Press Release

Cali Realty Corporation Announces 14% Increase in Funds From Operations Per Share

CRANFORD, NJ--October 29, 1996--Cali Realty Corporation (NYSE:CLI) today announced its results for the third quarter of 1996. The Company's 3rd quarter FFO per share represents a 14% increase over the same quarter 1995. The Company is a fully integrated, self-administered, publicly-owned real estate investment trust ("REIT").

FINANCIAL HIGHLIGHTS
For the quarter ended September 30, 1996, funds from operations before minority interest and after adjustment for straight-lining of rents amounted to $11,071,000 or $.56 per share versus $6,573,000 or $.49 per share for the quarter ended September 30, 1995. For the nine months ended September 30, 1996, funds from operations before minority interest and after adjustment for straight-lining of rents amounted to $30,043,0000 or $1.62 per share versus $19,307,000 or $1.45 per share for the nine months ended September 30, 1995.

For the quarter ended September 30, 1996, cash available for distribution equaled $9,924,000 or $.50 per share versus $5,985,000 or $.45 per share for the same period last year. For the nine months ended September 30, 1996, cash available for distribution equaled $26,735,000 or $1.44 per share versus $17,543,000 or $1.32 per share for the same period last year.

For the quarter ended September 30, 1996, revenues totaled $22,518,000 versus revenues of $15,777,000 for the quarter ended September 30, 1995. For the nine months ended September 30, 1996 revenues totaled $63,094,000 versus revenues of $44,799,000 for the nine months ended September 30, 1995.

For the quarter ended September 30, 1996, net income before minority interest totaled $7,644,000 or $.39 per share versus net income before minority interest of $4,184,000 or $.31 per share for the quarter ended September 30, 1995. For the nine months ended September 30, 1996, income before gain on sale of property, minority interest, and extraordinary item totaled $20,465,000 or $1.41 per share versus $12,120,000 or $.91 per share for the nine months ended September 30, 1995.

LEASING INFORMATION
Cali Realty's portfolio of office buildings was 96.9 percent leased at September 30, 1996 compared to 97 percent at June 30,1996.

During the third quarter 1996, the Company executed 24 leases totaling 125,600 square feet, consisting of 69,884 square feet of office space and 55,716 square feet of office/flex space; 42,576 square feet for new leases and 83,024 square feet for lease renewals.

A schedule is attached highlighting quarterly leasing statistics.

ABOUT THE COMPANY
Cali Realty Corporation is a fully integrated, self-administered, self-managed real estate investment trust (REIT) providing leasing, management, acquisition, development, construction and tenant-related services for its portfolio. The Company owns 45 properties, primarily office and office/flex buildings totaling approximately 4.6 million square feet. All of the properties are located in New Jersey, New York and Pennsylvania.

Cali Realty Corporation
Condensed Statement of Operations
(In thousands, except per share amounts)

__________________________________________________________________
                                   Quarter Ended September 30,
                                    1996                  1995
__________________________________________________________________




 Revenues                         $22,518               $15,777
 Operating and other expense       (8,406)               (6,237)
 Depreciation and amortization     (3,747)               (3,009)
 Interest expense                  (2,721)               (2,347)
 
 Income before minority interest    7,644                 4,184
 
 Minority interest                 (1,045)                 (911)
 
 Net income                       $ 6,599               $ 3,273
 
 Weighted average shares 
  outstanding                      17,045                10,400
 
 Net Income per common share      $  0.39                $ 0.31
 
 Dividends declared per
  common share                    $  0.45                $ 0.43
 


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Cali Realty Corporation
Statement of Funds from Operations and  Cash Available for Distributions
(In thousands, except per share amounts)




__________________________________________________________________ 
                                       Quarter Ended September 30,
                                              1996          1995
__________________________________________________________________




 Income before minority interest, gain on
   sale of property and extraordinary item $ 7,644       $ 4,184
 Add:
  Real Estate depreciation and amortization  3,456         2,632
 Deduct:
  Adjustment to rental income for
    straight line rents                        (29)         (243) 
   Funds from operations (1) after adjustment 
     for straight-lining of rents         $ 11,071       $ 6,573 
    
 Deduct:
 Non-incremental revenue generating 
  capital expenditures:
   Capital improvements                        (298)         (159) 
   Tenant improvements and lease                
    commissions                                (849)         (429)
 
 Cash available for distribution            $ 9,924       $ 5,985
 
 Weighted average shares/units 
   outstanding (2)                           19,744        13,295
 
 Per share/unit:
   Funds from operations                    $  0.56        $ 0.49
 
   Cash available for distribution          $  0.50        $ 0.45
 
   Dividend                                 $  0.45       $ 0.425
 
 Dividend payout ratios:
   Funds from operations (1)                 80.25%        85.97%
   Cash available for distribution           89.53%        94.41%
 
 (1) Funds from operations for both periods are calculated in     
 accordance with the new National Association of Real Estate      
 Investment Trusts (NAREIT) definition.
 
 (2) Assumes conversion of 2,699 (1996) and 2,716 (1995) weighted  
 average limited partnership units in Cali Realty, L.P. to     
 shares of Cali Realty Corporation.
 


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Cali Realty Corporation
Condensed Statement of Operations
(In thousands, except per share amounts)


__________________________________________________________________
                                   Nine Months Ended September 30, 
                                    1996                  1995
__________________________________________________________________




 Revenues                         $63,094               $44,799
 Gain on sale of property           5,658                    --
 Operating and other expenses     (23,686)              (17,582)
 Depreciation and amortization    (10,655)               (8,936)
 Interest expense                  (8,288)               (6,161)
 
 Income before minority interest   26,123                12,120
 
 Minority interest                 (3,866)               (2,620)
 
 Extraordinary item-loss on early
  retirement of debt (1)             (475)                   --
 
 Net income                      $ 21,782               $ 9,500
 
 Weighted average shares 
  outstanding                      15,803                10,424
 
 Net income per common share:     
    Before extraodinary item       $ 1.41               $  0.91 
    Extraodinary item                (.03)                    --
    Net income                     $ 1.38               $  0.91
 
 Dividends declared per
  common share                     $ 1.30                $ 1.23
 
 
 
 
 (1) Net of minority interest's share of $86.
 


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Cali Realty Corporation
Statement of Funds from Operations and Cash Available for Distributions
(In thousands, except per share amounts)


 __________________________________________________________________
                                   Nine Months Ended September 30,
                                               1996         1995
__________________________________________________________________




 Income before minority interest, gain on 
   sale of property and extraordinary item  $ 20,465     $ 12,120
 Add:
  Real Estate depreciation and amortization    9,811        7,652
 Deduct:  
 Adjustment to rental income for
    straight line rents                         (233)        (465) 
   Funds from operations (1) after adjustment 
    for straight-lining of rents             $ 30,043     $ 19,307 
    
 Deduct:
 Non-incremental revenue generating 
  capital expenditures:
   Capital improvements                         (849)        (477)
   Tenant improvements and lease 
    commissions                               (2,459)      (1,287)
 
 Cash available for distribution            $ 26,735     $ 17,543
 
 Weighted average shares/units 
   outstanding (2)                             18,519       13,299
 
 Per share/unit:
   Funds from operations                      $  1.62      $  1.45
 
   Cash available for distribution            $  1.44      $  1.32
 
   Dividend                                   $  1.30      $  1.23
 
 Dividend payout ratios:
   Funds from operations (1)                   80.13%      84.91%
   Cash available for distribution             90.05%      93.44%
 
 (1) Funds from operations for both are calculated in accordance   
     with the new National Association of Real Estate Investment   
     Trusts (NAREIT) definition. 
 
 (2) Assumes conversion of 2,699 (1996) and 2,716 (1995) weighted
     average limited partnership units in Cali Realty, L.P. to
     shares of Cali Realty Corporation.


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Cali Realty Corporation
Leasing Statistics
For Quarter Ended September 30, 1996


 
__________________________________________________________________
                                  Leased Area      Percentage
                                  Rentable S.F.     % Leased
__________________________________________________________________




 June 30, 1996                      4,030,898          97.0%
  3rd quarter leasing                  (8,257) 
  3rd quarter acquisitions            115,000
 September 30, 1996                 4,137,641          96.9%
                            
 
                            OFFICE SPACE
 
 Third Quarter Leasing Activity:
__________________________________________________________________
 
                         Number                Weighted    Average 
                           of     Rentable     Average     Term
                         Leases     S.F.      Base Rent   (Years)




 New Leases:         
 First generation space    4       16,585       $18.98       5.0
 Second generation space   6       19,909       $21.57       5.4 
  
    Total new leasing     10       36,494        
 
 Renewals & extensions     8       33,390       $19.13       3.0
    
    Total leasing         18       69,884         
   
 
 Capital Expenditures-          Tenant         Leasing
  Second Generation Space:  Improvements    Commissions     Total  
 __________________________________________________________________
 Expend. committed-3rd qtr.(1)  $352,441(2)    $152,326  $504,767
 Rentable s.f. leased-3rd qtr.    53,299         53,299    53,299
 Cap ex. committed per r.s.f.      $6.61          $2.86     $9.47
 
 
 (1) Represents amounts committed but not necessarily expended during period.
 (2) Equals estimated workletter costs, net of estimated profit and overhead.
 


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Cali Realty Corporation
Leasing Statistics for Quarter Ended September 30, 1996continued
 
 __________________________________________________________________
                           OFFICE/FLEX SPACE


                         Number             Weighted      Average
                           of    Rentable    Average       Term
                         Leases    S.F.     Base Net Rent (Years)
__________________________________________________________________




 New leases:
 Second generation space    2       6,082     $10.49         5.0
 
 Renewals & Extensions:     4      49,634     $10.62         4.4
    
   Total Leasing:           6      55,716     
   
 Capital Expenditures-           Tenant       Leasing
  Second Generation Space:    Improvements  Commissions     Total  
 
 Expend. committed-3rd qtr.(1)   $201,585 (2) $110,947    $312,532
 Rentable s.f. leased-3rd qtr.     55,716       55,716      55,716
 Cap ex. committed per r.s.f.       $3.62        $1.99       $5.61
 
(1) Represents amounts committed but not necessarily expended during period.
(2) Equals estimated workletter costs, net of estimated profit and overhead.
 




LEASE RENEWALS




                                    Number of 
                                     Leases         Rentable S.F.
__________________________________________________________________




 Leases expiring-3rd quarter           23              133,857
 Leases renewed-3rd quarter            12               83,024 
 
 Renewal percentage per r.s.f.         52%                  62%    
       
 
 Expiring in future periods and
 renewed in 3rd quarter
  (included in totals above)            4               46,875