Mack-Cali Realty Corp. (NYSE:CLI) Q1 2018 Earnings Conference Call - Final Transcript

May 03, 2018 • 10:00 am ET


Mack-Cali Realty Corp. (NYSE:CLI) Q1 2018 Earnings Conference Call - Final Transcript


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Good day, everyone, and welcome to the Mack-Cali Realty Corporation First Quarter 2018 Earnings Conference Call. [Operator Instructions] At this time, I'd like to turn the call over to Michael J. DeMarco, Chief Executive Officer. Please go ahead, sir.

Michael DeMarco

Thank you, operator. Good morning, everyone, and thank you for joining us at the Mack-Cali first quarter 2018 earnings call. This is Mike DeMarco, CEO of Mack-Cali. It is truly, truly a beautiful day on the waterfront today. The weather is superb. I'm joined today by my partners, Marshall Tycher, Chairman of Roseland, our multi-family operation; David Smetana, our CFO; and Nick Hilton, our EVP of Leasing.

On a legal note, I must remind everyone that certain information discussed in this call may constitute forward-looking statements within the meaning of the federal securities law. Although we believe the estimates reflected in any 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 last night our supplemental for this quarter, and we'll be releasing our revamped investor deck next week. These combined presentations will reflect the ongoing transformation in Mack-Cali's portfolio and NOI composition. We'll be referring to key pages in our supplemental during the call, and please contact my partner David with any further suggestions.

As we've done before, we're going to break our call down into the following sections. I'll make some opening comments, Nick will discuss our office leasings performance and our view of the markets going forward, David will recap our operating results, and then Marshall will provide insight into our multi-family operations, and then I will close and we'll take questions.

As disclosed last night, we had another successful operating quarter, as we delivered positive results for early 2018 and really laid the groundwork for the remainder of 2018 and beyond. We are, as stated in our press release, nearing completion of our disposition strategy, an effort which has been long and has significantly improved our portfolio quality and earnings composition.

As we stated at the beginning of 2018, we're really focused on four areas. One, finishing our dispositions by the third quarter of 2018, we sold $232 million in 20 deals in the first quarter. We have approximately $170 million remaining, 50% really in two deals, which are really locked down, and then in 10 small deals. No issues or concerns at all in completing this last segment, in our opinion.

Two, delivering lease on 2018 multi-family starts. As Marshall, my partner, will go over in detail, we are in excellent shape so far. Three, a key focus of ours is lease-up of the waterfront areas. We are currently engaging all of our 2019 and 2020 renewals, which so far have been excellent, and we believe we can reduce our exposure to those renewals going forward to almost zero.

Nick will outline that activity. To