Cali Realty Corporation Announces First Quarter 1996 Results

05/09/1996 Category: Earnings

CRANFORD, NJ--May 9, 1996--Cali Realty Corporation (NYSE:CLI), today reported its results for the first quarter of 1996. The Company is a fully integrated, self-administered, publicly-owned real estate investment trust ("REIT.")

FINANCIAL HIGHLIGHTS
For the quarter ended March 31, 1996, funds from operations before minority interest and after adjustment for straight-lining of rents amounted to $9,079,000 or $.51 per share versus $6,261,000 or $.47 per share for the quarter ended March 31,1995. Cash available for distribution equaled $8,151,000 or $.46 per share versus $5,673,000 or $.43 per share over the same periods. For the quarter ended March 31, 1996, revenues totaled $19,571,000 versus revenues of $13,872,000 for the quarter ended March 31, 1995.
For the quarter ended March 31, 1996, income before gain on sale of property, minority interest, and extraordinary item totaled $6,128,000 or $.34 per share versus income before minority interest of $3,925,000 or $.29 per share for the sam quarter in 1995.

LEASING INFORMATION
Cali Realty's portfolio of office buildings was 94 percent leased as of March 31, 1996 compared to 92.5 percent on December 31, 1995. During the quarter ended March 31, 1996 the Company executed 20 leases totaling 64,313 square feet consisting of 44,774 square feet of office space and 19,539 square feet of office/flex space; 26,388 square feet for new leases and 37,925 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. Cali Realty owns 43 properties, primarily office and office/flex buildings totaling approximately 4.5 million square feet. All of the properties are located in New Jersey, New York an Pennsylvania.


Cali Realty Corporation
Condensed Statements of Operations
Quarters Ended March 31, 1996 and 1995
(in thousands, except per share amounts)
_____________________________________________________________________________
Quarter Ended March 31,

1996 1995
_____________________________________________________________________________
Revenues $ 19,571 $ 13,872
Operating and other expense 7,580 5,474
Depreciation and amortization 3,294 2,832
Interest expense 2,569 1,641


Income before gain on sale of property,
minority interest & extraordinary item $ 6,128 $ 3,925
Gain on sale of property 5,658 -


Income before minority interest &
extraordinary item 11,786 3,925
Minority interest 1,812 836


Income before extraordinary item 9,974 3,03
Extraordinary item - loss on early
retirement of debt 475 (1) -


Net income $ 9,499 $ 3,039


Net income per common share:
Income before extraordinary item $ 0.66 $ 0.29
Extraordinary item - loss on early
retirement of debt (.03) -


Net income $ 0.63 $ 0.29

Dividends declared per common share $ 0.43 $ 0.40


Weighted average shares outstanding 15,146 10,473


(1) Shown net of minority interest's share of the extraordinary loss ($86.)


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Cali Realty Corporation
Statements of Funds from Operations and Cash Available for Distribution
Quarters Ended March 31, 1996 and 1995
(in thousands, except per share amounts)
_____________________________________________________________________________
Quarter Ended March 31,

1996 1995
_____________________________________________________________________________
Income before minority interest,
gain on sale of property and
extraordinary item$ 6,128 $ 3,925


Add:
Real estate depreciation and amortization 3,020 2,370


Deduct:
Adjustment to rental income for straight
lining of rents (69) (34)


Funds from operations after adjustment for
straight lining of rents (1) 9,079 6,261


Deduct:
Non-incremental revenue generating
capital expenditures: Tenant improvements
and lease commissions 741 429


Capital improvements 187 159


Cash available for distribution $ 8,151 $ 5,673


Per Share/Unit:
Funds from operations (1) $ 0.51 $ 0.47
Cash available for distribution $ 0.46 $ 0.43
Dividend $ 0.43 $ 0.40


Weighted average shares/units outstanding (2) 17,897 13,307
Dividend payout ratios:
Funds from operations 83.78% 85.83%
Cash available for distribution 93.32% 94.72%

(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) 2,834 (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 March 31, 1996)
_____________________________________________________________________________________________
Leased Area Rentable S.F. Percentage Leased

December 31, 1995 3,636,663 92.5%


1st quarter leasing-net 11,580
1st quarter acquisition/
disposition-net 13,929


March 31, 1996 3,662,172 94.0%



OFFICE SPACE
__________________________________________________________________________________________
First Quarter Leasing Activity:


Number Weighted Average Average Term
of Leases Rentable S.F. Base Rent (Years)
__________________________________________________________________________________________
New Leases:
First generation space 1 1,015 $ 17.00 4.9
Second generation space 8 20,806 $ 20.50 3.9

Total new leasing: 9 21,821


Renewals & extensions: 7 22,953 $ 20.08 3.6

Total leasing: 16 44,774


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Capital Expenditures: Tenant Improvements Leasing Commissions Total
Second Generation Space
_____________________________________________________________________________________
Expend. committed-1st qtr. (1) $174,529 (2) $169,893 $344,422
Rentable s.f. leased-1st qtr. 43,759 43,759 43,759
Cap ex. committed per r.s.f. $ 3.99 $ 3.88 $ 7.87


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Cali Realty Corporation
Leasing Statistics
(For Quarter Ended March 31, 1996)(continued)

OFFICE/FLEX SPACE
_________________________________________________________________________________________________
First Quarter Leasing Activity:

Number of Weighted Average Average Term
Leases Rentable S.F. Base Net Rent (Years)
_________________________________________________________________________________________________
New leases:
First generation space 1 967 $10.07 5.0
Second generation space 1 3,600 $10.07 5.0


Total new leasing: 2 4,567


Renewals & extensions: 2 14,972 $ 9.50 3.0

Total leasing: 4 19,539


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Capital Expenditures: Tenant Improvements Leasing Commissions Total
Second Generation Space
_________________________________________________________________________________________________
Expend. committed-1st qtr.(1) $ 22,843 (2) $ 15,775 $ 38,618
Rentable s.f. leased-1st qtr. 18,572 18,572 18,572
Cap ex. committed per r.s.f. $ 1.23 $ 0.85 $ 2.08

(1) Represents amounts committed 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 - 1st quarter 13 50,792
Leases renewed - 1st quarter 8 35,984


Renewal percentage per r.s.f. 62% 71%
Expiring in future periods and
renewed in 1st quarter
(Included in totals above) 3 8,321