JERSEY CITY, N.J., April 23, 2020 /PRNewswire/ — Mack-Cali Realty Corporation (NYSE: CLI) a waterfront centric office and residential property owner, today provided an update regarding rental collections for its office and residential portfolio, hotel and construction activities in light of New Jersey Governor Murphy’s Executive Order 122 issued on April 8, 2020 and the COVID-19 pandemic. As of April 20, 2020, the Company collected approximately 90% and 96% of office and residential tenant rent for April 2020, respectively.
The Executive Order, issued on April 8, 2020, requires, among other things, the ceasing of physical operations of all non-essential construction, and for essential operating businesses to adopt aggressive social distancing and disinfection measures to combat the COVID-19 pandemic. It is not known at this time whether the Governor’s executive order will be extended and what, if any, impact it may have on future rent collections, and past performance and April 2020 rent collections to date are not indicative of future results.
CEO Michael DeMarco stated, “We are living in an unprecedented time and our organization has made appropriate adjustments to help our residents, tenants and community navigate the COVID-19 pandemic. Operationally we have implemented the recommended protocols to facilitate the health and safety of our tenants, residents and employees. We have taken the necessary precautions across all of our properties to ensure we can provide essential services to our tenants and residents in a safe and timely manner. We also have tried to provide help wherever we can for those who are dealing with this crisis and will continue to do so in the upcoming months.”
As of April 20, 2020, the Company has collected 90% of April rent from its office tenants. Office rents are generally due on April 15th before late charges apply. The balance of the collections are mostly comprised of payments in process or by tenants that pay rents outside of the regular collections cycle (e.g. GSA) or consist of additions to base rent (e.g. CAM and other charges) and sundry charges (e.g. extra cooling, parking, etc.), billed during the course of the month. The Company anticipates, although there can be no assurance, it will continue to collect in the ordinary course after the April 15th cutoff. Tenants that represent only 6% of billings, including some that have paid April rent, have asked for some form of rent relief and the Company is working with these tenants to create a payment plan.
As of April 20, 2020, the Company has collected 96% of projected April rent from its residential tenants. The portfolio has a current percentage leased rate of 95%. The remainder of outstanding collections of 4% is largely from tenants who are seeking a payment plan.
The Company’s Residence Inn at Port Imperial remains open with average occupancy to date for April at 65%. During these challenging times, the Residence Inn has donated 25% of their rooms, not included in the occupancy percentage, for regional front-line healthcare workers. The Company also provided meals to those workers each day. The Company’s remaining two hotels, the Envue, which is wholly owned, and the Hyatt, which is owned through a 50/50 joint venture with Hyatt, have been closed for the month of April.
Currently, there are five projects under construction in Roseland’s portfolio totaling 1,942 units. The Emery at Overlook Ridge, a 326-unit apartment based in Massachusetts, has delivered 140 units, of which 46% are leased. The remaining 186 units are expected to be completed over the next six months.
The balance of 1,616 units are comprised of four properties in New Jersey, which include, The Charlotte in Jersey City (750 units), Building 9 at Port Imperial (313 units), Riverwalk C at Port Imperial (360 units) and Short Hills Residential (193 units). In accordance with an executive order signed by Governor Murphy on April 8, 2020, construction activity across all sites has been largely curtailed, except The Charlotte, which is exempt from the order. Mack-Cali construction projects greatly benefitted from a mild winter and are generally ahead of our construction schedules. Mack-Cali expects that if the delays are not too lengthy it will not materially affect the Company’s original delivery schedules.
About Mack-Cali Realty Corporation
Mack-Cali Realty Corporation is a fully integrated, self-administered, self-managed real estate investment trust (REIT) providing management, leasing, development, and other tenant-related services for its two-platform operations of waterfront and transit-based office and luxury multi-family assets. Mack-Cali provides its tenants and residents with the most innovative communities that empower them to re-imagine the way they work and live.
Additional information on Mack-Cali Realty Corporation and the commercial real estate properties and multi-family 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 press release 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.
For further information please contact:
Michael J. DeMarco
Mack-Cali Realty Corporation
Chief Executive Officer
Mack-Cali Realty Corporation
Chief Financial Officer
Mack-Cali Realty Corporation
Chief Administrative Officer
SOURCE Mack-Cali Realty Corporation