Press Release

Mack-Cali Realty Corporation Announces 11.1 Percent Increase in First Quarter FFO Per Share

CRANFORD, NEW JERSEY - May 4, 2000 - Mack-Cali Realty Corporation (NYSE: CLI) today announced its results for the first quarter of 2000. The Company reported that its funds from operations (FFO) per diluted share for the first quarter 2000 increased 11.1 percent over the same period in 1999.

FINANCIAL HIGHLIGHTS

FFO, after adjustment for straight-lining of rents, for the quarter ended March 31, 2000, amounted to $66.1 million, or $0.90 per share, versus $60.2 million, or $0.81 per share, for the quarter ended March 31, 1999, a per share increase of 11.1 percent.

Cash available for distribution (CAD) for the first quarter 2000 equaled $55.4 million, or $0.76 per share, versus $54.0 million, or $0.73 per share, for the same quarter last year, a per share increase of 4.1 percent.

Included in FFO and CAD for the first quarter 2000 was a gain on sale of land of $2.2 million, or $0.03 per share.

Total revenues for the current quarter increased 6.0 percent to $143.0 million from $134.9 million for the same quarter last year.

Net income for the first quarter 2000 equaled $36.6 million, or $0.62 per share, versus $32.1 million, or $0.55 per share, for the same quarter last year, a per share increase of 12.7 percent. All per share amounts presented are on a diluted basis; basic per share information is included in the financial tables accompanying this press release.

The Company had 58,489,135 shares of common stock, 8,116,827 common operating partnership units and 229,304 $1,000-face-value preferred operating partnership units (6.75 percent annual rate) outstanding at quarter end. The outstanding preferred units are convertible into 6,617,721 common operating partnership units. Assuming conversion of all preferred units into common units, the Company had a total of 73,223,683 shares/common units outstanding at March 31, 2000.

As of March 31, 2000, the Company had total indebtedness of approximately $1.53 billion, with a weighted average annual interest rate of 7.19 percent. Mack-Cali's total market capitalization was $3.5 billion with a debt-to-market capitalization ratio of 43.9 percent. The Company had an interest coverage ratio of 3.66 times for the quarter ended March 31, 2000.

Commenting on the results, Mitchell E. Hersh, chief executive officer, said, "Our first quarter showed solid results, continuing the positive momentum from 1999. Rents continue to increase with occupancies remaining high. Our development projects continue to unfold as planned. We remain focused on the growth in our real estate operations while exploring ancillary opportunities."

PORTFOLIO MANAGEMENT TRANSACTIONS

In January 2000, the Company purchased land for $2.1 million adjacent to the Company's 371,000 square-foot, 96.8 percent leased three-building office complex at the Airport Business Center in Lester, Pennsylvania. The acquired land can accommodate up to 135,000 square feet of additional office space.

The Company sold 39 acres of vacant land in Mercer County, New Jersey for $4.4 million in February 2000. The entire 128-acre land track was originally acquired in 1998 for $1.7 million.

In March 2000, Mack-Cali increased its presence in the Moorestown West Corporate Center in Moorestown, New Jersey by acquiring a 60,800 square-foot office/flex building for approximately $4 million. The Company now owns 19 office/flex buildings in the complex, aggregating 875,405 square feet.

Mack-Cali completed the sale of 95 Christopher Columbus Drive in Jersey City, New Jersey for $152.5 million in April 2000. The 622,000 square-foot office building is 100 percent leased and the Company will continue to manage and lease the property for the new owner.

Also in April, Mack-Cali sold Atrium at Coulter Ridge, a 71,771 square-foot office building in Amarillo, Texas, for $1.6 million.

DEVELOPMENT PIPELINE

The Company remains on schedule to meet the aggressive occupancy requirements of TD Waterhouse, the sole tenant of the Company's 185,000 square-foot office facility being developed at Harborside Financial Center in Jersey City, New Jersey. The office facility is being built atop a 1,100-car parking structure.

Harborside's south pier Hyatt Regency Hotel development project will be launched in a groundbreaking ceremony this month.

The 183,000 square-foot, six-story office facility being developed at the Denver Tech Center, located in Denver, Colorado, is on target for a first quarter 2001 completion. 90,000 square feet of the property is currently leased to URS Greiner Woodward Clyde.

The 105 Eisenhower Parkway development, located in the Company's Eisenhower Corporate Center in Roseland, New Jersey, will be the Center's newest four-story, 220,000 square-foot office building. Completion is slated for the first quarter 2001. Arthur Andersen has leased 50 percent of the building.

In Bernards Township, New Jersey, Mack-Cali is nearing completion of a 130,000 square-foot office property at Liberty Corner. KPMG Peat Marwick, LLP signed a lease in April for 37,962 square feet of the building. The tenant is due to occupy the space in the third quarter of 2000.

Leasing interest on Mack-Cali's development projects remains strong.

JOINT VENTURE ACTIVITY

Mack-Cali's development joint venture in California with Highridge Partners resulted in six buildings being placed in service during the quarter in Roseville and San Diego with construction beginning on another development project in Anaheim. These projects are summarized as follows:

• Lava Ridge Business Center encompasses three office buildings totaling 183,200 square feet. The high profile business park located in Roseville was 73.4 percent leased as of March 31, 2000.
  
  
• Summit Ridge Business Center, a three-building, research and development complex, aggregating 133,750 square feet of office/flex space was 40.3 percent leased as of March 31, 2000. The Center is located in Carroll Mesa Business Park in the heart of San Diego's medical/technology community.
  
  
• Stadium Gateway, located in Anaheim, is a planned six-story, 261,554 square-foot office building that is due to break ground this month. New Horizons Worldwide, Inc., the largest computer training company in the world and one of Orange County's fastest-growing businesses, has leased 75,000 square feet and will occupy the space in 2001.

LEASING INFORMATION

Mack-Cali's consolidated in-service portfolio was 96.7 percent leased at March 31, 2000, compared to 96.5 percent at December 31, 1999.

For the quarter ended March 31, 2000, the Company executed 224 leases totaling 1,309,574 square feet, consisting of 1,107,067 square feet of office space, 156,253 square feet of office/flex space and 46,254 square feet of industrial/warehouse space. Of these totals, 407,772 square feet were for new leases and 901,802 square feet were for lease renewals and other tenant retention transactions. Accompanying this press release are schedules highlighting the first quarter leasing statistics for both the Company's consolidated and joint venture properties.

Copies of Mack-Cali's Form 10-Q and Supplemental Operating and Financial Data for the first quarter 2000 are available upon request from:

Mack-Cali Investor Relations Dept. 11 Commerce Drive, Cranford, NJ 07016 [via phone: 908.497.2001].

In addition, these items are available on Mack-Cali's website, as follows:

First Quarter 2000 Form 10-Q:

http://www.mack-cali.com/graphics/shareholders/pdfs/1st.quarter.10q.00.pdf

First Quarter 2000 Supplemental Operating and Financial Data:

http://www.mack-cali.com/graphics/shareholders/pdfs/1st.quarter.sp.00.pdf

ABOUT THE COMPANY

Mack-Cali Realty Corporation is a fully-integrated, self-administered, self-managed real estate investment trust (REIT) providing management, leasing, development, construction and other tenant-related services for its class A real estate portfolio. Mack-Cali owns or has interests in 266 properties, primarily office and office/flex buildings, totaling approximately 29.0 million square feet, located in 12 states and the District of Columbia. The properties, which are primarily located in the Northeast, enable the Company to provide a full complement of real estate opportunities to its diverse base of over 2,400 tenants.

Additional information on Mack-Cali Realty Corporation is available on the Company's website at http://www.mack-cali.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; 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, current reports on Form 8-K, and annual reports on Form 10-K and Form 10-K/A.

                                    Mack-Cali Realty Corporation
                 Consolidated Statements of Operations
                (in thousands, except per share amounts)
--------------------------------------------------------------------
                                       Quarter Ended March 31,
                                       2000               1999


Base rents                         $121,598           $116,080
Escalations & recoveries             16,668             14,860
Parking and other                     3,322              3,900
Equity in earnings (loss) of 
 unconsolidated joint ventures        1,137               (206)
Interest income                         254                255


  Total revenues                    142,979            134,889


Real estate taxes                    14,704             13,843
Utilities                            10,379              9,592
Operating services                   17,742             17,087
General and administrative            6,113              7,963
Depreciation and amortization        22,182             21,969
Interest expense                     26,426             23,622


  Total expenses                     97,546             94,076


Income before gain on sale of land
  and minority interests             45,433             40,813
Gain on sale of land                  2,248                 --  


Income before minority interests     47,681             40,813


Minority interests:
  Operating Partnership              (8,976)            (8,749) 
  Partially-owned properties         (2,090)                --


Net income                          $36,615            $32,064


PER SHARE DATA:
Basic earnings per share              $0.63              $0.55
Diluted earnings per share            $0.62              $0.55
Dividends declared
   per common share                   $0.58              $0.55


Basic weighted average  
   shares outstanding                58,295             58,162
Diluted weighted average
   shares outstanding                73,191             67,283




                      Mack-Cali Realty Corporation
                Statements of Funds from Operations and 
                   Cash Available for Distribution
             (in thousands, except per share/unit amounts)
--------------------------------------------------------------------
                                           Quarter Ended March 31,
                                              2000          1999


Income before minority interests            $47,681       $40,813
Add: Real estate depreciation
  and amortization(1)                        22,718        22,951
Deduct: Adj. to rental income for
  straight-lining of rents(2)                (2,190)       (3,545)
Deduct: Minority interest-
  partially-owned properties                 (2,090)           --
Funds from operations(3) after adj.
  for straight-lining of rents              $66,119       $60,219
Deduct: Non-incremental revenue
 generating capital expenditures:
  Capital expenditures                         (847)         (569)
  Tenant improvements and leasing
    commissions                              (9,909)       (5,653)


Cash available for distribution             $55,363       $53,997


Basic weighted average shares/units 
  outstanding(4)                             66,428        67,011
Diluted weighted average shares/units
  outstanding(5)                             73,191        73,975


Per Share/Unit - Basic(6):
  Funds from operations                       $0.94         $0.84
  Cash available for distribution             $0.78         $0.75
Per Share/Unit - Diluted:
  Funds from operations                       $0.90         $0.81
  Cash available for distribution             $0.76         $0.73


Dividends declared per common share           $0.58         $0.55


Dividend payout ratios:
  Funds from operations-diluted               64.20%        67.56%
  Cash available for distribution-diluted     76.68%        75.35%


(1) Includes the Company's share from unconsolidated joint ventures of $734 and
    $1,101 for 2000 and 1999, respectively.
(2) Includes the Company's share from unconsolidated joint ventures of $57 and
    $(18) for 2000 and 1999, respectively.
(3) Funds from operations for both periods are calculated in accordance with
    the National Association of Real Estate Investment Trusts (NAREIT)
    definition, as published in October 1999.
(4) Calculated based on weighted average common shares outstanding, assuming
    redemption of operating partnership common units into common shares.
(5) Calculated based on shares and units included in basic per share/unit
    computation, plus dilutive Common Stock Equivalents (i.e. convertible
    preferred
    units, options and warrants).
(6) Amounts calculated after deduction for distributions to preferred
    unitholders of $3,869 for both 2000 and 1999.



                        Mack-Cali Realty Corporation
                       Consolidated Balance Sheets
                   (in thousands, except share amounts)
------------------------------------------------------------------------
                                         March 31,         December 31,
ASSETS:                                    2000                1999
Rental property
   Land and leasehold interests        $  552,893          $  549,096
   Buildings and improvements           3,041,833           3,014,532
   Tenant improvements                     91,788              85,057
   Furniture, fixtures and equipment        6,200               6,160
                                        3,692,714           3,654,845
Less-accumulated depreciation
   and amortization                      (277,065)           (256,629)
Total rental property                   3,415,649           3,398,216


Cash and cash equivalents                   6,174               8,671
Investments in unconsolidated
   joint ventures                          91,497              89,134
Unbilled rents receivable                  55,386              53,523
Deferred charges and other assets, net     66,805              66,436
Restricted cash                             6,390               7,081
Accounts receivable, net                    8,855               6,810


Total assets                           $3,650,756          $3,629,601


LIABILITIES AND STOCKHOLDERS' EQUITY:
Senior unsecured notes                  $ 782,863          $  782,785
Revolving credit facilities               216,208             177,000
Mortgages and loans payable               529,432             530,390
Dividends and distributions payable        42,501              42,499
Accounts payable and accrued expenses      50,674              63,394
Rents received in advance and
   security deposits                       38,395              36,150
Accrued interest payable                    5,630              16,626
   Total liabilities                    1,665,703           1,648,844
Minority interests:
 Operating Partnership                    454,717             455,275
 Partially-owned properties                84,497              83,600
   Total minority interests               539,214             538,875
Commitments and contingencies
Stockholders' equity:
Preferred stock, 5,000,000 shares
   authorized, none issued                     --                  --
Common stock, $0.01 par value,
   190,000,000 shares authorized,
   58,489,135 and 58,446,552
   shares outstanding                         584                 584
Additional paid-in capital              1,550,989           1,549,888
Dividends in excess of net earnings      (101,211)           (103,902)
Unamortized stock compensation             (4,523)             (4,688)
   Total stockholders' equity           1,445,839           1,441,882


Total liabilities and 
   stockholders' equity                $3,650,756          $3,629,601


                     Mack-Cali Realty Corporation
                         Leasing Statistics
                For The Quarter Ended March 31, 2000 


                       CONSOLIDATED PORTFOLIO
               SUMMARY OF SPACE LEASED DURING PERIOD
------------------------------------------------------------------------
IN-SERVICE PROPERTIES:
 Square feet leased at December 31, 1999                  26,411,471
 Net leasing activity in 1st quarter 2000                     89,361
 Leased s.f. from 1st quarter 2000 acquisitions/
   properties placed in service                               60,800
 Occupancy adjustment(1)                                     (10,011)


Square feet leased at March 31, 2000                      26,551,621


Percent leased at March 31, 2000                                96.7%


Square feet of Development/Redevelopment
  Properties Not-in-Service as of March 31, 2000             718,000


                            OFFICE SPACE
------------------------------------------------------------------------
                         Number              Weighted    Average
                           of     Rentable    Average     Term
                         Leases     S.F.     Base Rent   (Years)
New Leases:
First generation space     11      65,901     $24.56       4.7
Second generation space    61     268,096     $22.95       4.6
    Total New Leasing      72     333,997     $23.27       4.7


Renewals & extensions      85     519,451     $26.84       3.1
Other retained tenants     37     253,619     $27.88       6.2
    Total Leasing         194   1,107,067


Capital Expenditures - Second Generation Space(2):


                              Tenant        Leasing
                         Improvements(3)  Commissions       Total


Expend. committed-1st qtr    $4,765,320    $4,471,758    $9,237,078
Rentable s.f. leased-1st qtr                              1,041,166
Cap. ex. committed
    per r.s.f. per year           $1.07         $1.00         $2.07


(1) Represents the net change in the amount of space leased/expired since 
    the prior reporting period in excess of 100 percent of the gross rentable
    area of certain properties in the portfolio.
(2) Represents amounts committed, but not necessarily expended during period.
(3) Equals estimated workletter costs.

 
 
                           OFFICE/FLEX SPACE
------------------------------------------------------------------------
                         Number              Weighted     Average
                           of     Rentable    Average      Term
                         Leases     S.F.    Base Rent(1)  (Years)
New Leases:
First generation space      1       6,000     $15.90        5.0
Second generation space     9      63,275     $14.83        5.7
    Total New Leasing      10      69,275     $14.93        5.7


Renewals & extensions      11      64,383     $11.38        3.7
Other retained tenants      3      22,595     $13.94        2.8
    Total Leasing          24     156,253


Capital Expenditures - Second Generation Space(2):


                               Tenant        Leasing
                          Improvements(3)  Commissions     Total


Expend. committed-1st qtr       $350,667     $277,336     $628,003
Rentable s.f. leased-1st qtr                               150,253
Cap. ex. committed
    per r.s.f. per year            $0.52        $0.42        $0.94


                       INDUSTRIAL/WAREHOUSE SPACE
------------------------------------------------------------------------
                         Number              Weighted     Average
                           of     Rentable    Average      Term
                         Leases     S.F.    Base Rent(1)  (Years)
New Leases:
Second generation space     1       4,500     $14.00        4.0


Renewals & extensions       3      34,104     $20.44        3.7
Other retained tenants      2       7,650     $10.91        3.3
    Total Leasing           6      46,254


Capital Expenditures - Second Generation Space(2):


                               Tenant        Leasing
                          Improvements(3)  Commissions     Total


Expend. committed-1st qtr        $51,769      $33,876      $85,645
Rentable s.f. leased-1st qtr                                46,254
Cap. ex. committed
    per r.s.f. per year            $0.31        $0.20        $0.51


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



                           LEASE RENEWALS
------------------------------------------------------------------------
                              Number of                 Rentable
                               Leases                      S.F.


Leases expiring                  193                   1,220,213
Leases renewed & extended         99                     617,938
Other retained tenants            42                     283,864
Total leases retained            141                     901,802
Percent retained                73.1%                       73.9%
Future expirations renewed or
relet (included in totals above)  72                     640,854




              UNCONSOLIDATED JOINT VENTURE PROPERTIES
               SUMMARY OF SPACE LEASED DURING PERIOD
------------------------------------------------------------------------
IN-SERVICE PROPERTIES:
 Square feet leased at December 31, 1999                1,071,411
 Net leasing activity in 1st quarter 2000                   1,416
 Leased s.f. from 1st quarter 2000 acquisitions/
   properties placed in service                           170,222


Square feet leased at March 31, 2000                    1,243,049


Percent leased at March 31, 2000                             80.4%


Square feet of Development/Redevelopment
  Properties Not-in-Service as of March 31, 2000          361,428


                            OFFICE SPACE
------------------------------------------------------------------------
                         Number              Weighted     Average
                           of     Rentable    Average      Term
                         Leases     S.F.     Base Rent    (Years)
New Leases:
First generation space      1       1,416     $19.50        5.0


Renewals & extensions       1       8,769     $39.40        3.0
Total Leasing               2      10,185


Capital Expenditures - Second Generation Space(1):


                               Tenant        Leasing
                          Improvements(2)  Commissions     Total


Expend. committed-1st qtr          $0.00       $5,261       $5,261
Rentable s.f. leased-1st qtr                                 8,769
Cap. ex. committed
    per r.s.f. per year            $0.00        $0.20        $0.20


(1) Represents amounts committed, but not necessarily expended during period.
(2) Equals estimated workletter costs.

 
                             LEASE RENEWALS
------------------------------------------------------------------------
                              Number of                 Rentable
                               Leases                      S.F.


Leases expiring                    1                       8,769
Leases renewed & extended          1                       8,769
Percent retained               100.0%                      100.0%
Future expirations renewed or
relet (included in totals above)   1                       8,769