The locally based REIT also revealed its second-quarterfinancial results during a conference call late last week. For thequarter, FFO available to common shareholders amounted to $66.5million, or 72 cents per share. Total revenues for the firstquarter of 2009 were $195.9 million, up slightly from $194.9million in fourth quarter 2009.

Mack-Cali's portfolio was 88.8% leased at close of the quarter,down from90.1% at the end of Q4. "The first quarter 2010 occupancydecline was not unanticipated given the scheduled Citigroup leaseexpiration at 125 Broad St. in New York City," said Mack-Cali'spresident and CEO Mitchell Hersh. "Although this first quarterreflected a gap in NOI of -2.8%, if we were to adjust for theexclusion of the Citigroup situation, it would be -0.8%, which is adramatic life in the reduction." The REIT currently has 1.5 millionsquare feet of space that is set to expire in 2010, representing5.3% of its leased space.

"While office demand generally remains sluggish due to theuncertainty surrounding the economic recovery and job growth, weare cautiously optimistic that fundamentals will begin to stabilizeas the year progresses," Hersh observed. In fact, Northern andCentral New Jersey experienced positive absorption in the firstquarter. With less space being returned to the market, theseupticks occurred even though leasing activity remained flat inNorthern New Jersey compared to 2009's average and off by 30% inCentral New Jersey.