Press Release

Cali Realty Corporation Announces Record First Quarter Results

Funds From Operations Per Share Increases 18%

CRANFORD, NJ--May 6, 1997--Cali Realty Corporation (NYSE:CLI) today announced record results for the quarter ended March 31, 1997. Funds from operations (FFO) per share showed an increase of 18% over the same quarter in 1996.

"We're encouraged that Cali's growth strategy continues to deliver quantifiable results and added shareholder value," said Thomas A. Rizk, President and Chief Executive Officer. "Our acquisition of the Robert Martin Company was the most notable event of the quarter, and the largest transaction in the Company's history.

Cali will continue to pursue such prudent opportunities for growth going forward," he added.

Financial Highlights
For the quarter ended March 31, 1997, funds from operations before minority interest and after adjustment for straight-lining of rents amounted to $23,967,000 or $0.60 per share versus $9,079,000 or $0.51 per share for the quarter ended March 31, 1996.

For the quarter ended March 31, 1997, cash available for distribution (CAD) equaled $22,620,000 or $0.56 per share versus $8,151,000 or $0.46 per share for the same period last year, representing an increase of 24%.

Revenues for the quarter totaled $52,155,000 versus revenues of $19,571,000 for the quarter ended March 31, 1996.

For the quarter ended March 31, 1997, net income before minority interest, gain on sale of rental property and extraordinary item totaled $18,095,000 or $0.45 per share versus net income before gain on sale of rental property, minority interest, and extraordinary item of $6,128,000 or $0.34 per share for the quarter ended March 31, 1996.

"Our more than $400 million in fourth quarter acquisitions, in addition to the Robert Martin transaction, had a positive impact on our first quarter results," said Barry Lefkowitz, Chief Financial Officer. "We remain confident that our operating performance will continue to yield favorable results in the future," he added.

Summary of First Quarter Accomplishments
In January 1997, Cali completed its $440 million acquisition of the Robert Martin Company, which was considered one of the largest private-to-public real estate transactions in REIT history. The Robert Martin transaction added 65 properties totaling 4.1 million square feet to Cali's portfolio, which now consists of 123 properties, primarily office and office/flex buildings, totaling 11.4 million square feet of space and stretching across four states.

In a separate transaction in January, Cali also acquired a 76,300 square-foot, 100% leased office/flex building in Wall Township, NJ, for $6.8 million.

Leasing Information
Cali Realty's portfolio was 96.3 percent leased at March 31, 1997 compared to 96.4 percent at December 31, 1996.

During the first quarter 1997, the Company executed 58 leases totaling 274,192 square feet, consisting of 134,906 square feet of office space, 71,396 square feet of office/flex space and 67,890 square feet of industrial/warehouse space, which included 152,142 square feet for new leases and 122,050 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 123 properties, primarily office and office/flex buildings, totaling approximately 11.4 million square feet. All of the properties are located in New Jersey, New York, Pennsylvania and Connecticut.

Additional information on Cali Realty Corporation is available on the Company's website at http://www.calirealty.com.

Certain information discussed in this press release may constitute forward-looking statements within the meaning of the Federal Securities law. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office, office/flex and industrial/warehouse properties in the northeast; interest rate levels; the availability of financing; and other risks associated with the development and acquisition of properties, including risks that the development may not be completed on schedule, that the tenants will not take occupancy or pay rent, or that development or operating costs may be greater than anticipated. For further information on factors which could impact the Company and the statements contained herein, reference should be made to the Company's filings with the Securities and Exchange Commission including quarterly reports on Form 10-Q, reports on Form 8-K, and annual reports on Form 10-K.

                       Cali Realty Corporation
                 Condensed Statements of Operations
             (in thousands, except per share amounts)


                                        Quarter Ended March 31,
                                         1997           1996


Revenues                              $ 52,155       $ 19,571


Operating and other expenses           (15,574)        (6,644)
General and administrative              (3,173)          (936) 
Depreciation and amortization           (7,764)        (3,294)
Interest expense                        (7,549)        (2,569)


  Total expenses                       (34,060)       (13,443)


Income before gain on sale of rental
  property, minority interest & 
  extraordinary item                    18,095          6,128
Gain on sale of rental property              -          5,658


Income before minority interest
 & extraordinary item                   18,095         11,786
Minority interest                       (1,636)        (1,812)


Income before extraordinary item        16,459          9,974
Extraordinary item-loss on early
  retirement of debt                         -           (475)(1)


Net income                            $ 16,459       $  9,499


Net income per common share:
  Income before extraordinary item    $   0.45       $   0.66
  Extraordinary item-loss on early
    retirement of debt                       -          (0.03)
  Net income                          $   0.45       $   0.63


Dividends declared per common share   $   0.45       $  0.425


Weighted average shares outstanding     36,461         15,146




(1) Shown net of minority interest's share of $86.


                        Cali Realty Corporation
                Statements of Funds from Operations and 
                   Cash Available for Distribution
               (in thousands, except per share amounts)


                                          Quarter Ended March 31,
                                              1997          1996


Income before minority interest, gain on
  sale of rental property &
  extraordinary item                        $ 18,095     $ 6,128
Add:
 Real estate depreciation and amortization     7,479       3,020
Deduct:
 Adjustment to rental income for
   straight-lining of rents                   (1,607)        (69)
Funds from Operations(1) after adjustment 
   for straight-lining of rents             $ 23,967     $ 9,079
Deduct:
   Non-incremental revenue generating 
     capital expenditures:
   Capital improvements                         (292)       (187)
   Tenant improvements and lease
     commissions                              (1,055)       (741)


Cash available for distribution             $ 22,620     $ 8,151


Weighted average shares/units
  outstanding (2)                             40,085      17,897


Per share/unit:
  Funds from Operations                     $   0.60     $  0.51


  Cash available for distribution           $   0.56     $  0.46


  Dividend                                  $   0.45     $ 0.425


Dividend payout ratios:
  Funds from Operations (1)                    75.26%      83.78%
  Cash available for distribution              79.75%      93.32%


(1) Funds from Operations for both periods are calculated in accordance
    with the National Association of Real Estate Investment Trusts
    (NAREIT) definition, as published in March 1995.


(2) Assumes conversion of 3,624 (1997) and 2,751 (1996) weighted
    average limited partnership units in Cali Realty, L.P. to shares of
    Cali Realty Corporation.




                        Cali Realty Corporation
                           Leasing Statistics
                  For Quarter Ended March 31, 1997


                                 Leased Area      Percentage
                                 Rentable S.F.     % Leased


December 31, 1996                  6,878,021          96.4%
 1st quarter leasing, net            (16,036)
 1st quarter acquisitions          4,027,934
March 31, 1997                    10,889,919          96.3%
                           
First Quarter Leasing Activity:


                           OFFICE SPACE
                                
                        Number                Weighted    Average                            
                of     Rentable     Average     Term
                        Leases     S.F.      Base Rent   (Years)


New Leases:
First generation space     2      16,772     $  19.44      12.30
Second generation space   20      41,232     $  20.58       3.84
 
   Total new leasing:     22      58,004    


Renewals and extensions   22      76,902     $  20.25       3.90
   
   Total leasing:         44     134,906
  


Capital Expenditures-          Tenant         Leasing
 Second Generation Space:   Improvements    Commissions     Total  
Expend. committed-1st qtr.(1)  $ 639,054(2) $ 385,128 $1,024,182
Rentable s.f. leased-1st qtr.    118,134      118,134    118,134
Cap ex. committed per r.s.f.   $    5.41    $    3.26 $     8.67


(1) Represents amounts committed but not necessarily expended during period.
(2) Equals estimated workletter costs, net of estimated profit and overhead.




                        Cali Realty Corporation
                           Leasing Statistics
                  For Quarter Ended March 31, 1997
                              (continued)


                          OFFICE/FLEX SPACE


                        Number             Weighted       Average
                          of    Rentable    Average        Term
                        Leases    S.F.   Base Net Rent(3) (Years)


New leases:
Second generations space   7      47,748      $  15.35       4.3
  Total new leasing:       7      47,748


Renewals and extentions:   5      23,648      $  12.23       2.3
  Total leasing:          12      71,396


Note: Avg. Base Rent is being reported on a "modified net" basis as of 1Q97.  
See note #3 below.


Capital Expenditures-           Tenant       Leasing
 Second Generation Space:    Improvements  Commissions     Total  


Expend. committed-1st qtr.(1)   $127,022(2)   $133,384 $ 260,406
Rentable s.f. leased-1st qtr.     71,396        71,396    71,396
Cap ex. committed per r.s.f.    $   1.78      $   1.87 $    3.65


(1) Represents amounts committed, but not necessarily expended during period.
(2) Equals estimated workletter costs, net of estimated profit and overhead.
(3) Equals triple net rent plus common area oper. exp. & real estate taxes.


                        Cali Realty Corporation
                           Leasing Statistics
                  For Quarter Ended March 31, 1997
                              (continued)


                    INDUSTRIAL/WAREHOUSE SPACE


                        Number             Weighted       Average
                          of    Rentable    Average        Term
                        Leases    S.F.   Base Net Rent(3) (Years)


Ne leases:
Second generations space    1     46,390     $    9.25       3.0
  Total new leasing:        1     46,390


Renewals and extentions:    1     21,500     $    8.90       1.0
  Total leasing:            2     67,890


Note: Average Base Rent is being reported on a "modified net" basis.  See note #3 below.


Capital Expenditures-           Tenant       Leasing
 Second Generation Space:    Improvements  Commissions     Total  


Expend. committed-1st qtr.(1)   $ 19,947(2)   $ 67,890 $  87,837
Rentable s.f. leased-1st qtr.     67,890        67,890    67,890
Cap ex. committed per r.s.f.    $   0.29      $   1.00 $    1.29


(1) Represents amounts committed, but not necessarily expended during period.
(2) Equals estimated workletter costs, net of estimated profit and overhead.
(3) Equals triple net rent plus common area oper. exp. & real estate taxes.
                     Cali Realty Corporation
                        Leasing Statistics
                 For Quarter Ended March 31, 1997
                           (continued)


                           Lease Renewals


                                   Number of 
                                    Leases         Rentable S.F.


Leases expiring-1st quarter           52              290,228
Leases renewed-1st quarter            28              122,050


Renewal percentage                    54%                  42%


Expiring in future periods and
renewed in 1st quarter                10               42,416
(included in totals above):May 5, 1997


Expiring in future periods and
relet in 1st qtr.
(included in totals above):            5               28,108