Mack-Cali Realty Corporation Announces 7.9% Increase in Second Quarter FFO Per Share

08/05/1999 Category: Earnings

Significant development and leasing transactions highlight quarter

CRANFORD, NJ--August 5, 1999--Mack-Cali Realty Corporation (NYSE: CLI) today announced its results for the second quarter of 1999. The Company reported that its funds from operations (FFO) per diluted share for the second quarter 1999 increased 7.9% over the same period in 1998.

FINANCIAL HIGHLIGHTS
FFO, after adjustment for straight-lining of rents, for the quarter ended June 30, 1999, amounted to $60.7 million, or $0.82 per share, versus $54.2 million, or $0.76 per share, for the quarter ended June 30, 1998, a per share increase of 7.9%. For the six months ended June 30, 1999, FFO, after adjustment for straight-lining of rents, amounted to $120.9 million, or $1.63 per share, versus $101.0 million, or $1.48 per share, for the same period last year, for a six-month period increase of 10.1% on a per share basis.

Cash available for distribution (CAD) for the second quarter 1999 equaled $53.5 million, or $0.72 per share, versus $49.0 million, or $0.69 per share, for the same quarter last year, an increase of 4.3% on a per share basis. For the six months ended June 30, 1999, CAD equaled $107.5 million, or $1.45 per share, versus $89.6 million, or $1.31 per share, for the same period last year, for a six-month period increase of 10.7% on a per share basis.

Total revenues for the second quarter 1999 increased 12.3% to $137.0 million from $122.0 million for the same quarter last year. For the six months ended June 30, 1999, total revenues amounted to $271.9 million, an increase of 19.3% over the $227.9 million of total revenues for the same period last year.

Income from operations before minority interest for the second quarter 1999 totaled $41.8 million, or $0.56 per share, versus $38.2 million, or $0.53 per share, for the same quarter last year, an increase of 5.7% on a per share basis. Income from operations before minority interest for the six months ended June 30, 1999 totaled $82.6 million, or $1.11 per share, versus $72.0 million, or $1.04 per share, for the same period last year, an increase of 6.7% on a per share basis. Income from operations before minority interest excludes extraordinary items and non-recurring charges.

All per share amounts presented are on a diluted basis; basic per share information is included in the financial tables accompanying this press release.

The Company had 58,915,684 shares of common stock, 8,299,690 common operating partnership units and 229,304 $1,000-face-value preferred operating partnership units (6.75% annual rate) outstanding as of quarter end. The outstanding preferred units are convertible into 6,617,721 common operating partnership units. Assuming conversion of all preferred units into common units, the Company had a total of 73,833,095 shares/common units outstanding at June 30, 1999.

As of June 30, 1999, the Company had total indebtedness of approximately $1.5 billion, with a weighted average annual interest rate of 7.08%. Mack-Cali's total market capitalization was $3.8 billion at June 30, 1999, with a debt-to-market capitalization ratio of 39.6%. The Company had an interest coverage ratio of 3.51 times for the quarter ended June 30, 1999.

Commenting on the results, Mitchell E. Hersh, chief executive officer, said, "We are pleased with another solid quarter of earnings growth. Our second quarter results, in conjunction with key strategic development and leasing transactions initiated during the quarter, are a clear demonstration of Mack-Cali's financial stability and growth potential."

GROWTH TRANSACTIONS
During the second quarter, Mack-Cali announced several acquisitions, development projects and significant leasing transactions.

Most notably, the Company entered into several significant transactions at its Harborside Financial Center office complex in Jersey City, New Jersey, comprised of the following:

  • Started construction of a 185,000 square-foot class A office component above a 1,100-car parking garage structure. The parking structure will serve as the infrastructure for future development at the Harborside complex, as well as provide parking for the current office construction project. The office component is 100% pre-leased to Waterhouse Securities for a 15-year term. Total construction costs for the office and garage projects are estimated to be approximately $60 million.
  • Signed a letter of intent to form a joint venture with Hyatt Hotels Corporation to develop a 350-room full-service Hyatt Regency Hotel on the south pier adjacent to the office complex, to be managed by Hyatt. The total construction costs of the hotel are estimated to be approximately $90 million.
  • Leased 100,815 square feet of office space to DLJDirect for a 10-year term in one of the existing Harborside office buildings.
  • Signed additional long-term leases in the existing Harborside office buildings for an aggregate of 182,000 square feet. The leases represented extensions or expansions with existing tenants, consisting of PR Newswire, Dean Witter Reynolds, Dean Witter Trust Company and Exodus Communications.


Additionally, the Company completed three significant property and developable land acquisitions, comprised of the following:

  • Acquired from AT&T a 184,000 square-foot office building in San Francisco, California for approximately $34.0 million. The Company simultaneously leased 63,278 square feet of the property back to AT&T.
  • Acquired a 2.5-acre developable land site located in Stamford, Connecticut, on which the Company has started construction of a 66,000 square-foot office/flex property fully pre-leased for a 15 year term to Clarence House Imports. Total project costs for the office/flex property are estimated to be $5.8 million.
  • Acquired in July, 1201 Connecticut Avenue, NW, a 169,000 square- foot office property located in Washington, D.C. for $32.2 million, expanding the Company's growing presence in the Washington, D.C. area.


FINANCING ACTIVITIES
During the second quarter, the Company initiated its Dividend Reinvestment and Stock Purchase Plan, allowing shareholders who enroll in the plan the ability to elect to have all or a portion of their quarterly cash dividends reinvested automatically in common stock of the Company. Shareholders, as well as new investors, also have the option under the plan to invest in additional shares of Mack-Cali stock. There is no service charge or brokerage commission for shares purchased under the plan.

Additionally during the quarter, the Company's Board of Directors adopted a shareholder rights plan to protect the best interests of the Company and its shareholders if any hostile takeover should occur. The adoption of the Rights Plan was not put in place in response to any known effort to acquire control of the Company.

In August 1999, the Company issued $185.3 million of unsecured corporate debt to Teachers Insurance and Annuity Association (TIAA). The proceeds were used to retire an equal amount of flipper mortgage debt, which was held by TIAA and encumbered 43 of Mack-Cali's Westchester properties. The unsecured debt carries the same interest rate of 7.18% and has the same maturity date of December 31, 2003 as the previous flipper mortgage debt.

LEASING INFORMATION
Mack-Cali's wholly-owned in-service portfolio was 96.3% leased at quarter-end, compared to 96.7% at March 31, 1999.

For the quarter ended June 30, 1999, the Company executed 223 leases totaling 1,106,527 square feet, consisting of 782,414 square feet of office space, 271,773 square feet of office/flex space and 52,340 square feet of industrial/warehouse space; 463,432 square feet for new leases and 643,095 square feet for lease renewals and other tenant retention transactions.

Accompanying this press release are schedules highlighting the second quarter and year-to-date leasing statistics of the Company.

ABOUT THE COMPANY
Mack-Cali Realty Corporation is a fully-integrated, self-administered, self-managed real estate investment trust (REIT) providing management, leasing, development, construction and other tenant-related services for its class A real estate portfolio. Mack-Cali owns or has interests in 255 properties, primarily office and office/flex buildings, totaling approximately 28.3 million square feet, located in 12 states and the District of Columbia. The properties, which are primarily located in the Northeast, enable the Company to provide a full complement of real estate opportunities to its diverse base of over 2,400 tenants.

Additional information on Mack-Cali Realty Corporation is available on the Company's website at www.mack-cali.com.

Certain information discussed in this press release may constitute forward-looking statements within the meaning of the Federal Securities law. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to different materially from those projected. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office, office/flex and industrial/warehouse properties; interest rate levels; the availability of financing; and other risks associated with the development and acquisition of properties, including risks that the development may not be completed on schedule, that the tenants will not take occupancy or pay rent, or that development or information on factors which could impact the Company and the statements contained herein, reference should be made to the Company's filings with the Securities and Exchange Commission including quarterly reports on Form 10-Q on Form 8-K, and annual reports on Form 10-L.


Mack-Cali Realty Corporation
Consolidated Statements of Operations
(in thousands, except per share amounts)


Quarter Ended June 30,
1999 1998


Base rents $116,499 $105,861
Escalations & recoveries 16,366 12,358
Parking and other 3,061 2,836
Interest income 215 916
Equity in earnings of
unconsolidated joint ventures 834 70


Total revenues 136,975 122,041


Real estate taxes 14,208 11,854
Utilities 9,829 9,115
Operating services 17,227 15,629
General and administrative 5,770 6,394
Depreciation and amortization 22,465 19,093
Interest expense 25,697 21,786


Total expenses 95,196 83,871


Income from operations before
minority interest 41,779 38,170
Minority interest (1) (8,757) (7,782)
Income from operations 33,022 30,388
Non-recurring charges (2) (14,336) --
Extraordinary item-loss on
early retirement of debt (3) -- (2,373)


Net income $18,686 $28,015


PER SHARE DATA:
Income from operations - basic $0.56 $0.53
Net income - basic $0.32 $0.49


Income from operations - diluted $0.56 $0.53
Net income - diluted $0.32 $0.49


Dividends declared $0.55 $0.50


Basic weighted average
shares outstanding 58,510 57,019
Diluted weighted average
shares outstanding 67,486 64,626


(1) Excludes effect of minority interest's share of non-recurring charges and
extraordinary items.
(2) Net of minority interest's share in 1999 of $2,122.
(3) Net of minority interest's share of extraordinary item of $297 in 1998.



Mack-Cali Realty Corporation
Statements of Funds from Operations and
Cash Available for Distribution
(in thousands, except per share/unit amounts)


Quarter Ended June 30,
1999 1998
Income from operations before
minority interest $41,779 $38,170
Add: Real estate depreciation
and amortization(1) 22,769 19,211
Deduct: Adj. to rental income for
straight-lining of rents(1) (3,833) (3,142)
Funds from operations(2) after adj.
for straight-lining of rents $60,715 $54,239
Deduct:
Non?incremental revenue generating
capital expenditures:
Capital improvements (1,464) (377)
Tenant improvements and leasing
commissions (5,753) (4,878)


Cash available for distribution $53,498 $48,984


Basic weighted average shares/units
outstanding (3) 67,173 64,145
Diluted weighted average shares/units
outstanding(4) 74,104 71,444


Per Share/Unit - Basic(5):
Funds from operations $0.85 $0.78
Cash available for distribution $0.74 $0.70


Per Share/Unit - Diluted:
Funds from operations $0.82 $0.76
Cash available for distribution $0.72 $0.69


Dividend per common share $0.55 $0.50


Dividend payout ratios:
Funds from operations-diluted 67.13% 65.86%
Cash available for distribution-diluted 76.18% 72.93%


(1) Includes FFO adjustments related to Company's investments in unconsolidated
joint ventures.
(2) Funds from operations for both periods are calculated in accordance with
the National Association of Real Estate Investment Trusts (NAREIT)
definition, as
published in March 1995.
(3) Calculated based on weighted average common shares outstanding, assuming
redemption of operating partnership common units into common shares.
(4) Calculated based on shares and units included in basic per share/unit
computation, plus dilutive Common Stock Equivalents (i.e. convertible
preferred units, options and warrants).
(5) Amounts calculated after deduction for distributions to preferred
unitholders of $3,869 and $3,985 for the three months ended June 30,
1999 and 1998, respectively.



Mack-Cali Realty Corporation
Consolidated Statements of Operations
(in thousands, except per share amounts)


Six Months Ended June 30,
1999 1998


Base rents $232,579 $198,777
Escalations & recoveries 31,226 22,715
Parking and other 6,961 4,818
Interest income 470 1,459
Equity in earnings of
unconsolidated joint ventures 628 95


Total revenues 271,864 227,864


Real estate taxes 28,051 21,926
Utilities 19,421 17,417
Operating services 34,143 28,321
General and administrative 13,904 12,591
Depreciation and amortization 44,434 35,324
Interest expense 49,319 40,265


Total expenses 189,272 155,844


Income from operations before
minority interest 82,592 72,020
Minority interest (1) (17,506) (15,089)
Income from operations 65,086 56,931
Non-recurring charges (2) (14,336) --
Extraordinary item-loss on
early retirement of debt (3) -- (2,373)


Net income $50,750 $54,558


PER SHARE DATA:
Income from operations - basic $1.12 $1.05
Net income - basic $0.87 $1.01


Income from operations - diluted $1.11 $1.04
Net income - diluted $0.87 $1.00


Dividends declared $1.10 $1.00


Basic weighted average
shares outstanding 58,337 54,207
Diluted weighted average
shares outstanding 67,385 61,671


(1) Excludes effect of minority interest's share of non-recurring charges and
extraordinary items.
(2) Net of minority interest's share in 1999 of $2,122.
(3) Net of minority interest's share of extraordinary item of $297 in 1998.




Mack-Cali Realty Corporation
Statements of Funds from Operations and
Cash Available for Distribution
(in thousands, except per share/unit amounts)


Six Months Ended June 30,
1999 1998
Income from operations before
minority interest $82,592 $72,020
Add: Real estate depreciation
and amortization(1) 45,720 35,330
Deduct: Adj. to rental income for
straight-lining of rents(1) (7,378) (6,345)
Funds from operations(2) after adj.
for straight-lining of rents $120,934 $101,005
Deduct:
Non?incremental revenue generating
capital expenditures:
Capital improvements (2,033) (739)
Tenant improvements and leasing
commissions (11,406) (10,624)


Cash available for distribution $107,495 $89,642


Basic weighted average shares/units
outstanding (3) 67,092 61,056
Diluted weighted average shares/units
outstanding(4) 74,040 68,425


Per Share/Unit - Basic(5):
Funds from operations $1.69 $1.53
Cash available for distribution $1.49 $1.34


Per Share/Unit - Diluted:
Funds from operations $1.63 $1.48
Cash available for distribution $1.45 $1.31


Dividend per common share $1.10 $1.00


Dividend payout ratios:
Funds from operations-diluted 67.35% 67.74%
Cash available for distribution-diluted 75.76% 76.33%


(1) Includes FFO adjustments related to Company's investments in unconsolidated
joint ventures.
(2) Funds from operations for both periods are calculated in accordance with
the National Association of Real Estate Investment Trusts (NAREIT)
definition, as published in March 1995.
(3) Calculated based on weighted average common shares outstanding, assuming
redemption of operating partnership common units into common shares.
(4) Calculated based on shares and units included in basic per share/unit
computation, plus dilutive Common Stock Equivalents (i.e. convertible
preferred units, options and warrants).
(5) Amounts calculated after deduction for distributions to preferred
unitholders of $7,738 and $7,896 for the six months ended June 30, 1999 and
1998, respectively.



Mack-Cali Realty Corporation
Consolidated Balance Sheets
(in thousands, except share amounts)


June 30, December 31,
ASSETS: 1999 1998
Rental property
Land and leasehold interests $523,250 $510,534
Buildings and improvements 2,934,780 2,887,115
Tenant improvements 83,030 64,464
Furniture, fixtures and equipment 5,795 5,686
3,546,855 3,467,799
Less-accumulated depreciation
and amortization (220,152) (177,934)
Total rental property 3,326,703 3,289,865


Cash and cash equivalents 11,519 5,809
Investments in unconsolidated
joint ventures 86,380 66,508
Unbilled rents receivable 48,435 41,038
Deferred charges and other assets, net 52,703 39,020
Restricted cash 6,160 6,026
Accounts receivable 6,698 3,928


Total assets $3,538,598 $3,452,194


LIABILITIES AND STOCKHOLDERS' EQUITY:
Senior Unsecured Notes $ 597,344 $ --
Revolving credit facilities 148,600 671,600
Mortgages and loans payable 749,041 749,331
Dividends and distributions payable 40,926 40,564
Accounts payable and accrued expenses 39,644 33,253
Rents received in advance and
security deposits 31,117 29,980
Accrued interest payable 14,729 2,246
Total liabilities 1,621,401 1,526,974
Minority interest of unitholders
in Operating Partnership 458,544 501,313
Commitments and contingencies
Stockholders' equity:
Preferred stock, 5,000,000 shares
authorized, none issued -- --
Common stock, $0.01 par value,
190,000,000 shares authorized,
58,915,684 and 57,266,137
shares outstanding 589 573
Additional paid-in capital 1,563,187 1,514,648
Dividends in excess of net earnings (105,123) (91,314)
Total stockholders' equity 1,458,653 1,423,907


Total liabilities and
stockholders' equity $3,538,598 $3,452,194





Mack-Cali Realty Corporation
Leasing Statistics
For Quarter Ended June 30, 1999


WHOLLY-OWNED PORTFOLIO


SUMMARY OF SPACE LEASED DURING PERIOD


IN-SERVICE PROPERTIES:
Square feet leased at March 31, 1999 26,011,277
Net leasing activity in 2nd quarter 1999 20,760
Leased s.f. from 2nd quarter 1999 acquisitions 63,278
Occupancy adjustment(1) (13,975)


Square feet leased at June 30, 1999 26,081,340


Percent leased at June 30, 1999 96.3%


Square feet of Development/Redevelopment
Properties Not-in-Service as of June 30, 1999 500,850




OFFICE SPACE


Number Weighted Average
of Rentable Average Term
Leases S.F. Base Rent (Years)
New Leases:
First generation space 2 21,746 $17.88 9.3
Second generation space 79 313,451 $25.52 6.6
Total New Leasing 81 335,197 $25.02


Renewals & extensions 81 324,334 $23.09 4.3
Other retained tenants 30 122,883 $25.46 6.3
Total Leasing 192 782,414


Capital Expenditures - Second Generation Space(2):


Tenant Leasing
Improvements(3) Commissions Total


Expend. committed-2nd qtr $7,525,809 $4,824,831 $12,350,640
Rentable s.f. leased-2nd qtr 760,668
Cap. ex. committed
per r.s.f. per year $1.77 $1.13 $2.90


(1) Represents the net change in the amount of space leased/expired since the
prior reporting period in excess of 100 percent of the gross rentable area
of certain properties in the portfolio.
(2) Represents amounts committed, but not necessarily expended during period.
(3) Equals estimated workletter costs.



OFFICE/FLEX SPACE


Number Weighted Average
of Rentable Average Term
Leases S.F. Base Rent(1) (Years)


New Leases:
First generation space 1 24,240 $10.50 10.0
Second generation space 9 67,705 $ 8.85 6.3
Total New Leasing 10 91,945 $ 9.29


Renewals & extensions 14 162,978 $13.67 5.7
Other retained tenants 3 16,850 $ 7.74 2.9
Total Leasing 27 271,773


Capital Expenditures - Second Generation Space(2):


Tenant Leasing
Improvements(3) Commissions Total


Expend. committed-2nd qtr $1,154,303 $374,043 $1,528,346
Rentable s.f. leased-2nd qtr 247,533
Cap. ex. committed
per r.s.f. per year $0.83 $0.27 $1.10


INDUSTRIAL/WAREHOUSE SPACE


Number Weighted Average
of Rentable Average Term
Leases S.F. Base Rent(1) (Years)


New Leases:
Second generation space 1 36,290 $11.11 3.0


Renewals & extensions 1 450 $16.50 1.0
Other retained tenants 2 15,600 $ 9.15 8.8
Total Leasing 4 52,340


Capital Expenditures - Second Generation Space(2):


Tenant Leasing
Improvements(3) Commissions Total


Expend. committed-2nd qtr $174,215 $107,622 $281,837
Rentable s.f. leased-2nd qtr 52,340
Cap. ex. committed
per r.s.f. per year $0.71 $0.44 $1.15


(1) Equals triple net rent plus common area costs and real estate taxes.
(2) Represents amounts committed, but not necessarily expended during period.
(3) Equals estimated workletter costs.



LEASE RENEWALS


Number of
Leases Rentable S.F.


Leases expiring 230 1,085,767
Leases renewed & extended 96 487,762
Other retained tenants 35 155,333
Total leases retained 131 643,095
Percent retained 57.0% 59.2%
Future expirations renewed or
relet (included in totals above) 67 581,116
-------------------------------


JOINT VENTURE PROPERTIES


SUMMARY OF SPACE LEASED DURING PERIOD


IN-SERVICE PROPERTIES:
Square feet leased at March 31, 1999 639,293
Net leasing activity in 2nd quarter 1999 46,196
Square feet leased at June 30, 1999 685,489
Percent leased at June 30, 1999 90.2%
Square feet of Development/Redevelopment
Properties Not-in-Service as of June 30, 1999 784,500


OFFICE SPACE


Number Weighted Average
of Rentable Average Term
Leases S.F. Base Rent (Years)
New Leases:
First generation space 2 8,930 $18.50 4.0
Second generation space 3 36,111 $32.82 5.1
Total New Leasing 5 45,041 $29.98


Renewals & extensions 1 2,805 $24.06 5.0
Other retained tenants 1 2,936 $22.33 4.8
Total Leasing 7 50,782


Capital Expenditures - Second Generation Space(1):


Tenant Leasing
Improvements(2) Commissions Total


Expend. committed-2nd qtr $999,960 $239,368 $1,239,328
Rentable s.f. leased-2nd qtr 41,852
Cap. ex. committed
per r.s.f. per year $4.75 $1.14 $5.89


(1) Represents amounts committed, but not necessarily expended during period.
(2) Equals estimated workletter costs.



# # #

Mack-Cali Realty Corporation
Leasing Statistics
For The Six Months Ended June 30, 1999


WHOLLY-OWNED PORTFOLIO


SUMMARY OF SPACE LEASED DURING PERIOD


IN-SERVICE PROPERTIES:
Square feet leased at December 31, 1998 25,847,457
Net leasing activity year-to-date 96,007
Leased s.f. from 1999 acquisitions 133,963
Occupancy adjustment(1) 3,913


Square feet leased at June 30, 1999 26,081,340


Percent leased at June 30, 1999 96.3%


Square feet of Development/Redevelopment
Properties Not-in-Service as of June 30, 1999 500,850


OFFICE SPACE


Number Weighted Average
of Rentable Average Term
Leases S.F. Base Rent (Years)
New Leases:
First generation space 3 24,130 $17.55 8.8
Second generation space 125 429,863 $24.75 6.2
Total New Leasing 128 453,993 $24.37


Renewals & extensions 146 524,427 $22.60 4.1
Other retained tenants 56 298,245 $26.17 6.6
Total Leasing 330 1,276,665


Capital Expenditures - Second Generation Space(2):


Tenant Leasing
Improvements(3) Commissions Total


Expend. committed (y-t-d) $11,513,386 $6,588,807 $18,102,193
Rentable s.f. leased (y-t-d) 1,252,535
Cap. ex. committed
per r.s.f. per year $1.69 $0.97 $2.66


(1) Represents the net change in the amount of space leased/expired since the
prior reporting period in excess of 100 percent of the gross rentable area
of certain properties in the portfolio.
(2) Represents amounts committed, but not necessarily expended during period.
(3) Equals estimated workletter costs.



OFFICE/FLEX SPACE


Number Weighted Average
of Rentable Average Term
Leases S.F. Base Rent(1) (Years)


New Leases:
First generation space 1 24,240 $10.50 10.0
Second generation space 19 178,712 $11.02 6.9
Total New Leasing 20 202,952 $10.96


Renewals & extensions 27 231,294 $13.23 4.9
Other retained tenants 6 51,285 $15.45 7.3
Total Leasing 53 485,531


Capital Expenditures - Second Generation Space(2):


Tenant Leasing
Improvements(3) Commissions Total


Expend. committed (y-t-d) $2,544,044 $889,464 $3,433,508
Rentable s.f. leased (y-t-d) 247,533
Cap. ex. committed
per r.s.f. per year $0.92 $0.32 $1.24


INDUSTRIAL/WAREHOUSE SPACE


Number Weighted Average
of Rentable Average Term
Leases S.F. Base Rent(1) (Years)


New Leases:
Second generation space 2 49,090 $10.91 3.5


Renewals & extensions 2 3,450 $12.39 1.9
Other retained tenants 2 15,600 $ 9.15 8.8
Total Leasing 6 68,140


Capital Expenditures - Second Generation Space(2):


Tenant Leasing
Improvements(3) Commissions Total


Expend. committed (y-t-d) $187,015 $153,287 $340,302
Rentable s.f. leased (y-t-d) 68,140
Cap. ex. committed
per r.s.f. per year $0.59 $0.49 $1.08


(1) Equals triple net rent plus common area costs and real estate taxes.
(2) Represents amounts committed, but not necessarily expended during period.
(3) Equals estimated workletter costs.



LEASE RENEWALS


Number of
Leases Rentable S.F.


Leases expiring 419 1,734,329
Leases renewed & extended 175 759,171
Other retained tenants 64 365,130
Total leases retained 239 1,124,301
Percent retained 57.0% 64.8%
Future expirations renewed or
relet (included in totals above) 89 693,595
-------------------------------


JOINT VENTURE PROPERTIES


SUMMARY OF SPACE LEASED DURING PERIOD


IN-SERVICE PROPERTIES:
Square feet leased at December 31, 1998 625,713
Net leasing activity year-to-date 59,776
Square feet leased at June 30, 1999 685,489
Percent leased at June 30, 1999 90.2%
Square feet of Development/Redevelopment
Properties Not-in-Service as of June 30, 1999 784,500


OFFICE SPACE


Number Weighted Average
of Rentable Average Term
Leases S.F. Base Rent (Years)
New Leases:
First generation space 2 8,930 $18.50 4.0
Second generation space 4 38,194 $32.12 5.1
Total New Leasing 6 47,124 $29.54


Renewals & extensions 1 2,805 $24.06 5.0
Other retained tenants 4 16,206 $23.31 4.3
Total Leasing 11 66,135


Capital Expenditures - Second Generation Space(1):


Tenant Leasing
Improvements(2) Commissions Total


Expend. committed (y-t-d) $1,160,972 $253,694 $1,414,666
Rentable s.f. leased (y-t-d) 57,205
Cap. ex. committed
per r.s.f. per year $4.20 $0.92 $5.12



(1) Represents amounts committed, but not necessarily expended during period.
(2) Equals estimated workletter costs.