Cali Realty Corporation Announces 14% Increase in Funds From Operations Per Share

08/05/1996 Category: Earnings

CRANFORD, NJ--August 5, 1996--Cali Realty Corporation (NYSE:CLI) today reported its results for the second quarter of 1996. The Company's FFO number represents a 14% increase over the same quarter in 1995. The Company is a fully integrated, self-administered, publicly owned real estate investment trust ("REIT".)

FINANCIAL HIGHLIGHTS
For the quarter ended June 30, 1996, funds from operations before minority interest and after adjustment for straight-lining of rents amounted to $9,892,000 or $.55 per share versus $6,473,000 or $.49 per share for the quarter ended June 30, 1995. For the six months ended June 30, 1996, funds from operations before minority interest and after adjustment for straight-lining of rents amounted to $18,972,0000 or $1.06 per share versus $12,733,000 or $.96 per share for the six months ended June 30, 1995.

For the quarter ended June 30, 1996, cash available for distribution equaled $8,659,000 or $.48 per share versus $5,885,000 or $.44 per share for the same period last year. For the six months ended June 30, 1996, cash available for distribution equaled $16,811,000 or $.94 per share versus $11,557,000 or $.87 per share for the same period last year.

For the quarter ended June 30, 1996, revenues totaled $21,013,000 versus revenues of $15,151,000 for the quarter ended June 30, 1995. For the six months ended June 30, 1996 revenues totaled $40,584,000 versus revenues of $29,023,000 for the six months ended June 30, 1995.

For the quarter ended June 30, 1996, net income before minority interest totaled $6,693,000 or $.37 per share versus net income before minority interest of $4,010,000 or $.30 per share for the quarter ended June 30, 1995. For the six months ended June 30, 1996, income before gain on sale of property, minority interest, and extraordinary item totaled $18,479,000 or $1.03 per share versus $7,936,000 or $.60 per share for the six months ended June 30, 1995.

LEASING INFORMATION
Cali Realty's portfolio of office buildings was 97 percent leased at June 30, 1996 compared to 94 percent at March 31, 1996.

During second quarter 1996, the Company executed 25 leases totaling 181,935 square feet consisting of 153,277 square feet of office space and 28,658 square feet of office/flex space; 155,205 square feet for new leases and 26,730 square feet fo lease renewals.

A schedule is attached highlighting quarterly leasing statistics.

ABOUT THE COMPANY
Cali Realty Corporation is a fully integrated, self-administered, self-managed real estate investment trust (REIT) providing leasing, management, acquisition, development, construction and tenant-related services for its portfolio. The Company owns 45 properties, primarily office and office/flex buildings totaling approximately 4.6 million square feet. All of the properties are located in New Jersey, New York and Pennsylvania.


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


Quarter Ended June 30,


1996 1995
________________________________________________________________
Revenues $21,013 $15,151
Operating and other expense (7,707) (5,873)
Depreciation and amortization (3,614) (3,095)
Interest expense (2,999) (2,173)


Income before minority interest 6,693 4,010


Minority interest (1,009) (873)


Net income $ 5,684 $ 3,137


Weighted average shares
outstanding 15,203 10,400


Net Income per common share $ 0.37 $ 0.30


Dividends declared per
common share $ 0.43 $ 0.40


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


Quarter Ended June 30,


1996 1995
______________________________________________________________________
Income before minority interest, gain on
sale of property and extraordinary item 6,693 $ 4,010
Add:
Real Estate depreciation and amortization 3,334 2,651
Deduct:
Adjustment to rental income for
straight line rents (135) (188)
Funds from operations (1) after
adjustment for straight-lining
of rents $ 9,892 $ 6,473
Deduct:
Non-incremental revenue generating
capital expenditures:
Capital improvements (364) (159)
Tenant improvements and lease commissions (869) (429)


Cash available for distribution $8,659 $5,885


Weighted average shares/units
outstanding (2) 17,902 13,295


Per share/unit:
Funds from operations $ 0.55 $ 0.49


Cash available for distribution $ 0.48 $ 0.44


Dividend $ 0.43 $ 0.40


Dividend payout ratios:
Funds from operations (1) 76.91% 82.94%
Cash available for distribution 87.87% 91.23%


(1) Funds from operations for both periods are calculated in
accordance with the new National Association of Real Estate
Investment Trusts (NAREIT) definition.


(2) Assumes conversion of 2,751 (1996) 2,895 (1995) 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)
________________________________________________________________


Six Months Ended June 30,


1996 1995
________________________________________________________________
Revenues $40,584 $29,023
Gain on sale of property 5,658 --
Operating and other expenses (15,287) (11,346)
Depreciation and amortization (6,908) (5,927)
Interest expense (5,568) (3,814)


Income before minority interest 18,479 7,936


Minority interest (2,821) (1,709)


Extraordinary item-loss on early
retirement of debt (1) (475) --


Net income $15,183 $ 6,227


Weighted average shares
outstanding 15,175 10,436


Net income per common share:
Before extrodinary item $ 1.03 $ 0.60
Extrodinary item (.03) --
Net income $ 1.00 $ 0.60


Dividends declared per
common share $ 0.85 $ 0.81


(1) Net of minority interest's share of $86.


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Cali Realty Corporation
Statement of Funds from Operations and Cash Available for Distributions
(In thousands, except per share amounts)
__________________________________________________________________


Six Months Ended June 30,


1996 1995
__________________________________________________________________
Income before minority interest, gain on
sale of property and extraordinary item $12,821 $ 7,936
Add:
Real Estate depreciation and amortization 6,355 5,020
Deduct:
Adjustment to rental income for
straight line rents (204) (223)
Funds from operations (1) after adjustment
for straight-lining of rents $18,972 $12,733
Deduct:
Non-incremental revenue generating
capital expenditures:
Capital improvements (551) (318)
Tenant improvements and lease
commissions (1,610) (858)


Cash available for distribution $16,811 $11,557


Weighted average shares/units
outstanding (2) 17,900 13,301


Per share/unit:
Funds from operations $ 1.06 $ 0.96


Cash available for distribution $ 0.94 $ 0.87


Dividend $ 0.85 $ 0.81


Dividend payout ratios:
Funds from operations (1) 80.20% 84.36%
Cash available for distribution 90.50% 92.95%


(1) Funds from operations for both are calculated in
accordance with the new National Association of Real
Estate Investment Trusts (NAREIT) definition.


(2) Assumes conversion of 2,725 (1996) and 2,865 (1995)
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 June 30, 1996)
________________________________________________________________


Leased Area Percentage
Rentable S.F. % Leased
________________________________________________________________
March 31, 1996 3,662,172 94.0%
2nd quarter leasing 121,779
2nd quarter acquisitions 246,947
June 30, 1996 4,030,898 97.0%



OFFICE SPACE


Second Quarter Leasing Activity:


Number Weighted Average
of Rentable Average Term
Leases S.F. Base Rent (Years)
________________________________________________________________
New Leases:
First generation space 1 73,200 $17.95(1) 13.1
Second generation space 12 53,347 $20.04 4.4
Total new leasing 13 126,547


Renewals & extensions 9 26,730 $20.44 3.0
Total leasing 22 153,277


Capital Expenditures- Tenant Leasing
Second Generation Space: Improvements Commissions Total
________________________________________________________________
Expend. committed-2nd qtr.(2) $796,874 (3) $308,377 $1,105,251
Rentable s.f. leased-2nd qtr. 80,077 80,077 80,077
Cap ex. committed per r.s.f. $9.95 $3.85 $13.80


(1) Triple net lease.
(2) Represents amounts committed not necessarily expended
during period.
(3) Equals estimated workletter costs, net of estimated profit
and overhead.


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Cali Realty Corporation
Leasing Statistics
(For Quarter Ended June 30, 1996)(continued)
________________________________________________________________


OFFICE/FLEX SPACE


Number Weighted Average
of Rentable Average Term
Leases S.F. Base Net Rent (Years)
________________________________________________________________
New leases:
Second generation space 3 28,658 $9.72 4.0




Capital Expenditures- Tenant Leasing
Second Generation Space: Improvements Commissions Total
________________________________________________________________
Expend. committed-2nd qtr.(2) $145,241 (3) $ 61,593 $206,834
Rentable s.f. leased-2nd qtr. 28,658 28,658 28,658
Cap ex. committed per r.s.f. $5.07 $2.15 $ 7.22



(1) Triple net lease.
(2) Represents amounts committed not necessarily expended during
period.
(3) Equals estimated workletter costs, net of estimated profit
and overhead.


Lease Renewals


Number of
Leases Rentable S.F.
________________________________________________________________
Leases expiring-2nd quarter 15 45,257
Leases renewed-2nd quarter 9 26,730
Renewal percentage per r.s.f. 60% 59%
Expiring in future periods and
Renewed in 2nd quarter
(included in totals above) 4 11,769