(Record (Hackensack, NJ) Via Acquire Media NewsEdge) March 05--Mack-Cali Realty Corp. said Monday that it had a net loss of $54.2 million, or 62 cents a share, in the fourth quarter of 2013, as the giant office real estate investment trust continued to diversify into the residential market.
The quarterly loss compares with a loss of $9.2 million, or 11 cents a share, in the fourth quarter of 2012. The company's funds from operations, a key metric for real estate investment trusts, were 52 cents a share, down from 66 cents a year earlier.
Mack-Cali, based in Edison, is dealing with slow demand for office space, especially after the economic downturn forced companies to trim jobs.
Mack-Cali also announced several major executive changes. Barry Lefkowitz, chief financial officer, and Roger W. Thomas, general counsel and secretary, will resign as of March 31, the company said. The two started with Cali Realty Corp., a predecessor to Mack-Cali, 20 years ago.
Chief Executive Officer Mitchell Hersh said the resignations will result in "significant cost savings." Anthony Krug, the company's chief accounting officer, will serve as acting chief financial officer. Gary Wagner, senior associate general counsel, will be acting chief legal officer and interim secretary.
Meanwhile, Ivan Baron will become chief legal officer of Roseland, a major residential developer that Mack-Cali bought in late 2012 to diversify into multifamily real estate. Baron has been general counsel of Short Hills-based Roseland.
In other management news, Mack-Cali said it is adding Jonathan Litt, the founder and chief investment officer of real estate investment advisory firm Land & Buildings Management, to its board of directors.
During the quarter, the company continued to add to its residential holdings, buying a multifamily and retail property in Rahway and a rental community in New Brunswick. It also acquired a 50 percent interest in a luxury multifamily and retail project being built in Washington.
Just last month, Mack-Cali said it plans to sell 15 office buildings in northern New Jersey, New York and Connecticut for about $230.8 million.
Multifamily real estate has enjoyed stronger demand than the office market in recent years. Mack-Cali owns or has interests in 279 properties: 267 office and office/flex properties and 12 multifamily rental properties containing over 3,600 residential units, all in the Northeast.
Mack-Cali shares fell 14 cents to $22.11 Monday in New York Stock Exchange trading.
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