Mack-Cali Realty Corporation Announces 11 Percent Increase In Second Quarter FFO Per Share

08/10/2000 Category: Earnings

CRANFORD, NEW JERSEY -- August 10, 2000 -- Mack-Cali Realty Corporation (NYSE: CLI) today announced its results for the second quarter of 2000. The Company reported that its funds from operations (FFO) per diluted share for the second quarter 2000 increased 11 percent over the same period in 1999.

FINANCIAL HIGHLIGHTS

FFO, after adjustment for straight-lining of rents and non-recurring charges, for the quarter ended June 30, 2000, amounted to $66.4 million, or $0.91 per share, versus $60.7 million, or $0.82 per share, for the quarter ended June 30, 1999, a per share increase of 11.0 percent. For the six months ended June 30, 2000, FFO, after adjustment for straight-lining of rents and non-recurring charges, amounted to $132.6 million, or $1.81 per share, versus $120.9 million, or $1.63 per share, for the same period last year, for a six-month period increase of 11.0 percent on a per share basis. In the second quarter 2000 and 1999, the Company incurred non-recurring charges relating to contractual obligations to departing employees of $9.2 million, or $0.13 per share, and $16.5 million, or $0.24 per share, respectively, which have been excluded from FFO for the periods. Cash available for distribution (CAD) for the second quarter 2000 equaled $54.1 million, or $0.74 per share, versus $53.5 million, or $0.72 per share, for the same quarter last year, an increase of 2.8 percent on a per share basis. For the six months ended June 30, 2000, CAD equaled $109.5 million, or $1.49 per share, versus $107.5 million, or $1.45 per share, for the same period last year, for a six-month period increase of 2.8 percent on a per share basis.

Total revenues for the second quarter 2000 increased 6.5 percent to $145.9 million from $137.0 million for the same quarter last year. For the six months ended June 30, 2000, total revenues amounted to $288.9 million, an increase of 6.3 percent over the $271.9 million of total revenues for the same period last year.

Income from operations before minority interest in Operating Partnership for the second quarter 2000 equaled $46.4 million, or $0.63 per common share, versus $41.8 million, or $0.56 per common share, for the same quarter last year, a per share increase of 12.5 percent. Income from operations before minority interest in Operating Partnership for the six months ended June 30, 2000 equaled $89.7 million, or $1.23 per common share, versus $82.6 million, or $1.11 per common share, for the same period last year, a per share increase of 10.8 percent. Income from operations before minority interest in Operating Partnership 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 58,782,808 shares of common stock, 8,075,720 common operating partnership units and 223,124 $1,000-face-value preferred operating partnership units (6.75 percent annual rate) outstanding as of quarter end. The outstanding preferred units are convertible into 6,439,366 common operating partnership units. Assuming conversion of all preferred units into common units, the Company had a total of 73,297,894 shares/common units outstanding at June 30, 2000.

As of June 30, 2000, the Company had total indebtedness of approximately $1.49 billion, with a weighted average annual interest rate of 7.28 percent. Mack-Cali's total market capitalization was $3.4 billion at June 30, 2000, with a debt-to-market capitalization ratio of 44.1 percent. The Company had an interest coverage ratio of 3.71 times for the quarter ended June 30, 2000.

Mitchell E. Hersh, chief executive officer, said, "Our strong second quarter performance reflects a number of positive developments. In addition to achieving strong growth in FFO per share, we successfully recycled over $235 million in proceeds from property sales into higher yielding opportunities. And, at the end of the quarter, our portfolio occupancy was at an all-time high of 96.9 percent."

PRENTISS MERGER AGREEMENT

On June 27, 2000, the Company entered into a definitive plan of merger with Prentiss Properties Trust (NYSE: PP). This transaction will create the fourth largest office real estate investment trust (REIT) in the country. The deal is slated for closing in the fourth quarter of this year, pending shareholder approval.

PORTFOLIO MANAGEMENT TRANSACTIONS

During the quarter, the Company completed the following property sales, generating aggregate net gains to the Company of approximately $73.9 million:

- The Company sold International Financial Tower, located at 95 Christopher Columbus Drive in Jersey City, New Jersey, for $152.5 million. Mack-Cali continues to manage the 621,900 square-foot class A office property.

- Kemble Plaza II, a 475,100 square-foot class A office building located in Morris Township, New Jersey, was sold for $82.7 million.

- Mack-Cali exited Amarillo, Texas, a non-core market, with the sale of Atrium at Coulter Ridge, a 71,771 square-foot office building, for $1.6 million.

The Company used the proceeds from its second quarter property sales to strategically reinvest in other high growth opportunities, as follows:

- The Company acquired Taxter Corporate Park, a 341,108 square-foot, two-building, class A office complex located in Westchester County, New York, for $42.7 million.

- Gatehall IV, a 248,480 square-foot class A office property adjacent to the Mack-Cali Business Campus in Parsippany, New Jersey, was acquired by the Company for $42.2 million.

- In two separate transactions, the Company acquired a 100 percent interest in Parsippany Office Associates, LLC, and its 100 percent interests in Mack-Cali Business Campus and a portion of Morris County Financial Center, for $153.7 million. Mr. Hersh commented, "The second quarter transactions clearly demonstrate the ongoing execution of our portfolio management strategy of exiting certain non-core markets and divesting of core market assets where we have maximized value, investing proceeds in higher growth opportunities."

DEVELOPMENT SUMMARY

At the end of the second quarter, the Company had four development projects under construction, aggregating approximately 720,000 square feet of office space and a 440,000 square-foot parking garage, with total costs estimated to be approximately $163.2 million. Tenant improvements have commenced for Arthur Andersen at the 105 Eisenhower Parkway project and for TD Waterhouse at the Harborside Financial Center project during the quarter. The 1,100-car parking garage, located beneath the TD Waterhouse space, opened for business on July 1. The development projects are currently 75 percent leased.

Through the Company's development joint venture in California with Highridge Partners, the following projects are underway:

- In June, construction started on Stadium Plaza, a 261,554 square-foot, six-story office building located in Anaheim. The property is currently 32 percent leased.

- Construction began on a 105,940 square-foot movie theater and retail complex at Pacific Plaza, a planned 720,000 square-foot business and entertainment complex in Daly City. The theater/retail complex is currently 89 percent leased. Also at Pacific Plaza, a 128,000 square-foot lease was signed with DigiDesign, a division of Avid Technologies, at the 365,439 square-foot office building currently under construction. The office building is currently 35 percent leased.

Mack-Cali's total commitment to these joint venture development projects is approximately $28.6 million.

FINANCING ACTIVITIES

In June, the Company refinanced its unsecured revolving credit facility. The new $800 million facility, expandable to $1 billion, carries an interest rate equal to LIBOR plus 80 basis points, a reduction of 10 basis points from the previous facility. The credit facility, which carries a facility fee of 20 basis points, has a three-year term and a one-year extension option. The 24-bank lending group was led by Chase Manhattan Bank, Fleet National Bank, and Bank of America, N.A.

LEASING INFORMATION

Mack-Cali's consolidated in-service portfolio was 96.9 percent leased at June 30, 2000, compared to 96.7 percent at March 31, 2000.

For the quarter ended June 30, 2000, the Company executed 235 leases totaling 1,603,697 square feet, consisting of 1,299,058 square feet of office space and 304,639 square feet of office/flex space. Of these totals, 545,816 square feet were for new leases and 1,057,881 square feet were for lease renewals and other tenant retention transactions.

Accompanying this press release are schedules highlighting the second quarter and year-to-date leasing statistics for both the Company's consolidated and joint venture properties.

Copies of Mack-Cali's Form 10-Q and Supplemental Operating and Financial Data for the second quarter 2000 are available upon request from: Mack-Cali Investor Relations Dept. 11 Commerce Drive, Cranford, NJ 07016 [via phone: (908)272-8000 ext. 2484].

In addition, these items are available on Mack-Cali's website, as follows:

June 30, 2000 Form 10-Q: http://www.mack-cali.com/graphics/shareholders/pdfs/2nd.quarter.10q.00.pdf

Second Quarter 2000 Supplemental Operating and Financial Data: http://www.mack-cali.com/graphics/shareholders/pdfs/2nd.quarter.sp.00.pdf

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 267 properties, primarily office and office/flex buildings, totaling approximately 28.5 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 http://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 differ 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 operating costs may be greater than anticipated. For further 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, current reports on Form 8-K, and annual reports on Form 10-K and Form 10-K/A.

                  Mack-Cali Realty Corporation             Consolidated Statements of Operations            (in thousands, except per share amounts)-------------------------------------------------------------------                                             Quarter Ended June 30,                                            2000               1999

Base rents $122,072 $116,499Escalations & recoveries 14,627 16,366Parking and other 6,128 3,061Equity in earnings of unconsolidated joint ventures 1,070 834Interest income 1,992 215

Total revenues 145,889 136,975

Real estate taxes 14,733 14,208Utilities 10,014 9,829Operating services 16,822 17,429General and administrative 5,159 5,568Depreciation and amortization 22,945 22,465Interest expense 26,835 25,697

Total expenses 96,508 95,196

Minority interest in partially-owned properties (2,982) --Income from operations before minority interest in Operating Partnership 46,399 41,779 Minority interest in Operating Partnership(1) (8,936) (8,757) Income from operations 37,463 33,022 Non-recurring charges(2) (8,109) (14,336) Gain on sales of rental property(3) 64,954 --

Net income $94,308 $18,686

PER SHARE DATA:Income from operations - basic $0.64 $0.56Net income — basic $1.61 $0.32

Income from operations — diluted $0.63 $0.56Net income — diluted $1.52 $0.32

Dividends declared per common share $0.58 $0.55

Basic weighted average shares outstanding 58,545 58,510Diluted weighted average shares outstanding 73,284 67,486

(1) Excludes effect of minority interest's share of non-recurring charges and gain on sales ofrental property.(2) Net of minority interest's share of $1,119 and $2,122 in 2000 and 1999, respectively.(3) Net of minority interest's share of $8,967 in 2000.

Mack-Cali Realty Corporation Statements of Funds from Operations and Cash Available for Distribution (in thousands, except per share/unit amounts)------------------------------------------------------------------------ Quarter Ended June 30,2000 1999

Income from operations before minority interest in Operating Partnership $46,399 $41,779Add: Real estate depreciation and amortization(1) 23,434 22,769Deduct: Adj. to rental income for straight-lining of rents(2) (3,400) (3,833)Funds from operations(3), after adj. for straight- lining of rents and non-recurring charges $66,433 $60,715Deduct: Non-incremental revenue generating capital expenditures: Capital expenditures (1,763) (1,464) Tenant improvements and leasing commissions (10,551) (5,753)

Cash available for distribution $54,119 $53,498

Basic weighted average shares/units outstanding(4) 66,627 67,173Diluted weighted average shares/units outstanding(5) 73,284 74,104

Per Share/Unit - Basic(6): Funds from operations $0.94 $0.85 Cash available for distribution $0.76 $0.74Per Share/Unit - Diluted: Funds from operations $0.91 $0.82 Cash available for distribution $0.74 $0.72

Dividends declared per common share $0.58 $0.55

Dividend payout ratios: Funds from operations-diluted 63.98% 67.13% Cash available for distribution-diluted 78.54% 76.18%

(1) Includes the Company's share from unconsolidated joint ventures of $686 and $509 for 2000 and 1999, respectively.(2) Includes the Company's share from unconsolidated joint ventures of ($3) and ($26) for 2000 and 1999, respectively.(3) Funds from operations for both periods are calculated in accordance with the National Association of Real Estate Investment Trusts (NAREIT) definition, as published in October 1999.(4) Calculated based on weighted average common shares outstanding, assuming redemption of Operating Partnership common units into common shares.(5) 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).(6) Amounts calculated after deduction for distributions to preferred unitholders of $3,765 and $3,869 in 2000 and 1999, respectively.

Mack-Cali Realty Corporation Consolidated Statements of Operations (in thousands, except per share amounts)------------------------------------------------------------------------ Six Months Ended June 30, 2000 1999

Base rents $243,670 $232,579Escalations & recoveries 31,295 31,226Parking and other 9,450 6,961Equity in earnings of unconsolidated joint ventures 2,207 628Interest income 2,246 470

Total revenues 288,868 271,864

Real estate taxes 29,437 28,051Utilities 20,393 19,421Operating services 34,564 34,516General and administrative 11,272 13,531Depreciation and amortization 45,127 44,434Interest expense 53,261 49,319

Total expenses 194,054 189,272

Minority interest in partially-owned properties (5,072) --Income from operations before minority interest in Operating Partnership 89,742 82,592 Minority interest in Operating Partnership(1) (17,637) (17,506)Income from operations 72,105 65,086 Non-recurring charges(2) (8,109) (14,336) Gain on sales of rental property(3) 66,927 --

Net income $130,923 $50,750

PER SHARE DATA:Income from operations - basic $1.23 $1.12Net income — basic $2.24 $0.87Income from operations - diluted $1.23 $1.11Net income — diluted $2.14 $0.87

Dividends declared per common share $1.16 $1.10

Basic weighted average shares outstanding 58,420 58,337Diluted weighted average shares outstanding 73,237 67,385

(1) Excludes effect of minority interest's share of non-recurring charges and gain on sales ofrental property.(2) Net of minority interest's share of $1,119 and $2,122 in 2000 and 1999, respectively.(3) Net of minority interest's share of $9,242 in 2000.

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, 2000 1999

Income from operations before minority interest in Operating Partnership $89,742 $82,592Add: Real estate depreciation and amortization(1) 46,152 45,720 Gain on sale of land 2,248 --Deduct: Adj. to rental income for straight-lining of rents(2) (5,590) (7,378)Funds from operations(3), after adj. for straight- lining of rents and non-recurring charges $132,552 $120,934Deduct: Non-incremental revenue generating capital expenditures: Capital expenditures (2,610) (2,033) Tenant improvements and leasing commissions (20,460) (11,406)

Cash available for distribution $109,482 $107,495

Basic weighted average shares/units outstanding(4) 66,527 67,092Diluted weighted average shares/units outstanding(5) 73,237 74,040

Per Share/Unit - Basic(6): Funds from operations $1.88 $1.69 Cash available for distribution $1.53 $1.49Per Share/Unit - Diluted: Funds from operations $1.81 $1.63 Cash available for distribution $1.49 $1.45

Dividends declared per common share $1.16 $1.10

Dividend payout ratios: Funds from operations-diluted 64.09% 67.35% Cash available for distribution-diluted 77.60% 75.76%

(1) Includes the Company's share from unconsolidated joint ventures of $1,420 and $1,610 for 2000 and 1999, respectively.(2) Includes the Company's share from unconsolidated joint ventures of $54 and ($44) for 2000 and 1999, respectively.(3) Funds from operations for both periods are calculated in accordance with the National Association of Real Estate Investment Trusts (NAREIT) definition, as published in October 1999.(4) Calculated based on weighted average common shares outstanding, assuming redemption of Operating Partnership common units into common shares.(5) 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).(6) Amounts calculated after deduction for distributions to preferred unitholders of $7,634 and $7,738 in 2000 and 1999, respectively. Mack-Cali Realty Corporation Consolidated Balance Sheets (in thousands, except share amounts)------------------------------------------------------------------------ June 30, December 31,ASSETS: 2000 1999Rental property Land and leasehold interests $ 548,813 $ 549,096 Buildings and improvements 3,015,197 3,014,532 Tenant improvements 84,687 85,057 Furniture, fixtures and equipment 6,169 6,160 3,654,866 3,654,845Less-accumulated depreciation and amortization (270,065) (256,629)Total rental property 3,384,801 3,398,216

Cash and cash equivalents 10,535 8,671Investments in unconsolidated joint ventures 95,382 89,134Unbilled rents receivable 43,821 53,253Deferred charges and other assets, net 80,117 66,436Restricted cash 6,498 7,081Accounts receivable, net 6,950 6,810

Total assets $3,628,104 $3,629,601

LIABILITIES AND STOCKHOLDERS' EQUITY:Senior unsecured notes $ 782,942 $ 782,785Revolving credit facilities 215,730 177,000Mortgages and loans payable 488,605 530,390Dividends and distributions payable 42,543 42,499Accounts payable and accrued expenses 74,376 63,394Rents received in advance and security deposits 34,170 36,150Accrued interest payable 16,263 16,626 Total liabilities 1,654,629 1,648,844Minority interests: Operating Partnership 455,645 455,275 Partially-owned properties -- 83,600 Total minority interests 455,645 538,875Commitments and contingenciesStockholders' equity:Preferred stock, 5,000,000 shares authorized, none issued -- --Common stock, $0.01 par value, 190,000,000 shares authorized, 58,782,808 and 58,446,552 shares outstanding 588 584Additional paid-in capital 1,561,547 1,549,888Dividends in excess of net earnings (40,997) (103,902)Unamortized stock compensation (3,308) (4,688) Total stockholders' equity 1,517,830 1,441,882

Total liabilities and stockholders' equity $3,628,104 $3,629,601 Mack-Cali Realty Corporation Leasing Statistics For The Quarter Ended June 30, 2000

CONSOLIDATED PORTFOLIO SUMMARY OF SPACE LEASED DURING PERIOD------------------------------------------------------------------------IN-SERVICE PROPERTIES: Square feet leased at March 31, 2000 26,551,621 Net leasing activity in 2nd quarter 2000 95,642 Leased s.f. acquired/placed in service during the period 549,360 Leased s.f. sold during the period (1,157,759)Occupancy adjustment(1) (9,931)

Square feet leased at June 30, 2000 26,028,933

Percent leased at June 30, 2000 96.9%

Square feet of Development Properties Not-in-Service as of June 30, 2000 720,010

OFFICE SPACE------------------------------------------------------------------------ Number Weighted Average of Rentable Average Term Leases S.F. Base Rent (Years)New Leases:First generation space 18 129,030 $32.08 7.3Second generation space 52 339,867 $19.20 6.4 Total New Leasing 70 468,897 $22.75 6.6

Renewals & extensions 91 695,326 $24.55 5.8Other retained tenants 38 134,835 $23.05 4.7 Total Leasing 199 1,299,058

Capital Expenditures - Second Generation Space(2):

Tenant Leasing Improvements(3) Commissions Total

Expend. committed-2nd qtr $5,928,536 $6,244,013 $12,172,549Rentable s.f. leased-2nd qtr 1,170,028Cap. ex. committed per r.s.f. per year $0.86 $0.91 $1.77

(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:Second generation space 9 76,919 $16.72 6.9

Renewals & extensions 22 203,472 $14.29 5.1Other retained tenants 5 24,248 $15.09 5.7 Total Leasing 36 304,639

Capital Expenditures - Second Generation Space(2):

Tenant Leasing Improvements(3) Commissions Total

Expend. committed-2nd qtr $1,518,261 $771,558 $2,289,819Rentable s.f. leased-2nd qtr 304,639Cap. ex. committed per r.s.f. per year $0.89 $0.45 $1.34

INDUSTRIAL/WAREHOUSE SPACE------------------------------------------------------------------------No activity this quarter

LEASE RENEWALS------------------------------------------------------------------------ Number of Rentable Leases S.F.

Leases expiring 228 1,570,039Leases renewed & extended 113 898,798Other retained tenants 44 221,067Total leases retained 157 1,119,865Percent retained 68.9% 71.3%Future expirations renewed orrelet (included in totals above) 96 1,021,023

(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. UNCONSOLIDATED JOINT VENTURE PROPERTIES SUMMARY OF SPACE LEASED DURING PERIOD------------------------------------------------------------------------IN-SERVICE PROPERTIES:Square feet leased at March 31, 2000 1,243,049 Net leasing activity in 2nd quarter 2000 34,483Square feet leased at June 30, 2000 1,277,532

Percent leased at June 30, 2000 82.6%

Square feet of Development Properties Not-in-Service as of June 30, 2000 622,982

OFFICE SPACE------------------------------------------------------------------------ Number Weighted Average of Rentable Average Term Leases S.F. Base Rent (Years)New Leases:First generation space 4 34,483 $20.16 5.4 Total Leasing 4 34,483

Capital Expenditures - Second Generation Space: none this quarter

Lease Expirations and Renewals: none this quarter Mack-Cali Realty CorporationLeasing StatisticsFor The Six Months Ended June 30, 2000

CONSOLIDATED PORTFOLIO SUMMARY OF SPACE LEASED DURING PERIOD------------------------------------------------------------------------IN-SERVICE PROPERTIES:Square feet leased at December 31, 1999 26,411,471 Net leasing activity year-to-date 185,003 Leased s.f. acquired/placed in service during the period 610,160 Leased s.f. sold during the period (1,157,759)Occupancy adjustment(1) (19,942)

Square feet leased at June 30, 2000 26,028,933

Percent leased at June 30, 2000 96.9%

Square feet of Development Properties Not-in-Service as of June 30, 2000 720,010

OFFICE SPACE------------------------------------------------------------------------ Number Weighted Average of Rentable Average Term Leases S.F. Base Rent (Years)New Leases:First generation space 29 194,931 $29.54 6.4Second generation space 113 607,963 $20.86 5.6 Total New Leasing 142 802,894 $22.97 5.8

Renewals & extensions 175 1,212,117 $25.56 4.7Other retained tenants 76 388,454 $26.21 5.7 Total Leasing 393 2,403,465

Capital Expenditures - Second Generation Space(2):

Tenant Leasing Improvements(3) Commissions Total

Expend. Committed YTD $10,708,195 $10,714,938 $21,423,133Rentable s.f. leased YTD 2,208,534Cap. ex. committed per r.s.f. per year $0.95 $0.95 $1.90

(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 6,000 $15.90 5.0Second generation space 18 140,194 $15.87 6.4 Total New Leasing 19 146,194 $15.87 6.3

Renewals & extensions 33 267,855 $13.59 4.8Other retained tenants 8 46,843 $14.53 4.3 Total Leasing 60 460,892

Capital Expenditures - Second Generation Space(2):

Tenant Leasing Improvements(3) Commissions Total

Expend. Committed YTD $1,866,428 $1,049,001 $2,915,429Rentable s.f. leased YTD 454,892Cap. ex. committed per r.s.f. per year $0.79 $0.44 $1.23

INDUSTRIAL/WAREHOUSE SPACE------------------------------------------------------------------------ Number Weighted Average of Rentable Average Term Leases S.F. Base Rent(1) (Years)New Leases:Second generation space 1 4,500 $14.00 4.0

Renewals & extensions 3 34,104 $20.44 3.7Other retained tenants 2 7,650 $10.91 3.3 Total Leasing 6 46,254

Capital Expenditures - Second Generation Space(2):

Tenant Leasing Improvements(3) Commissions Total

Expend. Committed YTD $51,769 $33,876 $85,645Rentable s.f. leased YTD 46,254Cap. ex. committed per r.s.f. per year $0.31 $0.20 $0.51

(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 Rentable Leases S.F.

Leases expiring 421 2,787,592Leases renewed & extended 211 1,514,076Other retained tenants 86 504,931Total leases retained 297 2,019,007Percent retained 70.5% 72.5%Future expirations renewed orrelet (included in totals above) 135 1,446,441 UNCONSOLIDATED JOINT VENTURE PROPERTIES SUMMARY OF SPACE LEASED For The Six Months Ended June 30, 2000------------------------------------------------------------------------IN-SERVICE PROPERTIES:Square feet leased at December 31, 1999 1,071,411 Net leasing activity year-to-date 35,899 Leased s.f. acquired/placed in service during the period 170,222Square feet leased at June 30, 2000 1,277,532

Percent leased at June 30, 2000 82.6%

Square feet of Development Properties Not-in-Service as of June 30, 2000 622,982

OFFICE SPACE------------------------------------------------------------------------ Number Weighted Average of Rentable Average Term Leases S.F. Base Rent (Years)New Leases:First generation space 5 35,899 $20.13 5.4

Renewals & extensions 1 8,769 $39.40 3.0 Total Leasing 6 44,668

Capital Expenditures - Second Generation Space(1):

Tenant Leasing Improvements(2) Commissions Total

Expend. committed YTD $0.00 $5,261 $5,261Rentable s.f. leased YTD 8,769Cap. ex. committed per r.s.f. per year $0.00 $0.20 $0.20

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

LEASE RENEWALS------------------------------------------------------------------------ Number of Rentable Leases S.F.

Leases expiring 1 8,769Leases renewed & extended 1 8,769Percent retained 100.0% 100.0%Future expirations renewed orrelet (included in totals above) 1 8,769