MOODY'S REVISES OUTLOOK ON MACK-CALI REALTY'S RATINGS TO POSITIVE; CONFIRMS Baa3 SENIOR DEBT RATING

Approximately $1.9 Billion of Securities Affected.

New York, September 23, 2002 — Moody's Investors Service has confirmed its Baa3 rating for the senior unsecured debt of Mack-Cali Realty, L.P., and it Ba1 preferred stock rating of Mack-Cali Realty Corporation. At the same time, Moody's revised its rating outlook for the REIT to positive, from stable. According to the rating agency, the positive rating outlook reflects Mack-Cali's demonstrated ability to preserve its strong financial profile during economic stress, even though declines in occupancy and rental rate growth have crimped operating performance. Positive movement in the REIT's ratings would be supported by meaningful improvement in occupancy and same-store operating performance, and further property portfolio diversification by tenant and location. A reversal in financial and operating performance would likely result in a revision in the REIT's rating outlook to stable.

In Moody's view, Mack-Cali is strongly positioned in its markets to withstand the challenges resulting from the recession and 9/11 terrorist attacks. The REIT has consistently maintained strong financial flexibility (including ample liquidity under its bank credit facility, high levels of unencumbered assets and manageable debt maturities) and moderate leverage. For the 1H02, unencumbered assets as a percentage of total assets was roughly 76%, and total debt as a percentage of gross assets was around 41%. Recurring EBITDA (earnings before interest, taxes, depreciation and amortization) to fixed charges has remained solid at around 2.5X for the past few years. Management is particularly focused on managing its debt maturities to limit refinancing risk. Moody's believes that the firm is committed to preserving its strong credit profile, and that it has more than sufficient liquidity to meet upcoming debt maturities.

The REIT's overall healthy operating performance is supported by its manageable near-term lease expirations and proactive marketing/leasing efforts, which help to offset the negative results of slow leasing velocity and material levels of sublease space in some of its key New Jersey submarkets. Management's proven track record and strong tenant relationships should enable the REIT to retain high quality tenants and asset values over the long-term.

Moody's ratings continue to incorporate Mack-Cali's significant geographic concentrations in New Jersey (in particular Jersey City), material levels of development and meaningful exposure to troubled tenants, such as WorldCom. In Moody's view, the lack of regional diversity and these tenant exposures increase volatility of Mack-Cali's revenues and cash flows. Management seeks to mitigate these risks through strong underwriting and due diligence practices, and by building relationships with strong credit tenants.

The following ratings were confirmed with a positive outlook:

Mack-Cali Realty, L.P. — Senior debt at Baa3, senior debt shelf at (P)Baa3 and subordinated debt shelf at (P)Ba1.

Mack-Cali Realty Corporation — Preferred stock shelf at (P)Ba1.

Mack-Cali Realty Corporation [NYSE: CLI], headquartered in Cranford, New Jersey, USA, is an umbrella partnership real estate investment trust that develops, acquires and owns a portfolio of 258 class A suburban office properties and industrial buildings located primarily in the Northeast and MidAtlantic regions in the United States. As of June 30, 2002, the REIT had assets of approximately $3.7 billion.

New York
Lesia Bates Moss
Senior Vice President
Real Estate Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
John J. Kriz
Managing Director
Real Estate Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Copyright 2002 by Moody's Investors Service
99 Church Street, New York, NY 10007. All rights reserved.

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