Mack-Cali Realty Corporation Announces Second Quarter Results

        Mack-Cali Realty Corporation Announces Second Quarter Results

PR Newswire

EDISON, N.J., July 25, 2013

EDISON, N.J., July 25, 2013 /PRNewswire/ --Mack-Cali Realty Corporation
(NYSE: CLI) today reported its results for the second quarter 2013.

Recent highlights include:

  oReported funds from operations of $0.65 per diluted share;
  oReported net income of $0.26 per diluted share;
  oCompleted sale of $275 million face amount of 3.15 percent senior
    unsecured notes;
  oRefinanced and extended unsecured revolving credit facility with a group
    of 17 lenders;
  oAcquired 412-unit luxury multi-family property in Metro Boston for $88
    million;
  oCommenced initial operations of 203,506-square-foot, fully leased office
    property in Parsippany, New Jersey;
  oThrough July, completed sales of nine office properties, aggregating 1.3
    million square feet, in several transactions for a total of approximately
    $186.6 million; and
  oSigned agreements to sell 15 office properties, aggregating 1.7 million
    square feet, in suburban Philadelphia for approximately $233 million.

FINANCIAL HIGHLIGHTS

Funds from operations (FFO) available to common shareholders for the quarter
ended June 30, 2013 amounted to $65.2 million, or $0.65 per share. For the six
months ended June 30, 2013, FFO available to common shareholders equaled
$128.2 million, or $1.29 per share.

Net income available to common shareholders for the second quarter 2013
equaled $23.1 million, or $0.26 per share. For the six months ended June 30,
2013, net income available to common shareholders amounted to $34.6 million,
or $0.39 per share.

Total revenues for the second quarter 2013 were $177.9 million. For the six
months ended June 30, 2013, total revenues amounted to $358.7 million.

All per share amounts presented above are on a diluted basis.

The Company had 88,004,354 shares of common stock, and 12,003,241 common
operating partnership units outstanding as of June 30, 2013. The Company had a
total of 100,007,595 common shares/common units outstanding at June 30, 2013.

As of June 30, 2013, the Company had total indebtedness of approximately $2.4
billion, with a weighted average annual interest rate of 5.64 percent.

The Company had a debt-to-undepreciated assets ratio of 38.8 percent at June
30, 2013. The Company had an interest coverage ratio of 3.1 times for the
quarter ended June 30, 2013.

Mitchell E. Hersh, president and chief executive officer, commented,
"Mack-Cali had a successful second quarter, executing on our strategy of
selling select office properties as we continue our portfolio diversification
into multi-family. We also saw significant office leasing activity having
successfully completed lease transactions for over 1.3 million square feet."

ACQUISITIONS

In April, the Company acquired Alterra at Overlook Ridge 1B, a 412-unit
multi-family property in Revere, Massachusetts, for approximately $88 million.
The Company funded the acquisition primarily through borrowings under the
Company's unsecured revolving credit facility.

DEVELOPMENT

In June, the Company commenced initial operations on 14 Sylvan Way in
Parsippany, New Jersey. The 203,506-square-foot commercial property was 100
percent pre-leased.

SALES

On July 18, 2013, the Company announced that it entered into agreements to
form various joint ventures with a fund sponsored by Keystone Property Group
to facilitate the sale of Mack-Cali's 15 commercial office properties
aggregating 1.66 million square feet, and three land parcels located
throughout Suburban Philadelphia. Pursuant to the agreements, the portfolio
will be sold for approximately $233 million: $201 million in cash, a $10
million mortgage secured by One Plymouth Meeting, and subordinated interests
in the portfolio with capital accounts aggregating $22 million. Mack-Cali
shall participate in management fees and 50 percent of value creation above
certain hurdle rates. Mack-Cali anticipates receiving a majority interest in a
land parcel in Bala Cynwyd, Pennsylvania, for multi-family residential
development, subject to certain conditions. As part of the transaction,
Mack-Cali retains the rights to subdivide and develop multi-family residential
units at 150 Monument Road in Bala Cynwyd. The sale is subject to the
purchaser's completion of due diligence by August 19, which may be extended,
and normal and customary closing conditions. The Company anticipates a late
2013 closing.

Through July 2013, the Company completed the sales of nine office properties,
aggregating 1.3 million square feet, for a total of approximately $186.6
million, as follows:

In April, the Company sold 19 Skyline Drive, located in Hawthorne, New York,
for approximately $16.2 million. The vacant five-story, 248,400-square-foot
building was sold to New York Medical College, a member of the Touro College
and University System.

Also in April, the Company sold 55 Corporate Drive in Bridgewater, New Jersey
for approximately $72.3million. The building is a 204,057-square-foot,
fully-leased property.

In May, the Company sold the following properties:

  oMack-Cali Airport property located in Little Ferry, New Jersey for
    approximately $32.3 million. The sold building is a fully leased,
    two-story, 286,628-square-foot property.
  o777 Passaic Avenue in Clifton, New Jersey, for approximately $5.8 million
    to a joint venture comprised of Gottesman Real Estate Partners and
    Mountain Development Corporation. The five-story, approximately
    75,000-square-foot property was 65 percent leased.
  o16 and 18 Sentry Park West in Blue Bell, Pennsylvania, for approximately
    $19.3 million. The four-story, 93,093-square-foot 16 Sentry Park West, and
    the four-story, 95,010-square-foot 18 Sentry West were sold to a fund
    sponsored by Keystone Property Group. The Company retained a carried
    passive economic interest in the two properties subject to future economic
    performance of the assets.

In June, the Company sold 51 Imclone Drive in Branchburg, New Jersey, for
approximately $6.2 million. 51 Imclone Drive is a single tenant, two-story,
63,213-square-foot property.

Also in June, the Company sold 40 Richards Avenue in Norwalk, Connecticut for
$16.5 million. The approximately 64 percent occupied, seven-story,
145,487-square-foot property was sold to the Davis Companies.

In July, the Company sold Liberty Corner Corporate Center, 106 Allen Road in
Bernards Township, New Jersey, for approximately $18.0 million. The
four-story, 132,010-square-foot building was sold to The Silverman Group.

FINANCING ACTIVITY

In May, the Company completed the sale of $275 million face amount of 3.15
percent senior unsecured notes due May 15, 2023 with interest payable
semi-annually in arrears. The net proceeds from the issuance of approximately
$266.5 million, after underwriting discount and offering expenses, were used
primarily to repay outstanding borrowings under the Company's unsecured
revolving credit facility.

In July, the Company refinanced and extended its unsecured revolving credit
facility with a group of 17 lenders. The $600 million unsecured facility,
which is expandable to $1 billion, carries an interest rate equal to LIBOR
plus 110 basis points. The credit facility, which also carries a facility fee
of 20 basis points, has a four-year term with two six-month extension options.
The interest rate and facility fee are subject to adjustment, on a sliding
scale, based upon the operating partnership's unsecured debt ratings.

LEASING INFORMATION

Mack-Cali's consolidated in-service portfolio was 86.2 percent leased at June
30, 2013, as compared to 86.0 percent leased at March 31, 2013.

For the quarter ended June 30, 2013, the Company executed 165 leases at its
consolidated in-service portfolio totaling 1,311,917 square feet, consisting
of 955,751 square feet of office space, 293,436 square feet of office/flex
space and 62,730 square feet of industrial/warehouse space. Of these totals,
401,777 square feet were for new leases and 910,140 square feet were for lease
renewals and other tenant retention transactions.

Highlights of the quarter's leasing transactions include:

NORTHERN NEW JERSEY:

  oT-Mobile USA, Inc., a wireless telecommunications service provider, signed
    a renewal for the entire 105,135-square-foot office building at 4 Sylvan
    Way, located in Mack-Cali Business Campus in Parsippany.
  oSunovion Pharmaceuticals Inc., a research-based pharmaceutical company,
    signed a renewal for 45,847 square feet at One Bridge Plaza in Fort Lee.
    The 200,000-square-foot office building is 91.4 percent leased.
  oToyota Motor Credit Corporation, a provider of finance and insurance
    products and services, signed a renewal for 22,236 square feet at 4
    Gatehall Drive in Parsippany. The 248,480-square-foot office building,
    located in Mack-Cali Business Campus, is 81.7 percent leased.
  oLaw firm Orloff, Lowenbach, Stifelman & Siegel, P.A. signed a renewal for
    20,228 square feet at 101 Eisenhower Parkway in Roseland. The
    237,000-square-foot office building, located in Eisenhower/280 Corporate
    Center, is 84.8 percent leased.

CENTRAL NEW JERSEY:

  oAmerican General Life Insurance Company, a provider of life insurance,
    annuity, and accident and health products, signed a new lease for 74,199
    square feet at 3600 Route 66 in Neptune. The 180,000-square-foot office
    building is 100 percent leased.
  oPublic Service Electric & Gas Company signed a renewal for 47,604 square
    feet at 20 Commerce Drive in Cranford. The 176,600-square-foot office
    building, located in Cranford Business Park, is 87.5 percent leased.
  oHammerman & Gainer, Inc., a third party administration firm, signed a new
    lease for 20,874 square feet at 3 Paragon Way in Freehold. The
    66,898-square-foot office building, located in Monmouth Executive Center,
    is 88.2 percent leased.

WESTCHESTER COUNTY, NEW YORK:

  oXand Operations, LLC, a provider of data center infrastructure and
    business continuity solutions, signed transactions totaling 131,078 square
    feet consisting of a renewal of 46,078 square feet at 11 Skyline Drive and
    a renewal of 43,632 square feet and an expansion of 41,368 square feet at
    17 Skyline Drive in Hawthorne. With this expansion, Xand Operations now
    leases the entirety of both buildings, which are located in
    Mid-Westchester Executive Park.
  oEvening Out, Inc., a dinner theatre operator, signed a renewal for the
    entire 32,720-square-foot office/flex building at 75 Clearbrook Road in
    Elmsford's Cross Westchester Executive Park.
  oKnighted, LLC, a developer of warehouse management and logistics software,
    signed a new lease for 30,000 square feet at 555 Taxter Road in Elmsford.
    The 170,554-square-foot office building, located in Taxter Corporate Park,
    is 86.3 percent leased.
  oCon-way Freight Inc., a provider of freight transportation and logistics,
    signed a renewal for the entire 22,100-square-foot industrial/warehouse
    building at 6 Warehouse Lane in Elmsford Distribution Center in Elmsford.

MANHATTAN:

  oFinancial firm Loeb Holding Corporation signed a new lease for 22,255
    square feet at 125 Broad Street in Manhattan. Mack-Cali's ownership
    interests of 524,476 square feet in the building are 100 percent leased.

SUBURBAN PHILADELPHIA:

  oBAYADA Home Health Care, a provider of home health care services, signed
    transactions totaling 43,970 square feet consisting of a
    29,265-square-foot renewal at 101 Executive Drive, a 5,400-square-foot
    renewal at 1 Executive Drive, and a 9,305-square-foot new lease at 2
    Executive Drive, all office/flex properties located in Moorestown West
    Corporate Center in Moorestown. 101 Executive Drive is a
    29,355-square-foot building which is 99.7 percent leased. 1 Executive
    Drive contains 20,570 square feet and is 90.8 percent leased, and the
    60,800-square-foot 2 Executive Drive is 81.1 percent leased.

Included in the Company's Supplemental Operating and Financial Data for the
second quarter 2013 are schedules highlighting the leasing statistics for both
the Company's consolidated and joint venture properties.

The supplemental information is available on Mack-Cali's website, as follows:
http://www.mack-cali.com/file-uploads/2nd.quarter.sp.13.pdf

ADDITIONAL INFORMATION

The Company expressed comfort with net income and FFO per diluted share for
the full year 2013, as follows:

                                                                 Full Year
                                                                 2013 Range
Net income available to common shareholders                      $0.93 - $1.03
Add: Real estate-related depreciation and amortization           2.00
Deduct: Impairments/Discontinued operations - Realized (gains)
losses and unrealized losses on disposition of rental property,  (0.61)
net
Funds from operations available to common shareholders           $2.32 - $2.42

These estimates reflect management's view of current market conditions and
certain assumptions with regard to rental rates, occupancy levels and other
assumptions/projections. Actual results could differ from these estimates.

An earnings conference call with management is scheduled for today, July 25,
2013 at 10:00 a.m. Eastern Time, which will be broadcast live via the Internet
at:
http://phoenix.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=96021&eventID=4985896

The live conference call is also accessible by calling (719) 325-2402 and
requesting the Mack-Cali conference call.

The conference call will be rebroadcast on Mack-Cali's website at
http://www.mack-cali.com beginning at 2:00 p.m. Eastern Time on July 25, 2013 
through August 1, 2013.

A replay of the call will also be accessible during the same time period by
calling (719) 457-0820 and using the pass code 1670218.

Copies of Mack-Cali's Form 10-Q and Supplemental Operating and Financial Data
are available on Mack‑Cali's website, as follows:

Second Quarter 2013 Form 10-Q:
http://www.mack-cali.com/file-uploads/2nd.quarter.10q.13.pdf

Second Quarter 2013 Supplemental Operating and Financial Data:
http://www.mack-cali.com/file-uploads/2nd.quarter.sp.13.pdf

In addition, these items are available upon request from:
Mack-Cali Investor Relations Department
343 Thornall Street, Edison, New Jersey 08837-2206
(732) 590-1000 ext. 1143

INFORMATION ABOUT FFO

Funds from operations ("FFO") is defined as net income (loss) before
noncontrolling interest of unitholders, computed in accordance with generally
accepted accounting principles ("GAAP"), excluding gains (or losses) from
extraordinary items, sales of depreciable rental property, and impairments
related to depreciable rental property, plus real estate-related depreciation
and amortization. The Company believes that FFO per share is helpful to
investors as one of several measures of the performance of an equity REIT. The
Company further believes that as FFO per share excludes the effect of
depreciation, gains (or losses) from sales of properties and impairments
related to depreciable rental property (all of which are based on historical
costs which may be of limited relevance in evaluating current performance),
FFO per share can facilitate comparison of operating performance between
equity REITs.

FFO per share should not be considered as an alternative to net income
available to common shareholders per share as an indication of the Company's
performance or to cash flows as a measure of liquidity. FFO per share
presented herein is not necessarily comparable to FFO per share presented by
other real estate companies due to the fact that not all real estate companies
use the same definition. However, the Company's FFO per share is comparable to
the FFO per share of real estate companies that use the current definition of
the National Association of Real Estate Investment Trusts ("NAREIT"). A
reconciliation of net income per share to FFO per share is included in the
financial tables accompanying this press release.

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 272
properties, consisting of 263 office and office/flex properties totaling
approximately 30.5 million square feet and nine multi-family rental properties
containing over 3,300 residential units, all located in the Northeast. The
properties enable the Company to provide a full complement of real estate
opportunities to its diverse base of commercial and residential tenants.

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

The information in this press release must be read in conjunction with, and is
modified in its entirety by, the Quarterly Report on Form 10-Q (the "10-Q")
filed by the Company for the same period with the Securities and Exchange
Commission (the "SEC") and all of the Company's other public filings with the
SEC (the "Public Filings"). In particular, the financial information contained
herein is subject to and qualified by reference to the financial statements
contained in the 10-Q, the footnotes thereto and the limitations set forth
therein. Investors may not rely on the press release without reference to the
10-Q and the Public Filings.

Statements made in this press release may be forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements can be identified by the use of words
such as "may," "will," "plan," "potential," "projected," "should," "expect,"
"anticipate," "estimate," "continue," or comparable terminology. Such
forward-looking statements are inherently subject to certain risks, trends and
uncertainties, many of which the Company cannot predict with accuracy and some
of which the Company might not even anticipate, and involve factors that may
cause actual results to differ materially from those projected or suggested.
Readers are cautioned not to place undue reliance on these forward-looking
statements and are advised to consider the factors listed above together with
the additional factors under the heading "Disclosure Regarding Forward-Looking
Statements" and "Risk Factors" in the Company's Annual Reports on Form 10-K,
as may be supplemented or amended by the Company's Quarterly Reports on Form
10-Q, which are incorporated herein by reference. The Company assumes no
obligation to update or supplement forward-looking statements that become
untrue because of subsequent events, new information or otherwise.

Mack-Cali Realty Corporation

Consolidated Statements of Operations

(in thousands, except per share amounts) (unaudited)
                             Quarter Ended             Six Months Ended
                             June 30,                  June 30,
Revenues                     2013          2012        2013         2012
Base rents                   $  144,034   $ 143,031   $ 286,273   $ 286,337
Escalations and recoveries   18,314        19,970      38,971       39,246
from tenants
Construction services        6,746         4,604       14,972       8,066
Real estate services         6,642         1,100       13,085       2,271
Parking income               1,603         1,530       3,002        3,141
Other income                 599           1,810       2,356        9,692
Total revenues               177,938       172,045     358,659      348,753
Expenses
Real estate taxes            21,001        24,228      43,842       46,467
Utilities                    14,425        14,103      31,610       29,738
Operating services           27,096        26,223      54,168       51,204
Direct construction costs    6,511         4,337       14,336       7,615
Real estate services         5,304         501         10,257       1,006
expenses
General and administrative   13,157        11,873      25,162       22,643
Depreciation and             48,422        46,326      94,482       92,526
amortization
Impairments                  23,851        --          23,851       --
Total expenses               159,767       127,591     297,708      251,199
Operating income             18,171        44,454      60,951       97,554
Other (Expense) Income
Interest expense             (31,271)      (31,565)    (61,140)     (62,112)
Interest and other           1,094         7           1,100        20
investment income
Equity in earnings (loss) of
unconsolidated joint         (80)          1,733       (1,830)      2,333
ventures
Loss from early              --            (4,415)     --           (4,415)
extinguishment of debt
Total other (expense) income (30,257)      (34,240)    (61,870)     (64,174)
Income (loss) from           (12,086)      10,214      (919)        33,380
continuing operations
Discontinued Operations:
Income from discontinued     1,364         2,831       3,286        4,920
operations
Loss from early              (703)         --          (703)        --
extinguishment of debt
Realized gains (losses) and
unrealized losses on         37,609        (1,634)     37,609       2,378
disposition of rental
property, net
Total discontinued           38,270        1,197       40,192       7,298
operations, net
Net income                   26,184        11,411      39,273       40,678
Noncontrolling interest in   62            92          124          171
consolidated joint ventures
Noncontrolling interest in   1,455         (1,256)     93           (4,090)
Operating Partnership
Noncontrolling interest in   (4,630)       (146)       (4,863)      (891)
discontinued operations
Net income available to      $  23,071   $  10,101  $  34,627  $ 35,868
common shareholders
PER SHARE DATA:
Basic earnings per common    $    0.26 $   0.11 $    0.39 $   0.41
share
Diluted earnings per common  $    0.26 $   0.11 $    0.39 $   0.41
share
Basic weighted average       87,708        87,817      87,688       87,808
shares outstanding
Diluted weighted average     99,780        100,069     99,773       100,065
shares outstanding



Mack-Cali Realty Corporation

Statements of Funds from Operations

(in thousands, except per share/unit amounts) (unaudited)
                                         Quarter Ended      Six Months Ended
                                         June 30,           June 30,
                                         2013      2012     2013       2012
Net income available to common           $ 23,071 $ 10,101 $ 34,627  $  
shareholders                                                           35,868
Add: Noncontrolling interest in          (1,455)   1,256    (93)       4,090
Operating Partnership
Noncontrolling interest in discontinued  4,630     146      4,863      891
operations
Real estate-related depreciation and
amortization on continuing operations    52,458    47,259   101,603    94,367
(1)
Real estate-related depreciation and     233       1,679    973        3,716
amortization on discontinued operations
Impairments                              23,851    --       23,851     --
Deduct: Discontinued operations -
Realized (gains) losses and unrealized   (37,609)  1,634    (37,609)   (2,378)
losses on disposition of rental
property, net

                                         $ 65,179 $ 62,075 $ 128,215  $ 
Funds from operations available to                                     136,554
common shareholders (2)
Diluted weighted average shares/units    99,780    100,069  99,773     100,065
outstanding (3)
Funds from operations per share/unit –   $       $      $        $   
diluted                                  0.65      0.62     1.29       1.36
Dividends declared per common share      $       $      $        $   
                                         0.30      0.45     0.75       0.90
Dividend payout ratio:
Funds from operations-diluted            45.93%    72.55%   58.36%     65.95%
Supplemental Information:
Non-incremental revenue generating
capital expenditures:
Building improvements                    $        $       $  8,038 $  
                                         3,122    4,495               10,321
Tenant improvements and leasing          $ 11,258 $ 11,545 $ 25,440  $  
commissions (4)                                                        21,095
Straight-line rent adjustments (5)       $        $       $  9,571 $   
                                         3,136    1,727               3,140
Amortization of (above)/below market     $       $      $  1,275 $   
lease intangibles, net (6)               709      299                 705
(1) Includes the Company's share from unconsolidated joint ventures of $4,117
and $996 for the quarters ended June 30, 2013 and 2012, respectively, and
$7,272 and $1,989 for the six months ended June 30, 2013 and 2012,
respectively. Excludes non-real estate-related depreciation and amortization
of $81 and $63 for the quarters ended June 30, 2013 and 2012, respectively,
and $151 and $148 for the six months ended June 30, 2013 and 2012,
respectively.
(2) Funds from operations is calculated in accordance with the definition of
FFO of the National Association of Real Estate Investment Trusts (NAREIT)
definition. For further discussion, see "Information About FFO" in this
release.
(3) Calculated based on weighted average common shares outstanding, assuming
redemption of Operating Partnership common units into common shares (12,072
and 12,183 shares for the quarters ended June 30, 2013 and 2012, respectively,
and 12,085 and 12,188 for the six months ended June 30, 2013 and
2012,respectively), plus dilutive Common Stock Equivalents (i.e. stock
options).
(4) Excludes expenditures for tenant spaces that have not been owned for at
least a year or were vacant for more than a year.
(5) Includes the Company's share from unconsolidated joint ventures of $17 and
$17 for the quarters ended June 30, 2013 and 2012, respectively, and $2 and
$34 for the six months ended June 30, 2013 and 2012, respectively.
(6) Includes the Company's share from unconsolidated joint ventures of $227
and $0 for the three months ended June 30, 2013 and 2012, respectively, and
$394 and $0 for the six months ended June 30, 2013 and 2012, respectively.



Mack-Cali Realty Corporation

Statements of Funds from Operations per Diluted Share

(amounts are per diluted share, except share count in thousands) (unaudited)
                                       Quarter Ended              Six Months
                                                                  Ended
                                       June 30,
                                                                  June 30,
                                       2013       2012      2013     2012
Net income available to common         $  0.26  $  0.11  $ 0.39  $  0.41
shareholders
Add: Real estate-related depreciation
and amortization on continuing         0.53       0.47      1.02     0.94
operations (1)
Real estate-related depreciation and
amortization on discontinued           --         0.02      0.01     0.04
operations
Impairments                            0.24       --        0.24     --
Deduct: Discontinued operations -
Realized (gains) losses and unrealized (0.38)     0.02      (0.38)   (0.02)
losses on disposition of rental
property, net
Noncontrolling interest/rounding       --         --        0.01     (0.01)
adjustment

                                       $  0.65  $  0.62  $ 1.29  $  1.36
Funds from operations available to
common shareholders (2)
Diluted weighted average shares/units  99,780     100,069   99,773   100,065
outstanding (3)
(1) Includes the Company's share from unconsolidated joint ventures of $0.04
and $0.01 for the quarters ended June 30, 2013 and 2012, respectively, and
$0.07 and $0.02 for the six months ended June 30, 2013 and 2012, respectively.
(2) Funds from operations is calculated in accordance with the definition of
FFO of the National Association of Real Estate Investment Trusts (NAREIT)
definition. For further discussion, see "Information About FFO" in this
release.
(3) Calculated based on weighted average common shares outstanding, assuming
redemption of Operating Partnership common units into common shares (12,072
and 12,183 shares for the quarters ended June 30, 2013 and 2012, respectively,
and 12,085 and 12,188 for the six months ended June 30, 2013 and
2012,respectively), plus dilutive Common Stock Equivalents (i.e. restricted
stock awards).

Mack-Cali Realty Corporation

Consolidated Balance Sheets

(in thousands, except per share amounts) (unaudited)
                                                June 30,       December 31,
                                                2013           2012
Assets
Rental property
Land and leasehold interests                    $   781,347 $    782,315
Buildings and improvements                      4,142,086      4,104,472
Tenant improvements                             463,726        489,608
Furniture, fixtures and equipment               4,513          3,041
                                                5,391,672      5,379,436
Less - accumulated deprec. & amort.             (1,465,104)    (1,478,214)
                                                3,926,568      3,901,222
Rental property held for sale, net              12,851         60,863
Net investment in rental property               3,939,419      3,962,085
Cash and cash equivalents                       177,939        58,245
Investments in unconsolidated joint ventures    135,722        132,339
Unbilled rents receivable, net                  142,722        139,984
Deferred charges and other assets, net          214,615        204,874
Restricted cash                                 19,639         19,339
Accounts receivable, net                        8,008          9,179
Total assets                                    $  4,638,064  $  4,526,045
Liabilities and Equity
Senior unsecured notes                          $  1,616,099  $  1,446,894
Mortgages, loans payable and other obligations  753,054        757,495
Dividends and distributions payable             29,983         44,855
Accounts payable, accrued expenses and other    126,116        124,822
liabilities
Rents received in advance and security deposits 49,159         55,917
Accrued interest payable                        28,561         27,555
Total liabilities                               2,602,972      2,457,538
Commitments and contingencies
Equity:
Mack-Cali Realty Corporation stockholders'
equity:
Common stock, $0.01 par value, 190,000,000
shares authorized,
88,004,354 and 87,536,292 shares outstanding   880            875
Additional paid-in capital                      2,535,814      2,530,621
Dividends in excess of net earnings             (795,700)      (764,522)
Total Mack-Cali Realty Corporation              1,740,994      1,766,974
stockholders' equity
Noncontrolling interests in subsidiaries:
Operating Partnership                           237,461        245,091
Consolidated joint ventures                     56,637         56,442
Total noncontrolling interests in subsidiaries  294,098        301,533
Total equity                                    2,035,092      2,068,507
Total liabilities and equity                    $  4,638,064  $  4,526,045



Contact: Barry Lefkowitz              Ilene Jablonski
         Executive Vice President     Vice President of Marketing
         and Chief Financial Officer  Mack-Cali Realty Corporation
         Mack-Cali Realty Corporation (732) 590-1000
         (732) 590-1000



SOURCE Mack-Cali Realty Corporation

Website: http://www.mack-cali.com