Mack-Cali Realty Corporation Announces 6.3 Percent Increase in Fourth Quarter FFO Per Share

02/24/2000 Category: Earnings

-- Full Year 1999 FFO Per Share Up 8.2 Percent --

CRANFORD, NEW JERSEY -- February 24, 2000 -- Mack-Cali Realty Corporation (NYSE: CLI) today announced its results for the fourth quarter of 1999. The Company reported that its funds from operations (FFO) per diluted share for the fourth quarter 1999 increased 6.3 percent over the same period in 1998.

FINANCIAL HIGHLIGHTS

FFO, after adjustment for straight-lining of rents, for the quarter ended December 31, 1999, amounted to $62.0 million, or $0.85 per share, versus $58.7 million, or $0.80 per share, for the quarter ended December 31, 1998, a per share increase of 6.3 percent. For the year ended December 31, 1999, FFO, after adjustment for straight-lining of rents, amounted to $244.2 million, or $3.31 per share, versus $216.9 million, or $3.06 per share, for the same period last year, representing a current year increase of 8.2 percent on a per share basis.

Cash available for distribution (CAD) for the fourth quarter and full year 1999 was impacted by the effects of leasing costs associated with the Company's successful efforts under its ongoing early reletting program. Current quarter CAD equaled $53.4 million, or $0.73 per share, versus $52.9 million, or $0.72 per share, for the same quarter last year, an increase of 1.4 percent on a per share basis. For the year ended December 31, 1999, CAD equaled $211.3 million, or $2.86 per share, versus $194.7 million, or $2.75 per share, for the same period last year, representing a current year increase of 4.0 percent on a per share basis. CAD for the fourth quarter and full year 1999 included $2.0 million and $5.2 million, respectively, of expenditures related to the early re-leasing of 230,260 square feet of office space at Harborside Financial Center in Jersey City, New Jersey; such new leases carrying a weighted average term of 10.5 years. Excluding these expenditures, CAD per share for the quarter ended December 31, 1999 would have amounted to $0.76 per share, an increase of 5.6 percent over the same period in 1998; CAD per share for the year ended December 31, 1999 would have amounted to $2.94 per share, an increase of 6.9 percent over 1998.

Total revenues for the fourth quarter 1999 increased 4.2 percent to $140.6 million from $134.9 million for the same quarter last year. For the year ended December 31, 1999, total revenues amounted to $551.5 million, an increase of 11.7 percent over the $493.7 million in total revenues for the same period last year.

Income from operations before minority interest in Operating Partnership for the fourth quarter 1999 totaled $43.6 million, or $0.60 per share, versus $40.4 million, or $0.55 per share, for the same quarter last year, an increase of 9.1 percent on a per share basis. Income from operations before minority interest in Operating Partnership for the year ended December 31, 1999 totaled $167.1 million, or $2.26 per share, versus $151.5 million, or $2.12 per share, for the same period last year, an increase of 6.6 percent on a per share basis. Income from operations before minority interest in Operating Partnership excludes gain on sale of rental property, non-recurring charges and extraordinary items.

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 58,446,552 shares of common stock, 8,153,710 common operating partnership units and 229,304 $1,000-face-value preferred operating partnership units (6.75 percent annual rate) outstanding as of year 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 73,217,983 shares/common units outstanding at December 31, 1999.

As of December 31, 1999, the Company had total indebtedness of approximately $1.49 billion, with a weighted average annual interest rate of 7.27 percent. Mack-Cali's total market capitalization was $3.5 billion at December 31, 1999, with a debt-to-market capitalization ratio of 42.8 percent. The Company had an interest coverage ratio of 3.37 times for the quarter ended December 31, 1999 and 3.50 times for the year ended December 31, 1999.

Commenting on the results, Mitchell E. Hersh, chief executive officer, said, "1999 was a significant and active year for Mack-Cali. We successfully moved forward on several of our strategic initiatives, including an aggressive, proactive leasing program, increased development activity and select portfolio management transactions. We finished the year with solid earnings growth which resulted in the fifth consecutive year in which we increased our dividend."

PROACTIVE LEASING PROGRAM

The Company successfully completed several significant leasing transactions during 1999 as a demonstration of its ongoing proactive leasing program, highlighted by the following:

- Signed a 303,129 square foot lease with Keystone Mercy Health Plan carrying a 15-year term at the Company's 371,000 square-foot Airport Business Center office complex in Lester, Pennsylvania.

- Signed a five-year lease renewal with Nabisco for 300,378 square feet at Mack-Cali Business Campus in Parsippany, New Jersey. Nabisco occupies all of Seven Campus Drive and Seven Sylvan Way in the 860,000 square-foot office park, which is currently 98 percent leased.

- Leased a total of approximately 204,000 square feet to DLJdirect for a 10-year term at the Company's Harborside Financial Center office complex.

- Signed additional long-term leases at Harborside for an aggregate of 213,523 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.

- Signed a five-year lease renewal with Lonza Group for 89,448 square feet at 17-17 Route 208 in Fairlawn, New Jersey.

- Signed a five-year lease renewal with Electronic Data Systems for 75,000 square feet at 250 Johnson Road in Morris Plains, New Jersey.

INCREASED DEVELOPMENT PIPELINE

During 1999, Mack-Cali successfully completed several office and office/flex projects, as well as launched additional development projects, highlighted by the following:

The Company placed in service three office and four office/flex properties, aggregating 872,616 square feet. Four of these projects totaling 389,171 square feet were ground-up development transactions and the remaining three properties totaling 483,445 were redevelopment projects.

One of the most prominent and successful redevelopment projects was 795 Folsom Street, a 183,445 square-foot office building in San Francisco, California. During 1999, the Company acquired the property from AT&T and simultaneously leased 63,278 square feet back to AT&T. The Company subsequently signed a lease at the property with Move.com, a subsidiary of Cendant Corporation, for three floors totaling 95,000 square feet, bringing occupancy of the building to 86 percent by year-end.

The Company also announced several significant development projects 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 an 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 fully pre-leased to TD Waterhouse for a 15-year term.

- Formed 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.

- Entered into an agreement with Lincoln Property Company to contribute Mack-Cali's land on the north pier adjacent to Harborside for the development of a 300-unit luxury residential apartment building.

During the year, the Company commenced construction on other significant office projects, highlighted as follows:

- Began construction of a 130,000 square-foot office building in Bernards Township, New Jersey on land acquired through a joint venture with SJP Properties.

- Commenced construction of a 220,000 square-foot office property at 105 Eisenhower Parkway adjacent to two of the Company's operating properties in Roseland, New Jersey, after the Company signed a 15-year lease with Arthur Anderson for 110,000 square feet of the building.

- Commenced construction of a 183,000 square-foot office property on the Company's land in the Denver Tech Center located in Denver, Colorado, after the Company signed a ten-year lease with URS Greiner Woodward Clyde for 90,000 square feet of the building.

PORTFOLIO MANAGEMENT TRANSACTIONS

During the year, the Company completed several key portfolio management transactions as part of its ongoing efforts to strengthen its portfolio's growth potential. Such transactions included:

- Acquired from Pacifica Holding Company two office properties, located in Colorado Springs, Colorado, aggregating 94,737 square feet.

- Acquired 1201 Connecticut Avenue, NW, a 169,549 square-foot office property located in Washington, D.C., expanding the Company's presence in the prestigious Metropolitan Washington, D.C. market to four properties aggregating over 616,000 square feet.

- Sold 400 Alexander Road, its 70,500 square-foot office building in Princeton, New Jersey, for $9.1 million. The Company had purchased the then-vacant property in 1995 for $4.2 million and signed a 15-year lease for the entire building with Berlitz International, Inc.

- Sold Beardsley Corporate Center, its 119,300 square-foot office property in Phoenix, Arizona, for $8.9 million. Proceeds of the sale were used in part to acquire three office/flex buildings totaling over 138,000 square feet in Moorestown, New Jersey, for $8.0 million. The acquired properties are located in Moorestown Office Park, bringing Mack-Cali's holdings in the park to 18 buildings totaling 814,600 square feet.

- Sold a 55 percent interest in five buildings located at Mack-Cali Business Campus and one building at Morris County Financial Center, both in Parsippany, New Jersey, for $83.6 million. The buildings are located at Two Hilton Court, Two Dryden Way, Seven and Eight Campus Drive, and Five and Seven Sylvan Way.

- Entered into a joint venture, along with seven other real estate companies and Kleiner Perkins Caufield and Byers, one of the country's premier venture capital firms, in the formation of BroadBand Office, Inc. Mack-Cali received an ownership interest in BroadBand Office, which will offer comprehensive telecommunications solutions to businesses nationally.

More recently, the Company entered into a contract to sell its 621,900 square-foot office property at 95 Christopher Columbus Drive in Jersey City, New Jersey for a sales price of approximately $152.5 million, subject to certain contingencies.

FINANCING HIGHLIGHTS

Mack-Cali started 1999 with the successful achievement of investment grade credit ratings. Standard & Poor's Rating Services and Duff & Phelps Credit Rating Co. each assigned their BBB rating to existing and prospective senior unsecured debt and their BBB- rating to prospective preferred stock offerings of the Company. Moody's Investors Service assigned its Baa3 rating to existing and prospective senior unsecured debt and its Ba1 rating to prospective preferred stock offerings of the Company.

During the year, the Company issued $600 million in senior unsecured public notes, comprised of two tranches: $300 million of 7.0 percent, five-year notes and $300 million of 7.25 percent, 10-year notes. The net proceeds received from the issuance of the unsecured notes were used to pay down an equivalent amount of floating rate borrowings from the Company's revolving credit facilities.

The Company also issued $185.3 million of unsecured corporate debt to Teachers Insurance and Annuity Association. 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 percent and has the same maturity date of December 31, 2003 as the previous flipper mortgage debt.

In the third quarter, the Company raised its quarterly cash dividend for the fifth consecutive year to $0.58 per share, from $0.55 per share, representing a 5.5 percent increase. The dividend is an indicated annual rate of $2.32 per share and represents a dividend yield of over 9.5 percent based on the Company's current stock price of $24.00 per share. The Company has raised its quarterly dividend by over 43 percent over the past five years.

LEASING INFORMATION

Mack-Cali's consolidated in-service portfolio was 96.5 percent leased at year-end, compared to 96.1 percent at September 30, 1999.

For the quarter ended December 31, 1999, the Company executed 234 leases totaling 2,263,582 square feet, consisting of 2,033,972 square feet of office space and 229,610 square feet of office/flex space; 559,068 square feet for new leases and 1,704,514 square feet for lease renewals and other tenant retention transactions.

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

Copies of Mack-Cali's 1999 Form 10-K and Supplemental Operating and Financial Data for the fourth quarter 1999 are available upon request from: Mack-Cali Investor Relations Dept., 11 Commerce Drive, Cranford, NJ 07016 [via phone: (908)497-2001].

ABOUT THE COMPANY

Mack-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. With the closing of pending transactions, Mack-Cali will own or have interests in 255 properties, primarily office and office/flex buildings, totaling approximately 28.1 million square feet, serving over 2,400 tenants in 12 states, and the District of Columbia.

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 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, reports on Form 8-K, and annual reports on Form 10-K.

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

Quarter Ended December 31, 1999 1998

Base rents $119,188 $115,775Escalations & recoveries 16,127 15,084Parking and other 3,842 3,210Interest income 312 236Equity in earnings of unconsolidated joint ventures 1,131 636

Total revenues 140,600 134,941

Real estate taxes 14,482 12,882Utilities 10,525 9,723Operating services 18,709 19,148General and administrative 6,258 6,555Depreciation and amortization 19,808 22,379Interest expense 27,167 23,896

Total expenses 96,949 94,583

Minority interest ñ partially-owned properties (79) --Income from operations before minority interest in O.P. 43,572 40,358Minority interest ñ Operating Partnership(1) (8,816) (9,050)Income from operations 34,756 31,308Gain on sale of rental property(2) 1,713 --

Net income $36,469 $31,308

PER SHARE DATA:Income from operations - basic $0.60 $0.55Net income - basic $0.63 $0.55

Income from operations - diluted $0.60 $0.55Net income - diluted $0.62 $0.55

Dividends declared $0.58 $0.55

Basic weighted average shares outstanding 58,187 57,173Diluted weighted average shares outstanding 66,654 66,265

(1) Excludes effect of minority interestís share of gain on sale in 1999.(2) Net of minority interestís share in 1999 of $244. Mack-Cali Realty Corporation Statements of Funds from Operations and Cash Available for Distribution (in thousands, except per share/unit amounts)

Quarter Ended December 31, 1999 1998Income from operations before gain on sale of rental property and minority interests $43,651 $40,358Add: Real estate depreciation and amortization(1) 20,592 22,319Deduct: Adj. to rental income for straight-lining of rents(1) (2,142) (3,984)Deduct: Minority interest- partially-owned properties (79) --Funds from operations(2) after adj. for straight-lining of rents $62,022 $58,693Deduct non-incremental revenue generating capital expenditures: Capital improvements (405) (1,371) Tenant improvements and leasing commissions(6) (8,187) (4,403)Cash available for distribution(6) $53,430 $52,919

Basic weighted average shares/units outstanding(3) 66,469 65,987Diluted weighted average shares/units outstanding(4) 73,272 73,487Per Share/Unit - Basic(5): Funds from operations $0.87 $0.83 Cash available for distribution(6) $0.75 $0.74Per Share/Unit - Diluted: Funds from operations $0.85 $0.80 Cash available for distribution(6) $0.73 $0.72Dividend per common share $0.58 $0.55Dividend payout ratios: Funds from operations-diluted 68.52% 68.86% Cash available for distribution-diluted 79.54% 76.38%

(1) Includes FFO adjustments related to Companyís 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 $4,223 for the quarter ended December 31, 1999 and 1998, respectively.(6) 1999 period includes $2.0 million of expenditures during the period related to the early releasing of 143,636 square feet of office space at Harborside Financial Center in Jersey City, NJ; such new leases carry a weighted average term of 10.4 years. Excluding these expenditures, CAD per share for the period would have amounted to $0.78 (basic) and $0.76 (diluted). Mack-Cali Realty Corporation Consolidated Statements of Operations (in thousands, except per share amounts)

Year Ended December 31, 1999 1998

Base rents $469,853 $427,528Escalations & recoveries 62,182 51,981Parking and other 15,915 10,712Interest income 941 2,423Equity in earnings of unconsolidated joint ventures 2,593 1,055

Total revenues 551,484 493,699

Real estate taxes 57,382 48,297Utilities 41,580 38,440Operating services 69,689 63,711General and administrative 25,480 24,828Depreciation and amortization 87,209 78,916Interest expense 102,960 88,043

Total expenses 384,300 342,235

Minority interest ñ partially-owned properties (79) --Income from operations before minority interest in O.P. 167,105 151,464Minority interest ñ Operating Partnership(1) (34,743) (32,513)Income from operations 132,362 118,951Gain on sale of rental property(2) 1,713 --Non-recurring charges(3) (14,336) --Extraordinary item-loss on early retirement of debt(4) -- (2,373)

Net income $119,739 $116,578

PER SHARE DATA:Income from operations - basic $2.27 $2.13Net income - basic $2.05 $2.09Income from operations - diluted $2.26 $2.12Net income - diluted $2.04 $2.07

Dividends declared $2.26 $2.10Basic weighted average shares outstanding 58,385 55,840Diluted weighted average shares outstanding 67,133 63,893

(1) Excludes effect of minority interestís share of non-recurring charges, gain on sale of rental property and extraordinary items.(2) Net of minority interestís share in 1999 of $244.(3) Net of minority interestís share in 1999 of $2,122.(4) Net of minority interestís 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)

Year Ended December 31, 1999 1998Income from operations before gain on sale of rental property and minority interests $167,184 $151,464Add: Real estate depreciation and amortization(1) 89,731 79,169Deduct: Adj. to rental income for straight-lining of rents(1) (12,596) (13,684)Deduct: Minority interest- partially-owned properties (79) --Funds from operations(2) after adj. for straight-lining of rents $244,240 $216,949Deduct non-incremental revenue generating capital expenditures: Capital improvements (3,499) (3,075) Tenant improvements and leasing commissions(6) (29,405) (19,192)Cash available for distribution(6) $211,336 $194,682

Basic weighted average shares/units outstanding(3) 66,885 63,438Diluted weighted average shares/units outstanding(4) 73,769 70,867

Per Share/Unit - Basic(5): Funds from operations $3.42 $3.16 Cash available for distribution(6) $2.93 $2.81Per Share/Unit - Diluted: Funds from operations $3.31 $3.06 Cash available for distribution(6) $2.86 $2.75Dividend per common share $2.26 $2.10

Dividend payout ratios: Funds from operations-diluted 68.26% 68.60% Cash available for distribution-diluted 78.89% 76.44%

(1) Includes FFO adjustments related to Companyís 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 $15,476 and $16,313 for the year ended December 31, 1999 and 1998, respectively.(6) 1999 period includes $5.2 million of expenditures during the period related to the early releasing of 230,260 square feet of office space at Harborside Financial Center in Jersey City, NJ; such new leases carry a weighted average term of 10.1 years. Excluding these expenditures, CAD per share for the period would have amounted to $3.01 (basic) and $2.94 (diluted). Mack-Cali Realty Corporation Consolidated Balance Sheets (in thousands, except share amounts)

December 31,ASSETS: 1999 1998Rental property Land and leasehold interests $ 549,096 $ 510,534 Buildings and improvements 3,014,532 2,887,115 Tenant improvements 85,057 64,464 Furniture, fixtures and equipment 6,160 5,686 3,654,845 3,467,799Less-accumulated depreciation and amortization (256,629) (177,934)Total rental property 3,398,216 3,289,865

Cash and cash equivalents 8,671 5,809Investments in unconsolidated joint ventures 89,134 66,508Unbilled rents receivable 53,253 41,038Deferred charges and other assets, net 66,436 39,020Restricted cash 7,081 6,026Accounts receivable 6,810 3,928

Total assets $3,629,601 $3,452,194

LIABILITIES AND STOCKHOLDERSí EQUITY:Senior Unsecured Notes $ 782,785 $ --Revolving credit facilities 177,000 671,600Mortgages and loans payable 530,390 749,331Dividends and distributions payable 42,499 40,564Accounts payable and accrued expenses 63,394 33,253Rents received in advance and security deposits 36,150 29,980Accrued interest payable 16,626 2,246 Total liabilities 1,648,844 1,526,974Minority interests: Operating Partnership 455,275 501,313 Partially-owned properties 83,600 -- Total minority interests 538,875 501,313Commitments and contingenciesStockholdersí equity:Preferred stock, 5,000,000 shares authorized, none issued -- --Common stock, $0.01 par value, 190,000,000 shares authorized, 58,446,552 and 57,266,137 shares outstanding 584 573Additional paid-in capital 1,549,888 1,514,648Dividends in excess of net earnings (103,902) (91,314)Unamortized stock compensation (4,688) -- Total stockholdersí equity 1,441,882 1,423,907

Total liabilities and stockholdersí equity $3,629,601 $3,452,194 Mack-Cali Realty Corporation Leasing Statistics For The Quarter Ended December 31, 1999

CONSOLIDATED PORTFOLIO

SUMMARY OF SPACE LEASED DURING PERIOD

IN-SERVICE PROPERTIES: Square feet leased at September 30, 1999 26,311,938 Net leasing activity in 4th quarter 1999 101,334 Leased s.f. from 4th quarter 1999 acquisitions/ properties placed in service 199,800 Leased s.f. deducted due to 4th quarter 1999 dispositions (189,851) Occupancy adjustment(1) (11,750)

Square feet leased at December 31, 1999 26,411,471

Percent leased at December 31, 1999 96.5%

Square feet of Development/Redevelopment Properties Not-in-Service as of December 31, 1999 718,000

OFFICE SPACE

Number Weighted Average of Rentable Average Term Leases S.F. Base Rent (Years)New Leases:First generation space 15 79,293 $19.73 6.6Second generation space 62 440,475 $26.24 12.1 Total New Leasing 77 519,768 $25.25 11.2

Renewals & extensions 97 1,328,772 $23.29 5.4Other retained tenants 25 185,432 $24.14 6.2 Total Leasing 199 2,033,972

Capital Expenditures - Second Generation Space(2):

Tenant Leasing Improvements(3) Commissions Total

Expend. committed-4th qtr $17,309,910 $10,493,373 $27,803,283Rentable s.f. leased-4th qtr 1,954,679Cap. ex. committed per r.s.f. per year $1.27 $0.77 $2.04

(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 6,800 $17.83 10.0Second generation space 4 32,500 $17.18 6.4 Total New Leasing 5 39,300 $17.29 7.0

Renewals & extensions 19 132,811 $15.03 3.5Other retained tenants 11 57,499 $18.55 6.5 Total Leasing 35 229,610

Capital Expenditures - Second Generation Space(2):

Tenant Leasing Improvements(3) Commissions Total

Expend. committed-4th qtr $561,050 $504,956 $1,066,006Rentable s.f. leased-4th qtr 222,810Cap. ex. committed per r.s.f. per year $0.54 $0.48 $1.02

INDUSTRIAL/WAREHOUSE SPACE ñ no activity during period.

LEASE RENEWALS Number of Rentable Leases S.F.

Leases expiring 223 2,162,248Leases renewed & extended 116 1,461,583Other retained tenants 36 242,931Total leases retained 152 1,704,514Percent retained 68.2% 78.8%Future expirations renewed orrelet (included in totals above) 87 1,502,155

(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 September 30, 1999 889,681 Net leasing activity in 4th quarter 1999 25,215 Leased s.f. from 4th quarter 1999 acquisitions/ properties placed in service 156,515

Square feet leased at December 31, 1999 1,071,411

Percent leased at December 31, 1999 87.1%

Square feet of Development/Redevelopment Properties Not-in-Service as of December 31, 1999 678,378

OFFICE SPACE

Number Weighted Average of Rentable Average Term Leases S.F. Base Rent (Years)New Leases:First generation space 2 25,215 $20.84 9.2 Total Leasing 2 25,215 Mack-Cali Realty Corporation Leasing Statistics For The Year Ended December 31, 1999

CONSOLIDATED 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 231,890 Leased s.f. from 1999 acquisitions/ properties placed in service 533,924 Leased s.f. deducted due to 1999 dispositions (189,851) Occupancy adjustment(1) (11,949)

Square feet leased at December 31, 1999 26,411,471

Percent leased at December 31, 1999 96.5%

Square feet of Development/Redevelopment Properties Not-in-Service as of December 31, 1999 718,000

OFFICE SPACE

Number Weighted Average of Rentable Average Term Leases S.F. Base Rent (Years)New Leases:First generation space 27 223,545 $29.28 6.9Second generation space 244 1,083,943 $24.60 8.6 Total New Leasing 271 1,307,488 $25.40 8.4

Renewals & extensions 321 2,285,446 $22.80 4.9Other retained tenants 122 746,633 $25.58 6.6 Total Leasing 714 4,339,567

Capital Expenditures - Second Generation Space(2):

Tenant Leasing Improvements(3) Commissions Total

Expend. committed (y-t-d) $35,530,654 $21,643,856 $57,174,510Rentable s.f. leased (y-t-d) 4,116,022Cap. ex. committed per r.s.f. per year $1.40 $0.85 $2.25

(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 2 31,040 $14.14 10.0Second generation space 30 252,143 $12.76 6.8 Total New Leasing 32 283,183 $12.91 7.2

Renewals & extensions 58 459,979 $13.91 4.4Other retained tenants 22 139,047 $15.90 6.5 Total Leasing 112 882,209

Capital Expenditures - Second Generation Space(2):

Tenant Leasing Improvements(3) Commissions Total

Expend. committed (y-t-d) $3,906,614 $1,731,206 $5,637,820Rentable s.f. leased (y-t-d) 851,169Cap. ex. committed per r.s.f. per year $0.84 $0.37 $1.21

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 $10.90 3.5

Renewals & extensions 2 3,450 $12.44 1.9Other retained tenants 2 15,600 $ 9.16 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 $340,302Rentable s.f. leased (y-t-d) 68,140Cap. 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 Rentable Leases S.F.

Leases expiring 829 5,058,026Leases renewed & extended 381 2,748,875Other retained tenants 146 901,280Total leases retained 527 3,650,155Percent retained 63.6% 72.2%Future expirations renewed orrelet (included in totals above) 149 2,124,604 ------------------------------------- UNCONSOLIDATED 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 103,625 Leased s.f. from 1999 acquisitions/ properties placed in service 343,515 Occupancy adjustment(1) (1,442)Square feet leased at December 31, 1999 1,071,411Percent leased at December 31, 1999 87.1%Square feet of Development/Redevelopment Properties Not-in-Service as of December 31, 1999 678,378

OFFICE SPACE

Number Weighted Average of Rentable Average Term Leases S.F. Base Rent (Years)New Leases:First generation space 4 34,145 $20.23 7.8Second generation space 5 61,588 $28.99 4.7 Total New Leasing 9 95,733 $25.87 5.8

Renewals & extensions 1 2,805 $24.46 5.0Other retained tenants 5 26,783 $21.86 4.2 Total Leasing 15 125,321

Capital Expenditures - Second Generation Space(2): Tenant Leasing Improvements(3) Commissions Total

Expend. committed (y-t-d) $1,628,852 $272,409 $1,901,261Rentable s.f. leased (y-t-d) 91,176Cap. ex. per r.s.f. per year $3.93 $0.66 $4.59

(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.