Mack-Cali Realty Corporation Announces 7.2 Percent Increase In Third Quarter FFO Per Share

11/07/2000 Category: Earnings

CRANFORD, NEW JERSEY -- November 7, 2000 -- Mack-Cali Realty Corporation (NYSE: CLI) today announced its results for the third quarter of 2000. The Company reported that its funds from operations (FFO) per diluted share for the third quarter 2000 increased 7.2 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 September 30, 2000, amounted to $65.0 million, or $0.89 per share, versus $61.3 million, or $0.83 per share, for the quarter ended September 30, 1999, a per share increase of 7.2 percent. In the third quarter 2000, the Company incurred non-recurring charges relating to costs associated with the termination of the Prentiss merger agreement of $27.9 million, or $0.38 per share, which has been excluded from FFO for the period. For the nine months ended September 30, 2000, FFO, after adjustment for straight-lining of rents and non-recurring charges, amounted to $197.5 million, or $2.70 per share, versus $182.2 million, or $2.46 per share, for the same period last year, for a nine-month period increase of 9.8 percent on a per share basis.

Cash available for distribution (CAD) for the third quarter 2000 equaled $53.6 million, or $0.73 per share, versus $50.4 million, or $0.68 per share, for the same quarter last year, an increase of 7.4 percent on a per share basis. For the nine months ended September 30, 2000, CAD equaled $163.1 million, or $2.23 per share, versus $157.9 million, or $2.14 per share, for the same period last year, for a nine-month period increase of 4.2 percent on a per share basis.

Total revenues for the third quarter 2000 increased 3.2 percent to $143.4 million from $139.0 million for the same quarter last year. For the nine months ended September 30, 2000, total revenues amounted to $432.3 million, an increase of 5.2 percent over the $410.9 million of total revenues for the same period last year.

Income from operations before minority interest in Operating Partnership for the third quarter 2000 equaled $44.5 million, or $0.61 per share, versus $40.9 million, or $0.55 per share, for the same quarter last year, a per share increase of 10.9 percent. Income from operations before minority interest in Operating Partnership for the nine months ended September 30, 2000 equaled $134.3 million, or $1.83 per share, versus $123.5 million, or $1.66 per share, for the same period last year, a per share increase of 10.2 percent. Income from operations before minority interest in Operating Partnership excludes gains on sales of rental property 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 58,698,648 shares of common stock, 7,991,963 common operating partnership units and 223,124 $1,000-face-value preferred operating partnership units 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 73,129,977 shares/common units outstanding at September 30, 2000.

As of September 30, 2000, the Company had total indebtedness of approximately $1.53 billion, with a weighted average annual interest rate of 7.32 percent. Mack-Cali's total market capitalization was $3.6 billion at September 30, 2000, with a debt-to-market capitalization ratio of 42.7 percent. The Company had an interest coverage ratio of 3.65 times for the quarter ended September 30, 2000.

Commenting on the results, Mitchell E. Hersh, chief executive officer, said, "We are pleased with our third quarter results and the dividend increase announced in September, which reflect our continued financial success." Mr. Hersh continued, "The management team, with the full support of the Board of Directors, is committed to executing a highly focused growth strategy. With an enhanced disposition program of assets in our non-core markets, we plan to build greater value for our shareholders by redeploying proceeds in acquisition and development opportunities in our core, high-barrier-to-entry Northeast markets."

On September 22, 2000, Mack-Cali Realty and Prentiss Properties Trust mutually agreed to terminate their merger agreement. In connection with the termination, Mack-Cali deposited $25 million in an escrow account for the benefit of Prentiss Properties and incurred an additional $2.9 million in costs associated with the transaction.

As part of the Company's strategy reflecting an enhanced focus on its core, high-barrier-to-entry Northeast markets, the following is a summary of recent dispositions, acquisitions and development activities carried out in execution of this strategy:

DISPOSITIONS

As part of the enhanced disposition program, and in conjunction with the termination of the Prentiss merger agreement, the Company sold Cielo Center, a 270,000 square-foot office building located in Austin, Texas, to Prentiss Properties for $47.2 million, realizing a gain of $10.0 million on the sale.

The Company anticipates closing this month on the sale of the Brandeis Building, a 320,000 square-foot office property located in Omaha, Nebraska. CB Richard Ellis and Pacific Realty Group are acting as selling agents on the sale.

Eastdil Realty Co., LLC has been engaged to sell the Company's Houston, Texas assets, which consist of six office properties that total approximately 700,000 square feet.

The Company has hired CB Richard Ellis to act as the selling agent for the Company's four office properties, aggregating over 940,000 square feet, in San Antonio, Texas.

Additionally, the Company is analyzing several of its other assets located in non-core markets in preparation for marketing for sale. The Company is currently focusing on its assets in Phoenix, Arizona; Denver, Colorado; and Dallas, Texas under the next phase of its disposition plan.

ACQUISITIONS

The Company acquired in July 915 North Lenola Road, a 52,488 square-foot office/flex property located in Moorestown, New Jersey, for $2.5 million. The building is located in the Company's Moorestown West Corporate Center, which encompasses 20 buildings and aggregates 928,000 square feet.

DEVELOPMENT

During the quarter, the Company placed two office properties in service. 106 Allen Road, a 132,010 square-foot, class A office property located in Liberty Corner, Bernards Township, New Jersey and constructed by a joint venture between Mack-Cali and SJP Properties, was placed in service on September 15, 2000. The property is currently 73 percent leased, including a 10-year, 78,000 square-foot lease to KPMG Consulting, LLP, a multi-national consulting firm. On September 1, 2000, the Company placed in service Harborside Financial Center Plaza 4-A, a build-to-suit 185,000 square foot, class A office building built atop a 1,100-car parking garage located in Jersey City, New Jersey. The office space is 100 percent leased to TD Waterhouse, a global online broker and provider of online investing services and related financial products, under a 15-year lease agreement.

At quarter end, the Company had six development projects under construction totaling 1.4 million square feet, which are over 60 percent leased, with expected returns of approximately 11 percent.

On October 24, 2000, the Company announced its plans to develop two new significant class A office development projects at the Harborside Financial Center. The two projects consist of: Plaza 5, a 33-story, 915,000 square-foot building with a seven-story, 1,270-car parking garage pedestal, which is expected to be completed in the third quarter of 2002; and Plaza 10, a 19-story, 575,000 square-foot building, which is due for completion in early 2002. The Company currently has leasing commitments for approximately 25 percent of the Plaza 5 project. At Plaza 10, Charles Schwab & Co. has signed a 15-year lease for 300,000 square feet, representing 52 percent of the project, with expansion options for additional space at Harborside. Total development costs for Plazas 5 and 10 are estimated to be approximately $400 million, which will be initially funded from Mack-Cali's revolving credit lines. The expected unleveraged return on these projects is estimated to be approximately 11 percent.

In August, the Company, in a joint venture with SJP properties, acquired a 47-acre developable land site at Morris Corporate Center in Parsippany, New Jersey for approximately $16.2 million. The land is approved for the development of up to 645,000 square feet, and in combination with other developable land currently owned by the Company, allows the Company the potential to develop up to 2 million square feet of additional office space in the exclusive Parsippany sub-market. The Company currently owns 10 in-service class A office properties aggregating 1.5 million square feet in Parsippany. With its development potential, the Company has the ability to own an aggregate of over 3.5 million square feet of office space in one of New Jersey's strongest sub-markets.

FINANCING ACTIVITIES

Also in September, Mack-Cali raised its quarterly dividend by 5.2 percent, to $0.61 per share ($2.44 per share on an annualized basis), effective for the quarter ended September 30, 2000. This increase represents the sixth consecutive year in which the Company has increased its quarterly dividend.

In September, the Company announced that the Board of Directors authorized an increased share repurchase program through which Mack-Cali is authorized to repurchase up to $150 million of its outstanding common stock in the open market or through private transactions with the amount and timing of repurchases depending on market conditions. Since the announcement, the Company has repurchased 792,100 shares for a total cost of approximately $21.7 million.

LEASING INFORMATION

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

For the quarter ended September 30, 2000, the Company executed 176 leases totaling 1,011,946 square feet, consisting of 744,253 square feet of office space and 267,693 square feet of office/flex space. Of these totals, 356,715 square feet were for new leases and 655,231 square feet were for lease renewals and other tenant retention transactions.

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

ADDITIONAL INFORMATION

The Company also expressed comfort with FFO per diluted share estimates for the fourth quarter 2000 in the range of $0.88 to $0.90 per share and a range of $3.65 to $3.75 per diluted share for calendar year 2001. These estimates reflect current market conditions and certain assumptions with regard to rental rates, occupancy levels and other assumptions/projections. Additionally, with the Company's recently-announced highly focused growth strategy, the estimates for the fourth quarter 2000 and calendar year 2001 may be positively or negatively impacted by the actual timing and business terms of property sales and the corresponding use of the sales proceeds from these sales. The Company intends to use proceeds from property sales to invest in property acquisitions and development projects in its core Northeast markets, fund stock repurchases and repay debt.

Copies of Mack-Cali's Form 10-Q and Supplemental Operating and Financial Data for the third 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:

September 30, 2000 Form 10-Q: http://www.mack-cali.com/graphics/shareholders/pdfs/3rd.quarter.10q.00.pdf

Third Quarter 2000 Supplemental Operating and Financial Data: http://www.mack-cali.com/graphics/shareholders/pdfs/3rd.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 268 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 September 30, 2000 1999

Base rents $123,600 $118,086Escalations & recoveries 13,763 14,829Parking and other 3,534 5,112Equity in earnings of unconsolidated joint ventures 2,194 834Interest income 291 159

Total revenues 143,382 139,020

Real estate taxes 15,732 14,849Utilities 11,604 11,634Operating services 16,855 16,464General and administrative 5,461 5,691Depreciation and amortization 23,320 22,967Interest expense 25,862 26,474

Total expenses 98,834 98,079

Income from operations before minority interest in Operating Partnership 44,548 40,941 Minority interest in Operating Partnership(1) (8,809) (8,421)Income from operations 35,739 32,520 Non-recurring charges(2) (24,557) -- Gain on sales of rental property(3) 8,830 --

Net income $20,012 $32,520

PER SHARE DATA:Income from operations - basic $0.61 $0.55Net income — basic $0.34 $0.55

Income from operations — diluted $0.61 $0.55Net income — diluted $0.34 $0.55

Dividends declared per common share $0.61 $0.58

Basic weighted average shares outstanding 58,711 58,679Diluted weighted average shares outstanding 66,914 67,113

(1) Excludes effect of minority interest's share of non-recurring charges and gain on sales of rental property.(2) Net of minority interest's share of $3,354 in 2000.(3) Net of minority interest's share of $1,206 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 September 30, 2000 1999

Income from operations before minority interest in Operating Partnership $44,548 $40,941Add: Real estate depreciation and amortization(1) 23,920 23,419Deduct: Adj. to rental income for straight-lining of rents(2) (3,484) (3,076)Funds from operations(3), after adj. for straight- lining of rents and non-recurring charges $64,984 $61,284Deduct: Non-incremental revenue generating capital expenditures: Capital expenditures (1,484) (1,061) Tenant improvements and leasing commissions (9,909) (9,812)

Cash available for distribution $53,591 $50,411

Basic weighted average shares/units outstanding(4) 66,729 66,893Diluted weighted average shares/units outstanding(5) 73,353 73,731

Per Share/Unit - Basic(6): Funds from operations $0.92 $0.86 Cash available for distribution $0.74 $0.70Per Share/Unit - Diluted: Funds from operations $0.89 $0.83 Cash available for distribution $0.73 $0.68

Dividends declared per common share $0.61 $0.58

Dividend payout ratios: Funds from operations-diluted 68.86% 69.78% Cash available for distribution-diluted 83.49% 84.83%

(1) Includes the Company's share from unconsolidated joint ventures of $784 and $611 for 2000 and 1999, respectively.(2) Includes the Company's share from unconsolidated joint ventures of ($36) and $155 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 $3,928 and $3,869 in 2000 and 1999, respectively.

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

Base rents $367,270 $350,665Escalations & recoveries 45,058 46,055Parking and other 12,984 12,073Equity in earnings of unconsolidated joint ventures 4,401 1,462Interest income 2,537 629

Total revenues 432,250 410,884

Real estate taxes 45,169 42,900Utilities 31,997 31,055Operating services 51,419 50,980General and administrative 16,733 19,222Depreciation and amortization 68,447 67,401Interest expense 79,123 75,793

Total expenses 292,888 287,351

Minority interest in partially-owned properties (5,072) --Income from operations before minority interest in Operating Partnership 134,290 123,533 Minority interest in Operating Partnership(1) (26,446) (25,927)Income from operations 107,844 97,606 Non-recurring charges(2) (32,666) (14,336) Gain on sales of rental property(3) 75,757 --

Net income $150,935 $83,270

PER SHARE DATA:Income from operations - basic $1.84 $1.67Net income — basic $2.58 $1.42Income from operations - diluted $1.83 $1.66Net income — diluted $2.50 $1.42

Dividends declared per common share $1.77 $1.68

Basic weighted average shares outstanding 58,518 58,452Diluted weighted average shares outstanding 73,276 67,294

(1) Excludes effect of minority interest's share of non-recurring charges and gain on sales of rental property.(2) Net of minority interest's share of $4,473 and $2,122 in 2000 and 1999, respectively.(3) Net of minority interest's share of $10,448 in 2000. Mack-Cali Realty Corporation Statements of Funds from Operations and Cash Available for Distribution (in thousands, except per share/unit amounts)-----------------------------------------------------------------------

Nine Months Ended September 30, 2000 1999

Income from operations before minority interest in Operating Partnership $134,290 $123,533Add: Real estate depreciation and amortization(1) 70,072 69,139 Gain on sale of land 2,248 --Deduct: Adj. to rental income for straight-lining of rents(2) (9,074) (10,454)Funds from operations(3), after adj. for straight- lining of rents and non-recurring charges $197,536 $182,218Deduct: Non-incremental revenue generating capital expenditures: Capital expenditures (4,094) (3,094) Tenant improvements and leasing commissions (30,369) (21,218)

Cash available for distribution $163,073 $157,906

Basic weighted average shares/units outstanding(4) 66,595 67,025Diluted weighted average shares/units outstanding(5) 73,276 73,936

Per Share/Unit - Basic(6): Funds from operations $2.79 $2.55 Cash available for distribution $2.28 $2.18Per Share/Unit - Diluted: Funds from operations $2.70 $2.46 Cash available for distribution $2.23 $2.14

Dividends declared per common share $1.77 $1.68

Dividend payout ratios: Funds from operations-diluted 65.66% 68.17% Cash available for distribution-diluted 79.53% 78.66%

(1) Includes the Company's share from unconsolidated joint ventures of $2,204 and $2,221 for 2000 and 1999, respectively.(2) Includes the Company's share from unconsolidated joint ventures of $18 and $111 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 $11,562 and $11,607 in 2000 and 1999, respectively.

Mack-Cali Realty Corporation Consolidated Balance Sheets (in thousands, except share amounts)----------------------------------------------------------------------- September 30, December 31,ASSETS: 2000 1999Rental property Land and leasehold interests $ 562,104 $ 549,096 Buildings and improvements 3,008,135 3,014,532 Tenant improvements 97,466 85,057 Furniture, fixtures and equipment 6,208 6,160 3,673,913 3,654,845Less-accumulated depreciation and amortization (288,976) (256,629)Total rental property 3,384,937 3,398,216

Cash and cash equivalents 10,590 8,671Investments in unconsolidated joint ventures 95,440 89,134Unbilled rents receivable 47,120 53,253Deferred charges and other assets, net 93,858 66,436Restricted cash 6,447 7,081Accounts receivable, net 7,770 6,810

Total assets $3,646,162 $3,629,601

LIABILITIES AND STOCKHOLDERS' EQUITY:Senior unsecured notes $ 783,021 $ 782,785Revolving credit facilities 264,483 177,000Mortgages and loans payable 486,823 530,390Dividends and distributions payable 44,610 42,499Accounts payable and accrued expenses 74,461 63,394Rents received in advance and security deposits 33,327 36,150Accrued interest payable 6,505 16,626 Total liabilities 1,693,230 1,648,844Minority interests: Operating Partnership 451,239 455,275 Partially-owned properties 1,925 83,600 Total minority interests 453,164 538,875Commitments and contingenciesStockholders' equity:Preferred stock, 5,000,000 shares authorized, none issued -- --Common stock, $0.01 par value, 190,000,000 shares authorized, 58,698,648 and 58,446,552 shares outstanding 587 584Additional paid-in capital 1,559,302 1,549,888Dividends in excess of net earnings (56,792) (103,902)Unamortized stock compensation (3,329) (4,688) Total stockholders' equity 1,499,768 1,441,882

Total liabilities and stockholders' equity $3,646,162 $3,629,601 Mack-Cali Realty Corporation Leasing Statistics For The Quarter Ended September 30, 2000 ----------------------------------------------------------------------- CONSOLIDATED PORTFOLIO SUMMARY OF SPACE LEASED DURING PERIOD

IN-SERVICE PROPERTIES:Square feet leased at June 30, 2000 26,028,933 Net leasing activity in 3rd quarter 2000 (15,950) Leased s.f. acquired/placed in service during the period 332,395 Leased s.f. sold during the period (267,961)Occupancy adjustment(1) 8,843

Square feet leased at September 30, 2000 26,086,260

Percent leased at September 30, 2000 96.7%

OFFICE SPACE----------------------------------------------------------------------- Number Weighted Average of Rentable Average Term Leases S.F. Base Rent (Years)New Leases:First generation space 2 13,740 $22.84 6.5Second generation space 55 224,157 $26.04 7.1 Total New Leasing 57 237,897 $25.85 7.0

Renewals & extensions 57 346,306 $24.62 5.3Other retained tenants 29 160,050 $24.03 5.7 Total Leasing 143 744,253

Capital Expenditures - Second Generation Space(2):

Tenant Leasing Improvements(3) Commissions Total

Expend. committed-3rd qtr $4,869,949 $4,566,367 $ 9,436,316Rentable s.f. leased-3rd qtr 1,170,028Cap. ex. committed per r.s.f. per year $1.13 $1.06 $2.19

(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 4 26,400 $15.13 4.0Second generation space 11 92,418 $14.10 5.8 Total New Leasing 15 118,818 $14.33 5.4

Renewals & extensions 16 132,980 $15.90 3.9Other retained tenants 2 15,895 $16.37 3.3 Total Leasing 33 267,693

Capital Expenditures - Second Generation Space(2):

Tenant Leasing Improvements(3) Commissions Total

Expend. committed-3rd qtr $977,864 $519,782 $1,497,646Rentable s.f. leased-3rd qtr 241,293Cap. ex. committed per r.s.f. per year $0.88 $0.47 $1.35

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

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

Leases expiring 184 1,027,896Leases renewed & extended 73 479,286Other retained tenants 31 175,945Total leases retained 104 655,231Percent retained 56.5% 63.7%Future expirations renewed orrelet (included in totals above) 62 474,547

(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 June 30, 2000 1,277,656 Net leasing activity in 3rd quarter 2000 166,141 Occupancy Adjustment (1) (47)Square feet leased at September 30, 2000 1,443,750

Percent leased at September 30, 2000 93.3%

OFFICE SPACE----------------------------------------------------------------------- Number Weighted Average of Rentable Average Term Leases S.F. Base Rent (Years)New Leases:First generation space 15 160,490 $23.36 6.0Second generation space 2 12,382 $33.35 5.6 Total New Leasing 17 172,872 $24.07 5.9

Other retained tenants 2 6,236 $20.20 4.1 Total Leasing 19 179,108

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

Expend. committed-3rd qtr $215,927 $93,538 $309,465Rentable s.f. leased-3rd qtr 179,108Cap. ex. committed per r.s.f. per year $2.27 $0.98 $3.25

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

Leases expiring 3 12,967Leases renewed & extended 0 0Other retained tenants 2 6,236Total leases retained 2 6,236Percent retained 66.7% 48.1%Future expirations renewed orrelet (included in totals above) 0 0

(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.

Mack-Cali Realty Corporation Leasing Statistics For The Nine Months Ended September 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 169,053 Leased s.f. acquired/placed in service during the period 942,555 Leased s.f. sold during the period (1,425,720)Occupancy adjustment(1) (11,099)

Square feet leased at September 30, 2000 26,086,260

Percent leased at September 30, 2000 96.7%

OFFICE SPACE----------------------------------------------------------------------- Number Weighted Average of Rentable Average Term Leases S.F. Base Rent (Years)New Leases:First generation space 31 208,671 $29.70 6.4Second generation space 168 832,120 $22.25 6.0 Total New Leasing 199 1,040,791 $23.75 6.1

Renewals & extensions 232 1,558,423 $25.35 4.8Other retained tenants 104 548,504 $25.58 5.7 Total Leasing 535 3,147,718

Capital Expenditures - Second Generation Space(2):

Tenant Leasing Improvements(3) Commissions Total

Expend. Committed YTD $15,526,462 $15,279,351 $30,805,813Rentable s.f. leased YTD 2,939,047Cap. ex. committed per r.s.f. per year $0.99 $0.98 $1.97

(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 5 32,400 $15.27 4.2Second generation space 29 232,612 $15.20 6.2 Total New Leasing 34 265,012 $15.21 5.9

Renewals & extensions 49 400,835 $14.34 4.5Other retained tenants 10 62,738 $15.00 4.1 Total Leasing 93 728,585

Capital Expenditures - Second Generation Space(2):

Tenant Leasing Improvements(3) Commissions Total

Expend. Committed YTD $2,851,493 $1,694,726 $4,546,219Rentable s.f. leased YTD 696,185Cap. ex. committed per r.s.f. per year $0.82 $0.49 $1.31

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 605 3,753,904Leases renewed & extended 284 1,993,362Other retained tenants 116 618,892Total leases retained 400 2,612,254Percent retained 66.1% 69.6%Future expirations renewed orrelet (included in totals above) 143 1,598,354 UNCONSOLIDATED JOINT VENTURE PROPERTIES SUMMARY OF SPACE LEASED For The Nine Months Ended September 30, 2000-----------------------------------------------------------------------IN-SERVICE PROPERTIES:Square feet leased at December 31, 1999 1,071,411 Net leasing activity year-to-date 202,164 Leased s.f. acquired/placed in service during the period 170,222 Occupancy adjustment (1) (47)Square feet leased at September 30, 2000 1,443,750

Percent leased at September 30, 2000 93.3%

OFFICE SPACE----------------------------------------------------------------------- Number Weighted Average of Rentable Average Term Leases S.F. Base Rent (Years)New Leases:First generation space 20 196,389 $22.77 5.9Second generation space 2 12,382 $33.35 5.6 Total New Leasing 22 208,771 $23.40 5.9

Renewals & extensions 1 8,769 $39.40 3.0Other Retained Tenants 2 6,236 $20.20 4.1 Total Leasing 25 223,776

Capital Expenditures - Second Generation Space(2):

Tenant Leasing Improvements(3) Commissions Total

Expend. committed YTD $215,927 $98,799 $314,726Rentable s.f. leased YTD 27,387Cap. ex. committed per r.s.f. per year $1.78 $0.81 $2.59

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

Leases expiring 4 21,612Leases renewed & extended 1 8,769Other Retained Tenants 2 6,236Total Leases retained 3 15,005Percent retained 75.0% 69.4%