Company officials this week cited higher costs for the decline. FFO, a gauge of real estate operating performance, adds depreciation and amortization expenses and other non-operating expenses back to net income. This week, company officials noted that expenses climbed to $139.3 million in Q1 from the previous year's $100.9 million. Much of the difference was attributed to $20.9 million in direct construction costs, while the year-earlier period had no comparable expense.
Mack-Cali also reported net income available to common shareholders of $18.6 million, or $0.28 cents per share, compared to $32.6 million, or $0.52 per share a year earlier. That decline records as 43%.
"While we continued to strengthen our core portfolio and operations, we took significant steps to capitalize on strategic growth opportunities," Mitchell Hersh, president and CEO told analysts. "In addition to our plans to develop a corporate headquarters building for Wyndham Worldwide in New Jersey, our agreement to acquire interests in 125 Broad Street marks our entry into Downtown Manhattan. That is a rapidly improving market that offers synergy with our Jersey City holdings and significant upside potential for our company."
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