Mack-Cali Realty Corp. (NYSE:CLI) Q4 2017 Earnings Conference Call - Final Transcript

Feb 22, 2018 • 10:30 am ET


Mack-Cali Realty Corp. (NYSE:CLI) Q4 2017 Earnings Conference Call - Final Transcript


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Good day everyone, and welcome to the Mack-Cali Realty Corporation Fourth Quarter 2017 earnings conference. Today's conference is being recorded. At this time. I would like to turn the conference over to Michael J. DeMarco, Chief Executive Officer. Please go ahead, sir.

Michael J. DeMarco

Thank you, operator. Good morning, everyone. And thank you for joining the Mack-Cali fourth quarter 2017 earnings call.

This is Mike DeMarco, CEO of Mack-Cali. I'm joined today by my partner's Marshall Tycher, Chairman of Roseland, our multi-family operation and Tony Krug, our CFO. I'm also very pleased to welcome David Smetana, our new CFO, and Nick Hilton, on the EVP of Leasing. They will both be available to answer any questions at the end of the call.

On a legal note, I must remind everyone that certain information discussed on this call may constitute forward-looking statements within the meaning of the federal securities law. And though we believe the estimates reflected in these statements are based on reasonable assumptions, we cannot give assurance that the anticipated results will be achieved. We refer you to our press release, annual and quarterly reports filed with the SEC for risk factors that could impact the company. We filed an overhauled version of our supplemental this quarter and will be releasing a revamped investor deck next week. These combined presentations will reflect the significant transformation of Mack-Cali's portfolio and NOI composition. We'll be referring to key pages in our supplemental during the call. And please contact, going forward, David with any further suggestions as to the supplemental.

As we have done before, we're going to break our call into the following sections. I will discuss our office leasing and performance and our view of the markets going forward. Next quarter and all the calls going forward, Nick Hilton will take over that section for us. Tony will recap our operating results. David, going forward, will take on that role in our next call and going forward. Marshall will then provide insight into our multifamily operations. As disclosed last night, we had another successful operating quarter as we delivered positive results for 2017 and laid the groundwork for 2018 and beyond. We are also very near concluding the disposition strategy, an effort which has significantly and totally improved our portfolio quality.

I'd like to highlight key attributes of the remaining office portfolio. As shown on page -- property listing on Page 27 of the supplemental, upon completion of our disposition program, our easy, understandable office portfolio will be reduced to 41 buildings comprised of the following, A, our waterfront assets consist of six major buildings totaling approximately 4.9 million square feet. These are our best assets, home to our headquarters. And as reflected on Page 28 of the supplemental, we believe there's a mark-to-market opportunity of approximately 19%. We have been reaching those numbers at the last several weeks as we've done over the last few years. This portfolio contains about 889,000 square feet of our 2018 moveouts. B, the class A suburban