Press Release

Mack-Cali Realty Corporation Announces 12.5% Increase in First Quarter FFO Per Share

CRANFORD, NJ--May 4, 1999--Mack-Cali Realty Corporation (NYSE:CLI) today announced its results for the first quarter of 1999. The Company reported that its funds from operations (FFO) per diluted share for the first quarter 1999 increased 12.5% over the same period in 1998.

FINANCIAL HIGHLIGHTS
For the quarter ended March 31, 1999, FFO, after adjustment for straight-lining of rents, amounted to $60.2 million, or $0.81 per share, versus $46.8 million, or $0.72 per share, for the quarter ended March 31, 1998, a per share increase of 12.5%.

Cash available for distribution (CAD) for the first quarter 1999 equaled $54.0 million, or $0.73 per share, versus $40.7 million, or $0.62 per share, for the same quarter last year, an increase of 17.7% on a per share basis.

Total revenues for the first quarter 1999 increased 27.5% to $134.9 million from $105.8 million for the same quarter last year.

Income from operations before minority interest for the first quarter 1999 totaled $40.8 million, or $0.55 per share, versus $33.8 million, or $0.51 per share, for the same quarter last year, an increase of 7.8% on a per share basis. Income from operations before minority interest excludes extraordinary items and non-recurring charges.

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 58,268,701 shares of common stock, 8,870,608 common operating partnership units and 229,304 $1,000-face-value preferred operating partnership units (6.75% annual rate) outstanding as of 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 73,757,030 shares/common units outstanding at March 31, 1999.

As of March 31, 1999, the Company had total indebtedness of approximately $1.5 billion, with a weighted average annual interest rate of 7.12%. Mack-Cali's total market capitalization was $3.6 billion at March 31, 1999, with a debt-to-market capitalization ratio of 40.2%. The Company had an interest coverage ratio of 3.7 times for the quarter ended March 31, 1999.

Commenting on the results, Mitchell E. Hersh, chief executive officer, said, "We are once again pleased with our operating results for the first quarter. Our portfolio's high occupancy and increasing rents have contributed to yet another quarter of double-digit earnings growth. This continued growth is a clear indication of the strong fundamentals which highlight our Company -- the quality of our portfolio, the consistent strength of our core markets and the depth and commitment of our organization."

RECENT TRANSACTIONS
During the first quarter, Mack-Cali invested $16.3 million, and agreed to invest an additional $3.7 million, in ARCap, a joint venture which includes Apollo Real Estate Advisors and REMICap. The venture was formed to take advantage of the wide spreads among sub-investment grade tranches of commercial mortgage-backed securities (CMBS).

Mr. Hersh commented, "We are pleased to ally ourselves with such other high-powered real estate concerns as Apollo and REMICap. We believe the strategy to invest in these types of CMBS securities offers attractive returns with the potential for greater rewards as spreads compress and is indicative of our continued efforts to enhance shareholder value."

Additionally, during the quarter, Mack-Cali acquired two office properties, placed an office/flex building in service, initiated a land lease and purchased two developable land sites.

The first quarter transactions are described as follows:

• Acquired from Pacifica Holding Company two office properties, located in Colorado Springs, El Paso County, Colorado, aggregating 94,737 square feet, for approximately $5.7 million;
  
• Placed in service a 38,961 square-foot office/flex building in Totowa, Passaic County, New Jersey for a total cost of approximately $2.1 million;
  
• Initiated a lease of 27.7 acres of its developable land in Mack-Cali's Horizon Center Business Park, located in Hamilton Township, Mercer County, New Jersey, to Home Depot for that company's development of a 134,000 square-foot retail store;
  
• Acquired, through a joint venture with SJP Properties, a developable land site in Bernards Township, Somerset County, New Jersey for approximately $3.2 million, where the venture plans to develop a 135,000 square-foot office building; and
  
• Acquired a 2.3-acre developable land site adjacent to the Company's Concord Plaza office property in San Antonio, Bexar County, Texas for approximately $1.5 million.

FINANCING ACTIVITIES
The Company's most notable financing transaction for the first quarter was the issuance of $600 million in senior unsecured public notes, comprised of two tranches: $300 million of 7.0%, five-year notes and $300 million of 7.25%, 10-year notes. The Company's first public debt issuance increased the weighted average term to maturity for the Company's indebtedness from 4.2 to 6.3 years.

Barry Lefkowitz, executive vice president and chief financial officer, stated, "I am very satisfied with the success of the financial transactions Mack-Cali completed during the first quarter. In line with our financial strategy, we successfully completed our first public debt offering with the issuance of $600 million in senior unsecured notes. This issuance, the second largest debut offering in REIT history, is clearly representative of the financial community's expanding interest and confidence in Mack-Cali's sound financial position."

LEASING INFORMATION
After net absorption of 75,247 leased square feet in the first quarter, Mack-Cali's in-service portfolio was 96.7% leased at quarter-end, compared to 96.6% at December 31, 1998. v For the quarter ended March 31, 1999, the Company executed 166 leases totaling 723,809 square feet, consisting of 494,251 square feet of office space, 213,758 square feet of office/flex space and 15,800 square feet of industrial/warehouse space; 242,603 square feet for new leases and 481,206 square feet for lease renewals and other tenant retention transactions.

Accompanying this press release are schedules highlighting the first quarter leasing statistics of the Company.

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 253 properties, primarily office and office/flex buildings, totaling approximately 28 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 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 different 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 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 on Form 8-K, and annual reports on Form 10-L.

                   Mack-Cali Realty Corporation
              Consolidated Statements of Operations
             (in thousands, except per share amounts)
--------------------------------------------------------------------
                                       Quarter Ended March 31,
                                       1999               1998
--------------------------------------------------------------------
Base rents                         $116,080            $92,916
Escalations & recoveries             14,860             10,357
Parking and other                     3,900              1,981
Interest income                         255                544
Equity in (loss) earnings of 
 unconsolidated joint ventures         (206)                25 


  Total revenues                    134,889            105,823
   
Real estate taxes                    13,843             10,073
Utilities                             9,592              8,301
Operating services                   16,916             12,693
General and administrative            8,134              6,196 
Depreciation and amortization        21,969             16,231
Interest expense                     23,622             18,480
 
  Total expenses                     94,076             71,974    
        
Income from operations before                            
 minority interest                   40,813             33,849                     
Minority interest                    (8,749)            (7,306)


Net income                          $32,064            $26,543


                                                               
PER SHARE DATA:
Income from operations - basic        $0.55              $0.52 
Net income - basic                    $0.55              $0.52


Income from operations - diluted      $0.55              $0.51
Net income - diluted                  $0.55              $0.51


 
Dividends declared                    $0.55              $0.50 


 
Basic weighted average  
   shares outstanding                58,162             51,363      
Diluted weighted average
   shares outstanding                67,283             58,682
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                     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,
                                             1999          1998
Income from operations before
 minority interest                        $40,813       $33,849
Add: Real estate depreciation                 
  and amortization(1)                      22,951        16,120    
Deduct: Adj. to rental income for
  straight-lining of rents(1)              (3,545)       (3,203) 
Funds from operations(2) after adj. 
  for straight-lining of rents            $60,219       $46,766
Deduct:
Nonincremental revenue generating 
 capital expenditures:
  Capital improvements                       (569)         (362)      
  Tenant improvements and leasing                
    commissions                            (5,653)       (5,746)
 
Cash available for distribution           $53,997       $40,658
                                                                
Basic weighted average shares/units 
  outstanding (3)                          67,011        57,933 
Diluted weighted average shares/units
  outstanding(4)                           73,975        65,371       
 
Per Share/Unit - Basic(5):
  Funds from operations                     $0.84         $0.74 
  Cash available for distribution           $0.75         $0.63 


Per Share/Unit - Diluted:
  Funds from operations                     $0.81         $0.72
  Cash available for distribution           $0.73         $0.62
 
Dividend per common share                   $0.55         $0.50 
 
Dividend payout ratios:
  Funds from operations-diluted             67.56%        69.89%
  Cash available for distribution-diluted   75.35%        80.39%
 

(1) Includes FFO adjustments related to Company's investments in unconsolidated
    joint ventures.
(2) 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.
(3) Calculated based on weighted average common shares outstanding, assuming
    redemption of operating partnership common units into common shares.
(4) 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).
(5) Amounts calculated after deduction for distributions to preferred
    unitholders of $3,869 and $3,911 for the three months ended March 31, 1999
    and 1998, respectively.

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                      Mack-Cali Realty Corporation
                       Consolidated Balance Sheets
                   (in thousands, except share amounts)


-------------------------------------------------------------------------
                                           March 31,        December 31,
ASSETS:                                     1999                1998  
-------------------------------------------------------------------------
Rental property
   Land and leasehold interests           $515,000            $510,534
   Buildings and improvements            2,899,495           2,887,115
   Tenant improvements                      74,659              64,464
   Furniture, fixtures and equipment         6,021               5,686
                                         3,495,175           3,467,799
Less-accumulated depreciation 
   and amortization                       (198,945)           (177,934)
   Total rental property                 3,296,230           3,289,865


Cash and cash equivalents                   12,406               5,809
Investments in unconsolidated 
   joint ventures                           87,736              66,508
Unbilled rents receivable                   44,576              41,038
Deferred charges and other assets, net      44,842              39,020
Restricted cash                              6,378               6,026
Accounts receivables                         6,774               3,928
 
Total assets                            $3,498,942          $3,452,194


LIABILITIES AND STOCKHOLDERS' EQUITY:
-------------------------------------------------------------------------
Senior Unsecured Notes                   $ 597,265          $       --
Revolving Credit Facilities                110,600             671,600
Mortgages and loans payable                749,914             749,331
Dividends and distributions payable         40,757              40,564
Accounts payable and accrued expenses       33,401              33,253
Rents received in advance and 
   security deposits                        32,555              29,980
Accrued interest payable                     3,838               2,246


   Total liabilities                     1,568,330           1,526,974
Minority interest of unitholders
   in Operating Partnership                474,926             501,313
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,
   58,268,701 and 57,266,137
   shares outstanding                          583                 573   
Additional paid-in capital               1,546,402           1,514,648
Dividends in excess of net earnings        (91,299)            (91,314)
   Total stockholders' equity            1,455,686           1,423,907


Total liabilities and 
   stockholders' equity                 $3,498,942          $3,452,194
========================================================================


                    Mack-Cali Realty Corporation
                         Leasing Statistics
                  For Quarter Ended March 31, 1999 


--------------------------------------------------------------------
WHOLLY-OWNED PORTFOLIO
--------------------------------------------------------------------
SUMMARY OF SPACE LEASED DURING PERIOD
--------------------------------------------------------------------
IN-SERVICE PROPERTIES:
Square feet leased at December 31, 1998               25,847,457
 Net leasing activity in 1st quarter 1999                 75,247
 Leased s.f. from 1st quarter 1999 acquisitions/
  properties placed in service                            70,685
 Occupancy adjustment(1)                                  17,888
 
Square feet leased at March 31, 1999                  26,011,277
 
Percent leased at March 31, 1999                           96.7%
 
Square feet of Development/Redevelopment
 Properties Not-in-Service as of March 31, 1999           68,000


OFFICE SPACE
--------------------------------------------------------------------
                         Number              Weighted    Average
                           of     Rentable   Average      Term
                         Leases     S.F.     Base Rent   (Years)
New Leases:
First generation space      1       2,384     $14.50       5.0
Second generation space    46     116,412     $22.57       5.1
Total new leasing          47     118,796     $22.41
 
Renewals & extensions      65     200,093     $21.82       3.8
Other retained tenants     26     175,362     $26.54       6.8
    Total leasing         138     494,251
 


Capital Expenditures - Second Generation Space(2):


                                 Tenant       Leasing
                         Improvements(3)  Commissions       Total
--------------------------------------------------------------------
Expend. committed-1st qtr    $3,983,116    $1,760,335  $5,743,451
Rentable s.f. leased-1st qtr                              491,867
Cap. ex. committed
      per r.s.f. per year         $1.57         $0.69       $2.26


(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 - Second
       generation space    10     111,007     $12.20        7.3


Renewals & extensions      13      68,316     $12.12        3.2
Other retained tenants      3      34,435     $19.20        9.4
    Total leasing          26     213,758


Capital Expenditures - Second Generation Space(2):


                                 Tenant       Leasing
                         Improvements(3)  Commissions       Total
--------------------------------------------------------------------
Expend. committed-1st qtr     $1,389,741     $515,422  $1,905,163
Rentable s.f. leased-1st qtr                              213,758
Cap. ex. committed 
     per r.s.f. per year           $1.02        $0.38       $1.40


INDUSTRIAL/WAREHOUSE SPACE
--------------------------------------------------------------------
                         Number              Weighted     Average
                           of    Rentable    Average       Term
                         Leases    S.F.      Base Rent(1) (Years)
--------------------------------------------------------------------
New Leases - Second
       generation space     1      12,800     $10.31        5.0


Renewals & extensions       1       3,000     $11.73        2.0
    Total leasing           2      15,800


Capital Expenditures - Second Generation Space(2):


                                 Tenant       Leasing
                         Improvements(3)  Commissions       Total
--------------------------------------------------------------------
Expend. committed-1st qtr       $12,800       $45,665     $58,465 
Rentable s.f. leased-1st qtr                               15,800
Cap. ex. committed
         per r.s.f. per year      $0.18         $0.65       $0.83


(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
                               Leases              Rentable S.F.
-------------------------------------------------------------------- 
Leases expiring                  188                     648,562
 
Leases renewed & extended         79                     271,409
Other retained tenants            29                     209,797
Total leases retained            108                     481,206
Percent retained                57.4%                     74.2%
 
Future expirations renewed or
relet (included in totals above)  50                     453,619
===================================================================


JOINT VENTURE PROPERTIES
SUMMARY OF SPACE LEASED DURING PERIOD
IN-SERVICE PROPERTIES:s
--------------------------------------------------------------------
 Square feet leased at December 31, 1998                  625,713
 Net leasing activity in 1st quarter 1999                  13,580
 
Square feet leased at March 31, 1999                      639,293
  
Percent leased at March 31, 1999                           84.1%
 
Square feet of Development/Redevelopment
  Properties Not-in-Service as of March 31, 1999          601,300


 
OFFICE SPACE
--------------------------------------------------------------------
                         Number              Weighted     Average
                           of     Rentable   Average       Term
                         Leases     S.F.     Base Rent    (Years)
--------------------------------------------------------------------
Leasing Activity:
New Leases:
 2nd generation space       1       2,083     $20.10        5.0
   
Other retained tenants      3      13,270     $23.45        4.2
    Total leasing           4      15,353


Capital Expenditures - Second Generation Space(1):
 
                                 Tenant       Leasing
                         Improvements(2)  Commissions      Total
--------------------------------------------------------------------
Expend. committed-1st qtr      $161,012       $14,327   $175,339
Rentable s.f. leased-1st qtr                              15,353
Cap. ex. committed
     per r.s.f. per year          $2.44         $0.22      $2.66


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

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