Mack-Cali Realty Corporation Announces 4.7 Percent Increase In Fourth Quarter FFO Per Share

02/22/2001 Category: Earnings

- Full Year 2000 FFO Per Share Up 8.5 Percent -

CRANFORD, NEW JERSEY -- February 22, 2001 -- Mack-Cali Realty Corporation (NYSE: CLI) today announced its results for the fourth quarter 2000. The Company reported that its funds from operations (FFO) per diluted share for the fourth quarter 2000 increased 4.7 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 December 31, 2000, amounted to $64.5 million, or $0.89 per share, versus $62.0 million, or $0.85 per share, for the quarter ended December 31, 1999, a per share increase of 4.7 percent. For the year ended December 31, 2000, FFO, after adjustment for straight-lining of rents and non-recurring charges, amounted to $262.1 million, or $3.59 per share, versus $244.2 million, or $3.31 per share, for the same period last year. This represented an increase of 8.5 percent on a per share basis.

Cash available for distribution (CAD) for the fourth quarter 2000 equaled $51.2 million, or $0.70 per share, versus $53.4 million, or $0.73 per share, for the same quarter last year, a decrease of 4.1 percent on a per share basis. For the year ended December 31, 2000, CAD equaled $214.3 million, or $2.93 per share, versus $211.3 million, or $2.86 per share, for the same period last year. This represented a current year increase of 2.4 percent on a per share basis.

Total revenues for the fourth quarter 2000 increased 2.3 percent to $143.9 million from $140.6 million for the same quarter last year. For the year ended December 31, 2000, total revenues amounted to $576.2 million, an increase of 4.5 percent over the $551.5 million of total revenues for the same period last year.

Income from operations before minority interest in Operating Partnership for the fourth quarter 2000 equaled $43.9 million, or $0.61 per share, versus $43.6 million, or $0.60 per share, for the same quarter last year, a per share increase of 1.7 percent. Income from operations before minority interest in Operating Partnership for the year ended December 31, 2000 equaled $178.2 million, or $2.44 per share, versus $167.1 million, or $2.26 per share, for the same period last year, a per share increase of 8.0 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 56,980,893 shares of common stock, 7,963,725 common operating partnership units and 220,340 $1,000-face-value preferred operating partnership units outstanding as of year end. The outstanding preferred units are convertible into 6,359,019 common operating partnership units. Assuming conversion of all preferred units into common units, the Company had a total of 71,303,637 shares/common units outstanding at December 31, 2000.

As of December 31, 2000, the Company had total indebtedness of approximately $1.63 billion, with a weighted average annual interest rate of 7.29 percent. Mack-Cali's total market capitalization was $3.7 billion at December 31, 2000. The Company had a debt-to-undepreciated assets ratio of 40.9 percent. The Company had an interest coverage ratio of 3.50 times for the quarter ended December 31, 2000.

Commenting on the results, Mitchell E. Hersh, chief executive officer, said, "Our fourth quarter and year-end results demonstrate Mack-Cali's financial strength and real estate expertise. We look forward to another year of strong returns and proactively executing our strategy."

As part of the Company's strategy reflecting a sharpened focus on its core Northeast markets, the following is a summary of recent activities:

PROPERTY SALES

In November 2000, the Company exited a non-core market by selling its sole asset in Nebraska. The Brandeis Building, a 320,000 square-foot office property located in Omaha, was sold for $12.5 million. Proceeds from the sale are being reinvested in opportunities in the Northeast.

Phase I of the Company's ongoing capital recycling program, the sale of its Houston and San Antonio assets, is well underway. The Company is in active negotiations for the sale of a significant portion of these assets.

The Company is actively marketing for the sales of several other properties including the Company's sole assets in Iowa and Florida, the Company's properties in Colorado Springs, and the Tenby Chase apartments, a non-core multi-family residential complex located in Delran, New Jersey.

DEVELOPMENT

Progress continues on three of the Company's newest development projects at its Harborside Financial Center located on the Hudson River waterfront in Jersey City, New Jersey, as follows:

  • Plaza 10, a 19-story, 575,000 square-foot office building is 100 percent pre-leased to Charles Schwab & Co., Inc. and will be the site of its newly expanded East Coast regional headquarters. The Class A office project is expected to be completed in the third quarter 2002.

  • Plaza 5, a 34-story, 980,000 square-foot Class A office tower with a 1,270-car parking garage pedestal, is under construction and expected to be completed in the third quarter 2002. The Company has exciting prospects for the project. This state-of-the-art corporate center will provide breathtaking views of the Manhattan skyline.

  • Hyatt Regency South Pier Hotel is a 350-room luxury hotel that will be built on the south pier of Harborside through a joint venture with Hyatt. Completion of this project is anticipated in the third quarter 2002.



Other development projects include:

  • Mack-Cali's newly completed 220,000 square-foot Class A office property at 105 Eisenhower Parkway in Roseland, New Jersey was placed in-service in January 2001. Arthur Andersen, a long-time Mack-Cali tenant, pre-leased 50 percent of the space.

  • The Company's 183,000 square-foot, Class A office property located in the Denver Tech Center in Denver, Colorado is on schedule to be completed by the end of the first quarter 2001. The building is 62 percent pre-leased to URS Greiner Woodward Clyde.



FINANCING ACTIVITIES

In December 2000, the Company issued $15 million of 7.835 percent, 10-year senior unsecured notes. Net proceeds from the issuance were used primarily to pay down outstanding borrowings under the Company's revolving credit facilities.

In January 2001, the Company issued $300 million of 7.75 percent, 10-year senior unsecured notes. Net proceeds from the issuance were also used primarily to pay down outstanding borrowings on the Company's credit facilities.

Both issuances of senior unsecured notes were rated BBB by Standard & Poor's, Baa3 by Moody's and BBB by Fitch, Inc.

Since the September 2000 increased authorization to the Company's Share Repurchase Program, the Company has purchased 2.1 million shares of its outstanding common stock at an aggregate cost of approximately $57.5 million through February 21, 2001. The Company may purchase from time to time in open market transactions at prevailing prices or through privately negotiated transactions up to an additional $92.5 million of its common stock.

LEASING INFORMATION

Mack-Cali's consolidated in-service portfolio was 96.8 percent leased at December 31, 2000, compared to 96.7 percent at September 30, 2000.

For the quarter ended December 31, 2000, the Company executed 173 leases totaling 1,075,815 square feet, consisting of 788,241 square feet of office space and 287,574 square feet of office/flex space. Of these totals, 633,952 square feet were for new leases and 441,863 square feet were for lease renewals and other tenant retention transactions.

Accompanying this press release are schedules highlighting the fourth quarter and full year 2000 leasing statistics for both the Company's consolidated and joint venture properties.

ADDITIONAL INFORMATION

The Company expressed comfort with FFO per diluted share estimates for the first quarter 2001 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 ongoing capital recycling program, the estimates for the first quarter 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 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.

An earnings conference call with management is scheduled for today, February 22, 2001, at 11:00 a.m. Eastern Time, which will be broadcast live via the Internet at http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=CLI&script=2400. The live conference call is also accessible by calling (719)457-2633 and requesting the Mack-Cali conference call.

The conference call will be rebroadcast immediately following the live call on Mack-Cali's website at http://www.mack-cali.com through March 8, 2001. Beginning at 2:00 p.m. Eastern Time on February 22, 2001 through March 8, 2001, a replay of the call can also be accessed by calling (719)457-0820 and using the pass code 557155.

Copies of Mack-Cali's 2000 Form 10-K and Supplemental Operating and Financial Data for the fourth 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:

2000 Form 10-K:

http://www.mack-cali.com/graphics/shareholders/pdfs/10k.00.pdf

Fourth Quarter 2000 Supplemental Operating and Financial Data:

http://www.mack-cali.com/graphics/shareholders/pdfs/4th.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 270 properties, primarily office and office/flex buildings, totaling approximately 28.6 million square feet, located in 11 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.

Estimates of future FFO per share are by definition, and certain other matters 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 December 31, 2000 1999--------------------------------------------------------------------------Base rents $123,923 $119,188Escalations & recoveries from tenants 13,430 16,127Parking and other 2,341 3,842Equity in earnings of unconsolidated joint ventures 3,654 1,131Interest income 555 312

Total revenues 143,903 140,600

Real estate taxes 14,231 14,482Utilities 10,038 10,525Operating services 19,292 18,709General and administrative 6,543 6,258Depreciation and amortization 23,641 19,808Interest expense 26,271 27,167

Total expenses 100,016 96,949

Minority interest in partially-owned properties -- (79)Income from operations before minority interest in Operating Partnership 43,887 43,572 Minority interest in Operating Partnership(1) (8,735) (8,816)Income from operations 35,152 34,756 (Loss)/gain on sales of rental property(2) (749) 1,713

Net income $34,403 $36,469

PER SHARE DATA:Income from operations - basic $0.61 $0.60Net income Ð basic $0.60 $0.63

Income from operations Ð diluted $0.61 $0.60Net income Ð diluted $0.59 $0.62

Dividends declared per common share $0.61 $0.58

Basic weighted average shares outstanding 57,788 58,187Diluted weighted average shares outstanding 66,013 66,654

(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 $103 in 2000 and $244 in 1999.==============================================================================

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

Quarter Ended December 31,2000 1999---------------------------------------------------------------------------Income from operations before minority interest in Operating Partnership $43,887 $43,572Add: Real estate depreciation and amortization(1) 24,178 20,592Deduct: Adj. to rental income for straight-lining of rents(2) (3,530) (2,142)Funds from operations(3), after adj. for straight- lining of rents and non-recurring charges $64,535 $62,022Deduct: Non-incremental revenue generating capital expenditures: Capital expenditures (1,378) (405) Tenant improvements and leasing commissions (11,909) (8,187)

Cash available for distribution $51,248 $53,430

Basic weighted average shares/units outstanding(4) 65,772 66,469Diluted weighted average shares/units outstanding(5) 72,440 73,272

Per Share/Unit - Basic(6): Funds from operations $0.92 $0.87 Cash available for distribution $0.72 $0.75Per Share/Unit - Diluted: Funds from operations $0.89 $0.85 Cash available for distribution $0.70 $0.73

Dividends declared per common share $0.61 $0.58

Dividend payout ratios: Funds from operations-diluted 68.47% 68.52% Cash available for distribution-diluted 86.23% 79.54%

(1) Includes the Company's share from unconsolidated joint ventures of $724 and $945 for 2000 and 1999, respectively.(2) Includes the Company's share from unconsolidated joint ventures of $6 and $47 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 $3,879 and $3,869 in 2000 and 1999, respectively.==============================================================================

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

Year Ended December 30, 2000 1999----------------------------------------------------------------------Base rents $491,193 $469,853Escalations & recoveries from tenants 58,488 62,182Parking and other 15,325 15,915Equity in earnings of unconsolidated joint ventures 8,055 2,593Interest income 3,092 941

Total revenues 576,153 551,484

Real estate taxes 59,400 57,382Utilities 42,035 41,580Operating services 70,711 69,689General and administrative 23,276 25,480Depreciation and amortization 92,088 87,209Interest expense 105,394 102,960

Total expenses 392,904 384,300

Minority interest in partially-owned properties (5,072) (79)Income from operations before minority interest in Operating Partnership 178,177 167,105 Minority interest in Operating Partnership(1) (35,181) (34,743)Income from operations 142,996 132,362 Non-recurring charges(2) (32,666) (14,336) Gain on sales of rental property(3) 75,008 1,713

Net income $185,338 $119,739

PER SHARE DATA:Income from operations - basic $2.45 $2.27Net income Ð basic $3.18 $2.05Income from operations - diluted $2.44 $2.26Net income Ð diluted $3.10 $2.04

Dividends declared per common share $2.38 $2.26

Basic weighted average shares outstanding 58,338 58,385Diluted weighted average shares outstanding 73,070 67,133

(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 $10,345 in 2000 and $244 in 1999.==============================================================================

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, 2000 1999-----------------------------------------------------------------------------Income from operations before minority interest in Operating Partnership $178,177 $167,105Add: Real estate depreciation and amortization(1) 94,250 89,731 Gain on sale of land 2,248 --Deduct: Adj. to rental income for straight-lining of rents(2) (12,604) (12,596)Funds from operations(3), after adj. for straight- lining of rents and non-recurring charges $262,071 $244,240Deduct: Non-incremental revenue generating capital expenditures: Capital expenditures (5,472) (3,499) Tenant improvements and leasing commissions (42,278) (29,405)

Cash available for distribution $214,321 $211,336

Basic weighted average shares/units outstanding(4) 66,392 66,885Diluted weighted average shares/units outstanding(5) 73,070 73,769

Per Share/Unit - Basic(6): Funds from operations $3.71 $3.42 Cash available for distribution $3.00 $2.93Per Share/Unit - Diluted: Funds from operations $3.59 $3.31 Cash available for distribution $2.93 $2.86

Dividends declared per common share $2.38 $2.26

Dividend payout ratios: Funds from operations-diluted 66.36% 68.26% Cash available for distribution-diluted 81.14% 78.89%

(1) Includes the Company's share from unconsolidated joint ventures of $2,928 and $3,166 for 2000 and 1999, respectively.(2) Includes the Company's share from unconsolidated joint ventures of $24 and $158 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 $15,441 and $15,476 in 2000 and 1999, respectively.==============================================================================

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

December 31, December 31,ASSETS: 2000 1999--------------------------------------------------------------------------Rental property Land and leasehold interests $ 561,210 $ 549,096 Buildings and improvements 3,026,561 3,014,532 Tenant improvements 110,123 85,057 Furniture, fixtures and equipment 6,460 6,160 3,704,354 3,654,845Less-accumulated depreciation and amortization (309,951) (256,629)Total rental property 3,394,403 3,398,216

Cash and cash equivalents 13,179 8,671Investments in unconsolidated joint ventures 101,438 89,134Unbilled rents receivable 50,499 53,253Deferred charges and other assets, net 102,655 66,436Restricted cash 6,557 7,081Accounts receivable, net 8,246 6,810

Total assets $3,676,977 $3,629,601

LIABILITIES AND STOCKHOLDERS' EQUITY:Senior unsecured notes $ 798,099 $ 782,785Revolving credit facilities 348,840 177,000Mortgages and loans payable 481,573 530,390Dividends and distributions payable 43,496 42,499Accounts payable and accrued expenses 53,608 63,394Rents received in advance and security deposits 31,146 36,150Accrued interest payable 17,477 16,626 Total liabilities 1,774,239 1,648,844Minority interests: Operating Partnership 447,523 455,275 Partially-owned properties 1,925 83,600 Total minority interests 449,448 538,875Commitments and contingenciesStockholders' equity:Preferred stock, 5,000,000 shares authorized, none issued -- --Common stock, $0.01 par value, 190,000,000 shares authorized, 56,980,893 and 58,446,552 shares outstanding 570 584Additional paid-in capital 1,513,037 1,549,888Dividends in excess of net earnings (57,149) (103,902)Unamortized stock compensation (3,168) (4,688) Total stockholders' equity 1,453,290 1,441,882

Total liabilities and stockholders' equity $3,676,977 $3,629,601==============================================================================

Mack-Cali Realty Corporation Leasing Statistics For The Quarter Ended December 31, 2000

CONSOLIDATED PORTFOLIO SUMMARY OF SPACE LEASED DURING PERIOD--------------------------------------------------------------------------IN-SERVICE PROPERTIES:Square feet leased at September 30, 2000 26,086,260 Net leasing activity in 4th quarter 2000 3,529 Leased s.f. acquired/placed in service during the period 0 Leased s.f. sold during the period (298,496)Occupancy adjustment(1) 11,514

Square feet leased at December 31, 2000 25,802,807

Percent leased at December 31, 2000 96.8%

OFFICE SPACE

Number Weighted Average of Rentable Average Term Leases S.F. Base Rent (Years)--------------------------------------------------------------------------New Leases:First generation space 9 52,307 $22.94 4.6Second generation space 58 410,758 $26.11 8.3 Total New Leasing 67 463,065 $25.75 7.9

Renewals & extensions 56 280,698 $18.80 4.3Other retained tenants 19 44,478 $23.02 5.2 Total Leasing 142 788,241

Capital Expenditures - Second Generation Space(2):

Tenant Leasing Improvements(3) Commissions Total

Expend. committed-4th qtr $7,533,473 $4,394,990 $11,928,463Rentable s.f. leased-4th qtr 735,934Cap. ex. committed per r.s.f. per year $1.56 $0.91 $2.47

(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 20,800 $16.71 6.3Second generation space 12 150,087 $15.01 6.1 Total New Leasing 14 170,887 $15.22 6.1

Renewals & extensions 14 104,708 $14.48 2.9Other retained tenants 3 11,979 $14.06 5.5 Total Leasing 31 287,574

Capital Expenditures - Second Generation Space(2):

Tenant Leasing Improvements(3) Commissions Total---------------------------------------------------------------------Expend. committed-4th qtr $642,416 $406,007 $1,048,423Rentable s.f. leased-4th qtr 266,774Cap. ex. committed per r.s.f. per year $0.50 $0.32 $0.82

INDUSTRIAL/WAREHOUSE SPACE

No activity this quarter

LEASE RENEWALS

Number of Rentable Leases S.F.-------------------------------------------------------------------Leases expiring 155 1,072,286Leases renewed & extended 70 385,406Other retained tenants 22 56,457Total leases retained 92 441,863Percent retained 59.4% 41.2%Future expirations renewed orrelet (included in totals above) 40 346,107

(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, 2000 1,443,750 Net leasing activity in 4th quarter 2000 20,999Square feet leased at December 31, 2000 1,464,749

Percent leased at December 31, 2000 94.6%

OFFICE SPACE

Number Weighted Average of Rentable Average Term Leases S.F. Base Rent (Years)-------------------------------------------------------------------New Leases:First generation space 1 22,379 $32.99 7.0

Renewals & extensions 1 53,456 $66.53 3.0Other retained tenants 3 13,240 $50.18 3.0 Total Leasing 5 89,075

Capital Expenditures - Second Generation Space (1): Tenant Leasing Improvements(2) Commissions Total

Expend. committed-4th qtr $98,000 $1,117 $99,117Rentable s.f. leased-4th qtr 66,696Cap. ex. committed per r.s.f. per year $0.49 $0.01 $0.50

LEASE RENEWALS

Number of Rentable Leases S.F.-------------------------------------------------------------------Leases expiring 4 68,442Leases renewed & extended 1 53,456Other retained tenants 3 13,240Total leases retained 4 66,696Percent retained 100.0% 97.4%Future expirations renewed orrelet (included in totals above) 1 53,456

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



Mack-Cali Realty Corporation Leasing Statistics For The Year Ended December 31, 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 172,822 Leased s.f. acquired/placed in service during the period 942,555 Leased s.f. sold during the period (1,724,216)Occupancy adjustment(1) 175

Square feet leased at December 31, 2000 25,802,807

Percent leased at December 31, 2000 96.8%

OFFICE SPACE

Number Weighted Average of Rentable Average Term Leases S.F. Base Rent (Years)------------------------------------------------------------------New Leases:First generation space 40 260,978 $28.65 6.0Second generation space 226 1,242,878 $23.83 6.8 Total New Leasing 266 1,503,856 $24.67 6.6

Renewals & extensions 288 1,839,121 $24.52 4.7Other retained tenants 123 592,982 $25.63 5.7 Total Leasing 677 3,935,959

Capital Expenditures - Second Generation Space(2):

Tenant Leasing Improvements(3) Commissions Total---------------------------------------------------------------------Expend. Committed YTD $23,099,419 $19,685,542 $42,784,961Rentable s.f. leased YTD 3,674,981Cap. ex. committed per r.s.f. per year $1.13 $0.96 $2.09

(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 7 53,200 $17.02 5.0Second generation space 41 382,699 $15.00 6.2 Total New Leasing 48 435,899 $15.25 6.0

Renewals & extensions 63 505,543 $14.36 4.2Other retained tenants 13 74,717 $14.90 4.3 Total Leasing 124 1,016,159

Capital Expenditures - Second Generation Space(2):

Tenant Leasing Improvements(3) Commissions Total--------------------------------------------------------------------Expend. Committed YTD $3,495,908 $2,123,854 $5,619,762Rentable s.f. leased YTD 962,959Cap. ex. committed per r.s.f. per year $0.73 $0.44 $1.17

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 758 4,825,550Leases renewed & extended 354 2,378,768Other retained tenants 138 675,349Total leases retained 492 3,054,117Percent retained 64.9% 63.3%Future expirations renewed orrelet (included in totals above) 116 1,535,811

UNCONSOLIDATED JOINT VENTURE PROPERTIES SUMMARY OF SPACE LEASED DURING PERIOD--------------------------------------------------------------------------IN-SERVICE PROPERTIES:Square feet leased at December 31, 1999 1,071,411 Net leasing activity year-to-date 223,163 Leased s.f. acquired/placed in service during the period 170,222 Occupancy adjustment (1) (47)Square feet leased at December 31, 2000 1,464,749

Percent leased at December 31, 2000 94.6%

OFFICE SPACE

Number Weighted Average of Rentable Average Term Leases S.F. Base Rent (Years)--------------------------------------------------------------------New Leases:First generation space 21 218,768 $23.97 6.0Second generation space 2 12,382 $34.32 5.6 Total New Leasing 23 231,150 $24.52 6.0

Renewals & extensions 2 62,225 $62.71 3.0Other Retained Tenants 5 19,476 $40.69 3.3 Total Leasing 30 312,851

Capital Expenditures - Second Generation Space(2):

Tenant Leasing Improvements(3) Commissions Total

Expend. committed YTD $313,927 $99,916 $413,843Rentable s.f. leased YTD 94,083Cap. ex. committed per r.s.f. per year $0.98 $0.31 $1.29

LEASE RENEWALS

Number of Rentable Leases S.F.----------------------------------------------------------------------Leases expiring 8 89,688Leases renewed & extended 2 62,225Other Retained Tenants 5 19,476Total Leases retained 7 81,701Percent retained 87.5% 91.1% (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.