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

10/29/1996 Category: Earnings

CRANFORD, NJ--October 29, 1996--Cali Realty Corporation (NYSE:CLI) today announced its results for the third quarter of 1996. The Company's 3rd quarter FFO per share represents a 14% increase over the same quarter 1995. The Company is a fully integrated, self-administered, publicly-owned real estate investment trust ("REIT").

FINANCIAL HIGHLIGHTS
For the quarter ended September 30, 1996, funds from operations before minority interest and after adjustment for straight-lining of rents amounted to $11,071,000 or $.56 per share versus $6,573,000 or $.49 per share for the quarter ended September 30, 1995. For the nine months ended September 30, 1996, funds from operations before minority interest and after adjustment for straight-lining of rents amounted to $30,043,0000 or $1.62 per share versus $19,307,000 or $1.45 per share for the nine months ended September 30, 1995.

For the quarter ended September 30, 1996, cash available for distribution equaled $9,924,000 or $.50 per share versus $5,985,000 or $.45 per share for the same period last year. For the nine months ended September 30, 1996, cash available for distribution equaled $26,735,000 or $1.44 per share versus $17,543,000 or $1.32 per share for the same period last year.

For the quarter ended September 30, 1996, revenues totaled $22,518,000 versus revenues of $15,777,000 for the quarter ended September 30, 1995. For the nine months ended September 30, 1996 revenues totaled $63,094,000 versus revenues of $44,799,000 for the nine months ended September 30, 1995.

For the quarter ended September 30, 1996, net income before minority interest totaled $7,644,000 or $.39 per share versus net income before minority interest of $4,184,000 or $.31 per share for the quarter ended September 30, 1995. For the nine months ended September 30, 1996, income before gain on sale of property, minority interest, and extraordinary item totaled $20,465,000 or $1.41 per share versus $12,120,000 or $.91 per share for the nine months ended September 30, 1995.

LEASING INFORMATION
Cali Realty's portfolio of office buildings was 96.9 percent leased at September 30, 1996 compared to 97 percent at June 30,1996.

During the third quarter 1996, the Company executed 24 leases totaling 125,600 square feet, consisting of 69,884 square feet of office space and 55,716 square feet of office/flex space; 42,576 square feet for new leases and 83,024 square feet for 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 September 30,
1996 1995
__________________________________________________________________




Revenues $22,518 $15,777
Operating and other expense (8,406) (6,237)
Depreciation and amortization (3,747) (3,009)
Interest expense (2,721) (2,347)

Income before minority interest 7,644 4,184

Minority interest (1,045) (911)

Net income $ 6,599 $ 3,273

Weighted average shares
outstanding 17,045 10,400

Net Income per common share $ 0.39 $ 0.31

Dividends declared per
common share $ 0.45 $ 0.43



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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 September 30,
1996 1995
__________________________________________________________________




Income before minority interest, gain on
sale of property and extraordinary item $ 7,644 $ 4,184
Add:
Real Estate depreciation and amortization 3,456 2,632
Deduct:
Adjustment to rental income for
straight line rents (29) (243)
Funds from operations (1) after adjustment
for straight-lining of rents $ 11,071 $ 6,573

Deduct:
Non-incremental revenue generating
capital expenditures:
Capital improvements (298) (159)
Tenant improvements and lease
commissions (849) (429)

Cash available for distribution $ 9,924 $ 5,985

Weighted average shares/units
outstanding (2) 19,744 13,295

Per share/unit:
Funds from operations $ 0.56 $ 0.49

Cash available for distribution $ 0.50 $ 0.45

Dividend $ 0.45 $ 0.425

Dividend payout ratios:
Funds from operations (1) 80.25% 85.97%
Cash available for distribution 89.53% 94.41%

(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 2,699 (1996) and 2,716 (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)


__________________________________________________________________
Nine Months Ended September 30,
1996 1995
__________________________________________________________________




Revenues $63,094 $44,799
Gain on sale of property 5,658 --
Operating and other expenses (23,686) (17,582)
Depreciation and amortization (10,655) (8,936)
Interest expense (8,288) (6,161)

Income before minority interest 26,123 12,120

Minority interest (3,866) (2,620)

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

Net income $ 21,782 $ 9,500

Weighted average shares
outstanding 15,803 10,424

Net income per common share:
Before extraodinary item $ 1.41 $ 0.91
Extraodinary item (.03) --
Net income $ 1.38 $ 0.91

Dividends declared per
common share $ 1.30 $ 1.23




(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)


__________________________________________________________________
Nine Months Ended September 30,
1996 1995
__________________________________________________________________




Income before minority interest, gain on
sale of property and extraordinary item $ 20,465 $ 12,120
Add:
Real Estate depreciation and amortization 9,811 7,652
Deduct:
Adjustment to rental income for
straight line rents (233) (465)
Funds from operations (1) after adjustment
for straight-lining of rents $ 30,043 $ 19,307

Deduct:
Non-incremental revenue generating
capital expenditures:
Capital improvements (849) (477)
Tenant improvements and lease
commissions (2,459) (1,287)

Cash available for distribution $ 26,735 $ 17,543

Weighted average shares/units
outstanding (2) 18,519 13,299

Per share/unit:
Funds from operations $ 1.62 $ 1.45

Cash available for distribution $ 1.44 $ 1.32

Dividend $ 1.30 $ 1.23

Dividend payout ratios:
Funds from operations (1) 80.13% 84.91%
Cash available for distribution 90.05% 93.44%

(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 2,699 (1996) and 2,716 (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 September 30, 1996



__________________________________________________________________
Leased Area Percentage
Rentable S.F. % Leased
__________________________________________________________________




June 30, 1996 4,030,898 97.0%
3rd quarter leasing (8,257)
3rd quarter acquisitions 115,000
September 30, 1996 4,137,641 96.9%


OFFICE SPACE

Third Quarter Leasing Activity:
__________________________________________________________________

Number Weighted Average
of Rentable Average Term
Leases S.F. Base Rent (Years)




New Leases:
First generation space 4 16,585 $18.98 5.0
Second generation space 6 19,909 $21.57 5.4

Total new leasing 10 36,494

Renewals & extensions 8 33,390 $19.13 3.0

Total leasing 18 69,884


Capital Expenditures- Tenant Leasing
Second Generation Space: Improvements Commissions Total
__________________________________________________________________
Expend. committed-3rd qtr.(1) $352,441(2) $152,326 $504,767
Rentable s.f. leased-3rd qtr. 53,299 53,299 53,299
Cap ex. committed per r.s.f. $6.61 $2.86 $9.47


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



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Cali Realty Corporation
Leasing Statistics for Quarter Ended September 30, 1996continued

__________________________________________________________________
OFFICE/FLEX SPACE


Number Weighted Average
of Rentable Average Term
Leases S.F. Base Net Rent (Years)
__________________________________________________________________




New leases:
Second generation space 2 6,082 $10.49 5.0

Renewals & Extensions: 4 49,634 $10.62 4.4

Total Leasing: 6 55,716

Capital Expenditures- Tenant Leasing
Second Generation Space: Improvements Commissions Total

Expend. committed-3rd qtr.(1) $201,585 (2) $110,947 $312,532
Rentable s.f. leased-3rd qtr. 55,716 55,716 55,716
Cap ex. committed per r.s.f. $3.62 $1.99 $5.61

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





LEASE RENEWALS




Number of
Leases Rentable S.F.
__________________________________________________________________




Leases expiring-3rd quarter 23 133,857
Leases renewed-3rd quarter 12 83,024

Renewal percentage per r.s.f. 52% 62%


Expiring in future periods and
renewed in 3rd quarter
(included in totals above) 4 46,875