Cali Realty Corporation
Condensed Statements of Operations
(in thousands, except per share amounts)
Quarter Ended
September 30,
1997 1996
----------------------------------------------------------------
Revenues $62,609 $22,518
Operating and other expenses (18,928) (7,035)
General and administrative (3,675) (1,371)
Depreciation and amortization (9,339) (3,469)
Interest expense (10,694) (2,999)
Total expenses (42,636) (14,874)
Income before minority interest 19,973 7,644
and extraordinary item
Minority interest (2,015) (1,045)
Extraordinary item-loss on early (3,583) --
retirement of debt (1)
Net income $14,375 $ 6,599
Weighted average shares
outstanding 36,457 17,045
Net income per common share:
Income before extraordinary item $ 0.49 $ 0.39
Extraordinary item-loss on early (0.10) --
retirement of debt
Net income $ 0.39 $ 0.39
Dividends declared per
common share $ 0.50 $ 0.45
(1) Net of minority interest's share of $402 in 1997.
================================================================
Cali Realty Corporation
Statements of Funds from Operations and
Cash Available for Distribution
(in thousands, except per share amounts)
Quarter Ended
September 30,
1997 1996
----------------------------------------------------------------
Income before minority interest,
gain on sale of rental property
and extraordinary item $19,973 $ 7,644
Add:
Real estate depreciation and amortization 9,327 3,456
Deduct:
Adjustment to rental income for
straight line rents (1,969) ( 29)
Funds from Operations(1)after adjustment
for straight-lining of rents $27,331 $11,071
Deduct:
Non-incremental revenue generating
capital expenditures:
Capital improvements (489) (298)
Tenant improvements and leasing
commissions (1,412) (849)
Cash available for distribution $25,430 $ 9,924
Weighted average shares/units
outstanding(2) 40,547 19,744
Per share/unit:
Funds from Operations $ 0.67 $ 0.56
Cash available for distribution $ 0.63 $ 0.50
Dividend $ 0.50 $ 0.45
Dividend payout ratios:
Funds from Operations(1) 74.18% 80.25%
Cash available for distribution 79.72% 89.53%
(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 4,090 (1997) and 2,699 (1996) weighted
average limited partnership units in Cali Realty, L.P. to
shares of Cali Realty Corporation.
================================================================
Cali Realty Corporation
Condensed Statements of Operations
(in thousands, except per share amounts)
Nine Months Ended
September 30,
1997 1996
----------------------------------------------------------------
Revenues $175,305 $63,094
Gain on sale of rental property -- 5,658
Operating and other expenses (52,570) (20,259)
General and administrative (10,601) (3,427)
Depreciation and amortization (25,631) (9,850)
Interest expense (28,398) (9,093)
Total expenses (117,200) (42,629)
Income before minority interest
and extraordinary item 58,105 26,123
Minority interest (5,663) (3,866)
Extraordinary items-loss on early
retirement of debt(1) (3,583) (475)
Net income $ 48,859 $ 21,782
Weighted average shares
outstanding 36,469 15,803
Net income per common share:
Before gain on sale of
rental property and
extraordinary item(2) $ 1.44 $ 1.11
Gain on sale of
rental property(3) -- $ 0.30
Extraordinary item (.10) (0.03)
Net income: $ 1.34 $ 1.38
Dividends declared per
common share $ 1.40 $ 1.30
(1) Net of minority interest's share of $402 and $86 in 1997 and 1996.
(2) 1996 amount calculated by taking net income, adding back the
extraordinary item, and deducting the gain on sale of rental
property (net of minority interest's share of $864), divided by
weighted average shares outstanding.
(3) 1996 amount calculated by taking the gain on sale of rental
property (net of minority interest's share of $864), divided
by weighted average shares outstanding.
================================================================
Cali Realty Corporation
Statements of Funds from Operations and
Cash Available for Distribution
(in thousands, except per share amounts)
Nine Months Ended
September 30,
1997 1996
----------------------------------------------------------------
Income before minority interest,
gain on sale of rental property
and extraordinary item $ 58,105 $ 20,465
Add:
Real estate depreciation and amortization 25,592 9,811
Deduct:
Adjustment to rental income for
straight line rents (5,913) (233)
Funds from Operations(1) after adjustment
for straight-lining of rents $ 77,784 $ 30,043
Deduct:
Non-incremental revenue generating
capital expenditures:
Capital improvements (1,122) (849)
Tenant improvements and leasing
commissions (3,338) (2,459)
Cash available for distribution $ 73,324 $ 26,735
Weighted average shares/units
outstanding(2) 40,406 18,519
Per share/unit:
Funds from Operations $ 1.93 $ 1.62
Cash available for distribution $ 1.81 $ 1.44
Dividend $ 1.40 $ 1.30
Dividend payout ratios:
Funds from Operations(1) 72.72% 80.13%
Cash available for distribution 77.15% 90.05%
(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 3,937 (1997) and 2,716 (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 September 30, 1997
Leased Area Percentage
Rentable S.F. Leased
----------------------------------------------------------------
June 30, 1997 11,349,176 96.5%
3rd quarter leasing, net 49,404
3rd quarter acquisitions 323,226
September 30, 1997 11,721,806 95.8%
Third Quarter Leasing Activity:
OFFICE SPACE
Number Weighted Average
of Rentable Average Term
Leases S.F. Base Rent (Years)
----------------------------------------------------------------
New Leases:
First generation space 1 3,517 $25.00 5.0
Second generation space 29 114,349 $20.81 4.3
Total new leasing: 30 117,866
Renewals & extensions 27 134,904 $22.55 3.0
Total leasing: 57 252,770
Capital Expenditures- Tenant Leasing
Second Generation Space: Improvements Commissions Total
Expend. committed-3rd qtr.(1) $979,390(2) $ 656,128 $1,635,518
Rentable s.f. leased-3rd qtr. 249,253 249,253 249,253
Cap ex. committed per r.s.f. $3.93 $2.63 $6.56
(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 September 30, 1997
(continued)
OFFICE/FLEX SPACE
Number Weighted Average
of Rentable Average Base Term
Leases S.F. Net Rent (3) (Years)
-------------------------------------------------------------------
New leases:
First generation space 3 23,278 $14.60 5.0
Second generation space 18 94,110 $13.19 4.6
Total new leasing: 21 117,388
Renewals & extensions 9 66,578 $13.04 3.1
Total leasing: 30 183,966
Capital Expenditures- Tenant Leasing
Second Generation Space: Improvements(2) Commissions Total
Expend. committed-3rd qtr.(1) $594,045 $391,812 $985,857
Rentable s.f. leased-3rd qtr. 160,688 160,688 160,688
Cap ex. committed per r.s.f. $3.70 $2.44 $6.14
(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 costs and real estate taxes.
================================================================
INDUSTRIAL/WAREHOUSE SPACE
Number Weighted Average
of Rentable Average Term
Leases S.F. Base Rent(3)(Years)
--------------------------------------------------------------------
New Leases:
First generation space -- -- -- --
Second generation space 2 26,482 $8.55 4.1
Total new leasing: 2 26,482
Renewals & extensions 2 11,300 $10.53 4.0
Total leasing: 4 37,782
Note: Avg. Base Net Rent is being reported on a "modified net"
basis. See note #3 above.
================================================================
Capital Expenditures-
Second Generation Space
Tenant Leasing
Improvements Commissions Total
-------------------------------------------------------------------
Expend. Committed-3rd qtr.(1) $12,800 (2) $37,207 $50,007
Rentable s.f. leased-3rd qtr. 37,782 37,782 37,782
Cap. ex. committed per r.s.f. $0.34 $0.98 $1.32
(1) Represents amounts committed not necessarily expended during
period.
(2) Equals estimated workletter costs net of estimated profit and
overhead.
================================================================
Lease Renewals
Number of
Lease renewals Leases Rentable S.F.
----------------------------------------------------------------
Expiring: (3) 85 425,114
Renewed: 38 212,732
Renewed: 45% 50%
Expiring in future periods
& renewed in 3rd Qtr. (included
in totals above): 15 82,836
Expiring in future periods
& relet in 3rd Qtr. (included
in totals above): 6 17,238
(3) Includes leases expiring in future periods for which leases
were renewed or relet in 3rd quarter.
================================================================
# # #
Executive Vice President and Chief Financial Officer
Mack-Cali Realty Corporation
T: 732.590.1000
Close
Forward this page.
Close