Cali Realty Corporation Announces Results for Fourth Quarter 1995

02/21/1996 Category: Earnings

CRANFORD, NJ--February 21, 1996--Cali Realty Corporation (NYSE:CLI), today reported results for the quarter and the year ended December 31, 1995. The Company is a fully integrated, self-administered, publicly-owned real estate investment trust ("REIT").

FINANCIAL HIGHLIGHTS
For the quarter ended December 31, 1995, funds from operations before minority interest and after adjustment for straight-lining of rents amounted to $8,354,000 or $.52 per share versus $6,588,000 or $.50 per share for the quarter ended December 31,1994. For the year ended December 31, 1995, funds from operations before minority interest and after adjustment for straight-lining of rents amounted to $28,945,000 or $2.07 per share versus $23,681,000 or $1.78 per share (pro forma) for the year ended December 31, 1994.

For the quarter ended December 31, 1995, cash available for distribution equaled $7,766,000 or $.48 per share. For the year ended December 31, 1995, cash available for distribution equaled $26,596,000 or $1.90 per share.

For the quarter ended December 31, 1995, revenues totaled $17,536,000 versus revenues of $12,423,000 for the quarter ended December 31, 1994. For the year ended December 31, 1995 revenues totaled $62,335,000 versus revenues of $49,799,000 (pro forma) for the year ended December 31, 1994.

For the quarter ended December 31, 1995, net income before minority interest totaled $5,026,000 or $.31 per share versus net income before minority interest of $3,445,000 or $.26 per share for the quarter ended December 31, 1994. For the year ended December 31, 1995, net income before minority interest totaled $17,146,000 or $1.23 per share versus net income before minority interest of $14,714,000 or $1.11 per share (pro forma) for the twelve months ended December 31 1994.

Commenting on the results of Cali Realty's fourth quarter 1995 operations, Thomas A. Rizk, the Company's President and Chief Executive Officer, said, "I am pleased to announce that Cali has continued its solid performance. The Company has increased funds from operation by 22 percent since 1994."

LEASING INFORMATION
Cali Realty's portfolio of office buildings was 92.5 percent leased as of December 31, 1995 compared to 91.1 percent on September 30, 1995.

During the quarter ended December 31, 1995, the Company executed 25 leases totaling 139,396 square feet of office space; 97,990 square feet represented new leases and 41,406 square feet were 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 properties. Cali Realty owns 40 office and office/flex buildings totaling approximately 3.9 million square feet and a 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
December 31, 1995
(in thousands, except per share amounts)
________________________________________________________________


Historical Historical
Three Months Three Months
Ended Ended
December 31,1995 December 31,1994



Revenues $17,536 $12,423
Operating and other expense 6,835 4,722
Depreciation and amortization 3,175 2,943
Interest expense 2,500 1,313


Income before minority interest $ 5,026 $ 3,445


Minority interest 888 725


Net income $ 4,138 $ 2,720


Weighted average shares
outstanding 13,193 10,500


Net Income per common share $ 0.31 $ 0.26


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 Distribution December 31, 1995
(in thousands, except per share amounts)
____________________________________________________________________
Historical Historical
Three Months Three Months
Ended Ended
December 31, December 31,
1994 1995
____________________________________________________________________
Income before minority interest $ 5,026 $ 3,445
Add (Deduct):
Depreciation and amortization 3,175 2,943
Adjustment to rental income for
straight line rents 153 200
Funds from operations before minority
interest and after adjustment for
straight-lining of rents $ 8,354 $ 6,588

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


Cash available for distribution $ 7,766 $ 6,000


Weighted average shares/units
outstanding (1) 16,024 13,302


Per share/unit:
Funds from operation $ 0.52 $ 0.50


Cash available for distribution $ 0.48 $ 0.45


Dividend $ 0.43 $ 0.40


Dividend payout ratios:
Funds from operation(as adjusted above) 81.52% 81.53%
Cash available for distribution 87.69% 89.51%


(1) Assumes conversion of 2,830 (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
December 31, 1995
(in thousands, except per share amounts)
______________________________________________________________________




Historical Pro forma (1)
Year Ended Year Ended
December 31, 1995 December 31, 1994


Revenues $62,335 $49,799
Operating and other expense 24,417 19,449
Depreciation and amortization 12,111 10,454
Interest expense 8,661 5,182


Income before minority interest $17,146 $14,714


Minority interest 3,508 3,099


Net income $ 13,638 $11,615


Weighted average shares
outstanding 11,122 10,500


Net Income per common share $ 1.23 $ 1.11


Dividends declared per
common share $ 1.66 N/A




(1) Does not reflect the impact of transactions which occurred in
1995.




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Cali Realty Corporation
Statement of Funds from Operations and Cash Available for Distribution
December 31, 1995
(in thousands, except per share amounts)
______________________________________________________________________




Historical Pro forma (1)
Year Ended Year Ended
December 31, 1995 December 31, 1994


Income before minority interest $17,146 $14,714
Add (Deduct):
Depreciation and amortization 12,111 10,454
Adjustment to rental income for
straight line rents (312) (1,487)
Funds from operations before minority
interest and after adjustment for
straight-lining of rents $28,945 $23,681

Deduct:
Non-incremental revenue generating
capital expenditures:
Capital improvements 636
Tenant improvements and lease
commissions 1,716


Cash available for distribution $26,596 N/A


Weighted average shares/units
outstanding (2) 13,986 13,302


Per share/unit:
Funds from operation $ 2.07 $ 1.78


Cash available for distribution $ 1.90


Dividend $ 1.66


Dividend payout ratios:
Funds from operation(as adjusted above) 79.94%
Cash available for distribution 87.17%


(1) Does not reflect impact of transactions which occurred in
1995.


(2) Assumes conversion of 2,864 (1995) and 2,801 (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 December 31, 1995
______________________________________________________________________
Leased Area Percentage
Rentable S.F. % Leased


September 30, 1995 2,484,452 91.1%
4th Quarter Leasing-Net 76,140
Acquisition Properties 1,076,071
December 31, 1995 3,636,663 92.5%


Fourth Quarter Leasing Activity
_______________________________________________________________________
Number Weighted Average
of Average Term
Leases Rentable S.F. Base Rent (Years)
New Leases:
First Generation space 3 68,174 $17.22 7.4
Second Generation space 13 29,816 $19.71 4.0
Total New Leasing: 16 97,990


Renewals & Extensions: 9 41,406 $18.84 2.9
Total Leasing: 25 139,396




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


Expend. committed-4th Qtr(1) $412,147 (2) $187,235 $599,382
Rentable S.F. leased-4th Qtr 71,222 71,222 71,222
Expend. committed per R.S.F. $5.79 $2.63 $8.42


(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-4th Qtr 17 63,256
Leases renewed-4th Qtr 9 41,406
Renewal percentage per R.S.F. 53 65
Expiring in future periods
and Renewed in 4th Qtr
(Included in totals above) 7 34,612