Mack-Cali reports lower 3Q profit, raises outlook

Mack-Cali reports lower third-quarter profit, raises outlook for year

• On 1:28 pm EDT, Thursday October 29, 2009

EDISON, N.J. (AP) -- Real estate investment trust Mack-Cali Realty Corp. said Thursday that its funds from operations slipped 9 percent in the third quarter, as revenue fell from its construction and real estate businesses.

However, the company raised its full-year forecast to $3.25 to $3.29 per share. The previous guidance was $3.15 to $3.25 per share in funds from operations. Mack Cali said the improved outlook was based on current market conditions and assumptions about rental rates and occupancy levels.

Investors responded by sending shares of Mack-Cali up $1.10, or 3.6 percent, to $31.37 in afternoon trading.

For the three months ending Sept. 30, the company reported funds from operations of $75 million, or 81 cents per share. That compared to $82.1 million, or $1.02 per share, a year ago.

FFO, which adds such items as amortization and depreciation to net income, is considered a key measure of strength for real estate investment trusts because it provides a more accurate picture of cash performance.

On average, analysts polled by Thomson Reuters predicted funds from operations of 76 cents per share.

Quarterly revenue was $193.6 million, down from $204.4 million the same time last year. Net income was $19.1 million, or 24 cents per share.

The company noted that it completed the sale of $250 million in 7.75 percent senior unsecured notes and declared a 45 cent per share quarterly cash common stock dividend.

Buzz up!