Cali's financial performance in 1996 was impressive, adding tangible benefits for shareholders as well as long-term value for the Company. Cali's stock, which started out the year at $21 7/8, closed the year at $30 7/8, an increase of over 41%.

For the second year in a row, Cali's total return, assuming reinvested dividends, reached approximately 50%, making it among the top-performing REITs in the country. Cali's return exceeded not only the return of the S&P 500 (23.0%), it also topped the NAREIT equity index return (35.3%). Since its initial public offering in 1994, Cali's stock has delivered a total return of over 112%.

Cali raised its dividends per share to investors in 1996, from $1.70 to $1.80, a 6% increase over 1995. For the year, Cali's funds from operations dividend payout ratio was 82%.

Cali reached an important valuation milestone in 1996: it reached and exceeded the $1 billion equity market capitalization level. At year-end, the Company's equity market capitalization was $1.2 billion, reflecting an increase of 208% from a year ago, putting Cali in a class of less than 30 REITs in the country with market caps over $1 billion. This increased capitalization translates into a lower cost of capital for the Company, increasing Cali's return on its investments. By expanding its asset base into additional markets, Cali has increased the diversity of its portfolio and the opportunities for more acquisitions and development.

In 1996, Cali completed two successful and significant equity offerings. In Cali's August rapid offering of common stock (ROC), the Company sold approximately $80 million in stock in just a few days. The Company's November offering generated $467 million, representing the largest post-IPO offering in REIT history. These offerings reflect the confidence that the financial markets have in Cali's markets, management and growth potential.

The 1996 equity offerings, which were used to facilitate the Company's acquisition activities, doubled Cali's outstanding shares to over 36 million, bringing a more diverse group of investors into the Cali family of shareholders.