Cali Realty Corporation Announces Results for Third Quarter 1995

11/09/1995 Category: Earnings

CRANFORD, NJ--November 9, 1995--Cali Realty Corporation (NYSE:CLI), today reported results for the quarter ended September 30, 1995. The company is a fully integrated, self-administered, publicly-owned real estat investment trust ("REIT").

FINANCIAL HIGHLIGHTS
For the quarter ended September 30, 1995, funds from operations before minority interest and after adjustment for straight-lining of rents amounted to $6,950,000 or $.52 per share versus $6,012,000 or $.45 per share (proforma) for the quarter ended September 30, 1994. For the nine months ended September 30, 1995, funds from operations before minority interest and after adjustment for straight-lining of rents amounted to $20,591,000 or $1.55 per share versus $17,019,000 or $1.28 per share (proforma) for the nine months ended September 30, 1994.

For the quarter ended September 30, 1995, cash available for distribution equaled $6,362,000 or $.48 per share. For the nine months ended September 30, 1995, cash available for distributio equaled $18,827,000 or $1.42 per share.

For the quarter ended September 30, 1995, revenues totaled $15,777,000 versus revenues of $12,691,000 (proforma) for the quarter ended September 30, 1994. For the nine months ended September 30, 1995 revenues totaled $44,799,000 versus revenues of $37,301,000 (proforma) for the nine months ended September 30, 1994.

For the quarter ended September 30, 1995, net income before minority interest totaled $4,184,000 or $.31 per share versus net income before minority interest of $3,966,000 or $.30 per share (proforma) for the quarter ended September 30, 1994. For the nine months ended September 30, 1995, net income before minority interest totaled $12,120,000 or $.91 per share versus net income before minority interest of $11,270,000 or $.85 per share (proforma) for the nine months ended September 30, 1994.

Commenting on the results of Cali Realty's third quarter 1995 operations, Thomas A. Rizk, the company's President and Chief Financial Officer, said, "I am pleased to announce that the company has delivered its fifth consecutive quarter of solid performance since going public.

In addition, this week we closed on three portfolio acquisitions totaling approximately 1.14 million square feet of office and office/flex space in New Jersey. These acquisitions, along with our previous acquisitions since the initial public offering, have increased the size of our portfolio by 75%."

LEASING INFORMATION
Cali Realty's portfolio of office buildings was 91.1 percent leased as of September 30, 1995 compared to 92.1 percent on June 30, 1995.

During the quarter ended September 30, 1995, the company executed 17 leases totaling 99,419 square feet of office space; 43,351 square feet represented new leases and 56,068 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 39 office buildings totaling approximately 3.9 million square feet and one 327 unit residential complex. All of the properties are located in New Jersey except for one, which is located in Rockland County, New York.


Cali Realty Corporation
Condensed Statement of Operations
(in thousands, except per share amounts)
______________________________________________________________________
Historical Proforma (1)
Three Months Three Months
Ended Ended
September 30, September 30,
1995 1994
______________________________________________________________________
Revenues $15,777 $12,691
Operating and other expense 6,237 4,859
Depreciation and amortization 3,009 2,576
Interest expense 2,347 1,290


Income before minority interest $ 4,184 $ 3,966


Minority interest 911 837


Net income $ 3,273 $ 3,129


Weighted average shares
outstanding 10,400 10,500


Net Income per common share $ 0.31 $ 0.30


Dividends declared per
common share $ 0.43 N/A


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


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Cali Realty Corporation
Statement of Funds from Operations and
Cash Available for Distributions September 30, 1995
(in thousands, except per share amounts)
______________________________________________________________________
Historical Proforma (2)
Three Months Three Months
Ended Ended
September 30, September 30,
1995 1994
______________________________________________________________________
Income before minority interest $ 4,184 $ 3,966
Add (Deduct):
Depreciation and amortization 3,009 2,576
Adjustment to rental income for
straight line rents (243) (530)
Funds from operations before minority
interest and after adjustment for
straight-lining of rents $ 6,950 $ 6,012
Deduct:
Non-incremental revenue generating
capital expenditures:
Capital improvements 159
Tenant improvements and lease
commissions 429


Cash available for distribution $ 6,362 N/A


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


Per share/unit:
Funds from operation $ 0.52 $ 0.45


Cash available for distribution $ 0.48


Dividend $ 0.43


Dividend payout ratios:
Funds from operation(as adjusted above) 81.30%
Cash available for distribution 88.82%


(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.


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Cali Realty Corporation
Condensed Statement of Operations
(in thousands, except per share amounts)
______________________________________________________________________
Historical Proforma (1)
Nine Months Nine Months
Ended Ended
September 30, September 30,
1995 1994


Revenues $44,799 $37,301
Operating and other expense 17,582 14,726
Depreciation and amortization 8,936 7,436
Interest expense 6,161 3,869


Income before minority interest $12,120 $11,270


Minority interest 2,620 2,378


Net income $ 9,500 $ 8,892


Weighted average shares
outstanding 10,424 10,500


Net Income per common share $ 0.91 $ 0.85


Dividends declared per
common share $ 1.23 N/A




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


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


Historical Proforma (1)
Nine Months Nine Months
Ended Ended
September 30, September 30,
1995 1994
______________________________________________________________________
Income before minority interest $12,120 $11,270
Add (Deduct):
Depreciation and amortization 8,936 7,436
Adjustment to rental income for
straight line rents (465) (1,687)
Funds from operations before minority
interest and after adjustment for
straight-lining of rents $20,591 $17,019
Deduct:
Non-incremental revenue generating
capital expenditures:
Capital improvements 477
Tenant improvements and lease
commissions 1,287


Cash available for distribution $18,827 N/A


Weighted average shares/units
outstanding (1) 13,299 13,302


Per share/unit:
Funds from operation $ 1.55 $ 1.28


Cash available for distribution $ 1.42


Dividend $ 1.23


Dividend payout ratios:
Funds from operation(as adjusted above) 79.61%
Cash available for distribution 87.07%


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


(2) Assumes conversion of 2,875 (1995) and 2,802 (1994) weighted
average limited partnership units in Cali Realty, L.P. to
shares of Cali Realty Corporation.


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Cali Realty Corporation
Leasing Statistics
(For Quarter Ended September 30, 1995)
______________________________________________________________________


Office Building Portfolio


______________________________________________________________________
Leased Area Percentage
Rentable S.F. Leased


June 30, 1995 2,419,158 92.1
3rd Quarter Leasing-Net (29,010)
One (1) Acquisition Property 94,304
September 30, 1995 2,484,452 91.1


Third Quarter Leasing Activity


Number Weighted Average
of Average Term
Leases Rentable S.F. Base Rent (Years)
______________________________________________________________________
New Leases:
First Generation space 0 0 $0.00 0.0
Second Generation space 9 43,351 $18.87 4.2


Renewals: 8 56,068 $20.26 2.2
Total Leasing 17 99,419




Capital Expenditures-Second Generation Space


__________________________________________________________________________
Tenant Leasing
Improvements Commissions Total
__________________________________________________________________________
Expend. committed-3rd Qtr (1) $600,135(2) $195,271 $795,406
Rentable S.F. leased-3rd Qtr 99,419 99,419 99,419
Expend. committed per R.S.F. $6.04 $1.96 $8.00


(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: Rentable S.F.
______________________________________________________________________
Lease expiring-3rd Qtr 17 128,429
Leases renewed-3rd Qtr 8 56,068
Renewal percentage per R.S.F. 47 44
Expiring in future periods and
Renewed in 3rd Qtr
(Included in totals above) 7 53,955