(in thousands)

						                          Cali Realty Corporation    Cali Group
					                                        Consolidated          Combined
                                                                  __________________________________  ___________
				          	                        Year Ended 	Aug.31, 1994  Jan.1, 1994
					                               December 31,	    to	       to
CASH FLOWS FROM OPERATING ACTIVITIES	                       1996	 1995     Dec.31, 1994 Aug.30, 1994
_______________________________________________________________________________________________________________
Net income	                                                  $ 31,944  $ 13,638	$   3,939   $ 11,754
Adjustments to reconcile net income to net cash
  provided by operating activities:
    Depreciation and amortization	                           15,812     12,111	    3,764      5,454
    Gain on sale of rental property	                           (5,658)       -	       -	 -
    Minority interest	                                            4,760      3,508	    1,051	 -
    Extraordinary item - loss (gain)	                              475        -	       -     (11,864)
    Participation agreement settlement	                              -	         -	       -	 653
Changes in operating assets and liabilities:
    (Increase) decrease in unbilled rents receivable	             (979)      (312)	       95     (1,583)
    Increase in deferred charges and other assets, net	           (4,335)    (1,678)	   (3,133)	(669)
    (Increase) decrease in accounts receivable, net	             (629)       (99)	     (225)     1,100
    Increase in accounts payable and accrued expenses	            1,823         35          322      1,005
    Increase in rents received in advance and security deposits     2,911        878	      162	 763
    Increase (decrease) in accrued interest payable	              699        365	      392	(285)
_______________________________________________________________________________________________________________
Net cash provided by operating activities	                   46,823     28,446	    6,367      6,328
===============================================================================================================

CASH FLOWS FROM INVESTING ACTIVITIES
_______________________________________________________________________________________________________________
Additions to rental property	                                 (318,145)  (133,489)	  (19,804)    (2,235)
Proceeds from sale of rental property	                           10,324	 -	      -	         -
Decrease (increase) in restricted cash	                               69	(247)	   (2,204)	 809
Cash from contributed assets                                           -	 -	   13,061	 -
Proceeds from sale of investments	                               -	 -	      -	       3,401
_______________________________________________________________________________________________________________
	Net cash (used in) provided by investing activities	 (307,752)  (133,736)	   (8,947)      1,975
===============================================================================================================

CASH FLOWS FROM FINANCING ACTIVITIES
_______________________________________________________________________________________________________________
Proceeds from mortgages and loans payable	                  272,113     60,402	   79,000      16,327
Repayments of mortgages and loans payable	                 (294,819)   (20,702)    (223,811)    (16,571)
Payment of financing costs                         	               -	(102)	   (5,233)     (1,952)
Debt prepayment premiums and other costs	                     (312)	 -            -	          -
Purchase of treasury stock	                                       -      (1,595)         -	          -
Proceeds from common stock offerings          	                  518,21      83,594	  165,518	  -
Proceeds from stock options exercised	                            2,001	 -	      -	          -
Payment of dividends and distributions     	                  (32,433)   (21,734)	   (1,790)	  -
Proceeds from concurrent placement                                     -	 -	    5,175	  -
Cash distributions to partners	                                       -	 -	   (5,175)     (1,972)
Payments to non-continuing partners in connection with IPO             -	 -	   (4,710)	  -
Cash contributions from partners of the Cali Group	               -	 -	      -	        3,130
_______________________________________________________________________________________________________________
Net cash provided by (used in) financing activities	          464,769     99,863	    8,974      (1,038)
_______________________________________________________________________________________________________________
Net increase (decrease) in cash and cash equivalents	          203,840     (5,427)	    6,394	7,265
Cash and cash equivalents, beginning of period	                      967      6,394	       -	5,796
_______________________________________________________________________________________________________________
Cash and cash equivalents, end of period                        $ 204,807    $   967	 $  6,394    $ 13,061
_______________________________________________________________________________________________________________