014 | |||||||
| Garban, LLC | 1 | 4,740,767 | 0.9 | 135,077 | 0.6 | 2017 | |||||||
| KPMG, LLP | 3 | 4,714,583 | 0.9 | 181,025 | 0.7 | 2012 | (i) | ||||||
| Winston & Strawn | 1 | 4,513,175 | 0.9 | 108,100 | 0.4 | 2005 | |||||||
| National Financial Services | 1 | 4,346,765 | 0.9 | 112,964 | 0.5 | 2012 | |||||||
| Morgan Stanley Dean Witter, Inc. | 5 | 4,329,709 | 0.9 | 163,253 | 0.7 | 2010 | (j) | ||||||
| Totals | 117,655,126 | 23.5 | 5,220,345 | 21.5 | |||||||||
- (a)
- Annualized base rental revenue is based on actual September, 2003 billings times 12. For leases whose rent commences after October 1, 2003, annualized base rental revenue is based on the first full month's billing times 12. As annualized base rental revenue is not derived from historical GAAP results, historical results may differ from those set forth above.
- (b)
- 12,150 square feet expire September 2004; 345,799 square feet expire March 2007; 38,006 square feet expire June 2007.
- (c)
- 190,000 square feet expire October 2011; 81,953 square feet expire January 2012.
- (d)
- 63,278 square feet expire May 2004; 4,786 square feet expire October 2007; 387,000 square feet expire January 2009.
- (e)
- 20,218 square feet expire January 2005; 85,000 square feet expire December 2005; 248,399 square feet expire December 2007.
- (f)
- 300,378 square feet expire December 2005; 40,368 square feet expire March 2006.
- (g)
- 22,785 square feet expire August 2010; 143,620 square feet expire August 2017.
- (h)
- 4,398 square feet expire January 2004; 6,108 square feet expire May 2004; 36,305 square feet expire January 2005; 23,024 square feet expire October 2005; 22,444 square feet expire July 2006; 70,517 square feet expire June 2007; 59,562 square feet expire April 2008; 16,077 square feet expire April 2009.
- (i)
- 57,204 square feet expire July 2007; 46,440 square feet expire December 2009; 77,381 square feet expire September 2012.
- (j)
- 7,500 square feet expire October 2003; 18,539 square feet expire April 2005; 85,151 square feet expire February 2008; 19,500 square feet expire June 2008; 7,000 square feet expire October 2009; 25,563 square feet expire January 2010.
61
Schedule of Lease Expirations
All Consolidated Properties
The following table sets forth a schedule of lease expirations for the total of the Company's office, office/flex, industrial/warehouse and stand-alone retail properties included in the Consolidated Properties beginning October 1, 2003, assuming that none of the tenants exercise renewal or termination options (with a breakdown by market for 2003 through 2005 only):
| Year Of Expiration/Market | Number Of Leases Expiring (a) | Net Rentable Area Subject To Expiring Leases (Sq. Ft.) | Percentage Of Total Leased Square Feet Represented By Expiring Leases (%) (b) | Annualized Base Rental Revenue Under Expiring Leases ($) (c) (d) | Average Annual Rent Per Net Rentable Square Foot Represented By Expiring Leases ($) | Percentage Of Annual Base Rent Under Expiring Leases (%) | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 10/1-12/31/2003 | ||||||||||||||
| NORTHEAST | ||||||||||||||
| Northern NJ | 14 | 90,244 | 0.4 | 2,309,107 | 25.59 | 0.5 | ||||||||
| Central NJ | 13 | 88,357 | 0.4 | 2,137,509 | 24.19 | 0.4 | ||||||||
| Westchester Co., NY | 19 | 126,077 | 0.5 | 3,031,521 | 24.04 | 0.6 | ||||||||
| Sub. Philadelphia | 7 | 30,768 | 0.1 | 455,536 | 14.81 | 0.1 | ||||||||
| Fairfield, CT | 2 | 11,083 | (e | ) | 271,375 | 24.49 | 0.1 | |||||||
| Washington, DC/MD | — | — | — | — | — | — | ||||||||
| Dutchess/Nassau/Rockland Co., NY | 1 | 2,091 | (e | ) | 49,139 | 23.50 | (e | ) | ||||||
| SOUTHWEST/WEST | ||||||||||||||
| Texas | 8 | 62,367 | 0.3 | 1,130,726 | 18.13 | 0.2 | ||||||||
| Colorado | 4 | 21,237 | 0.1 | 425,119 | 20.02 | 0.1 | ||||||||
| San Francisco | 17 | 6,271 | (e | ) | 212,762 | 33.93 | (e | ) | ||||||
| TOTAL — 10/1-12/31/2003 | 85 | 438,495 | 1.8 | 10,022,794 | 22.86 | 2.0 | ||||||||
2004 | ||||||||||||||
| NORTHEAST | ||||||||||||||
| Northern NJ | 59 | 488,630 | 2.0 | 9,355,650 | 19.15 | 1.9 | ||||||||
| Central NJ | 36 | 253,409 | 1.1 | 5,112,137 | 20.17 | 0.9 | ||||||||
| Westchester Co., NY | 101 | 370,018 | 1.5 | 7,386,466 | 19.96 | 1.5 | ||||||||
| Sub. Philadelphia | 40 | 296,707 | 1.2 | 3,900,585 | 13.15 | 0.8 | ||||||||
| Fairfield, CT | 18 | 93,434 | 0.4 | 2,421,254 | 25.91 | 0.5 | ||||||||
| Washington, DC/MD | 6 | 31,356 | 0.1 | 895,449 | 28.56 | 0.2 | ||||||||
| Dutchess/Nassau/Rockland Co., NY | 8 | 20,462 | 0.1 | 476,887 | 23.31 | 0.1 | ||||||||
| SOUTHWEST/WEST | ||||||||||||||
| Texas | 23 | 185,117 | 0.8 | 2,495,809 | 13.48 | 0.5 | ||||||||
| Colorado | 20 | 80,948 | 0.3 | 1,426,272 | 17.62 | 0.3 | ||||||||
| San Francisco | 89 | 149,753 | 0.6 | 3,745,004 | 25.01 | 0.7 | ||||||||
| TOTAL — 2004 | 400 | 1,969,834 | 8.1 | 37,215,513 | 18.89 | 7.4 | ||||||||
2005 | ||||||||||||||
| NORTHEAST | ||||||||||||||
| Northern NJ | 84 | 1,213,867 | 5.0 | 24,556,174 | 20.23 | 4.9 | ||||||||
| Central NJ | 52 | 388,338 | 1.6 | 7,767,220 | 20.00 | 1.6 | ||||||||
| Westchester Co., NY | 111 | 583,200 | 2.4 | 11,224,282 | 19.25 | 2.2 | ||||||||
| Sub. Philadelphia | 64 | 594,538 | 2.4 | 8,792,151 | 14.79 | 1.8 | ||||||||
| Fairfield, CT | 13 | 64,757 | 0.3 | 1,611,674 | 24.89 | 0.3 | ||||||||
| Washington, DC/MD | 9 | 189,445 | 0.8 | 6,885,997 | 36.35 | 1.4 | ||||||||
| Dutchess/Nassau/Rockland Co., NY | 12 | 38,470 | 0.1 | 850,743 | 22.11 | 0.2 | ||||||||
| SOUTHWEST/WEST | ||||||||||||||
| Texas | 14 | 87,639 | 0.3 | 1,372,100 | 15.66 | 0.3 | ||||||||
| Colorado | 14 | 63,858 | 0.3 | 1,071,833 | 16.78 | 0.2 | ||||||||
| San Francisco | 55 | 19,696 | 0.1 | 657,096 | 33.36 | 0.1 | ||||||||
| TOTAL — 2005 | 428 | 3,243,808 | 13.3 | 64,789,270 | 19.97 | 13.0 | ||||||||
Schedule continued, with footnotes, on subsequent page.
62
| Year Of Expiration | Number Of Leases Expiring (a) | Net Rentable Area Subject To Expiring Leases (Sq.Ft.) | Percentage Of Total Leased Square Feet Represented By Expiring Leases(%)(b) | Annualized Base Rental Revenue Under Expiring Leases($)(c)(d) | Average Annual Rent Per Net Rentable Square Foot Represented By Expiring Leases($) | Percentage Of Annual Base Rent Under Expiring Leases(%) | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2006 | 378 | 2,833,199 | 11.7 | 58,796,814 | 20.75 | 11.8 | ||||||
| 2007 | 298 | 2,499,365 | 10.3 | 54,117,981 | 21.65 | 10.8 | ||||||
| 2008 | 320 | 2,967,655 | 12.2 | 56,383,460 | 19.00 | 11.3 | ||||||
| 2009 | 144 | 1,913,387 | 7.9 | 36,311,988 | 18.98 | 7.3 | ||||||
| 2010 | 123 | 1,480,169 | 6.1 | 29,852,457 | 20.17 | 6.0 | ||||||
| 2011 | 79 | 1,535,112 | 6.3 | 37,022,790 | 24.12 | 7.4 | ||||||
| 2012 | 67 | 1,557,199 | 6.4 | 35,260,113 | 22.64 | 7.1 | ||||||
| 2013 | 57 | 1,119,985 | 4.6 | 21,522,109 | 19.22 | 4.3 | ||||||
| 2014 and thereafter | 52 | 2,756,241 | 11.3 | 58,722,226 | 21.31 | 11.6 | ||||||
| Totals/Weighted Average | 2,431 | 24,314,449 | 100.0 | 500,017,515 | 20.56 | 100.0 | ||||||
- (a)
- Includes office, office/flex, industrial/warehouse and stand-alone retail property tenants only. Excludes leases for amenity, retail, parking and month-to-month tenants. Some tenants have multiple leases.
- (b)
- Excludes all unleased space as of September 30, 2003.
- (c)
- Annualized base rental revenue is based on actual September, 2003 billings times 12. For leases whose rent commences after October 1, 2003, annualized base rental revenue is based on the first full month's billing times 12. As annualized base rental revenue is not derived from historical GAAP results, historical results may differ from those set forth above.
- (d)
- Includes leases expiring September 30, 2003 aggregating 80,743 square feet and representing annualized rent of $1,642,953 for which no new leases were signed.
- (e)
- Represents less than 0.05 percent.
- (f)
- Reconciliation to Company's total net rentable square footage is as follows:
| | Square Feet | |
|---|---|---|
| Square footage leased to commercial tenants | 24,314,449 | |
| Square footage used for corporate offices, management offices, building use, retail tenants, food services, other ancillary service tenants and occupancy adjustments | 358,928 | |
| Square footage unleased | 2,531,577 | |
| Total net rentable square footage (does not include land leases) | 27,204,954 | |
63
The following table sets forth a schedule of lease expirations for the office properties beginning October 1, 2003, assuming that none of the tenants exercise renewal or termination options (with a breakdown by market for 2003 through 2005 only):
| Year Of Expiration/ Market | Number Of Leases Expiring (a) | Net Rentable Area Subject To Expiring Leases (Sq. Ft.) | Percentage Of Total Leased Square Feet Represented By Expiring Leases (%) (b) | Annualized Base Rental Revenue Under Expiring Leases ($) (c) (d) | Average Annual Rent Per Net Rentable Square Foot Represented By Expiring Leases ($) | Percentage Of Annual Base Rent Under Expiring Leases (%) | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 10/1-12/31/2003 | ||||||||||||||
| NORTHEAST | ||||||||||||||
| Northern NJ | 12 | 75,992 | 0.4 | 2,139,520 | 28.15 | 0.5 | ||||||||
| Central NJ | 13 | 88,357 | 0.5 | 2,137,509 | 24.19 | 0.5 | ||||||||
| Westchester Co., NY | 13 | 104,734 | 0.5 | 2,708,608 | 25.86 | 0.6 | ||||||||
| Sub. Philadelphia | 2 | 11,298 | 0.1 | 233,726 | 20.69 | (e | ) | |||||||
| Fairfield, CT | 2 | 11,083 | 0.1 | 271,375 | 24.49 | 0.1 | ||||||||
| Washington, DC/MD | — | — | — | — | — | — | ||||||||
| Dutchess/Nassau/Rockland Co., NY | 1 | 2,091 | (e | ) | 49,139 | 23.50 | (e | ) | ||||||
| SOUTHWEST/WEST | ||||||||||||||
| Texas | 8 | 62,367 | 0.3 | 1,130,726 | 18.13 | 0.3 | ||||||||
| Colorado | 4 | 21,237 | 0.1 | 425,119 | 20.02 | 0.1 | ||||||||
| San Francisco | 17 | 6,271 | (e | ) | 212,762 | 33.93 | (e | ) | ||||||
| TOTAL 10/1-12/31/2003 | 72 | 383,430 | 2.0 | 9,308,484 | 24.28 | 2.1 | ||||||||
| 2004 | ||||||||||||||
| NORTHEAST | ||||||||||||||
| Northern NJ | 53 | 440,711 | 2.3 | 8,817,678 | 20.01 | 2.0 | ||||||||
| Central NJ | 30 | 199,861 | 1.0 | 4,516,926 | 22.60 | 1.0 | ||||||||
| Westchester Co., NY | 69 | 208,155 | 1.1 | 5,102,853 | 24.51 | 1.2 | ||||||||
| Sub. Philadelphia | 20 | 98,387 | 0.5 | 2,527,215 | 25.69 | 0.6 | ||||||||
| Fairfield, CT | 17 | 90,659 | 0.4 | 2,372,894 | 26.17 | 0.5 | ||||||||
| Washington, DC/MD | 6 | 31,356 | 0.2 | 895,449 | 28.56 | 0.2 | ||||||||
| Dutchess/Nassau/Rockland Co., NY | 8 | 20,462 | 0.1 | 476,887 | 23.31 | 0.1 | ||||||||
| SOUTHWEST/WEST | ||||||||||||||
| Texas | 23 | 185,117 | 1.0 | 2,495,809 | 13.48 | 0.6 | ||||||||
| Colorado | 20 | 80,948 | 0.4 | 1,426,272 | 17.62 | 0.3 | ||||||||
| San Francisco | 89 | 149,753 | 0.8 | 3,745,004 | 25.01 | 0.9 | ||||||||
| TOTAL — 2004 | 335 | 1,505,409 | 7.8 | 32,376,987 | 21.51 | 7.4 | ||||||||
| 2005 | ||||||||||||||
| NORTHEAST | ||||||||||||||
| Northern NJ | 73 | 1,146,755 | 5.9 | 23,727,127 | 20.69 | 5.4 | ||||||||
| Central NJ | 45 | 310,886 | 1.6 | 6,799,265 | 21.87 | 1.5 | ||||||||
| Westchester Co., NY | 53 | 246,080 | 1.3 | 6,056,047 | 24.61 | 1.4 | ||||||||
| Sub. Philadelphia | 35 | 295,473 | 1.5 | 6,604,234 | 22.35 | 1.5 | ||||||||
| Fairfield, CT | 13 | 64,757 | 0.3 | 1,611,674 | 24.89 | 0.4 | ||||||||
| Washington, DC/MD | 9 | 189,445 | 1.0 | 6,885,997 | 36.35 | 1.6 | ||||||||
| Dutchess/Nassau/Rockland Co., NY | 12 | 38,470 | 0.2 | 850,743 | 22.11 | 0.2 | ||||||||
| SOUTHWEST/WEST | ||||||||||||||
| Texas | 14 | 87,639 | 0.5 | 1,372,100 | 15.66 | 0.3 | ||||||||
| Colorado | 14 | 63,858 | 0.3 | 1,071,833 | 16.78 | 0.2 | ||||||||
| San Francisco | 55 | 19,696 | 0.1 | 657,096 | 33.36 | 0.2 | ||||||||
| TOTAL — 2005 | 323 | 2,463,059 | 12.7 | 55,636,116 | 22.59 | 12.7 | ||||||||
Schedule continued, with footnotes, on subsequent page.
64
| Year Of Expiration | Number Of Leases Expiring (a) | Net Rentable Area Subject To Expiring Leases (Sq. Ft.) | Percentage Of Total Leased Square Feet Represented By Expiring Leases (%) (b) | Annualized Base Rental Revenue Under Expiring Leases ($) (c) (d) | Average Annual Rent Per Net Rentable Square Foot Represented By Expiring Leases ($) | Percentage Of Annual Base Rent Under Expiring Leases (%) | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2006 | 320 | 2,300,311 | 11.9 | 52,008,167 | 22.61 | 11.9 | ||||||
| 2007 | 231 | 1,840,786 | 9.5 | 45,361,720 | 24.64 | 10.3 | ||||||
| 2008 | 254 | 2,215,865 | 11.5 | 49,056,322 | 22.14 | 11.2 | ||||||
| 2009 | 108 | 1,519,497 | 7.9 | 31,579,839 | 20.78 | 7.2 | ||||||
| 2010 | 95 | 1,055,285 | 5.5 | 23,408,416 | 22.18 | 5.3 | ||||||
| 2011 | 69 | 1,326,483 | 6.9 | 33,903,615 | 25.56 | 7.7 | ||||||
| 2012 | 48 | 1,348,638 | 7.0 | 32,289,452 | 23.94 | 7.4 | ||||||
| 2013 | 43 | 965,725 | 5.0 | 19,533,041 | 20.23 | 4.5 | ||||||
| 2014 and thereafter | 37 | 2,416,856 | 12.3 | 53,970,093 | 22.33 | 12.3 | ||||||
| Totals/Weighted Average | 1,935 | 19,341,344 | 100.0 | 438,432,252 | 22.67 | 100.0 | ||||||
- (a)
- Includes office tenants only. Excludes leases for amenity, retail, parking and month-to-month tenants. Some tenants have multiple leases.
- (b)
- Excludes all unleased space as of September 30, 2003.
- (c)
- Annualized base rental revenue is based on actual September 2003 billings times 12. For leases whose rent commences after October 1, 2003, annualized base rental revenue is based on the first full month's billing times 12. As annualized base rental revenue is not derived from historical GAAP results, historical results may differ from those set forth above.
- (d)
- Includes leases expiring September 30, 2003 aggregating 48,870 square feet and representing annualized rent of $1,267,650 for which no new leases were signed.
65
The following table sets forth a schedule of lease expirations for the office/flex properties beginning October 1, 2003, assuming that none of the tenants exercise renewal or termination options (with a breakdown by market for 2003 through 2005 only):
| Year Of Expiration/ Market | Number Of Leases Expiring (a) | Net Rentable Area Subject To Expiring Leases (Sq. Ft.) | Percentage Of Total Leased Square Feet Represented By Expiring Leases (%) (b) | Annualized Base Rental Revenue Under Expiring Leases ($) (c) (d) | Average Annual Rent Per Net Rentable Square Foot Represented By Expiring Leases ($) | Percentage Of Annual Base Rent Under Expiring Leases (%) | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 10/1-12/31/2003 | |||||||||||||
| Northern NJ | 2 | 14,252 | 0.3 | 169,589 | 11.90 | 0.3 | |||||||
| Central NJ | — | — | — | — | — | — | |||||||
| Westchester Co., NY | 6 | 21,343 | 0.5 | 322,912 | 15.13 | 0.6 | |||||||
| Sub. Philadelphia | 5 | 19,470 | 0.4 | 221,810 | 11.39 | 0.4 | |||||||
| Fairfield, CT | — | — | — | — | — | — | |||||||
| TOTAL — 10/1-12/31/2003 | 13 | 55,065 | 1.2 | 714,311 | 12.97 | 1.3 | |||||||
2004 | |||||||||||||
| Northern NJ | 6 | 47,919 | 1.0 | 537,971 | 11.23 | 1.0 | |||||||
| Central NJ | 6 | 53,548 | 1.2 | 595,212 | 11.12 | 1.0 | |||||||
| Westchester Co., NY | 29 | 141,425 | 3.1 | 1,968,613 | 13.92 | 3.4 | |||||||
| Sub. Philadelphia | 20 | 198,320 | 4.3 | 1,373,370 | 6.93 | 2.4 | |||||||
| Fairfield, CT | 1 | 2,775 | 0.1 | 48,360 | 17.43 | 0.1 | |||||||
| TOTAL — 2004 | 62 | 443,987 | 9.7 | 4,523,526 | 10.19 | 7.9 | |||||||
| 2005 | |||||||||||||
| Northern NJ | 11 | 67,112 | 1.5 | 829,048 | 12.35 | 1.4 | |||||||
| Central NJ | 7 | 77,452 | 1.7 | 967,955 | 12.50 | 1.7 | |||||||
| Westchester Co., NY | 55 | 315,192 | 6.9 | 4,960,451 | 15.74 | 8.7 | |||||||
| Sub. Philadelphia | 29 | 299,065 | 6.5 | 2,187,917 | 7.32 | 3.8 | |||||||
| Fairfield, CT | — | — | — | — | — | — | |||||||
| TOTAL — 2005 | 102 | 758,821 | 16.6 | 8,945,371 | 11.79 | 15.6 | |||||||
2006 | 58 | 532,888 | 11.7 | 6,788,647 | 12.74 | 11.8 | |||||||
| 2007 | 62 | 621,179 | 13.6 | 8,035,111 | 12.94 | 14.0 | |||||||
| 2008 | 63 | 660,421 | 14.4 | 6,857,234 | 10.38 | 12.0 | |||||||
| 2009 | 34 | 376,095 | 8.2 | 4,554,009 | 12.11 | 7.9 | |||||||
| 2010 | 27 | 396,884 | 8.7 | 6,164,041 | 15.53 | 10.8 | |||||||
| 2011 | 10 | 208,629 | 4.6 | 3,119,174 | 14.95 | 5.4 | |||||||
| 2012 | 19 | 208,561 | 4.6 | 2,970,661 | 14.24 | 5.2 | |||||||
| 2013 | 7 | 99,024 | 2.2 | 1,335,845 | 13.49 | 2.3 | |||||||
| 2014 and thereafter | 11 | 209,103 | 4.5 | 3,324,313 | 15.90 | 5.8 | |||||||
| Totals/Weighted Average | 468 | 4,570,657 | 100.0 | 57,332,243 | 12.54 | 100.0 | |||||||
- (a)
- Includes office/flex tenants only. Excludes leases for amenity, retail, parking and month-to-month tenants. Some tenants have multiple leases.
- (b)
- Excludes all unleased space as of September 30, 2003.
- (c)
- Annualized base rental revenue is based on actual September 2003 billings times 12. For leases whose rent commences after October 1, 2003, annualized base rental revenue is based on the first full month's billing times 12. As annualized base rental revenue is not derived from historical GAAP results, historical results may differ from those set forth above.
- (d)
- Includes leases expiring September 30, 2003 aggregating 31,873 square feet and representing annualized rent of $375,303 for which no new leases were signed.
66
Industrial/Warehouse Properties
The following table sets forth a schedule of lease expirations for the industrial/warehouse properties beginning October 1, 2003, assuming that none of the tenants exercise renewal or termination options. All industrial/warehouse properties are located in the Westchester County, NY market:
| Year Of Expiration | Number Of Leases Expiring (a) | Net Rentable Area Subject To Expiring Leases (Sq. Ft.) | Percentage Of Total Leased Square Feet Represented By Expiring Leases (%) (b) | Annualized Base Rental Revenue Under Expiring Leases ($) (c) | Average Annual Rent Per Net Rentable Square Foot Represented By Expiring Leases ($) | Percentage Of Annual Base Rent Under Expiring Leases (%) | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2004 | 2 | 11,138 | 2.9 | 120,000 | 10.77 | 3.1 | ||||||
| 2005 | 3 | 21,928 | 5.7 | 207,783 | 9.48 | 5.4 | ||||||
| 2007 | 5 | 37,400 | 9.7 | 721,150 | 19.28 | 18.7 | ||||||
| 2008 | 3 | 91,369 | 23.7 | 469,904 | 5.14 | 12.2 | ||||||
| 2009 | 2 | 17,795 | 4.6 | 178,140 | 10.01 | 4.6 | ||||||
| 2010 | 1 | 28,000 | 7.3 | 280,000 | 10.00 | 7.3 | ||||||
| 2013 | 7 | 55,236 | 14.3 | 653,223 | 11.83 | 17.0 | ||||||
| 2014 and thereafter | 3 | 122,282 | 31.8 | 1,222,820 | 10.00 | 31.7 | ||||||
| Totals/Weighted Average | 26 | 385,148 | 100.0 | 3,853,020 | 10.00 | 100.0 | ||||||
- (a)
- Includes industrial/warehouse tenants only. Excludes leases for amenity, retail, parking and month-to-month industrial/warehouse tenants. Some tenants have multiple leases.
- (b)
- Excludes all unleased space as of September 30, 2003.
- (c)
- Annualized base rental revenue is based on actual September 2003 billings times 12. For leases whose rent commences after October 1, 2003, annualized base rental revenue is based on the first full month's billing times 12. As annualized base rental revenue is not derived from historical GAAP results, the historical results may differ from those set forth above.
The following table sets forth a schedule of lease expirations for the stand-alone retail properties beginning October 1, 2003, assuming that none of the tenants exercise renewal or termination options. All stand-alone retail properties are located in the Westchester County, NY market:
| Year Of Expiration | Number Of Leases Expiring (a) | Net Rentable Area Subject To Expiring Leases (Sq. Ft.) | Percentage Of Total Leased Square Feet Represented By Expiring Leases (%) | Annualized Base Rental Revenue Under Expiring Leases ($) (b) | Average Annual Rent Per Net Rentable Square Foot Represented By Expiring Leases ($) | Percentage Of Annual Base Rent Under Expiring Leases (%) | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2004 | 1 | 9,300 | 53.8 | 195,000 | 20.97 | 48.8 | ||||||
| 2014 and thereafter | 1 | 8,000 | 46.2 | 205,000 | 25.62 | 51.2 | ||||||
| Totals/Weighted Average | 2 | 17,300 | 100.0 | 400,000 | 23.12 | 100.0 | ||||||
- (a)
- Includes stand-alone retail property tenants only.
- (b)
- Annualized base rental revenue is based on actual September 2003 billings times 12. For leases whose rent commences after October 1, 2003, annualized base rental revenue is based on the first full month's billing times 12. As annualized base rental revenue is not derived from historical GAAP results, historical results may differ from those set forth above.
67
THIRD QUARTER 2003 Supplemental Operating and Financial Data
INDEX
DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS
I. COMPANY BACKGROUND
I. COMPANY BACKGROUND
About the Company
History
Strategy
Summary (as of September 30, 2003)
Board of Directors William L. Mack, Chairman of the Board
Executive Officers
Equity Research Coverage
Company Contact Information
II. FINANCIAL HIGHLIGHTS
II. FINANCIAL HIGHLIGHTS
Quarterly Summary
Acquisitions
Sales Activity
Financing Activity
Leasing Information
Information About FFO
Key Financial Data
Same Store Results and Analysis (dollars in thousands)
Unconsolidated Joint Ventures Summary Breakdown of Unconsolidated Joint Ventures
Unconsolidated Joint Venture Financial Information
Select Financial Ratios
Debt Analysis (as of September 30, 2003)
Debt Breakdown (dollars in thousands)
Future Repayments (dollars in thousands)
Debt Maturities (dollars in thousands)
Debt Detail (dollars in thousands)
III. FINANCIAL INFORMATION
III. FINANCIAL INFORMATION
Mack-Cali Realty Corporation and Subsidiaries Consolidated Statements of Operations (in thousands, except per share amounts) (unaudited)
Mack-Cali Realty Corporation and Subsidiaries Consolidated Balance Sheets (in thousands, except per share amounts)
Mack-Cali Realty Corporation and Subsidiaries Consolidated Statement of Changes in Stockholders' Equity For the nine months ended September 30, 2003 (in thousands) (unaudited)
Statements of Funds from Operations (in thousands, except per share/unit amounts) (unaudited)
Statements of Funds from Operations Per Diluted Share (amounts are per diluted share, except share count in thousands) (unaudited)
Reconciliation of Basic-to-Diluted Shares/Units (in thousands)
IV. VALUE CREATION PIPELINE
IV. VALUE CREATION PIPELINE
Operating Property Acquisitions (dollars in thousands) For the nine months ended September 30, 2003
For the year ended December 31, 2002
Properties Commencing Initial Operations (dollars in thousands)
For the nine months ended September 30, 2003 No Activity.
For the year ended December 31, 2002
Acquisition Property Profile
Acquisition Property Profile
Acquisition Property Profile
Summary of Land Parcels
Rental Property Sales (dollars in thousands)
For the nine months ended September 30, 2003
For the year ended December 31, 2002
V. PORTFOLIO/ LEASING STATISTICS
Leasing Statistics (For the nine months ended September 30, 2003) Consolidated In-Service Portfolio (continued)
Leasing Statistics (For the nine months ended September 30, 2003) Unconsolidated Joint Venture Properties
RECONCILIATION OF TOTAL PROPERTY SQUARE FOOTAGE
DETAIL OF TRANSACTION ACTIVITY
Market Diversification
Industry Diversification
Consolidated Portfolio Analysis(a) (as of September 30, 2003) Breakdown by Number of Properties
Consolidated Portfolio Analysis(a) (as of September 30, 2003) Breakdown by Square Footage
Consolidated Portfolio Analysis(a) (Year ended September 30, 2003) Breakdown by Base Rental Revenue(b) (Dollars in thousands)
Consolidated Portfolio Analysis(a) (b) (as of September 30, 2003) Breakdown by Percentage Leased
Office Properties
Office Properties (continued)
Office Properties (continued)
Office Properties (continued)
Office Properties (continued)
Property Listing Office Properties (continued)
Office/Flex Properties
Office/Flex Properties (continued)
Office/Flex Properties (continued)
Industrial/Warehouse Properties
Significant Tenants
Schedule of Lease Expirations All Consolidated Properties
Office Properties
Office/Flex Properties
Industrial/Warehouse Properties
Stand-Alone Retail Properties