MITCHELL E. HERSH
President and Chief Executive Officer

To Our Shareholders

As Mack-Cali navigates its way through this historic economic downturn, it has become increasingly clear that our core philosophies, commitment to key principles, and careful approach to doing business have played a critical role in minimizing the impact that the global economic crisis has had upon our Company. Given the circumstances, we had a remarkably productive year. Our value proposition to tenants and the brokerage community helped us achieve solid leasing activity. Our financial strength and track record of performance allowed us to access the difficult capital and credit markets and maintain our balance sheet capacity. And the strength of our brand, combined with our operational skills, helped our portfolio outperform the markets in most of the regions where we operate.

Given the circumstances, we had a remarkably productive year.

In sum, we believe that our strategy has been validated. And while there were areas of activity where we retrenched, acquisition and development chief among them, the core of Mack-Cali and its franchise - the quality, service, and integrity we are known for - proved a strong defense in the face of severe economic headwinds. While the times may be uncertain still, we remain confident that strategic opportunities will be available to us as the economy and employment picture improve.

Tenants First

The fundamental principle that had the greatest impact in helping us weather the storm is our "tenant-first" mandate. The strength of sponsorship, consistency of service, superior properties, and unmatched locations that Mack-Cali offers tenants were at the heart of our successes in 2009.

The highlights from the year's transactions reflect the diverse types of tenants that are attracted to Mack-Cali's commitment to providing the best space and the highest quality offerings.

Renewals and extensions by existing tenants reflect the excellent relationships we have established with many companies, meeting the needs of tenants across a broad spectrum of industries. Among the most notable transactions of 2009, Wyndham Worldwide Operations, a long-time tenant, moved its corporate headquarters to 22 Sylvan Way, a recently completed 250,000-square-foot building that was developed for the firm by Mack-Cali at our Mack-Cali Business Campus in Parsippany, N.J.

Financial Summary

(In thousands, except per share amounts.)

	2009		2008		2007		2006		2005
Total revenues	$	764,525	$	777,969	$	808,350	$	732,012	$	591,991
Property expenses*	$	276,992	$	279,844	$	270,913	$	253,667	$	207,558
General and administrative	$	39,807	$	43,984	$	52,162	$	49,074	$	32,432
Interest expense	$	141,273	$	128,145	$	126,672	$	134,964	$	119,070
Net income available to common shareholders	$	52,568	$	51,726	$	108,466	$	142,666	$	93,488
Net income per share - basic	$	0.71	$	0.79	$	1.62	$	2.29	$	1.52
Net income per share - diluted	$	0.71	$	0.79	$	1.61	$	2.28	$	1.51
Dividends declared per common share	$	1.80	$	2.56	$	2.56	$	2.54	$	2.52
Basic weighted average shares outstanding		74,318		65,489		67,026		62,237		61,477
Diluted weighted average shares outstanding		88,389		80,648		82,500		77,901		74,189

* Property expenses are calculated by taking the sum of real estate taxes, utilities, and operating services for each of the years presented.

Budd Larner, P.C., one of New Jersey's most prestigious law firms and a tenant since 1988 at Mack-Cali Short Hills, 150 John F. Kennedy Parkway in Short Hillls, N.J., signed a lease extension through 2024 for 47,670 square feet.

Among other tenants extending and expanding their tenancy with Mack-Cali was Fabrication Enterprises, Inc., which signed a renewal and expansion lease for a total of 57,517 square feet at two properties in Cross Westchester Executive Park in Elmsford, N.Y. Active in supplying products for physical therapy, rehabilitation, home health, and sports medicine, the company renewed an existing 20,500-square-foot lease for six years, and signed a 10-year expansion for 16,300 square feet at 3 Westchester Plaza. Fabrication Enterprises also signed a six-year renewal for 20,717 square feet at 250 Clearbrook Road, another building in the park.

Virgin Mobile USA L.P., a provider of wireless calling services and equipment, completed a direct deal with Mack-Cali, signing a new five-year lease extension for 93,376 square feet at 10 Independence Boulevard in Warren, N.J., where they had been a sublease tenant.

Mack-Cali also achieved great results in 2009 by attracting many new companies to its properties. New tenants at 125 Broad Street, one of the premier business addresses in Downtown Manhattan, included Herzfeld & Rubin, P.C. This global law firm relocated its corporate headquarters and signed a 56,322-square-foot lease with a 20-year term. The Patrolmen's Benevolent Association (PBA) of the City of New York, the largest union representing uniformed members of the NYPD, also took space in the building to house its executive offices. The new 16-year lease is for 39,069 square feet.

Another new deal brought Day Pitney LLP, a 375-attorney, full-service law firm, to 1 Jefferson Road in Parsippany, N.J., where it leased the entire building. Mack-Cali owns the 100,000-square-foot class A property, located at The Center of Morris County business campus, through a joint venture with other institutional investors. Mack-Cali is also responsible for its leasing and management.

At Mack-Cali Business Campus in Parsippany, N.J., leading aerospace insurer Global Aerospace, Inc., a new tenant to our roster, leased 47,891 square feet at One Sylvan Way to serve as its U.S. headquarters.

These transactions and our overall leasing successes in 2009 were typically sparked by our commitment to unmatched service and quality, and our dedication to going the extra mile for those who choose our buildings.

The brokerage community played a key role as well, as brokers responded to the speed, flexibility, product range, and full complement of services that Mack-Cali offers their clients. The responsiveness and solutions we provided to both prospective tenants and their brokers saved them time and money, while our reputation and solid financial footing provided them peace of mind and security.