Cali Realty Corporation Announces Results for Second Quarter 1995

08/15/1995 Category: Earnings

CRANFORD, NJ--August 15, 1995--Cali Realty Corporation (NYSE:CLI), today reported results for the quarter ended June 30, 1995. The company is a fully integrated, self-administered, publicly-owned real estate investment trust ("REIT").

FINANCIAL HIGHLIGHTS
For the quarter ended June 30, 1995, funds from operations before minority interest and after adjustment for straight-lining of rents amounted to $6,917,000 or $.52 per share versus $5,535,000 or $.42 per share (proforma) for the quarter ended June 30, 1994. For the six months ended June 30, 1995, funds from operations before minority interest and after adjustment for straight-lining of rents amounted to $13,640,000 or $1.03 per share versus $11,007,000 or $.83 per share (proforma) for the six months ended June 30, 1994.

For the quarter ended June 30, 1995, cash available for distribution equaled $6,329,000 or $.48 per share. For the six months ended June 30, 1995, cash available for distribution equaled $12,463,000 or $.94 per share.

For the quarter ended June 30, 1995, revenues totaled $15,151,000 versus revenues of $12,252,000 (proforma) for the quarter ended June 30, 1994. For the six months ended June 30, 1995 revenues totaled $29,023,000 versus revenues of $24,610,000 (proforma) for the six months ended June 30, 1994.

For the quarter ended June 30, 1995, net income before minority interest totaled $4,010,000 or $.30 per share versus net income before minority interest of $3,743,000 or $.28 per share (proforma) for the quarter ended June 30, 1994. For the six months ended June 30, 1995, net income before minority interest totaled $7,936,000 or $.60 per share versus net income before minority interest of $7,304,000 or $.55 per share (proforma) for the six months ended June 30, 1994.

Commenting on the results of Cali Realty's second quarter 1995 operations, Thomas A. Rizk, the company's President and Chief Financial Officer, said, "I am pleased to announce that both our funds from operations and cash available for distribution have increased for the third consecutive reporting period. These results do not include any positive impact of our most recent acquisition.

On July 21, 1995, we purchased a 98,500 square foot office building located in Princeton, New Jersey. This recent acquisition has increased the size of our office portfolio to 16 office buildings totaling approximately 2.73 million square feet."

LEASING INFORMATION
Cali Realty's portfolio of office buildings was 92.1 percent leased as of June 30, 1995 compared to 93.2 percent on March 31, 1995.

During the quarter ended June 30, 1995, the company executed 10 leases totaling 32,083 square feet of office space; 19,543 square feet represented new leases and 12,540 square feet were lease renewals.

A schedule is attached highlighting quarterly leasing statistics.

ABOUT THE COMPANY
Cali Realty Corporation completed its initial public offering on August 31, 1994. It is a fully integrated, self-administered, self-managed real estate investment trust providing leasing, management, acquisition, development, construction and tenant related services for its properties. Cali Realty owns 16 office buildings totaling approximately 2.73 million square feet and one 327 unit residential complex. All of the properties are located in Central and Northern New Jersey except for one, which is located in Rockland County, New York.


Cali Realty Corporation
Condensed Statement of Operations
(Dollars in thousands, except per share amounts)
________________________________________________________________


Historical Proforma (1)
Three Months Three Months
Ended Ended
June 30, 1995 June 30, 1994


Revenues $15,151 $12,252
Operating and other expense 5,873 4,869
Depreciation and amortization 3,095 2,351
Interest expense 2,173 1,289


Income before minority interest $ 4,010 $ 3,743


Minority interest 873 788


Net income $ 3,137 $ 2,955


Weighted average shares
outstanding 10,400 10,500


Net Income per common share $ 0.30 $ 0.28


Dividends declared per
common share $ 0.40 N/A


(1) Does not reflect the impact of property acquisitions and
common stock repurchase.
===============================================================


Cali Realty Corporation
Statement of Funds from Operations and Cash Available
for Distributions June 30, 1995
(Dollars in thousands, except per share amounts)
________________________________________________________________




Historical Proforma (2)
Three Months Three Months
Ended Ended
June 30, 1995 June 30, 1994


Income before minority interest $ 4,010 $ 3,743
Add (Deduct):
Depreciation and amortization 3,095 2,351
Adjustment to rental income for
straight line rents (188) (559)
Funds from operations before minority
interest and after adjustment for
straight-lining of rents $ 6,917 $ 5,535
Deduct:
Non-incremental revenue generating
capital expenditures:
Capital improvements 159
Tenant improvements and lease
commissions 429


Cash available for distribution $ 6,329 N/A


Weighted average shares/units
outstanding (1) 13,295 13,302


Per share/unit:
Funds from operation $ 0.52 $ 0.42


Cash available for distribution $ 0.48


Dividend $ 0.40


Dividend payout ratios:
Funds from operation(as adjusted above) 77.62%
Cash available for distribution 84.83%


(1) Does not reflect impact of property acquisitions and common
stock repurchase.


(2) Assumes conversion of 2,895 (1995) 2,802 (1994) weighted
average limited partnership units in Cali Realty, L.P. to
shares of Cali Realty Corporation.


===============================================================


Cali Realty Corporation
Condensed Statement of Operations
(Dollars in thousands, except per share amounts)
________________________________________________________________


Historical Proforma (1)
Six Months Six Months
Ended Ended
June 30, 1995 June 30, 1994


Revenues $29,023 $24,610
Operating and other expense 11,346 9,867
Depreciation and amortization 5,927 4,860
Interest expense 3,814 2,579


Income before minority interest $ 7,936 $ 7,304


Minority interest 1,709 1,539


Net income $ 6,227 $ 5,765


Weighted average shares
outstanding 10,436 10,500


Net Income per common share $ 0.60 $ 0.55


Dividends declared per
common share $ 0.81 N/A


(1) Does not reflect the impact of property acquisitions and
common stock repurchase.


===============================================================


Cali Realty Corporation
Statement of Funds from Operations and
Cash Available for Distributions June 30, 1995
(Dollars in thousands, except per share amounts)
________________________________________________________________


Historical Proforma (1)
Six Months Six Months
Ended Ended
June 30, 1995 June 30, 1994


Income before minority interest $ 7,936 $ 7,304
Add (Deduct):
Depreciation and amortization 5,927 4,860
Adjustment to rental income for
straight line rents (223) (1,157)
Funds from operations before minority
interest and after adjustment for
straight-lining of rents $13,640 $11,007
Deduct:
Non-incremental revenue generating
capital expenditures:
Capital improvements 318
Tenant improvements and lease
commissions 858


Cash available for distribution $12,464 N/A


Weighted average shares/units
outstanding (1) 13,301 13,302


Per share/unit:
Funds from operation $ 1.03 $ 0.83


Cash available for distribution $ 0.94


Dividend $ 0.81


Dividend payout ratios:
Funds from operation(as adjusted above) 78.75%
Cash available for distribution 86.19%


(1) Does not reflect impact of property acquisitions and common
stock repurchase.


(2) Assumes conversion of 2,865 (1995) and 2,802 (1994) weighted
average limited partnership units in Cali Realty, L.P. to
shares of Cali Realty Corporation.


===============================================================


Cali Realty Corporation
Leasing Statistics For Quarter Ended June 30, 1995
________________________________________________________________


Office Building Portfolio
________________________________________________________________


Leased Area Percentage
Rentable S.F. Leased


March 31, 1995 2,287,916 93.2
2nd Quarter Leasing-Net (34,532)
One (1) Acquisition Property 165,774
June 30, 1995 2,419,158 92.1


Second Quarter Leasing Activity
________________________________________________________________


Number Weighted Average
of Average Term
Leases Rentable S.F. Base Rent (Years)
New Leases:
Second Generation space 7 19,543 $19.85 3.1


Renewals: 3 12,540 $19.74 2.8
Total Leasing 10 32,083


Capital Expenditures-Second Generation Space
________________________________________________________________


Tenant Leasing
Improvements Commissions Total


Expend. committed-2nd Qtr (1) $118,763(2) $109,829 $228,592
Rentable S.F. leased-2nd Qtr 32,083 32,083 32,083
Expend. committed per R.S.F. $3.70 $3.42 $7.13


(1) Represents amounts committed not necessarily
expended during period.


(2) Equals estimated workletter costs net of estimated
profit & overhead.


Lease Renewals
________________________________________________________________


Number of
Lease Renewals: Leases Rentable S.F.


Lease expiring-2nd Qtr 9 66,615
Leases renewed-2nd Qtr 3 12,540
Renewal percentage per R.S.F. 33 19
Expiring in future periods and
Renewed in 2nd Qtr
(Included in totals above) 3 12,540