Mack-Cali drops 6.7% after Q2 core EPS misses as office leasing slips

Mack-Cali Realty (NYSE:CLI) dips 6.7% after Q2 core FFO per share of 28 cents misses the 31 cent consensus estimate and fell from 40 cents in the year-ago quarter.

Office rent collections averaged 96% in Q2 and were 98% in July; residential collections averaged 98% in Q2 and were 99% in July.

Core office properties were 80.3% leased at June 30, 2020 vs. 81.1% at March 31 2020 and 79.8% at June 30, 2019.

Q2 office portfolio same-store GAAP net operating income fell by 3.6% Y/Y.

Its Roseland multifamily stabilized operating portfolio was 92.6% leased at June 30, 2020 vs. 95.7% at March 31, 2020, predominantly due to a dramatic reduction in new lease traffic.

The REIT starts its search for a permanent CEO after the previous CEO, Michael DeMarco resigned as part of an agreement with activist investor Bow Street, which had been pressuring Mack-Cali about its performance.