Mack-Cali Realty Corp. (CLI), a fully integrated real estate investment trust (REIT), has recently signed lease renewal deals with Integrated Communications Corp., Pace LLC, and Torre Lazur Healthcare Group, Inc. – three subsidiary companies of Interpublic Group of Companies Inc. (IPG), a global provider of advertising and marketing services.
Mack-Cali has extended leases totaling 124,679 square feet until 2022 of which Integrated Communications has signed a lease renewal for 43,101 square feet, while Pace and Torre Lazur signed lease renewals for 19,633 square feet and 61,945 square feet, respectively.
With continued strong leasing activities and a healthy occupancy rate of over 90% across the portfolio, Mack-Cali anticipates the gradual recovery of the overall capital market and the housing sector in general. For the full year 2009, Mack-Cali has revised its earlier FFO (fund from operations) guidance from $3.15 to $3.25 per share to $3.25 to $3.29 per share.
For 2010, the company expects FFO in the range of $2.80 to $3.00 per share. Fund from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
Mack-Cali owns, leases, manages and develops Class A office and industrial/flex properties, primarily in suburban markets in the northeastern U.S. Mack-Cali’s portfolio includes 289 properties, totaling over 33.2 million square feet with over 2,100 tenants.
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