Mack-Cali Realty Corporation Consolidated Statements of Operations (in thousands, except per share amounts) ----------------------------------------------------------------------- Quarter Ended September 30, 2000 1999
Base rents $123,600 $118,086 Escalations & recoveries 13,763 14,829 Parking and other 3,534 5,112 Equity in earnings of unconsolidated joint ventures 2,194 834 Interest income 291 159
Total revenues 143,382 139,020
Real estate taxes 15,732 14,849 Utilities 11,604 11,634 Operating services 16,855 16,464 General and administrative 5,461 5,691 Depreciation and amortization 23,320 22,967 Interest expense 25,862 26,474
Total expenses 98,834 98,079
Income from operations before minority interest in Operating Partnership 44,548 40,941 Minority interest in Operating Partnership(1) (8,809) (8,421) Income from operations 35,739 32,520 Non-recurring charges(2) (24,557) -- Gain on sales of rental property(3) 8,830 --
Net income $20,012 $32,520
PER SHARE DATA: Income from operations - basic $0.61 $0.55 Net income — basic $0.34 $0.55
Income from operations — diluted $0.61 $0.55 Net income — diluted $0.34 $0.55
Dividends declared per common share $0.61 $0.58
Basic weighted average shares outstanding 58,711 58,679 Diluted weighted average shares outstanding 66,914 67,113
(1) Excludes effect of minority interest's share of non-recurring charges and gain on sales of rental property. (2) Net of minority interest's share of $3,354 in 2000. (3) Net of minority interest's share of $1,206 in 2000. Mack-Cali Realty Corporation Statements of Funds from Operations and Cash Available for Distribution (in thousands, except per share/unit amounts) ----------------------------------------------------------------------- Quarter Ended September 30, 2000 1999
Income from operations before minority interest in Operating Partnership $44,548 $40,941 Add: Real estate depreciation and amortization(1) 23,920 23,419 Deduct: Adj. to rental income for straight-lining of rents(2) (3,484) (3,076) Funds from operations(3), after adj. for straight- lining of rents and non-recurring charges $64,984 $61,284 Deduct: Non-incremental revenue generating capital expenditures: Capital expenditures (1,484) (1,061) Tenant improvements and leasing commissions (9,909) (9,812)
Cash available for distribution $53,591 $50,411
Basic weighted average shares/units outstanding(4) 66,729 66,893 Diluted weighted average shares/units outstanding(5) 73,353 73,731
Per Share/Unit - Basic(6): Funds from operations $0.92 $0.86 Cash available for distribution $0.74 $0.70 Per Share/Unit - Diluted: Funds from operations $0.89 $0.83 Cash available for distribution $0.73 $0.68
Dividends declared per common share $0.61 $0.58
Dividend payout ratios: Funds from operations-diluted 68.86% 69.78% Cash available for distribution-diluted 83.49% 84.83%
(1) Includes the Company's share from unconsolidated joint ventures of $784 and $611 for 2000 and 1999, respectively. (2) Includes the Company's share from unconsolidated joint ventures of ($36) and $155 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 $3,928 and $3,869 in 2000 and 1999, respectively.
Mack-Cali Realty Corporation Consolidated Statements of Operations (in thousands, except per share amounts) ----------------------------------------------------------------------- Nine Months Ended September 30, 2000 1999
Base rents $367,270 $350,665 Escalations & recoveries 45,058 46,055 Parking and other 12,984 12,073 Equity in earnings of unconsolidated joint ventures 4,401 1,462 Interest income 2,537 629
Total revenues 432,250 410,884
Real estate taxes 45,169 42,900 Utilities 31,997 31,055 Operating services 51,419 50,980 General and administrative 16,733 19,222 Depreciation and amortization 68,447 67,401 Interest expense 79,123 75,793
Total expenses 292,888 287,351
Minority interest in partially-owned properties (5,072) -- Income from operations before minority interest in Operating Partnership 134,290 123,533 Minority interest in Operating Partnership(1) (26,446) (25,927) Income from operations 107,844 97,606 Non-recurring charges(2) (32,666) (14,336) Gain on sales of rental property(3) 75,757 --
Net income $150,935 $83,270
PER SHARE DATA: Income from operations - basic $1.84 $1.67 Net income — basic $2.58 $1.42 Income from operations - diluted $1.83 $1.66 Net income — diluted $2.50 $1.42
Dividends declared per common share $1.77 $1.68
Basic weighted average shares outstanding 58,518 58,452 Diluted weighted average shares outstanding 73,276 67,294
(1) Excludes effect of minority interest's share of non-recurring charges and gain on sales of rental property. (2) Net of minority interest's share of $4,473 and $2,122 in 2000 and 1999, respectively. (3) Net of minority interest's share of $10,448 in 2000. Mack-Cali Realty Corporation Statements of Funds from Operations and Cash Available for Distribution (in thousands, except per share/unit amounts) -----------------------------------------------------------------------
Nine Months Ended September 30, 2000 1999
Income from operations before minority interest in Operating Partnership $134,290 $123,533 Add: Real estate depreciation and amortization(1) 70,072 69,139 Gain on sale of land 2,248 -- Deduct: Adj. to rental income for straight-lining of rents(2) (9,074) (10,454) Funds from operations(3), after adj. for straight- lining of rents and non-recurring charges $197,536 $182,218 Deduct: Non-incremental revenue generating capital expenditures: Capital expenditures (4,094) (3,094) Tenant improvements and leasing commissions (30,369) (21,218)
Cash available for distribution $163,073 $157,906
Basic weighted average shares/units outstanding(4) 66,595 67,025 Diluted weighted average shares/units outstanding(5) 73,276 73,936
Per Share/Unit - Basic(6): Funds from operations $2.79 $2.55 Cash available for distribution $2.28 $2.18 Per Share/Unit - Diluted: Funds from operations $2.70 $2.46 Cash available for distribution $2.23 $2.14
Dividends declared per common share $1.77 $1.68
Dividend payout ratios: Funds from operations-diluted 65.66% 68.17% Cash available for distribution-diluted 79.53% 78.66%
(1) Includes the Company's share from unconsolidated joint ventures of $2,204 and $2,221 for 2000 and 1999, respectively. (2) Includes the Company's share from unconsolidated joint ventures of $18 and $111 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 $11,562 and $11,607 in 2000 and 1999, respectively.
Mack-Cali Realty Corporation Consolidated Balance Sheets (in thousands, except share amounts) ----------------------------------------------------------------------- September 30, December 31, ASSETS: 2000 1999 Rental property Land and leasehold interests $ 562,104 $ 549,096 Buildings and improvements 3,008,135 3,014,532 Tenant improvements 97,466 85,057 Furniture, fixtures and equipment 6,208 6,160 3,673,913 3,654,845 Less-accumulated depreciation and amortization (288,976) (256,629) Total rental property 3,384,937 3,398,216
Cash and cash equivalents 10,590 8,671 Investments in unconsolidated joint ventures 95,440 89,134 Unbilled rents receivable 47,120 53,253 Deferred charges and other assets, net 93,858 66,436 Restricted cash 6,447 7,081 Accounts receivable, net 7,770 6,810
Total assets $3,646,162 $3,629,601
LIABILITIES AND STOCKHOLDERS' EQUITY: Senior unsecured notes $ 783,021 $ 782,785 Revolving credit facilities 264,483 177,000 Mortgages and loans payable 486,823 530,390 Dividends and distributions payable 44,610 42,499 Accounts payable and accrued expenses 74,461 63,394 Rents received in advance and security deposits 33,327 36,150 Accrued interest payable 6,505 16,626 Total liabilities 1,693,230 1,648,844 Minority interests: Operating Partnership 451,239 455,275 Partially-owned properties 1,925 83,600 Total minority interests 453,164 538,875 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, 58,698,648 and 58,446,552 shares outstanding 587 584 Additional paid-in capital 1,559,302 1,549,888 Dividends in excess of net earnings (56,792) (103,902) Unamortized stock compensation (3,329) (4,688) Total stockholders' equity 1,499,768 1,441,882
Total liabilities and stockholders' equity $3,646,162 $3,629,601 Mack-Cali Realty Corporation Leasing Statistics For The Quarter Ended September 30, 2000 ----------------------------------------------------------------------- CONSOLIDATED PORTFOLIO SUMMARY OF SPACE LEASED DURING PERIOD
IN-SERVICE PROPERTIES: Square feet leased at June 30, 2000 26,028,933 Net leasing activity in 3rd quarter 2000 (15,950) Leased s.f. acquired/placed in service during the period 332,395 Leased s.f. sold during the period (267,961) Occupancy adjustment(1) 8,843
Square feet leased at September 30, 2000 26,086,260
Percent leased at September 30, 2000 96.7%
OFFICE SPACE ----------------------------------------------------------------------- Number Weighted Average of Rentable Average Term Leases S.F. Base Rent (Years) New Leases: First generation space 2 13,740 $22.84 6.5 Second generation space 55 224,157 $26.04 7.1 Total New Leasing 57 237,897 $25.85 7.0
Renewals & extensions 57 346,306 $24.62 5.3 Other retained tenants 29 160,050 $24.03 5.7 Total Leasing 143 744,253
Capital Expenditures - Second Generation Space(2):
Tenant Leasing Improvements(3) Commissions Total
Expend. committed-3rd qtr $4,869,949 $4,566,367 $ 9,436,316 Rentable s.f. leased-3rd qtr 1,170,028 Cap. ex. committed per r.s.f. per year $1.13 $1.06 $2.19
(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 4 26,400 $15.13 4.0 Second generation space 11 92,418 $14.10 5.8 Total New Leasing 15 118,818 $14.33 5.4
Renewals & extensions 16 132,980 $15.90 3.9 Other retained tenants 2 15,895 $16.37 3.3 Total Leasing 33 267,693
Capital Expenditures - Second Generation Space(2):
Tenant Leasing Improvements(3) Commissions Total
Expend. committed-3rd qtr $977,864 $519,782 $1,497,646 Rentable s.f. leased-3rd qtr 241,293 Cap. ex. committed per r.s.f. per year $0.88 $0.47 $1.35
INDUSTRIAL/WAREHOUSE SPACE ----------------------------------------------------------------------- No activity this quarter
LEASE RENEWALS ----------------------------------------------------------------------- Number of Rentable Leases S.F.
Leases expiring 184 1,027,896 Leases renewed & extended 73 479,286 Other retained tenants 31 175,945 Total leases retained 104 655,231 Percent retained 56.5% 63.7% Future expirations renewed or relet (included in totals above) 62 474,547
(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. UNCONSOLIDATED JOINT VENTURE PROPERTIES SUMMARY OF SPACE LEASED DURING PERIOD ----------------------------------------------------------------------- IN-SERVICE PROPERTIES: Square feet leased at June 30, 2000 1,277,656 Net leasing activity in 3rd quarter 2000 166,141 Occupancy Adjustment (1) (47) Square feet leased at September 30, 2000 1,443,750
Percent leased at September 30, 2000 93.3%
OFFICE SPACE ----------------------------------------------------------------------- Number Weighted Average of Rentable Average Term Leases S.F. Base Rent (Years) New Leases: First generation space 15 160,490 $23.36 6.0 Second generation space 2 12,382 $33.35 5.6 Total New Leasing 17 172,872 $24.07 5.9
Other retained tenants 2 6,236 $20.20 4.1 Total Leasing 19 179,108
Capital Expenditures - Second Generation Space (2): Tenant Leasing Improvements(3) Commissions Total
Expend. committed-3rd qtr $215,927 $93,538 $309,465 Rentable s.f. leased-3rd qtr 179,108 Cap. ex. committed per r.s.f. per year $2.27 $0.98 $3.25
LEASE RENEWALS ----------------------------------------------------------------------- Number of Rentable Leases S.F.
Leases expiring 3 12,967 Leases renewed & extended 0 0 Other retained tenants 2 6,236 Total leases retained 2 6,236 Percent retained 66.7% 48.1% Future expirations renewed or relet (included in totals above) 0 0
(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.
Mack-Cali Realty Corporation Leasing Statistics For The Nine Months Ended September 30, 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 year-to-date 169,053 Leased s.f. acquired/placed in service during the period 942,555 Leased s.f. sold during the period (1,425,720) Occupancy adjustment(1) (11,099)
Square feet leased at September 30, 2000 26,086,260
Percent leased at September 30, 2000 96.7%
OFFICE SPACE ----------------------------------------------------------------------- Number Weighted Average of Rentable Average Term Leases S.F. Base Rent (Years) New Leases: First generation space 31 208,671 $29.70 6.4 Second generation space 168 832,120 $22.25 6.0 Total New Leasing 199 1,040,791 $23.75 6.1
Renewals & extensions 232 1,558,423 $25.35 4.8 Other retained tenants 104 548,504 $25.58 5.7 Total Leasing 535 3,147,718
Capital Expenditures - Second Generation Space(2):
Tenant Leasing Improvements(3) Commissions Total
Expend. Committed YTD $15,526,462 $15,279,351 $30,805,813 Rentable s.f. leased YTD 2,939,047 Cap. ex. committed per r.s.f. per year $0.99 $0.98 $1.97
(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 5 32,400 $15.27 4.2 Second generation space 29 232,612 $15.20 6.2 Total New Leasing 34 265,012 $15.21 5.9
Renewals & extensions 49 400,835 $14.34 4.5 Other retained tenants 10 62,738 $15.00 4.1 Total Leasing 93 728,585
Capital Expenditures - Second Generation Space(2):
Tenant Leasing Improvements(3) Commissions Total
Expend. Committed YTD $2,851,493 $1,694,726 $4,546,219 Rentable s.f. leased YTD 696,185 Cap. ex. committed per r.s.f. per year $0.82 $0.49 $1.31
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 YTD $51,769 $33,876 $85,645 Rentable s.f. leased YTD 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 605 3,753,904 Leases renewed & extended 284 1,993,362 Other retained tenants 116 618,892 Total leases retained 400 2,612,254 Percent retained 66.1% 69.6% Future expirations renewed or relet (included in totals above) 143 1,598,354 UNCONSOLIDATED JOINT VENTURE PROPERTIES SUMMARY OF SPACE LEASED For The Nine Months Ended September 30, 2000 ----------------------------------------------------------------------- IN-SERVICE PROPERTIES: Square feet leased at December 31, 1999 1,071,411 Net leasing activity year-to-date 202,164 Leased s.f. acquired/placed in service during the period 170,222 Occupancy adjustment (1) (47) Square feet leased at September 30, 2000 1,443,750
Percent leased at September 30, 2000 93.3%
OFFICE SPACE ----------------------------------------------------------------------- Number Weighted Average of Rentable Average Term Leases S.F. Base Rent (Years) New Leases: First generation space 20 196,389 $22.77 5.9 Second generation space 2 12,382 $33.35 5.6 Total New Leasing 22 208,771 $23.40 5.9
Renewals & extensions 1 8,769 $39.40 3.0 Other Retained Tenants 2 6,236 $20.20 4.1 Total Leasing 25 223,776
Capital Expenditures - Second Generation Space(2):
Tenant Leasing Improvements(3) Commissions Total
Expend. committed YTD $215,927 $98,799 $314,726 Rentable s.f. leased YTD 27,387 Cap. ex. committed per r.s.f. per year $1.78 $0.81 $2.59
(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. LEASE RENEWALS ----------------------------------------------------------------------- Number of Rentable Leases S.F.
Leases expiring 4 21,612 Leases renewed & extended 1 8,769 Other Retained Tenants 2 6,236 Total Leases retained 3 15,005 Percent retained 75.0% 69.4%
Executive Vice President and Chief Financial Officer
Mack-Cali Realty Corporation
T: 732.590.1000
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