Mack-Cali Realty Corporation Suspends Dividend for Third and Fourth Quarters of 2020

Rhea-AI Summary

Mack-Cali Realty Corporation (NYSE: CLI) announced the suspension of its common dividend for Q3 and Q4 2020 to enhance financial flexibility amid the pandemic. The decision follows the fulfillment of its dividend obligation on expected taxable income for 2020. The company plans to use the retained capital to support leasing initiatives at its Harborside campus. Additionally, Mack-Cali reported successful sales of suburban office assets, generating $213.3 million in proceeds to reduce corporate debt. The Board will reconsider the dividend resumption in Q1 2021.

Positive

• Suspension of dividend to retain capital for leasing initiatives.
• Completed sales of suburban office assets generating $213.3 million.
• Proceeds used to reduce corporate line of credit debt.

Negative

• Suspension of dividend may concern income-focused investors.

JERSEY CITY, N.J., Sept. 30, 2020 /PRNewswire/ -- Mack-Cali Realty Corporation (NYSE: CLI) announced today that it will be suspending its common dividend for the third and fourth quarters of 2020.

Having satisfied its dividend obligation on taxable income expected for 2020, the Company has made the strategic decision to suspend distribution of its common stock dividends for the third and fourth quarters of 2020 in an effort to provide greater financial flexibility during the pandemic and to retain incremental capital to support leasing initiatives at its Harborside campus on the Jersey City waterfront. The Board intends to revisit the resumption of the quarterly dividend in the first quarter of 2021.

The Company also announced progress on the disposition of its suburban office assets, including completion of the Phase 1 sale of its Parsippany and Giralda Farms portfolio, comprising 11 buildings in Morris County, NJ; the 325 Columbia Turnpike asset in Florham Park, NJ; and the first asset of its Phase II sales tranche of its Parsippany and Giralda Farms portfolio, 9 Campus Drive in Parsippany, NJ. The combined proceeds of $213.3 million from the sales were used to retire balances on the Company's corporate line of credit.

"We are acting decisively to execute our strategy and fortify our balance sheet given the uncertainty of the ongoing pandemic," said MaryAnne Gilmartin, Board Chair and Interim Chief Executive Officer. "We continue to move expeditiously to sell our suburban office assets, deliver new multifamily units and explore programmatic solutions to our Harborside leasing efforts that amplify the unique value of that campus."

About Mack-Cali Realty Corporation

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

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

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

Forward-Looking Statements

Statements made in this communication may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by the use of words such as "may," "will," "plan," "potential," "projected," "should," "expect," "anticipate," "estimate," "target," "continue," or comparable terminology. Such 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 and involve factors that may cause actual results to differ materially from those projected or suggested. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together with the additional factors under the heading "Disclosure Regarding Forward-Looking Statements" and "Risk Factors" in the Company's Annual Report on Form 10-K, as may be supplemented or amended by the Company's Quarterly Reports on Form 10-Q, which are incorporated herein by reference. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise, except as required under applicable law.

Media Contact:
Jeremy Soffin
mack-cali@berlinrosen.com 
(646) 200-5318

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SOURCE Mack-Cali Realty Corporation

FAQ

What is the reason behind Mack-Cali Realty's dividend suspension?

Mack-Cali Realty suspended its dividend to enhance financial flexibility and retain capital for leasing initiatives during the pandemic.

When does Mack-Cali Realty plan to revisit its dividend payments?

The Board intends to reconsider the resumption of dividends in the first quarter of 2021.

How much did Mack-Cali Realty generate from its asset sales?

Mack-Cali Realty generated $213.3 million from the sale of its suburban office assets.