Thursday, Mack-Cali Realty Corp. (CLI), a real estate investment trust, reported a decrease in first quarter earnings, hurt by an impairment charge. Revenues dipped from the year-ago period. Further, the company boosted net income guidance for the full year 2009 and backed outlook for Funds From Operations.
The Cranford, New Jersey-based company's first quarter net income available to common shareholders slipped to $12.1 million or $0.18 per share from $14.9 million or $0.23 per share for the same quarter last year.
Funds from operations or FFO available to common shareholders for the quarter dipped to $68.1 million or $0.84 per share from $70.9 million or $0.88 per share in the prior-year quarter.
Excluding a non-cash impairment charge, net income for the quarter would have been $14.9 million or $0.22 per share, and FFO would have been $71.5 million or $0.88 per share. Nine analysts polled by Thomson Reuters expected the company to earn $0.86 per share. Analysts' estimates typically exclude special items. Results for the quarter included a $0.04 per share, a non-cash impairment charge.
Quarterly revenues declined to $186.7 million from $194.7 million for the same quarter last year, but exceeded Street estimate of $179.96 million.
Base rents increased during the quarter to $149.33 million from $148.60 million a year ago, while escalations and recoveries from tenants rose to $27.95 million from $25.72 million in the comparable period last year. However, construction services revenue fell sharply to $3.91 million from $12.76 million in the prior-year period.
For fiscal 2009, the company lifted its forecast for income available to common shareholders to a range of $0.60 - $0.80 per share, from the prior guidance range of $0.50 - $0.70 per share. The company also affirmed FFO of $3.25 - $3.45 per share. Analysts expect the company to report earnings of $3.39 per share for fiscal 2009.
CLI is trading at $26.98, up $0.33 or 1.13%, on a volume of about 738 thousand shares.
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