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[LOGO]
MACK-CALI
REALTY CORPORATION
THIRD QUARTER 2000
SUPPLEMENTAL OPERATING AND FINANCIAL DATA
THIS SUPPLEMENTAL OPERATING AND FINANCIAL DATA IS NOT AN OFFER TO SELL OR
SOLICITATION TO BUY ANY SECURITIES OF THE COMPANY. ANY OFFERS TO SELL OR
SOLICITATIONS OF THE COMPANY SHALL BE MADE BY MEANS OF A PROSPECTUS.
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INDEX
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PAGE/S
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I. COMPANY BACKGROUND
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- About the Company/Other Corporate Data............................................................. 5
- Board of Directors/Executive Officers.............................................................. 6
- Equity Research Coverage/Company Contact Information............................................... 7
II. FINANCIAL HIGHLIGHTS
- Quarterly Summary.................................................................................. 9
- Dispositions/Acquisitions/Development Summary...................................................... 10
- Financing Activities/Leasing Information........................................................... 11
- Key Financial Data................................................................................. 12
- Same-Store Results and Analysis.................................................................... 13
- Unconsolidated Joint Ventures Summary.............................................................. 14-16
- Select Financial Ratios............................................................................ 17
- Debt Analysis:
- Debt Breakdown/Future Repayments............................................................... 18
- Debt Maturities................................................................................ 19
- Debt Detail.................................................................................... 20
III. FINANCIAL STATEMENTS
- Consolidated Statements of Operations.............................................................. 22
- Consolidated Balance Sheets........................................................................ 23
- Consolidated Statement of Changes in Stockholders' Equity.......................................... 24
- Statements of Funds from Operations and Cash Available for Distribution............................ 25
- Reconciliation of Basic-to-Diluted Shares/Units.................................................... 26
IV. VALUE CREATION PIPELINE
- Operating Property Acquisitions ................................................................... 28
- Properties Placed in Service....................................................................... 29
- Acquisition Property Profile ...................................................................... 30
- Summary of Construction Projects................................................................... 31
- Summary of Land Parcels............................................................................ 32
- Rental Property Sales/Rental Property Held for Sale................................................ 33
V. PORTFOLIO/ LEASING STATISTICS
- Leasing Statistics................................................................................. 35-44
- Market Diversification (Top 25 MSA's).............................................................. 45
- Industry Diversification (Top 30 Tenant Industries)................................................ 46
- Consolidated Portfolio Analyses:
BREAKDOWNS BY:
(a) Number of Properties....................................................................... 47
(b) Square Footage............................................................................. 48
(c) Base Rental Revenue........................................................................ 49
(d) Percentage Leased.......................................................................... 50
- Consolidated Property Listing (by Property Type)................................................... 51-62
- Significant Tenants (Top 20 Tenants)............................................................... 63
- Schedules of Lease Expirations (by Property Type).................................................. 64-67
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Certain information discussed in this literature 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.
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I. COMPANY BACKGROUND
4
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I. COMPANY BACKGROUND
ABOUT THE COMPANY
Mack-Cali Realty Corporation (NYSE: CLI) is one of the largest real estate
investment trusts (REITs) in the United States with a total market
capitalization of $3.6 billion at September 30, 2000. Mack-Cali has been
involved in all aspects of commercial real estate development, management and
ownership for over 50 years and has been a publicly traded REIT since 1994.
Mack-Cali owns or has interests in 268 properties, primarily class A office and
office/flex buildings, totaling approximately 28.5 million square feet, serving
as home to over 2,400 tenants. The properties are located primarily in suburban
markets of the Northeast, many with adjacent, Company-controlled developable
land sites able to accommodate up to 10.6 million square feet of additional
commercial space.
HISTORY
Established over 50 years ago, in 1994 the New Jersey-based firm became a
publicly traded company named Cali Realty Corporation, traded on the New York
Stock Exchange as CLI. Through combinations with some of the top companies in
the real estate industry--most notably New Jersey-based Mack Company and
Westchester, New York-based Robert Martin Company--Mack-Cali has become one of
the leading real estate companies in the country.
STRATEGY
Mack-Cali's strategy is to be a significant real estate owner and operator in
its core, high-barriers-to-entry markets, primarily in the Northeast, with a
presence in California.
SUMMARY
(AS OF SEPTEMBER 30, 2000)
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Corporate Headquarters Cranford, New Jersey
Fiscal Year End 12/31
Total Properties 268
Total Square Feet 28.5 million square feet
Geographic Diversity 12 states and the District of Columbia
New Jersey Presence 13.6 million square feet
Northeast Presence 21.7 million square feet
Common Shares and
Units Outstanding 73.1 million
Dividend-- Quarter/Annualized $0.61/$2.44
Dividend Yield 8.7%
Total Market Capitalization $3.6 billion
Insider Ownership 17.1%
Senior Debt Rating BBB (S&P and Fitch);
Baa3 (Moody's)
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BOARD OF DIRECTORS
William L. Mack, CHAIRMAN OF THE BOARD
John J. Cali, CHAIRMAN EMERITUS
Martin S. Berger, DIRECTOR
Brendan T. Byrne, DIRECTOR
John R. Cali, DIRECTOR
Nathan Gantcher, DIRECTOR
Martin D. Gruss, DIRECTOR
Mitchell E. Hersh, DIRECTOR
Earle I. Mack, DIRECTOR
Alan G. Philibosian, DIRECTOR
Irvin D. Reid, DIRECTOR
Vincent Tese, DIRECTOR
Roy J. Zuckerberg, DIRECTOR
EXECUTIVE OFFICERS
Mitchell E. Hersh, CHIEF EXECUTIVE OFFICER
Timothy M. Jones, PRESIDENT
Barry Lefkowitz, EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
Roger W. Thomas, EXECUTIVE VICE PRESIDENT, GENERAL COUNSEL AND SECRETARY
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EQUITY RESEARCH COVERAGE
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BANC OF AMERICA SECURITIES GREEN STREET ADVISORS
Lee T. Schalop/Alexis Hughes James Sullivan
(212) 847-5677/(212) 847-5705 (949) 640-8780
BEAR, STEARNS & CO., INC. LEHMAN BROTHERS
Ross Smotrich David Shulman/ Stuart Axelrod
(212) 272-8046 (212) 526-3413/ (212) 526-3410
CS FIRST BOSTON MERRILL LYNCH
Lawrence Raiman Rahul Bhattacharjee/ Steve Sakwa
(212) 538-2380 (212) 449-1920/ (212) 449-0335
DRESDNER KLEINWORT BENSON MORGAN STANLEY DEAN WITTER
Sheila McGrath Greg Whyte
(212) 429-3442 (212) 761-6331
FIRST UNION SALOMON SMITH BARNEY
Christopher Haley Jonathan Litt/ Gary Boston
(443) 263-6773 (212) 816-0231/ (212) 816-1383
GOLDMAN SACHS UBS WARBURG
James Kammert Anthony Davis
(212) 855-0670 (212) 821-2303
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COMPANY CONTACT INFORMATION
Mack-Cali Realty Corporation
Investor Relations Department
11 Commerce Drive
Cranford, NJ 07016-3599
PHONE: (908) 272-8000 WEB: www.mack-cali.com
FAX: (908) 272-6755 E-MAIL: [email protected]
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II. FINANCIAL HIGHLIGHTS
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II. FINANCIAL HIGHLIGHTS
QUARTERLY SUMMARY
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."
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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 over 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 SUMMARY
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. Expected
returns on the projects are 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
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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 adjacent 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
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.
Also 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 $21.7 million.
LEASING INFORMATION
Mack-Cali's consolidated in-service portfolio was 96.7 percent leased at
September 30, 2000, compared to 96.9 percent at June 30, 2000.
For the quarter ended September 30, 2000, the Company executed 176 leases
totaling 1,011,946 square feet, consisting of 744,253 square feet of office
space and 267,693 square feet of office/flex space. Of these totals, 356,715
square feet were for new leases and 655,231 square feet were for lease renewals
and other tenant retention transactions.
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KEY FINANCIAL DATA
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AS OF OR FOR THE THREE MONTHS ENDED
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9/30/00 6/30/00 3/31/00 12/31/99 9/30/99
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SHARES AND UNITS:
Common Shares Outstanding 58,698,648 58,782,808 58,489,135 58,446,552 58,390,984
Common Units Outstanding (a) 14,431,329 14,515,086 14,734,548 14,771,431 14,904,185
Combined Shares and Units 73,129,977 73,297,894 73,223,683 73,217,983 73,295,169
Weighted Average- Basic (b) 66,728,711 66,626,649 66,428,219 66,468,799 66,893,433
Weighted Average- Diluted (c) 73,353,028 73,283,803 73,191,200 73,272,048 73,730,703
COMMON SHARE PRICE ($'S):
At the end of the period 28.1875 25.6875 25.5000 26.0625 26.8125
High during period 28.6250 28.4375 26.6250 26.8125 30.8125
Low during period 25.0625 24.4375 22.7500 23.1250 25.7500
MARKET CAPITALIZATION:
($'S IN THOUSANDS EXCEPT RATIOS)
Market Value of Equity (a) 2,063,276 1,882,840 1,951,701 1,991,844 1,965,227
Total Debt 1,534,327 1,487,277 1,528,503 1,490,175 1,578,229
Total Market Capitalization 3,597,603 3,370,117 3,480,204 3,482,019 3,543,456
Total Debt/ Total Market
Capitalization 42.65% 44.13% 43.92% 42.80% 44.54%
FINANCIALS:
($'S IN THOUSANDS EXCEPT RATIOS AND
PER SHARE AMOUNTS)
Total Assets 3,646,162 3,628,104 3,650,756 3,629,601 3,598,130
Book Value of Real Estate Assets
(before accumulated depreciation) 3,673,913 3,654,866 3,692,714 3,654,845 3,619,783
Total Liabilities 1,693,230 1,654,629 1,665,703 1,648,844 1,702,152
Total Minority Interest 453,164 455,645 539,214 538,875 458,253
Total Shareholder's Equity 1,499,768 1,517,830 1,445,839 1,441,882 1,437,725
Total Revenues 143,382 145,889 142,979 140,600 139,020
Capitalized Interest 3,293 2,335 1,854 2,114 1,707
Scheduled Principal Payments 685 723 880 601 805
Interest Coverage Ratio 3.65 3.71 3.66 3.37 3.43
Fixed Charge Coverage Ratio 2.79 2.71 2.75 2.70 2.76
Funds from Operations (d) 64,984 66,433 66,119 62,022 61,284
FFO per Share--diluted (d) 0.89 0.91 0.90 0.85 0.83
Cash Avail. For Distribution (e) 53,591 54,119 55,363 53,430 50,411
CAD per Share--diluted (e) 0.73 0.74 0.76 0.73 0.68
Dividends Declared per Share 0.61 0.58 0.58 0.58 0.58
FFO Payout Ratio--diluted (d) 68.86% 63.98% 64.20% 68.52% 69.78%
CAD Payout Ratio--diluted (e) 83.49% 78.54% 76.68% 79.54% 84.83%
PORTFOLIO SIZE:
Properties 268 266 266 259 256
Total Square Footage 28,532,779 28,411,314 28,990,497 28,612,747 28,360,638
Sq. Ft. Leased at End of Period (f) 96.7% 96.9% 96.7% 96.5% 96.1%
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(a) Includes preferred units on a converted basis into common units and
minority interests in partially-owned properties.
(b) Calculated based on weighted average common shares outstanding, assuming
redemption of operating partnership common units into common shares.
(c) 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).
(d) Funds from Operations ("FFO") is calculated in accordance with the National
Association of Real Estate Investment Trusts (NAREIT) definition, as
published in October 1999, after adjustment for straight-lining of rents
and non-recurring charges.
(e) Cash Available for Distribution ("CAD") is defined as funds from
operations, after adjustment for straight-lining of rents and non-recurring
charges, minus non-incremental revenue generating tenant improvements,
non-incremental revenue generating leasing commissions and recurring
capital expenditures.
(f) Reflects square feet leased at the Company's consolidated properties only.
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SAME STORE RESULTS AND ANALYSIS
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(DOLLARS IN THOUSANDS)
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FOR THE THREE MONTHS ENDED
9/30/00 9/30/99 CHANGE % CHANGE
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<S> <C> <C> <C> <C>
Property Revenues $129,049 $123,652 $5,397 4.4
Less: Straight-line rent adjustment (2,906) (2,972) 66 (2.2)
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Total Property Revenues 126,143 120,680 5,463 4.5
(excluding straight-line
rent adjustment)
Real Estate Taxes 14,653 13,936 717 5.1
Utilities 10,849 10,422 427 4.1
Operating Services 15,338 14,625 713 4.9
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Total Property Expenses: 40,840 38,983 1,857 4.8
Net Operating Income $85,303 $81,697 $3,606 4.4
====================================================================================================
Percentage Leased at
Period End 97.0% 96.1%
=============================
Total Properties: 243
Total Square Footage: 25,522,801
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</TABLE>
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FOR THE NINE MONTHS ENDED
9/30/00 9/30/99 CHANGE % CHANGE
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<S> <C> <C> <C> <C>
Property Revenues $382,677 $369,840 $12,837 3.5
Less: Straight-line rent adjustment (8,033) (9,847) 1,814 (18.4)
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Total Property Revenues 374,644 359,993 14,651 4.1
(excluding straight-line
rent adjustment)
Real Estate Taxes 42,090 40,489 1,601 4.0
Utilities 29,969 28,509 1,460 5.1
Operating Services 46,672 44,916 1,756 3.9
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Total Property Expenses: 118,731 113,914 4,817 4.2
Net Operating Income $255,913 $246,079 $9,834 4.0
====================================================================================================
Percentage Leased at
Period End 97.0% 96.6%
==============================
Total Properties: 238
Total Square Footage: 25,205,658
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</TABLE>
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UNCONSOLIDATED JOINT VENTURES SUMMARY
(DOLLARS IN THOUSANDS)
BREAKDOWN OF UNCONSOLIDATED JOINT VENTURES
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COMPANY'S
NUMBER OF PERCENT SQUARE EFFECTIVE
JOINT VENTURE NAME PROPERTY BUILDINGS LOCATION LEASED FEET OWNERSHIP %
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OFFICE PROPERTIES:
Pru-Beta 3 Nine Campus Drive 1 Parsippany, NJ 100.0% 156,495 50.0%
HPMC Continental Grand II 1 El Segundo, CA 90.6% 237,360 50.0%
HPMC Lava Ridge 3 Roseville, CA 89.0% 183,200 50.0%
HPMC Stadium Gateway 1 Anaheim, CA 32.0% 261,554 32.5%
G&G Martco Convention Plaza 1 San Francisco, CA 100.0% 305,618 50.0%
Ashford Loop Associates, LP 1001 South Dairy Ashford 1 Houston, TX 98.8% 130,000 20.0%
Ashford Loop Associates, LP 2100 West Loop South 1 Houston, TX 90.8% 168,000 20.0%
OFFICE/FLEX PROPERTIES:
HPMC Summit Ridge 3 San Diego, CA 100.0% 133,750 50.0%
Ramland RealtyAssociates,
L.L.C. One Ramland Road 1 Orangeburg, NY 80.6% 232,000 50.0%
MULTI-USE:
HPMC Pacific Plaza 2 Daly City, CA 57.3% 471,379 32.5%
American Financial Exchange
L.L.C. Parking Lot (a) -- Jersey City, NJ n/a n/a 50.0%
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(a) Property is currently a developable land parcel.
JOINT VENTURE FINANCIAL INFORMATION
The following is a summary of the financial position of the unconsolidated joint
ventures in which the Company had investment interests as of September 30, 2000
and December 31, 1999:
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SEPTEMBER 30, 2000
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AMERICAN
G&G FINANCIAL RAMLAND ASHFORD COMBINED
PRU-BETA 3 HPMC MARTCO EXCHANGE REALTY LOOP ARCAP TOTAL
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Rental property, net $21,059 $119,789 $10,890 $11,530 $19,169 $35,013 $ -- $217,450
Other assets 2,921 13,872 2,660 114 4,136 678 404,197 428,578
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Total assets $23,980 $133,661 $13,550 $11,644 $23,305 $35,691 $404,197 $646,028
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LIABILITIES AND PARTNERS'/
MEMBERS' CAPITAL:
Mortgages and loans payable $ -- $ 65,347 $50,000 $ -- $16,839 $ -- $211,955 $344,141
Other liabilities 255 9,976 1,379 386 238 678 67,477 80,389
Partners'/members' capital 23,725 58,338 (37,829) 11,258 6,228 35,013 124,765 221,498
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Total liabilities and
partners'/members' capital $23,980 $133,661 $13,550 $11,644 $ 23,305 $35,691 $404,197 $646,028
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Company's net investment
in unconsolidated
joint ventures $16,342 $ 33,500 $ 4,399 $11,307 $ 2,682 $ 7,347 $ 19,863 $ 95,440
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</TABLE>
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JOINT VENTURE FINANCIAL INFORMATION
(CONTINUED)
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<CAPTION>
DECEMBER 31, 1999
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AMERICAN
G&G FINANCIAL RAMLAND ASHFORD COMBINED
PRU-BETA 3 HPMC MARTCO EXCHANGE REALTY LOOP ARCAP TOTAL
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ASSETS:
Rental property, net $21,817 $72,148 $11,552 $10,695 $19,549 $31,476 $ -- $167,237
Other assets 3,319 6,427 2,571 773 5,069 768 239,441 258,368
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Total assets $25,136 $78,575 $14,123 $11,468 $24,618 $32,244 $239,441 $425,605
=========================================================================================================================
LIABILITIES AND PARTNERS'/
MEMBERS' CAPITAL:
Mortgages and loans payable $ -- $41,274 $43,081 $ -- $17,300 $ -- $108,407 $210,062
Other liabilities 186 7,254 1,383 2 1,263 3,536 36,109 49,733
Partners'/members' capital 24,950 30,047 (30,341) 11,466 6,055 28,708 94,925 165,810
-------------------------------------------------------------------------------------------------------------------------
Total liabilities and
partners'/members' capital $25,136 $78,575 $ 14,123 $11,468 $24,618 $32,244 $239,441 $425,605
=========================================================================================================================
Company's net investment
in unconsolidated
joint ventures $17,072 $23,337 $ 8,352 $11,571 $ 2,697 $ 6,073 $ 20,032 $ 89,134
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
The following is a summary of the results of operations of the unconsolidated
joint ventures for the period in which the Company had investment interests
during the three and nine months ended September 30, 2000 and 1999:
<TABLE>
<CAPTION>
THREE MONTHS ENDED SEPTEMBER 30, 2000
-------------------------------------------------------------------------------------------------------------------------
AMERICAN
G&G FINANCIAL RAMLAND ASHFORD COMBINED
PRU-BETA 3 HPMC MARTCO EXCHANGE REALTY LOOP ARCAP TOTAL
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Total revenues $1,253 $2,631 $2,783 $275 $983 $1,436 $5,357 $14,718
Operating and other expenses (391) (78) (890) (41) (280) (658) (876) (3,214)
Depreciation and amortization (307) (747) (384) (27) (252) (211) (70) (1,998)
Interest expense -- (979) (1,075) -- (407) -- (2,780) (5,241)
-------------------------------------------------------------------------------------------------------------------------
Net income $ 555 $ 827 $ 434 $207 $ 44 $ 567 $1,631 $ 4,265
=========================================================================================================================
Company's equity in earnings
of unconsolidated
joint ventures $ 239 $ 627 $ 286 $207 $ 22 $ 113 $ 700 $ 2,194
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
THREE MONTHS ENDED SEPTEMBER 30, 1999
-------------------------------------------------------------------------------------------------------------------------
AMERICAN
G&G FINANCIAL RAMLAND ASHFORD COMBINED
PRU-BETA 3 HPMC MARTCO EXCHANGE REALTY LOOP ARCAP TOTAL
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Total revenues $1,227 -- $2,422 $250 $580 $ 971 $3,223 $8,673
Operating and other expenses (389) -- (814) (33) (103) (597) (1,201) (3,137)
Depreciation and amortization (304) -- (233) (24) (178) (163) -- (902)
Interest expense -- -- (813) -- -- -- (1,014) (1,827)
-------------------------------------------------------------------------------------------------------------------------
Net income $ 534 -- $ 562 $193 $299 $ 211 $1,008 $2,807
=========================================================================================================================
Company's equity in earnings
of unconsolidated
joint ventures $ 228 -- $ 124 $193 $150 $ 42 $ 97 $ 834
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
15
<PAGE>
JOINT VENTURE FINANCIAL INFORMATION
(CONTINUED)
<TABLE>
<CAPTION>
NINE MONTHS ENDED SEPTEMBER 30, 2000
-------------------------------------------------------------------------------------------------------------------------
AMERICAN
G&G FINANCIAL RAMLAND ASHFORD COMBINED
PRU-BETA 3 HPMC MARTCO EXCHANGE REALTY LOOP ARCAP TOTAL
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Total revenues $ 3,721 $ 6,191 $ 8,064 $ 779 $ 2,930 $ 4,268 $16,507 $ 42,460
Operating and other expenses (1,210) (1,087) (2,443) (123) (870) (1,929) (2,168) (9,830)
Depreciation and amortization (918) (2,155) (1,146) (47) (734) (614) (70) (5,684)
Interest expense -- (2,220) (2,989) -- (1,153) -- (4,481) (10,843)
-------------------------------------------------------------------------------------------------------------------------
Net income $ 1,593 $ 729 $ 1,486 $ 609 $ 173 $ 1,725 $ 9,788 $ 16,103
=========================================================================================================================
Company's equity in earnings
of unconsolidated
joint ventures $ 680 $ 729 $ 498 $ 552 $ 84 $ 358 $ 1,500 $ 4,401
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NINE MONTHS ENDED SEPTEMBER 30, 1999
-------------------------------------------------------------------------------------------------------------------------
AMERICAN
G&G FINANCIAL RAMLAND ASHFORD COMBINED
PRU-BETA 3 HPMC MARTCO EXCHANGE REALTY LOOP ARCAP TOTAL
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Total revenues $ 3,697 -- $ 6,572 $ 667 $ 580 $ 2,959 $ 5,998 $20,473
Operating and other expenses (1,134) -- (2,204) (163) (103) (1,645) (3,213) (8,462)
Depreciation and amortization (929) -- (696) (70) (178) (379) -- (2,252)
Interest expense -- -- (2,261) -- -- -- (1,558) (3,819)
-------------------------------------------------------------------------------------------------------------------------
Net income $ 1,634 -- $ 1,411 $ 434 $ 299 $ 935 $ 1,227 $ 5,940
=========================================================================================================================
Company's equity in earnings
of unconsolidated
joint ventures $ 584 -- $ (153) $ 384 $ 150 $ 176 $ 321 $ 1,462
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
16
<PAGE>
SELECT FINANCIAL RATIOS
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
RATIOS COMPUTED FOR INDUSTRY THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30,
COMPARISONS: 2000 1999 2000 1999
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FINANCIAL POSITION RATIOS:
Total Debt/ Total Book 42.05% 43.88% 42.05% 43.88%
Capitalization Ratio
(BOOK VALUE) (%)
Total Debt/ Total Market 42.65% 44.54% 42.65% 44.54%
Capitalization Ratio
(MARKET VALUE) (%)
Total Debt/ Total Undepreciated 38.97% 41.41% 38.97% 41.41%
Assets (%)
Secured Debt/ Total Undepreciated 12.36% 14.31% 12.36% 14.31%
Assets (%)
OPERATIONAL RATIOS:
Interest Coverage Ratio 3.65 3.43 3.68 3.54
(FUNDS FROM OPERATIONS
+INTEREST EXPENSE)/
INTEREST EXPENSE (X)
Debt Service Coverage Ratio 3.55 3.33 3.57 3.42
(FUNDS FROM OPERATIONS+INTEREST
EXPENSE)/(INTEREST EXPENSE+
PRINCIPAL AMORT.) (X)
Fixed Charge Coverage Ratio 2.79 2.76 2.75 2.82
(FUNDS FROM OPERATIONS +
INTEREST EXPENSE)/(INTEREST
EXPENSE +CAPITALIZED INTEREST+
PREF. DIV.+PRIN. AMORT.+GROUND
LEASE PAYMENTS)(X)
FFO Payout Ratio 68.86% 69.78% 65.66% 68.17%
(DIVIDENDS DECLARED/FUNDS FROM
OPERATIONS (1) (%))
CAD Payout Ratio 83.49% 84.83% 79.53% 78.66%
(DIVIDENDS DECLARED/ CASH
AVAILABLE FOR DISTRIBUTION (%))
------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Computed based on Funds from Operations, after adjustment for
straight-lining of rents and non-recurring charges before minority
interest in the Operating Partnership and Partially-Owned Properties
and the equity interest share of Funds from Operations add-backs.
17
<PAGE>
DEBT ANALYSIS
(AS OF SEPTEMBER 30, 2000)
DEBT BREAKDOWN
<TABLE>
<CAPTION>
================================================================================================================================
BALANCE
(DOLLARS IN WEIGHTED AVERAGE WEIGHTED AVERAGE
THOUSANDS) % OF TOTAL INTEREST RATE MATURITY IN YEARS
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Fixed Rate Secured Debt $454,645 29.63% 7.07% 4.83
Fixed Rate Unsecured Notes 783,021 51.03% 7.34% 5.27
Variable Rate Secured Debt 32,178 2.10% 7.30% 8.33
Variable Rate Unsecured Debt 264,483 17.24% 7.43% 2.57
--------------------------------------------------------------------------------------------------------------------------------
TOTALS/WEIGHTED AVERAGE: $1,534,327 100.00% 7.32% 4.74
================================================================================================================================
</TABLE>
FUTURE REPAYMENTS
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
================================================================================================================================
SCHEDULED WEIGHTED AVERAGE INTEREST RATE OF
PERIOD AMORTIZATION MATURITIES TOTAL FUTURE REPAYMENTS(a)
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
October through December 2000 $1,021 $4,400 $5,421 7.02%
2001 3,257 4,211 7,468 7.44%
2002 3,458 -- 3,458 8.20%
2003 3,518 456,577 460,095 7.37%
2004 2,332 309,863 312,195 7.34%
2005 1,443 253,178 254,621 7.13%
2006 (12) 150,000 149,988 7.12%
2007 (177) 9,364 9,187 7.04%
2008 (235) -- (235) 7.49%
2009 (49) 332,178 332,129 7.47%
--------------------------------------------------------------------------------------------------------------------------------
TOTALS/WEIGHTED AVERAGE: $14,556 $1,519,771 $1,534,327 7.32%
================================================================================================================================
</TABLE>
(a) Assumes weighted average LIBOR at September 30, 2000 of 6.62 percent in
calculating revolving credit facility and other variable rate debt interest
rates.
18
<PAGE>
DEBT MATURITIES
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
===================================================================================================================================
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 TOTALS
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SECURED DEBT:
3 & 5 Terri Lane $4,400 $4,400
101 & 225 Executive Dr $2,115 2,115
Mack-Cali
Morris Plains 2,096 2,096
Mack-Cali Willowbrook $6,811 6,811
400 Chestnut Ridge $9,863 9,863
Mack-Cali Centre VI $35,000 35,000
Prudential Portfolio 150,000 150,000
Mack-Cali 23,000 23,000
Bridgewater I
Mack-Cali 17,500 17,500
Woodbridge II
Mack-Cali Short Hills 22,089 22,089
500 West Putnam Ave 5,589 5,589
Harborside Financial
Center- Plaza I $74,642 74,642
Harborside Financial
Center- Plazas II
& III 75,358 75,358
Mack-Cali Airport $9,364 9,364
Kemble Plaza I $32,178 32,178
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL SECURED DEBT: $4,400 $4,211 -- $6,811 $9,863 $253,178 $150,000 $9,364 -- $32,178 $470,005
===================================================================================================================================
UNSECURED DEBT:
Unsecured credit
facility $264,483 $264,483
7.18% unsecured notes
due 12/03 185,283 185,283
7.00% unsecured notes
due 3/04 $300,000 300,000
7.25% unsecured notes
due 3/09 $300,000 300,000
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL UNSECURED DEBT: -- -- -- $449,766 $300,000 -- -- -- -- $300,000 $1,049,766
===================================================================================================================================
===================================================================================================================================
TOTAL DEBT: $4,400 $4,211 -- $456,577 $309,863 $253,178 $150,000 $9,364 -- $332,178 $1,519,771
===================================================================================================================================
</TABLE>
19
<PAGE>
DEBT DETAIL
<TABLE>
<CAPTION>
PRINCIPAL BALANCE AT
----------------------------
EFFECTIVE SEPTEMBER 30, DECEMBER 31,
INTEREST 2000 1999 DATE OF
PROPERTY NAME LENDER RATE (DOLLARS IN THOUSANDS) MATURITY
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SENIOR UNSECURED NOTES: (1)
7.18% Senior Unsecured Notes n/a 7.230% $ 185,283 $ 185,283 12/31/03
7.00% Senior Unsecured Notes n/a 7.270% 299,724 299,665 03/15/04
7.25% Senior Unsecured Notes n/a 7.490% 298,014 297,837 03/15/09
------------------------------------------------------------------------------------------------------------------------------------
TOTAL SENIOR UNSECURED NOTES: $ 783,021 $ 782,785
------------------------------------------------------------------------------------------------------------------------------------
REVOLVING CREDIT FACILITIES:
2000 Unsecured Facility (2) 24 Lenders LIBOR+80 basis points $ 264,483 -- 06/22/03
1998 Unsecured Facility (3) 28 Lenders LIBOR+90 basis points -- 177,000 06/22/00
Prudential Facility (4) Prudential Securities LIBOR+110 basis points -- -- 06/29/01
------------------------------------------------------------------------------------------------------------------------------------
TOTAL REVOLVING CREDIT FACILITIES: $ 264,483 $ 177,000
------------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO MORTGAGES:
Prudential Mortgage The Prudential Insurance 7.100% $ 150,000 $ 150,000 05/15/05
Company of America
------------------------------------------------------------------------------------------------------------------------------------
TOTAL PORTFOLIO MORTGAGES: $ 150,000 $ 150,000
------------------------------------------------------------------------------------------------------------------------------------
PROPERTY MORTGAGES:
201 Commerce Drive Sun Life Assurance Co. 6.240% $ -- $ 1,059 09/01/00
3 & 5 Terri Lane First Union National Bank 6.220% 4,404 4,434 10/31/00
101 & 225 Executive Drive Sun Life Assurance Co. 6.270% 2,246 2,375 06/01/01
Mack-Cali Morris Plains Corestates Bank 7.510% 2,186 2,235 12/31/01
Mack-Cali Willowbrook CIGNA 8.670% 9,664 10,250 10/01/03
400 Chestnut Ridge Prudential Insurance Co. 9.440% 13,810 14,446 07/01/04
Mack-Cali Centre VI Principal Life Insurance Co. 6.865% 35,000 35,000 04/01/05
Mack-Cali Bridgewater I New York Life Ins. Co. 7.000% 23,000 23,000 09/10/05
Mack-Cali Woodbridge II New York Life Ins. Co. 7.500% 17,500 17,500 09/10/05
Mack-Cali Short Hills Prudential Insurance Co. 7.740% 26,076 26,604 10/01/05
500 West Putnam Avenue New York Life Ins. Co. 6.520% 10,259 10,784 10/10/05
Harborside - Plaza I U.S. West Pension Trust 5.610% 53,508 51,015 01/01/06
Harborside - Plazas II and III Northwestern Mutual Life Ins. 7.320% 96,492 98,985 01/01/06
Mack-Cali Airport Allstate Life Insurance Co. 7.050% 10,500 10,500 04/01/07
Kemble Plaza II Mitsubishi Tr & Bk Co. LIBOR+0.65% -- 40,025 01/31/08
Kemble Plaza I Mitsubishi Tr & Bk Co. LIBOR+0.65% 32,178 32,178 01/31/09
------------------------------------------------------------------------------------------------------------------------------------
TOTAL PROPERTY MORTGAGES: $ 336,823 $ 380,390
------------------------------------------------------------------------------------------------------------------------------------
TOTAL DEBT: $1,534,327 $1,490,175
====================================================================================================================================
</TABLE>
(1) Interest rate for unsecured notes reflects effective rate of debt,
including cost of treasury lock agreements (if any), offering and
other transaction costs and the discount on the notes, as applicable.
(2) Total borrowing capacity under this facility is $800.0 million.
(3) In conjunction with obtaining the 2000 Unsecured Facility, the Company
repaid in full and terminated the 1998 Unsecured Facility on
June 22, 2000.
(4) Total borrowing capacity under this facility is $100.0 million.
20
<PAGE>
III. FINANCIAL STATEMENTS
21
<PAGE>
III. FINANCIAL STATEMENTS
MACK-CALI REALTY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
===================================================================================================================
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
REVENUES 2000 1999 2000 1999
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Base rents $ 123,600 $118,086 $ 367,270 $350,665
Escalations and recoveries from tenants 13,763 14,829 45,058 46,055
Parking and other 3,534 5,112 12,984 12,073
Equity in earnings of unconsolidated joint ventures 2,194 834 4,401 1,462
Interest income 291 159 2,537 629
-------------------------------------------------------------------------------------------------------------------
Total revenues 143,382 139,020 432,250 410,884
-------------------------------------------------------------------------------------------------------------------
EXPENSES
-------------------------------------------------------------------------------------------------------------------
Real estate taxes 15,732 14,849 45,169 42,900
Utilities 11,604 11,634 31,997 31,055
Operating services 16,855 16,464 51,419 50,980
General and administrative 5,461 5,691 16,733 19,222
Depreciation and amortization 23,320 22,967 68,447 67,401
Interest expense 25,862 26,474 79,123 75,793
-------------------------------------------------------------------------------------------------------------------
Total expenses 98,834 98,079 292,888 287,351
-------------------------------------------------------------------------------------------------------------------
Income from operations before minority interests 44,548 40,941 139,362 123,533
Minority interest in partially-owned properties -- -- (5,072) --
-------------------------------------------------------------------------------------------------------------------
Income from operations before minority interest in
Operating Partnership 44,548 40,941 134,290 123,533
Minority interest in Operating Partnership (1) (8,809) (8,421) (26,446) (25,927)
-------------------------------------------------------------------------------------------------------------------
Income from operations 35,739 32,520 107,844 97,606
Non-recurring charges (2) (24,557) -- (32,666) (14,336)
Gain on sales of rental property (3) 8,830 -- 75,757 --
-------------------------------------------------------------------------------------------------------------------
NET INCOME $ 20,012 $ 32,520 $ 150,935 $ 83,270
===================================================================================================================
PER SHARE DATA:
Income from operations-basic $ 0.61 $ 0.55 $ 1.84 $ 1.67
Net income-basic $ 0.34 $ 0.55 $ 2.58 $ 1.42
Income from operations-diluted $ 0.61 $ 0.55 $ 1.83 $ 1.66
Net income-diluted $ 0.34 $ 0.55 $ 2.50 $ 1.42
-------------------------------------------------------------------------------------------------------------------
Dividends declared per common share $ 0.61 $ 0.58 $ 1.77 $ 1.68
-------------------------------------------------------------------------------------------------------------------
Basic weighted average shares outstanding 58,711 58,679 58,518 58,452
Diluted weighted average shares outstanding 66,914 67,113 73,276 67,294
-------------------------------------------------------------------------------------------------------------------
</TABLE>
(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 and none for the three months
ended September 30, 2000 and 1999, respectively, and $4,473 and $2,122
for the nine months ended September 30, 2000 and 1999, respectively.
(3) Net of minority interest's share of $1,206 for the three months ended
September 30, 2000 and $10,448 for the nine months ended September 30,
2000.
22
<PAGE>
MACK-CALI REALTY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
===================================================================================================================
SEPTEMBER 30,
2000 DECEMBER 31,
ASSETS (UNAUDITED) 1999
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Rental 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 3,654,845
Less - accumulated depreciation and amortization (288,976) (256,629)
-------------------------------------------------------------------------------------------------------------------
Total rental property 3,384,937 3,398,216
Cash and cash equivalents 10,590 8,671
Investments in unconsolidated joint ventures 95,440 89,134
Unbilled rents receivable 47,120 53,253
Deferred charges and other assets, net 93,858 66,436
Restricted cash 6,447 7,081
Accounts receivable, net of allowance for doubtful accounts
of $532 and $672 7,770 6,810
-------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 3,646,162 $ 3,629,601
===================================================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
-------------------------------------------------------------------------------------------------------------------
Senior unsecured notes $ 783,021 $ 782,785
Revolving credit facilities 264,483 177,000
Mortgages and loans payable 486,823 530,390
Dividends and distributions payable 44,610 42,499
Accounts payable and accrued expenses 74,461 63,394
Rents received in advance and security deposits 33,327 36,150
Accrued interest payable 6,505 16,626
-------------------------------------------------------------------------------------------------------------------
Total liabilities 1,693,230 1,648,844
-------------------------------------------------------------------------------------------------------------------
MINORITY INTERESTS:
Operating Partnership 451,239 455,275
Partially-owned properties 1,925 83,600
-------------------------------------------------------------------------------------------------------------------
Total minority interests 453,164 538,875
-------------------------------------------------------------------------------------------------------------------
Commitments and contingencies
STOCKHOLDERS' 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 587 584
Additional paid-in capital 1,559,302 1,549,888
Dividends 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
===================================================================================================================
</TABLE>
23
<PAGE>
MACK-CALI REALTY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
(IN THOUSANDS)
<TABLE>
<CAPTION>
===================================================================================================================================
Additional Dividends in Unamortized Total
Common Stock Paid-In Excess of Stock Stockholders'
Shares Par Value Capital Net Earnings Compensation Equity
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Balance at January 1, 2000 58,447 $584 $1,549,888 $ (103,902) $ (4,688) $ 1,441,882
Net income -- -- -- 150,935 -- 150,935
Dividends -- -- -- (103,825) -- (103,825)
Redemption of common units
for shares of common stock 340 3 10,625 -- -- 10,628
Proceeds from stock options
exercised 104 1 2,154 -- -- 2,155
Deferred compensation plan for
directors -- -- 82 -- -- 82
Amortization of stock compensation -- -- -- -- 1,501 1,501
Adjustment to fair value of restricted
stock -- -- 370 -- (273) 97
Cancellation of Restricted Stock Awards (5) -- (131) -- 131 --
Repurchase of common stock (187) (1) (5,236) -- -- (5,237)
Stock options charge -- -- 1,550 -- -- 1,550
-----------------------------------------------------------------------------------------------------------------------------------
Balance at September 30, 2000 58,699 $587 $1,559,302 $ (56,792) $ (3,329) $ 1,499,768
===================================================================================================================================
</TABLE>
24
<PAGE>
STATEMENTS OF FUNDS FROM OPERATIONS AND
CASH AVAILABLE FOR DISTRIBUTION
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE/UNIT AMOUNTS)
<TABLE>
<CAPTION>
THREE MONTHS NINE MONTHS
ENDED SEPTEMBER 30, ENDED SEPTEMBER 30,
==========================================================================================================================
2000 1999 2000 1999
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Income from operations before minority interest
in Operating Partnership $44,548 $40,941 $134,290 $123,533
Add: Real estate depreciation and amortization (1) 23,920 23,419 70,072 69,139
Gain on sale of land -- -- 2,248 --
Deduct: Adj. to rental income for straight-lining of
rents (2) (3,484) (3,076) (9,074) (10,454)
--------------------------------------------------------------------------------------------------------------------------
Funds from operations (3) after adjustment for
straight-lining of rents and non-recurring charges $64,984 $61,284 $197,536 $182,218
--------------------------------------------------------------------------------------------------------------------------
Deduct:
Non-incremental revenue generating capital expenditures:
Capital expenditures (1,484) (1,061) (4,094) (3,094)
Tenant improvements and leasing commissions (9,909) (9,812) (30,369) (21,218)
--------------------------------------------------------------------------------------------------------------------------
Cash available for distribution $53,591 $50,411 $163,073 $157,906
==========================================================================================================================
Basic weighted average shares/units outstanding (4) 66,729 66,893 66,595 67,025
Diluted weighted average shares/units outstanding (5) 73,353 73,731 73,276 73,936
PER SHARE/UNIT - BASIC(6):
Funds from operations $0.92 $0.86 $2.79 $2.55
Cash available for distribution $0.74 $0.70 $2.28 $2.18
PER SHARE/UNIT - DILUTED:
Funds from operations $0.89 $0.83 $2.70 $2.46
Cash available for distribution $0.73 $0.68 $2.23 $2.14
Dividend per common share $0.61 $0.58 $1.77 $1.68
DIVIDEND PAYOUT RATIOS:
Funds from operations-diluted 68.86% 69.78% 65.66% 68.17%
Cash available for distribution-diluted 83.49% 84.83% 79.53% 78.66%
==========================================================================================================================
</TABLE>
(1) Includes the Company's share from unconsolidated joint ventures of $784 and
$611 for the three months ended September 30, 2000 and 1999, respectively,
and $2,204 and $2,221 for the nine months ended September 30, 2000 and
1999, respectively.
(2) Includes the Company's share from unconsolidated joint ventures of ($36)
and $155 for the three months ended September 30, 2000 and 1999,
respectively, and $18 and $111 for the nine months ended
September 30, 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, after adjustment for
straight-lining of rents and non-recurring charges.
(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 for the three months ended September 30,
2000 and 1999, respectively, and $11,562 and $11,607 for the nine months
ended September 30, 2000 and 1999, respectively.
25
<PAGE>
RECONCILIATION OF BASIC-TO-DILUTED SHARES/UNITS
(IN THOUSANDS)
The following schedule reconciles the Company's basic weighted average shares to
basic and diluted weighted average shares/units:
<TABLE>
<CAPTION>
THREE MONTHS NINE MONTHS
ENDED SEPTEMBER 30, ENDED SEPTEMBER 30,
2000 1999 2000 1999
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Basic weighted average shares: 58,711 58,679 58,518 58,452
Add: Weighted average common units 8,018 8,214 8,077 8,573
-------------------------------------------------------------------------------------------------------------------
Basic weighted average shares/units: 66,729 66,893 66,595 67,025
Add: Weighted average preferred units 6,439 6,618 6,504 6,642
(after conversion to common units)
Stock options 185 220 177 269
-------------------------------------------------------------------------------------------------------------------
Diluted weighted average shares/units: 73,353 73,731 73,276 73,936
===================================================================================================================
</TABLE>
26
<PAGE>
IV. VALUE CREATION PIPELINE
27
<PAGE>
IV. VALUE CREATION PIPELINE
OPERATING PROPERTY ACQUISITIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000
<TABLE>
-----------------------------------------------------------------------------------------------------------------------------------
ACQUISITION # OF RENTABLE INVESTMENT BY
DATE PROPERTY/PORTFOLIO NAME LOCATION BLDGS. SQUARE FEET COMPANY (c)
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OFFICE
5/23/00 555 & 565 Taxter Road Elmsford, Westchester County, NY 2 341,108 $ 42,980
6/14/00 Four Gatehall Drive Parsippany, Morris County, NJ 1 248,480 42,381
----------------------------------------------------------------------------------------------------------------------------------
TOTAL OFFICE
PROPERTY
ACQUISITIONS: 3 589,588 $ 85,361
----------------------------------------------------------------------------------------------------------------------------------
OFFICE/FLEX
3/24/00 Two Executive Drive (b) Moorestown, Burlington County, NJ 1 60,800 $ 4,007
7/14/00 915 North Lenola Road (b) Moorestown, Burlington County, NJ 1 52,488 2,542
----------------------------------------------------------------------------------------------------------------------------------
TOTAL OFFICE/
FLEX PROPERTY
ACQUISITIONS: 2 113,288 $ 6,549
----------------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING
PROPERTY
ACQUISITIONS: 5 702,876 $ 91,910
==================================================================================================================================
</TABLE>
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
ACQUISITION # OF RENTABLE INVESTMENT BY
DATE PROPERTY/PORTFOLIO NAME LOCATION BLDGS. SQUARE FEET COMPANY (c)
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OFFICE
3/05/99 Pacifica Portfolio - Phase III (d) Colorado Springs, El Paso County, CO 2 94,737 $ 5,709
7/21/99 1201 Connecticut Avenue, NW Washington, D.C. 1 169,549 32,799
----------------------------------------------------------------------------------------------------------------------------------
TOTAL OFFICE
PROPERTY
ACQUISITIONS: 3 264,286 $ 38,508
----------------------------------------------------------------------------------------------------------------------------------
OFFICE/FLEX
12/21/99 McGarvey Portfolio- Phase III (b) Moorestown, Burlington County, NJ 3 138,600 $ 8,012
----------------------------------------------------------------------------------------------------------------------------------
TOTAL OFFICE/
FLEX PROPERTY
ACQUISITIONS: 3 138,600 $ 8,012
----------------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING
PROPERTY
ACQUISITIONS: 6 402,886 $ 46,520
==================================================================================================================================
</TABLE>
SEE FOOTNOTES TO THE ABOVE SCHEDULES ON PAGE 29.
28
<PAGE>
PROPERTIES PLACED IN SERVICE
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
DATE PLACED # OF RENTABLE INVESTMENT BY
IN SERVICE PROPERTY NAME LOCATION BLDGS. SQUARE FEET COMPANY (C)
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OFFICE
9/01/00 Harborside Plaza 4-A Jersey City, Hudson County, NJ 1 207,670 $ 53,782
9/15/00 Liberty Corner Corp. Center Bernards Township, Somerset County, NJ 1 132,010 16,387
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL OFFICE
PROPERTIES
PLACED IN
SERVICE: 2 339,680 $ 70,169
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL
PROPERTIES
PLACED IN
SERVICE: 2 339,680 $ 70,169
===================================================================================================================================
</TABLE>
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
DATE PLACED # OF RENTABLE INVESTMENT BY
IN SERVICE PROPERTY NAME LOCATION BLDGS. SQUARE FEET COMPANY (C)
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OFFICE
8/09/99 2115 Linwood Avenue Fort Lee, Bergen County, NJ 1 68,000 $ 8,147
11/01/99 795 Folsom Street (e) San Francisco, San Francisco County, CA 1 183,445 37,337
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL OFFICE
PROPERTIES
PLACED IN
SERVICE: 2 251,445 $ 45,484
-----------------------------------------------------------------------------------------------------------------------------------
OFFICE/FLEX
3/01/99 One Center Court Totowa, Passaic County, NJ 1 38,961 $ 2,140
9/17/99 12 Skyline Drive Hawthorne, Westchester County, NY 1 46,850 5,023
12/10/99 600 West Avenue (f) Stamford, Fairfield County, CT 1 66,000 5,429
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL OFFICE/
FLEX PROPERTIES
PLACED IN
SERVICE: 3 151,811 $ 12,592
-----------------------------------------------------------------------------------------------------------------------------------
LAND LEASE
2/01/99 Horizon Center Business Park (g) Hamilton Township, Mercer County, NJ N/A 27.7 acres $ 1,007
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL LAND
LEASE
TRANSACTIONS: 27.7 acres $ 1,007
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL
PROPERTIES
PLACED IN
SERVICE: 5 403,256 $ 59,083
===================================================================================================================================
</TABLE>
(a) Transactions were funded primarily from net proceeds received in the sale
or sales of rental property.
(b) The properties were acquired through the exercise of a purchase option
obtained in the initial acquisition of the McGarvey portfolio in January
1998.
(c) Unless otherwise noted, transactions were funded by the Company primarily
with funds made available through draws on the Company's credit facilities.
(d) William L. Mack, Chairman of the Board of Directors of the Company and an
equity holder of the Operating Partnership, was an indirect owner of an
interest in certain of the buildings contained in the Pacifica portfolio.
(e) On June 1, 1999, the building was acquired for redevelopment for
approximately $34,282.
(f) On May 4, 1999, the Company acquired, from an entity whose principals
include Timothy M. Jones, Martin S. Berger and Robert Weinberg, each of
whom are affiliated with Company as the President of the Company, a current
member of the Board of Directors and a former member of the Board of
Directors of the Company, respectively, approximately 2.5 acres of vacant
land in the Stamford Executive Park, located in Stamford, Fairfield County,
Connecticut. The Company acquired the land for approximately $2,181.
(g) On February 1, 1999, the Company entered into a ground lease agreement to
lease 27.7 acres of developable land located at the Company's Horizon
Center Business Park, located in Hamilton Township, Mercer County, New
Jersey on which Home Depot constructed a 134,000 square-foot retail store.
29
<PAGE>
ACQUISITION PROPERTY PROFILE
<TABLE>
====================================================================================
------------------------------------------------------------------------------------
<S> <C>
PROPERTY NAME: 915 North Lenola Road
PRODUCT TYPE: Office/Flex Building
LOCATION: Moorestown, Burlington County, New Jersey
DESCRIPTION: Class A, one-story office/flex building
SIZE: 52,488 square feet
YEAR CONSTRUCTED: 1998
CLOSING DATE: July 14, 2000
ACQUISITION COST: $2.5 million
FUNDING SOURCE: Proceeds from sale of office property
OCCUPANCY LEVEL: 100.0%
NUMBER OF TENANTS: 5
MAJOR TENANTS: Premier Percussion USA, Inc. (19,200 square feet)
Don-Mar of Connecticut, L.L.C. (12,000 square feet)
Riley Sales, Inc. (9,600 square feet)
United States Postal Service (6,888 square feet)
Pepperidge Farm, Inc. (4,800 square feet)
------------------------------------------------------------------------------------
</TABLE>
30
<PAGE>
SUMMARY OF CONSTRUCTION PROJECTS
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
===================================================================================================================================
ESTIMATED COSTS
PLACED IN NUMBER INCURRED TOTAL
SERVICE OF SQUARE THROUGH ESTIMATED CURRENT
PROJECT LOCATION TYPE OF SPACE DATE BUILDINGS FEET 9/30/00 COSTS % LEASED
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
MAJORITY OWNED:
105 Eisenhower Parkway Roseland, NJ Office 2001-1Q 1 220,000 $28,397 $43,600 50.0%
Denver Tech Center Tower Denver, CO Office 2001-1Q 1 183,000 21,273 34,700 62.0%
-----------------------------------------------------------------------------------------------------------------------------------
SUB-TOTAL: 2 403,000 $49,670 $78,300 55.4%
-----------------------------------------------------------------------------------------------------------------------------------
UNCONSOLIDATED JOINT
VENTURES:
Stadium Gateway (a) Anaheim, CA Office 2001-3Q 1 261,554 3,628 5,600 32.0%
Pacific Plaza Phase I & II Daly City, CA Office/Retail 2001-3Q 2 471,379 9,188 9,188 57.3%
(b)
Harborside Hyatt Regency Jersey City, Hotel 2002-3Q 1 280,000 3,573 14,000 100.0%
(c) NJ
-----------------------------------------------------------------------------------------------------------------------------------
SUB-TOTAL: 4 1,012,933 $16,389 $28,788 62.6%
-----------------------------------------------------------------------------------------------------------------------------------
GRAND-TOTAL: 6 1,415,933 $66,059 $107,088 60.5%
===================================================================================================================================
</TABLE>
(a) The Costs Incurred and Total Estimated Costs reflect the Company's funding
in this project. The total cost of the project is approximately $44.0
million.
(b) The Costs Incurred and Total Estimated Costs reflect the Company's funding
in this project. The total cost of the project is approximately $120.4
million.
(c) The Costs Incurred and Total Estimated Costs reflect the Company's funding
in this project. The total cost of the project is approximately $95.0
million.
31
<PAGE>
SUMMARY OF LAND PARCELS
<TABLE>
<CAPTION>
=======================================================================================================================
DEVELOPMENT
POTENTIAL
SITE TOWN/ CITY STATE ACRES (SQ. FT.) TYPE OF SPACE
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Horizon Center Hamilton NJ 50.0 575,000 Office/Flex/Retail
American Financial Exchange (a) Jersey City NJ 5.3 1,800,000 Office
Harborside Financial Center (b) Jersey City NJ 34.0 3,900,000 Office
Mack-Cali Business Campus (c) Parsippany & Hanover NJ 110.0 1,350,000 Office
Morris V and VI (a) Parsippany NJ 47.5 645,000 Office
Commercenter Totowa NJ 5.8 30,000 Office/Flex
Princeton Metro (c) West Windsor NJ 10.0 97,000 Office
Princeton Overlook II West Windsor NJ 10.0 149,500 Office
Cross Westchester Executive Elmsford NY 5.0 60,000 Office/Flex
Park (d)
Elmsford Distribution Center (d) Elmsford NY 14.5 100,000 Warehouse
Mid-Westchester Executive Park (d) Hawthorne NY 8.0 73,000 Office/Flex
One Ramland Road (a) Orangeburg NY 20.0 100,000 Office/Flex
South Westchester Executive Yonkers NY 60.0 500,000 Office/Flex
Park (d)
Airport Business Center Lester PA 12.6 135,000 Office
Eastpoint II Lanham MD 4.8 122,000 Office/Hotel
Tri West Plaza II (d) Dallas TX 4.5 500,000 Office
Concord Plaza II San Antonio TX 2.2 145,000 Office
Pacifica Plaza Phase III (e) Daly City CA 2.5 270,000 Office
-----------------------------------------------------------------------------------------------------------------------
TOTALS 406.7 10,551,500
=======================================================================================================================
</TABLE>
(a) Land owned by joint venture in which Mack-Cali is significant equity
partner.
(b) Includes 21 acres of riparian property.
(c) Land owned by Mack-Cali which is subject to a contribution agreement to
a development joint venture.
(d) Mack-Cali holds an option to purchase this land.
(e) Unconsolidated joint venture, in which Mack-Cali is significant equity
partner, holds an option to purchase this land.
32
<PAGE>
RENTAL PROPERTY SALES
(DOLLARS IN THOUSANDS)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
====================================================================================================================================
SALE # OF RENTABLE NET SALES NET BOOK
DATE PROPERTY NAME LOCATION BLDGS. SQUARE FEET PROCEEDS VALUE GAIN/ (LOSS)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
LAND:
02/25/00 Horizon Center Land Hamilton Township, Mercer -- 39.11 acres $4,180 $1,932 $2,248
County, NJ
OFFICE:
04/17/00 95 Christopher Columbus Jersey City, Hudson 1 621,900 148,222 80,583 67,639
Dr. County, NJ
04/20/00 6900 IH-40 West Amarillo, Potter County, 1 71,771 1,467 1,727 (260)
TX
06/09/00 412 Mt. Kemble Avenue Morris Twp., Morris 1 475,100 81,981 75,439 6,542
County, NJ
09/21/00 1250 Capital of Texas Austin, Travis County, TX 1 270,703 45,785 35,749 10,036
Hwy.
------------------------------------------------------------------------------------------------------------------------------------
TOTALS: 4 1,439,474 $281,635 $195,430 $86,205
====================================================================================================================================
</TABLE>
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
==================================================================================================================================
SALE # OF RENTABLE NET SALES NET BOOK
DATE PROPERTY NAME LOCATION BLDGS. SQUARE FEET PROCEEDS VALUE GAIN/ (LOSS)
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OFFICE:
11/15/99 400 Alexander Road Princeton, Mercer County, 1 70,550 $8,628 $6,573 $2,055
NJ
12/15/99 Beardsley Corporate Phoenix, Maricopa County, 1 119,301 8,772 8,870 (98)
Center AZ
----------------------------------------------------------------------------------------------------------------------------------
TOTALS: 2 189,851 $17,400 $15,443 $1,957
==================================================================================================================================
</TABLE>
RENTAL PROPERTY HELD FOR SALE
(DOLLARS IN THOUSANDS)
AT SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
===============================================================================================================================
# OF RENTABLE NET BOOK VALUE
PROPERTY NAME LOCATION BUILDINGS SQUARE FEET AT 9/30/00
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OFFICE:
Brandeis Building Omaha, Douglas County, NE 1 319,535 $12,579
Concord Plaza San Antonio, Bexar County, TX 1 248,700 34,467
Tetco Tower San Antonio, Bexar County, TX 1 256,137 15,557
Century Building San Antonio San Antonio, Bexar County, TX 1 187,312 12,337
Riverview San Antonio, Bexar County, TX 1 248,153 9,978
5300 Memorial Houston, Harris County, TX 1 155,099 8,339
10497 Town & Country Way Houston, Harris County, TX 1 148,434 8,409
1717 St. James Place Houston, Harris County, TX 1 109,574 4,506
1770 St. James Place Houston, Harris County, TX 1 103,689 3,772
Cornerstone Regency Houston, Harris County, TX 1 70,999 2,352
Katy Plaza Houston, Harris County, TX 1 112,213 7,268
-------------------------------------------------------------------------------------------------------------------------------
TOTALS: 11 1,959,845 $119,564
===============================================================================================================================
</TABLE>
33
<PAGE>
V. PORTFOLIO/ LEASING STATISTICS
34
<PAGE>
V. PORTFOLIO/ LEASING STATISTICS
LEASING STATISTICS
(FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000)
CONSOLIDATED PORTFOLIO
SUMMARY OF SPACE LEASED DURING PERIOD
<TABLE>
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
<S> <C>
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%
------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
OFFICE SPACE
--------------------------------------------------------------------------------------------
WEIGHTED
# OF AVERAGE BASE AVERAGE TERM
LEASES RENTABLE S.F. RENT (YEARS)
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW LEASES:
First generation space 2 13,740 $22.84 6.5
Second 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 5.3
Other retained tenants 29 160,050 $24.03 5.7
-------------------------------------------------------------
TOTAL LEASING: 143 744,253
=============================================================
--------------------------------------------------------------------------------------------
</TABLE>
35
<PAGE>
LEASING STATISTICS
(FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000)
CONSOLIDATED PORTFOLIO
(CONTINUED)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------
TENANT IMPROVEMENTS (3) LEASING COMMISSIONS TOTAL
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CAPITAL EXPENDITURES- SECOND GENERATION
SPACE (2):
Expend. Committed- 3rd qtr $4,869,949 $4,566,367 $9,436,316
Rentable s.f. leased- 3rd qtr 1,170,028
Cap. Ex. Committed per r.s.f. per year $1.13 $1.06 $2.19
--------------------------------------------------------------------------------------------------------
</TABLE>
(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
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------
WEIGHTED
# OF AVERAGE BASE AVERAGE TERM
LEASES RENTABLE S.F. RENT (1) (YEARS)
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW LEASES:
First generation space 4 26,400 $15.13 4.0
Second 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 3.9
Other retained tenants 2 15,895 $16.37 3.3
----------------------------------------------------------------------
TOTAL LEASING: 33 267,693
======================================================================
--------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------
TENANT IMPROVEMENTS (3) LEASING COMMISSIONS TOTAL
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CAPITAL EXPENDITURES- SECOND GENERATION
SPACE (2):
Expend. Committed- 3rd qtr $977,864 $519,782 $1,497,646
Rentable s.f. leased- 3rd qtr 241,293
Cap. Ex. Committed per r.s.f. per year $0.88 $0.47 $1.35
----------------------------------------------------------------------------------------------------------
</TABLE>
(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.
36
<PAGE>
LEASING STATISTICS
(FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000)
CONSOLIDATED PORTFOLIO
(CONTINUED)
INDUSTRIAL/WAREHOUSE SPACE - NO ACTIVITY DURING PERIOD
LEASE RENEWALS
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------
NUMBER OF RENTABLE
LEASES SQUARE FEET
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
Leases expiring 184 1,027,896
Leases renewed and extended 73 479,286
Other retained tenants 31 175,945
-------------------------------------
Total leases retained 104 655,231
=====================================
Percent retained 56.5% 63.7%
Future expirations renewed or relet (included in totals above) 62 474,547
--------------------------------------------------------------------------------------------------------
</TABLE>
37
<PAGE>
LEASING STATISTICS
(FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000)
UNCONSOLIDATED JOINT VENTURE PROPERTIES
SUMMARY OF SPACE LEASED DURING PERIOD
<TABLE>
<S> <C>
------------------------------------------------------------------------------------------------------------
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%
------------------------------------------------------------------------------------------------------------
</TABLE>
OFFICE SPACE
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------------
WEIGHTED
# OF AVERAGE BASE AVERAGE TERM
LEASES RENTABLE S.F. RENT(1) (YEARS)
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW LEASES:
First generation space 15 160,490 $23.36 6.0
Second 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
============================================================
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
TENANT IMPROVEMENTS (3) LEASING COMMISSIONS TOTAL
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CAPITAL EXPENDITURES- SECOND GENERATION SPACE (2):
Expend. Committed- 3rd qtr $215,927 $93,538 $309,465
Rentable s.f. leased- 3rd qtr 179,108
Cap. Ex. Committed per r.s.f. per year $2.27 $0.98 $3.25
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
38
<PAGE>
LEASING STATISTICS
(FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000)
LEASE RENEWALS
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
NUMBER OF RENTABLE
LEASES SQUARE FEET
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Leases expiring 3 12,967
Leases renewed and extended 0 0
Other retained tenants 2 6,236
--------------------------------
Total leases retained 2 6,236
================================
Percent retained 66.7% 48.1%
Future expirations renewed or relet (included in totals above) 0 0
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(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.
CONSOLIDATED PORTFOLIO
(FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000)
SUMMARY OF SPACE LEASED DURING PERIOD
<TABLE>
<S> <C>
--------------------------------------------------------------------------------------------------
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%
--------------------------------------------------------------------------------------------------
</TABLE>
39
<PAGE>
LEASING STATISTICS
(FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000)
CONSOLIDATED PORTFOLIO
(CONTINUED)
OFFICE SPACE
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
WEIGHTED
# OF AVERAGE BASE AVERAGE TERM
LEASES RENTABLE S.F. RENT (YEARS)
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW LEASES:
First generation space 31 208,671 $29.70 6.4
Second 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 4.8
Other retained tenants 104 548,504 $25.58 5.7
--------------------------------------------------------
TOTAL LEASING: 535 3,147,718
========================================================
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
40
<PAGE>
LEASING STATISTICS
(FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000)
CONSOLIDATED PORTFOLIO
(CONTINUED)
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
TENANT IMPROVEMENTS(3) LEASING COMMISSIONS TOTAL
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CAPITAL EXPENDITURES- SECOND GENERATION SPACE (2):
Expend. Committed- YTD $15,526,462 $15,279,351 $30,805,813
Rentable s.f. leased- YTD 2,939,047
Cap. Ex. Committed per r.s.f. per year $0.99 $0.98 $1.97
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(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
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
WEIGHTED
# OF AVERAGE BASE AVERAGE TERM
LEASES RENTABLE S.F. RENT(1) (YEARS)
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW LEASES:
First generation space 5 32,400 $15.27 4.2
Second 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 4.5
Other retained tenants 10 62,738 $15.00 4.1
----------------------------------------------------------
TOTAL LEASING: 93 728,585
==========================================================
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
TENANT IMPROVEMENTS(3) LEASING COMMISSIONS TOTAL
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CAPITAL EXPENDITURES- SECOND GENERATION SPACE (2):
Expend. Committed-YTD $2,851,493 $1,694,726 $4,546,219
Rentable s.f. leased-YTD 696,185
Cap. Ex. Committed per r.s.f. per year $0.82 $0.49 $1.31
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
41
<PAGE>
LEASING STATISTICS
(FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000)
CONSOLIDATED PORTFOLIO
(CONTINUED)
INDUSTRIAL/WAREHOUSE SPACE
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
WEIGHTED
# OF AVERAGE BASE AVERAGE TERM
LEASES RENTABLE S.F. RENT(1) (YEARS)
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW LEASES:
Second generation space 1 4,500 $14.00 4.0
Renewals & extensions 3 34,104 $20.44 3.7
Other retained tenants 2 7,650 $10.91 3.3
----------------------------------------------------------
TOTAL LEASING: 6 46,254
==========================================================
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
TENANT IMPROVEMENTS(3) LEASING COMMISSIONS TOTAL
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CAPITAL EXPENDITURES- SECOND GENERATION SPACE (2):
Expend. Committed- YTD $51,769 $33,876 $85,645
Rentable s.f. leased- YTD 46,254
Cap. Ex. Committed per r.s.f. per year $0.31 $0.20 $0.51
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(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
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
NUMBER OF RENTABLE
LEASES SQUARE FEET
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Leases expiring 605 3,753,904
Leases renewed and extended 284 1,993,362
Other retained tenants 116 618,892
-------------------------------------
Total leases retained 400 2,612,254
=====================================
Percent retained 66.1% 69.6%
Future expirations renewed or relet (included in totals above) 143 1,598,354
-----------------------------------------------------------------------------------------------------------------
</TABLE>
42
<PAGE>
LEASING STATISTICS
(FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000)
UNCONSOLIDATED JOINT VENTURE PROPERTIES
SUMMARY OF SPACE LEASED DURING PERIOD
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
<S> <C>
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%
----------------------------------------------------------------------------------------------------------
</TABLE>
OFFICE SPACE
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------
WEIGHTED
# OF AVERAGE BASE AVERAGE TERM
LEASES RENTABLE S.F. RENT (YEARS)
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW LEASES:
First generation space 20 196,389 $22.77 5.9
Second 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 3.0
Other retained tenants 2 6,236 $20.20 4.1
-------------------------------------------------------------------------
TOTAL LEASING: 25 223,776
=========================================================================
----------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------
TENANT IMPROVEMENTS (3) LEASING COMMISSIONS TOTAL
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CAPITAL EXPENDITURES- SECOND GENERATION
SPACE (2):
Expend. Committed- YTD $215,927 $98,799 $314,726
Rentable s.f. leased- YTD 27,387
Cap. Ex. Committed per r.s.f. per year $1.78 $0.81 $2.59
----------------------------------------------------------------------------------------------------------
</TABLE>
(1) Represents the net change in the amount of space leased/expired since the
prior reporting period in excess of 100 percent of the gross rentable area
of certain properties in the portfolio.
(2) Represents amounts committed, but not necessarily expended during period.
(3) Equals estimated workletter costs.
43
<PAGE>
LEASING STATISTICS
(FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000)
UNCONSOLIDATED JOINT VENTURE PROPERTIES
LEASE RENEWALS
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------
NUMBER OF RENTABLE
LEASES SQUARE FEET
----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Leases expiring 4 21,612
Leases renewed and extended 1 8,769
Other retained tenants 2 6,236
--------------------------------
Total Leases Retained: 3 15,005
================================
Percent retained 75.0% 69.4%
----------------------------------------------------------------------------------------------------------
</TABLE>
44
<PAGE>
MARKET DIVERSIFICATION
The following table lists the Company's 25 largest markets (MSAs), based on
annualized contractual base rent of the Consolidated Properties:
<TABLE>
<CAPTION>
ANNUALIZED PERCENTAGE OF
BASE RENTAL COMPANY TOTAL
REVENUE ANNUALIZED BASE PROPERTY SIZE PERCENTAGE OF
MARKET (MSA) ($)(1)(2) RENTAL REVENUE(%) RENTABLE AREA RENTABLE AREA(%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Bergen-Passaic, NJ 82,647,106 17.4 4,530,091 16.8
New York, NY (Westchester-Rockland Counties) 79,852,486 16.8 4,696,178 17.4
Newark, NJ (Essex-Morris-Union Counties) 72,472,482 15.2 3,444,598 12.8
Jersey City, NJ 42,369,281 8.9 2,094,470 7.8
Philadelphia, PA-NJ 38,159,668 8.0 2,710,346 10.0
Washington, DC-MD-VA 18,961,873 4.0 616,549 2.3
Denver, CO 17,158,536 3.6 1,007,931 3.7
Middlesex-Somerset-Hunterdon, NJ 14,943,187 3.1 791,051 2.9
Dallas, TX 14,887,035 3.1 959,463 3.6
Trenton, NJ (Mercer County) 12,175,360 2.6 672,365 2.5
San Francisco, CA 12,137,821 2.5 450,891 1.7
San Antonio, TX 11,882,673 2.5 940,302 3.5
Stamford-Norwalk, CT 9,254,783 1.9 527,250 1.9
Houston, TX 8,761,211 1.8 700,008 2.6
Monmouth-Ocean, NJ 7,272,457 1.5 577,423 2.1
Nassau-Suffolk, NY 5,762,698 1.2 261,849 1.0
Phoenix-Mesa, AZ 5,535,201 1.2 416,967 1.5
Tampa-St. Petersburg-Clearwater, FL 3,645,220 0.8 297,429 1.1
Boulder-Longmont, CO 3,600,741 0.8 270,421 1.0
Bridgeport, CT 3,260,251 0.7 145,487 0.5
Omaha, NE-IA 3,050,207 0.6 319,535 1.2
Colorado Springs, CO 2,810,124 0.6 209,987 0.8
Dutchess County, NY 2,217,687 0.5 118,727 0.4
Atlantic-Cape May, NJ 1,464,090 0.3 80,344 0.3
Fort Worth-Arlington, TX 1,102,116 0.2 74,429 0.3
Other 1,139,464 0.2 72,265 0.3
------------------------------------------------------------------------------------------------------------------------------------
Totals 476,523,758 100.0 26,986,356 100.0
====================================================================================================================================
</TABLE>
(1) Annualized base rental revenue is based on actual September 2000 billings
times 12. For leases whose rent commences after October 1, 2000, annualized
base rental revenue is based on the first full month's billing times 12. As
annualized base rental revenue is not derived from historical GAAP results,
historical results may differ from those set forth above.
(2) Includes office, office/flex, industrial/warehouse and stand-alone retail
tenants only. Excludes leases for amenity, retail, parking and
month-to-month office tenants. Some tenants have multiple leases.
45
<PAGE>
INDUSTRY DIVERSIFICATION
The following table lists the Company's 30 largest industry classifications
based on annualized contractual base rent of the Consolidated Properties:
<TABLE>
<CAPTION>
ANNUALIZED PERCENTAGE OF PERCENTAGE OF
BASE RENTAL COMPANY SQUARE TOTAL COMPANY
REVENUE ANNUALIZED BASE FEET LEASED
INDUSTRY CLASSIFICATION(3) ($)(1)(2) RENTAL REVENUE(%) LEASED SQ. FT.(%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Securities, Commodity Contracts & Other Financial 55,729,695 11.7 2,432,166 9.5
Manufacturing 45,708,719 9.6 2,783,481 10.8
Computer System Design Svcs. 33,084,068 6.9 1,741,300 6.8
Telecommunications 33,039,867 6.9 1,916,338 7.5
Insurance Carriers & Related Activities 32,862,919 6.9 1,691,347 6.6
Legal Services 28,284,033 5.9 1,290,600 5.0
Credit Intermediation & Related Activities 22,207,798 4.7 1,292,770 5.0
Health Care & Social Assistance 21,182,902 4.4 1,092,651 4.3
Wholesale Trade 17,242,929 3.6 1,258,651 4.9
Accounting/Tax Prep. 16,003,515 3.4 756,209 2.9
Other Professional 14,220,519 3.0 854,137 3.3
Retail Trade 14,065,403 3.0 835,520 3.3
Information Services 13,351,863 2.8 620,886 2.4
Publishing Industries 12,477,476 2.6 554,908 2.2
Arts, Entertainment & Recreation 11,127,747 2.3 762,687 3.0
Public Administration 10,342,969 2.2 364,158 1.4
Transportation 8,942,683 1.9 681,303 2.7
Other Services (except Public Administration) 8,884,731 1.9 692,497 2.7
Advertising/Related Services 8,834,682 1.8 416,075 1.6
Real Estate & Rental & Leasing 8,071,699 1.7 406,442 1.6
Management/Scientific 7,619,815 1.6 383,322 1.5
Management of Companies & Finance 7,004,618 1.5 358,259 1.4
Architectural/Engineering 6,719,221 1.4 350,015 1.4
Scientific Research/Development 6,314,351 1.3 361,423 1.4
Data Processing Services 6,089,948 1.3 279,577 1.1
Construction 4,673,760 1.0 261,426 1.0
Educational Services 3,738,237 0.8 210,296 0.8
Utilities 3,709,825 0.8 181,388 0.7
Specialized Design Services 3,444,366 0.7 163,686 0.6
Admin. & Support, Waste Mgt. & Remediation Svc. 3,423,484 0.7 226,448 0.9
Other 8,119,916 1.7 438,543 1.7
------------------------------------------------------------------------------------------------------------------------------------
Totals 476,523,758 100.0 25,658,509 100.0
====================================================================================================================================
</TABLE>
(1) Annualized base rental revenue is based on actual September 2000 billings
times 12. For leases whose rent commences after October 1, 2000, annualized
base rental revenue is based on the first full month's billing times 12. As
annualized base rental revenue is not derived from historical GAAP results,
historical results may differ from those set forth above.
(2) Includes office, office/flex, industrial/warehouse and stand-alone retail
tenants only. Excludes leases for amenity, retail, parking and
month-to-month office tenants. Some tenants have multiple leases.
(3) The Company's tenants are classified according to the U.S. Government's new
North American Industrial Classification System (NAICS) which has replaced
the Standard Industrial Code (SIC) system.
46
<PAGE>
CONSOLIDATED PORTFOLIO ANALYSIS (1)
(AS OF SEPTEMBER 30, 2000)
BREAKDOWN BY NUMBER OF PROPERTIES
PROPERTY TYPE:
<TABLE>
<CAPTION>
STAND-
% OF % OF INDUSTRIAL/ % OF ALONE % OF
STATE OFFICE TOTAL OFFICE/FLEX TOTAL WAREHOUSE TOTAL RETAIL TOTAL
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
New Jersey 68 26.6% 45 17.6% -- -- -- --
New York 23 8.9% 37 14.4% 6 2.3% 2 0.8%
Pennsylvania 13 5.1% -- -- -- -- -- --
Connecticut 3 1.2% 5 2.0% -- -- -- --
Wash., D.C./
Maryland 4 1.6% -- -- -- -- -- --
----------------------------------------------------------------------------------------------------
SUB-TOTAL
NORTHEAST: 111 43.4% 87 34.0% 6 2.3% 2 0.8%
----------------------------------------------------------------------------------------------------
Texas 17 6.5% -- -- -- -- -- --
Arizona 3 1.2% -- -- -- -- -- --
California 2 0.8% -- -- -- -- -- --
Colorado 20 7.8% -- -- -- -- -- --
Florida/ Iowa/
Nebraska 3 1.2% -- -- -- -- -- --
----------------------------------------------------------------------------------------------------
TOTALS
BY TYPE: 156 60.9% 87 34.0% 6 2.3% 2 0.8%
====================================================================================================
<CAPTION>
MULTI-
FAMILY % OF LAND % OF TOTALS % OF
STATE RESIDENTIAL TOTAL LEASES TOTAL BY STATE TOTAL
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
New Jersey 1 0.4% 1 0.4% 115 45.0%
New York 1 0.4% 2 0.8% 71 27.6%
Pennsylvania -- -- -- -- 13 5.1%
Connecticut -- -- -- -- 8 3.2%
Wash., D.C./
Maryland -- -- -- 4 1.6%
----------------------------------------------------------------------------------------------------
SUB-TOTAL
NORTHEAST: 2 0.8% 3 1.2% 211 82.5%
----------------------------------------------------------------------------------------------------
Texas -- -- -- -- 17 6.5%
Arizona -- -- -- -- 3 1.2%
California -- -- -- -- 2 0.8%
Colorado -- -- -- -- 20 7.8%
Florida/ Iowa/
Nebraska -- -- -- -- 3 1.2%
----------------------------------------------------------------------------------------------------
TOTALS
BY TYPE: 2 0.8% 3 1.2% 256 100.0%
====================================================================================================
</TABLE>
(1) Excludes 12 properties, aggregating approximately 1.5 million square feet,
which are not consolidated by the Company.
47
<PAGE>
CONSOLIDATED PORTFOLIO ANALYSIS(1)
(AS OF SEPTEMBER 30, 2000)
BREAKDOWN BY SQUARE FOOTAGE
PROPERTY TYPE:
<TABLE>
<CAPTION>
STAND-
% OF % OF INDUSTRIAL/ % OF ALONE % OF TOTALS BY % OF
STATE OFFICE TOTAL OFFICE/FLEX TOTAL WAREHOUSE TOTAL RETAIL TOTAL STATE TOTAL
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
New Jersey 11,430,497 42.3% 1,996,393 7.4% -- -- -- -- 13,426,890 49.7%
New York 2,595,484 9.6% 2,076,570 7.7% 387,400 1.4% 17,300 0.1% 5,076,754 18.8%
Pennsylvania 1,473,798 5.5% -- -- -- -- -- -- 1,473,798 5.5%
Connecticut 399,737 1.5% 273,000 1.0% -- -- -- -- 672,737 2.5%
Wash., D.C./
Maryland 616,549 2.3% -- -- -- -- -- -- 616,549 2.3%
----------------------------------------------------------------------------------------------------------------------------------
SUB-TOTAL
NORTHEAST 16,516,065 61.2% 4,345,963 16.1% 387,400 1.4% 17,300 0.1% 21,266,728 78.8%
----------------------------------------------------------------------------------------------------------------------------------
Texas 2,674,202 9.9% -- -- -- -- -- -- 2,674,202 9.9%
Arizona 416,967 1.5% -- -- -- -- -- -- 416,967 1.5%
California 450,891 1.7% -- -- -- -- -- -- 450,891 1.7%
Colorado 1,488,339 5.5% -- -- -- -- -- -- 1,488,339 5.5%
Florida/Iowa/
Nebraska 689,229 2.6% -- -- -- -- -- -- 689,229 2.6%
----------------------------------------------------------------------------------------------------------------------------------
TOTALS
BY TYPE: 22,235,693 82.4% 4,345,963 16.1% 387,400 1.4% 17,300 0.1% 26,986,356 100.0%
==================================================================================================================================
</TABLE>
(1) Excludes 12 properties, aggregating approximately 1.5 million square feet,
which are not consolidated by the Company.
48
<PAGE>
CONSOLIDATED PORTFOLIO ANALYSIS(1)
(TWELVE MONTHS ENDED SEPTEMBER 30, 2000)
BREAKDOWN BY BASE RENTAL REVENUE(2)
(DOLLARS IN THOUSANDS)
PROPERTY TYPE:
<TABLE>
<CAPTION>
==============================================================================================
INDUST./ STAND-
% OF OFFICE/ % OF WARE- % OF ALONE % OF
STATE OFFICE TOTAL FLEX TOTAL HOUSE TOTAL RETAIL TOTAL
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
New Jersey 236,775 47.3% 14,493 2.9% -- -- -- --
New York 55,609 11.1% 28,241 5.6% 3,675 0.7% 497 0.1%
Pennsylvania 27,774 5.5% -- -- -- -- -- --
Connecticut 7,993 1.6% 3,904 0.8% -- -- -- --
Wash., D.C./
Maryland 20,387 4.1% -- -- -- -- -- --
----------------------------------------------------------------------------------------------
SUB-TOTAL
NORTHEAST: 348,538 69.6% 46,638 9.3% 3,675 0.7% 497 0.1%
----------------------------------------------------------------------------------------------
Texas 43,918 8.8% -- -- -- -- -- --
Arizona 5,350 1.1% -- -- -- -- -- --
California 13,616 2.7% -- -- -- -- -- --
Colorado 23,879 4.7% -- -- -- -- -- --
Florida/Iowa/
Nebraska 8,279 1.7% -- -- -- -- -- --
----------------------------------------------------------------------------------------------
TOTALS
BY TYPE: 443,580 88.6% 46,638 9.3% 3,675 0.7% 497 0.1%
==============================================================================================
<CAPTION>
==================================================================================
MULTI-
FAMILY % OF LAND % OF TOTALS % OF
STATE RESIDENTIAL TOTAL LEASES TOTAL BY STATE TOTAL
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
New Jersey 2,874 0.6% 261 0.1% 254,403 50.9%
New York 2,487 0.5% 241 0.1% 90,750 18.1%
Pennsylvania -- -- -- -- 27,774 5.5%
Connecticut -- -- -- -- 11,897 2.4%
Wash., D.C./
Maryland -- -- -- -- 20,387 4.1%
----------------------------------------------------------------------------------
SUB-TOTAL
NORTHEAST: 5,361 1.1% 502 0.2% 405,211 81.0%
----------------------------------------------------------------------------------
Texas -- -- -- -- 43,918 8.8%
Arizona -- -- -- -- 5,350 1.1%
California -- -- -- -- 13,616 2.7%
Colorado -- -- -- -- 23,879 4.7%
Florida/Iowa/
Nebraska -- -- -- -- 8,279 1.7%
----------------------------------------------------------------------------------
TOTALS
BY TYPE: 5,361 1.1% 502 0.2% 500,253 100.0%
==================================================================================
</TABLE>
(1) Excludes 12 properties, aggregating approximately 1.5 million square feet,
which are not consolidated by the Company.
(2) Total base rent for the twelve months ended September 30, 2000, determined
in accordance with GAAP. Substantially all of the leases provide for annual
base rents plus recoveries and escalation charges based upon the tenants'
proportionate share of and/or increases in real estate taxes and certain
costs, as defined, and the pass through of charges for electrical usage.
For those properties acquired or placed in service during the twelve months
ended September 30, 2000, amounts are annualized. These annualized amounts
may not be indicative of the property's results had the Company owned or
placed such property in service for the entire twelve months ended
September 30, 2000.
49
<PAGE>
CONSOLIDATED PORTFOLIO ANALYSIS (1)
(AS OF SEPTEMBER 30, 2000)
BREAKDOWN BY PERCENTAGE LEASED
PROPERTY TYPE:
<TABLE>
<CAPTION>
==========================================================================================================================
WEIGHTED AVG.
STATE OFFICE OFFICE/FLEX INDUSTRIAL/WAREHOUSE STAND-ALONE RETAIL BY STATE
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
New Jersey 98.0% 90.5% -- -- 96.9%
New York 97.7% 98.7% 98.1% 100.0% 98.1%
Pennsylvania 94.7% -- -- -- 94.7%
Connecticut 97.5% 99.0% -- -- 98.1%
Washington, D.C./ Maryland 97.3% -- -- -- 97.3%
--------------------------------------------------------------------------------------------------------------------------
SUB-TOTAL NORTHEAST 97.6% 95.0% 98.1% 100.0% 97.1%
--------------------------------------------------------------------------------------------------------------------------
Texas 91.8% -- -- -- 91.8%
Arizona 100.0% -- -- -- 100.0%
California 98.1% -- -- -- 98.1%
Colorado 99.6% -- -- -- 99.6%
Florida/Iowa/Nebraska 93.2% -- -- -- 93.2%
--------------------------------------------------------------------------------------------------------------------------
WEIGHTED AVG. BY TYPE: 97.0% 95.0% 98.1% 100.0% 96.7%
==========================================================================================================================
</TABLE>
(1) Excludes 12 properties, aggregating approximately 1.5 million square feet,
which are not consolidated by the Company, as well as multi-family
residential and land lease properties.
50
<PAGE>
CONSOLIDATED PROPERTY LISTING
OFFICE PROPERTIES
<TABLE>
<CAPTION>
PERCENTAGE OF
PERCENTAGE TOTAL OFFICE,
NET LEASED ANNUAL OFFICE/FLEX, AVERAGE
RENTABLE AS OF BASE AND INDUSTRIAL/ BASE RENT
PROPERTY YEAR AREA 9/30/00 RENT WAREHOUSE PER SQ. FT.
LOCATION BUILT (SQ. FT.) (%)(1) ($000'S)(2) BASE RENT(%) ($)(3)(5)
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ATLANTIC COUNTY, NEW JERSEY
EGG HARBOR
100 Decadon Drive..................... 1987 40,422 100.0 784 0.16 19.40
200 Decadon Drive..................... 1991 39,922 95.3 732 0.15 19.24
BERGEN COUNTY, NEW JERSEY
FAIR LAWN
17-17 Route 208 North................. 1987 143,000 96.0 3,476 0.70 25.32
FORT LEE
One Bridge Plaza...................... 1981 200,000 92.9 4,711 0.95 25.36
2115 Linwood Avenue................... 1981 68,000 99.7 947 0.19 13.97
LITTLE FERRY
200 Riser Road........................ 1974 286,628 100.0 1,885 0.38 6.58
MONTVALE
95 Chestnut Ridge Road................ 1975 47,700 100.0 570 0.12 11.95
135 Chestnut Ridge Road............... 1981 66,150 99.7 801 0.16 12.15
PARAMUS
15 East Midland Avenue................ 1988 259,823 100.0 6,636 1.34 25.54
461 From Road......................... 1988 253,554 99.8 6,028 1.22 23.82
650 From Road......................... 1978 348,510 100.0 7,485 1.52 21.48
140 Ridgewood Avenue ................. 1981 239,680 100.0 5,212 1.06 21.75
61 South Paramus Avenue............... 1985 269,191 100.0 5,953 1.21 22.11
ROCHELLE PARK
120 Passaic Street.................... 1972 52,000 99.6 750 0.15 14.48
365 West Passaic Street............... 1976 212,578 92.4 3,802 0.77 19.36
UPPER SADDLE RIVER
1 Lake Street......................... 1973/94 474,801 100.0 7,466 1.51 15.72
10 Mountainview Road.................. 1986 192,000 100.0 3,877 0.78 20.19
WOODCLIFF LAKE
400 Chestnut Ridge Road............... 1982 89,200 100.0 2,130 0.43 23.88
470 Chestnut Ridge Road............... 1987 52,500 100.0 1,192 0.24 22.70
530 Chestnut Ridge Road............... 1986 57,204 100.0 1,166 0.24 20.38
50 Tice Boulevard..................... 1984 235,000 100.0 4,744 0.96 20.19
300 Tice Boulevard.................... 1991 230,000 100.0 5,014 1.02 21.80
BURLINGTON COUNTY, NEW JERSEY
MOORESTOWN
224 Strawbridge Drive................. 1984 74,000 98.1 1,261 0.26 17.37
228 Strawbridge Drive................. 1984 74,000 100.0 1,434 0.29 19.38
ESSEX COUNTY, NEW JERSEY
MILLBURN
150 J.F. Kennedy Parkway.............. 1980 247,476 100.0 5,860 1.19 23.68
ROSELAND
101 Eisenhower Parkway................ 1980 237,000 95.1 4,158 0.84 18.45
103 Eisenhower Parkway................ 1985 151,545 100.0 3,295 0.67 21.74
HUDSON COUNTY, NEW JERSEY
JERSEY CITY
95 Christopher Columbus Drive (7)..... 1989 n/a n/a 7,000 1.42 n/a
Harborside Financial Center Plaza 1... 1983 400,000 99.0 3,311 0.67 8.36
Harborside Financial Center Plaza 2... 1990 761,200 100.0 18,228 3.69 23.95
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE FOOTNOTES ON PAGE 62
51
<PAGE>
CONSOLIDATED PROPERTY LISTING
OFFICE PROPERTIES
(CONTINUED)
<TABLE>
<CAPTION>
PERCENTAGE OF
PERCENTAGE TOTAL OFFICE,
NET LEASED ANNUAL OFFICE/FLEX, AVERAGE
RENTABLE AS OF BASE AND INDUSTRIAL/ BASE RENT
PROPERTY YEAR AREA 9/30/00 RENT WAREHOUSE PER SQ. FT.
LOCATION BUILT (SQ. FT.) (%)(1) ($000'S)(2) BASE RENT(%) ($)(3)(5)
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Harborside Financial Center Plaza 3... 1990 725,600 100.0 17,375 3.52 23.95
Harborside Financial Center Plaza 4-A (4) 2000 207,670 88.7 3,306 0.67 31.49(8)
MERCER COUNTY, NEW JERSEY
PRINCETON
400 Alexander Road (6)................ 1987 n/a n/a 148 0.03 n/a
103 Carnegie Center................... 1984 96,000 100.0 2,286 0.46 23.81
100 Overlook Center .................. 1988 149,600 68.6 3,659 0.74 35.65
5 Vaughn Drive........................ 1987 98,500 100.0 2,297 0.47 23.32
MIDDLESEX COUNTY, NEW JERSEY
EAST BRUNSWICK
377 Summerhill Road................... 1977 40,000 100.0 374 0.08 9.33
PLAINSBORO
500 College Road East................. 1984 158,235 100.0 3,402 0.69 21.50
SOUTH BRUNSWICK
3 Independence Way.................... 1983 111,300 100.0 2,186 0.44 19.64
WOODBRIDGE
581 Main Street....................... 1991 200,000 100.0 4,645 0.94 23.23
MONMOUTH COUNTY, NEW JERSEY
NEPTUNE
3600 Route 66......................... 1989 180,000 100.0 2,413 0.49 13.41
WALL TOWNSHIP
1305 Campus Parkway................... 1988 23,350 76.1 486 0.10 27.35
1350 Campus Parkway................... 1990 79,747 99.9 1,358 0.27 17.05
MORRIS COUNTY, NEW JERSEY
FLORHAM PARK
325 Columbia Turnpike................. 1987 168,144 100.0 4,119 0.83 24.50
MORRIS PLAINS
201 Littleton Road.................... 1979 88,369 100.0 1,831 0.37 20.72
250 Johnson Road...................... 1977 75,000 100.0 1,174 0.24 15.65
MORRIS TOWNSHIP
340 Mt. Kemble Avenue................. 1985 387,000 100.0 5,529 1.12 14.29
412 Mt. Kemble Avenue (7)............. 1986 n/a n/a 4,755 0.96 n/a
PARSIPPANY
7 Campus Drive........................ 1982 154,395 100.0 2,553 0.52 16.54
8 Campus Drive ....................... 1987 215,265 100.0 5,365 1.09 24.92
2 Dryden Way.......................... 1990 6,216 100.0 68 0.01 10.94
4 Gatehall Drive (4).................. 1988 248,480 92.3 5,819 1.18 25.37
2 Hilton Court........................ 1991 181,592 99.7 4,633 0.94 25.59
600 Parsippany Road................... 1978 96,000 100.0 1,446 0.29 15.06
1 Sylvan Way.......................... 1989 150,557 100.0 3,519 0.71 23.37
5 Sylvan Way.......................... 1989 151,383 100.0 3,448 0.70 22.78
7 Sylvan Way.......................... 1987 145,983 100.0 2,920 0.59 20.00
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE FOOTNOTES ON PAGE 62.
52
<PAGE>
CONSOLIDATED PROPERTY LISTING
OFFICE PROPERTIES
(CONTINUED)
<TABLE>
<CAPTION>
PERCENTAGE OF
PERCENTAGE TOTAL OFFICE,
NET LEASED ANNUAL OFFICE/FLEX, AVERAGE
RENTABLE AS OF BASE AND INDUSTRIAL/ BASE RENT
PROPERTY YEAR AREA 9/30/00 RENT WAREHOUSE PER SQ. FT.
LOCATION BUILT (SQ. FT.) (%)(1) ($000'S)(2) BASE RENT(%) ($)(3)(5)
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PASSAIC COUNTY, NEW JERSEY
CLIFTON
777 Passaic Avenue............... 1983 75,000 70.1 966 0.21 18.37
TOTOWA
999 Riverview Drive.............. 1988 56,066 100.0 948 0.19 16.91
WAYNE
201 Willowbrook Boulevard........ 1970 178,329 99.0 2,422 0.49 13.72
SOMERSET COUNTY, NEW JERSEY
BASKING RIDGE
222 Mt. Airy Road................ 1986 49,000 100.0 744 0.15 15.18
233 Mt. Airy Road................ 1987 66,000 100.0 762 0.15 11.55
BERNARDS TOWNSHIP
106 Allen Road (4)............... 2000 132,010 72.5 960 0.19 25.31(8)
BRIDGEWATER
721 Route 202/206................ 1989 192,741 100.0 4,152 0.84 21.54
UNION COUNTY, NEW JERSEY
CLARK
100 Walnut Avenue................ 1985 182,555 100.0 4,617 0.93 25.29
CRANFORD
6 Commerce Drive................. 1973 56,000 90.3 954 0.19 18.87
11 Commerce Drive................ 1981 90,000 91.2 1,031 0.21 12.56
12 Commerce Drive................ 1967 72,260 96.3 610 0.12 8.77
20 Commerce Drive................ 1990 176,600 98.8 3,962 0.80 22.71
65 Jackson Drive................. 1984 82,778 100.0 1,571 0.32 18.98
NEW PROVIDENCE
890 Mountain Road................ 1977 80,000 100.0 2,054 0.42 25.68
-------------------------------------------------------------------------------------------------------------------------
TOTAL NEW JERSEY OFFICE 11,430,809 98.0 236,775 47.95 21.14
-------------------------------------------------------------------------------------------------------------------------
DUTCHESS COUNTY, NEW YORK
FISHKILL
300 South Lake Drive............. 1987 118,727 98.3 2,176 0.44 18.64
NASSAU COUNTY, NEW YORK
NORTH HEMPSTEAD
111 East Shore Road.............. 1980 55,575 100.0 1,516 0.31 27.28
600 Community Drive.............. 1983 206,274 100.0 4,820 0.98 23.37
ROCKLAND COUNTY, NEW YORK
SUFFERN
400 Rella Boulevard.............. 1988 180,000 100.0 3,616 0.73 20.09
WESTCHESTER COUNTY, NEW YORK
ELMSFORD
100 Clearbrook Road.............. 1975 60,000 100.0 960 0.19 16.00
101 Executive Boulevard.......... 1971 50,000 79.5 806 0.16 20.28
555 Taxter Road (4).............. 1986 170,554 100.0 4,029 0.82 23.62
565 Taxter Road (4).............. 1988 170,554 85.4 3,235 0.66 22.21
570 Taxter Road.................. 1972 75,000 95.0 1,405 0.28 19.72
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE FOOTNOTES ON PAGE 62.
53
<PAGE>
CONSOLIDATED PROPERTY LISTING
OFFICE PROPERTIES
(CONTINUED)
<TABLE>
<CAPTION>
PERCENTAGE OF
PERCENTAGE TOTAL OFFICE,
NET LEASED ANNUAL OFFICE/FLEX, AVERAGE
RENTABLE AS OF BASE AND INDUSTRIAL/ BASE RENT
PROPERTY YEAR AREA 9/30/00 RENT WAREHOUSE PER SQ. FT.
LOCATION BUILT (SQ. FT.) (%)(1) ($000'S)(2) BASE RENT(%) ($)(3)(5)
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
HAWTHORNE
30 Saw Mill River Road........... 1982 248,400 100.0 5,216 1.06 21.00
1 Skyline Drive.................. 1980 20,400 99.0 261 0.05 12.92
2 Skyline Drive.................. 1987 30,000 98.9 510 0.10 17.19
17 Skyline Drive................. 1989 85,000 100.0 1,234 0.25 14.52
7 Skyline Drive.................. 1987 109,000 100.0 2,157 0.44 19.79
TARRYTOWN
200 White Plains Road............ 1982 89,000 88.1 1,718 0.35 21.91
220 White Plains Road............ 1984 89,000 99.4 2,049 0.41 23.16
WHITE PLAINS
1 Barker Avenue.................. 1975 68,000 96.3 1,604 0.32 24.49
3 Barker Avenue.................. 1983 65,300 93.3 1,265 0.26 20.76
50 Main Street................... 1985 309,000 100.0 7,710 1.56 24.95
11 Martine Avenue................ 1987 180,000 100.0 4,520 0.92 25.11
1 Water Street................... 1979 45,700 99.8 1,020 0.21 22.36
YONKERS
1 Executive Boulevard............ 1982 112,000 100.0 2,379 0.48 21.24
3 Executive Plaza................ 1987 58,000 100.0 1,403 0.28 24.19
-------------------------------------------------------------------------------------------------------------------------
TOTAL NEW YORK OFFICE 2,595,484 97.7 55,609 11.26 21.93
-------------------------------------------------------------------------------------------------------------------------
CHESTER COUNTY, PENNSYLVANIA
BERWYN
1000 Westlakes Drive............. 1989 60,696 93.0 1,481 0.30 26.24
1055 Westlakes Drive............. 1990 118,487 100.0 2,298 0.47 19.39
1205 Westlakes Drive............. 1988 130,265 99.8 2,880 0.58 22.15
1235 Westlakes Drive............. 1986 134,902 99.7 3,155 0.64 23.46
DELAWARE COUNTY, PENNSYLVANIA
LESTER
100 Stevens Drive................ 1986 95,000 100.0 1,161 0.24 12.22
200 Stevens Drive................ 1987 208,000 100.0 3,900 0.79 18.75
300 Stevens Drive................ 1992 68,000 93.3 1,282 0.26 20.21
MEDIA
1400 Providence Road - Center I.. 1986 100,000 81.3 1,780 0.36 21.89
1400 Providence Road - Center II. 1990 160,000 80.3 3,026 0.61 23.55
MONTGOMERY COUNTY, PENNSYLVANIA
LOWER PROVIDENCE
1000 Madison Avenue.............. 1990 100,700 100.0 1,890 0.38 18.77
PLYMOUTH MEETING
1150 Plymouth Meeting Mall....... 1970 167,748 89.4 2,746 0.56 18.31
Five Sentry Parkway East......... 1984 91,600 100.0 1,499 0.30 16.36
Five Sentry Parkway West......... 1984 38,400 100.0 676 0.14 17.60
-------------------------------------------------------------------------------------------------------------------------
TOTAL PENNSYLVANIA OFFICE 1,473,798 94.7 27,774 5.63 19.89
-------------------------------------------------------------------------------------------------------------------------
FAIRFIELD COUNTY, CONNECTICUT
GREENWICH
500 West Putnam.................. 1973 121,250 98.3 2,865 0.58 24.04
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE FOOTNOTES ON PAGE 62.
54
<PAGE>
CONSOLIDATED PROPERTY LISTING
OFFICE PROPERTIES
(CONTINUED)
<TABLE>
<CAPTION>
PERCENTAGE OF
PERCENTAGE TOTAL OFFICE,
NET LEASED ANNUAL OFFICE/FLEX, AVERAGE
RENTABLE AS OF BASE AND INDUSTRIAL/ BASE RENT
PROPERTY YEAR AREA 9/30/00 RENT WAREHOUSE PER SQ. FT.
LOCATION BUILT (SQ. FT.) (%)(1) ($000'S)(2) BASE RENT(%) ($)(3)(5)
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NORWALK
40 Richards Avenue............... 1985 145,487 99.2 2,885 0.58 19.99
SHELTON
1000 Bridgeport Avenue........... 1986 133,000 94.9 2,243 0.45 17.77
-------------------------------------------------------------------------------------------------------------------------
TOTAL CONNECTICUT OFFICE 399,737 97.5 7,993 1.61 20.51
-------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA
WASHINGTON
1201 Connecticut Avenue, NW...... 1940 169,549 96.6 4,864 0.98 29.70
1400 L Street, NW................ 1987 159,000 98.7 5,871 1.19 37.41
1709 New York Avenue, NW......... 1972 166,000 100.0 7,209 1.46 43.43
-------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRICT OF COLUMBIA OFFICE 494,549 98.4 17,944 3.63 36.87
-------------------------------------------------------------------------------------------------------------------------
PRINCE GEORGE'S COUNTY, MARYLAND
LANHAM
4200 Parliament Place............ 1989 122,000 92.9 2,443 0.49 21.55
-------------------------------------------------------------------------------------------------------------------------
TOTAL MARYLAND OFFICE 122,000 92.9 2,443 0.49 21.55
-------------------------------------------------------------------------------------------------------------------------
BEXAR COUNTY, TEXAS
SAN ANTONIO
200 Concord Plaza Drive.......... 1986 248,700 94.8 4,339 0.88 18.40
1777 N.E. Loop 410............... 1986 256,137 91.1 3,728 0.75 15.98
84 N.E. Loop 410................. 1971 187,312 89.9 2,530 0.51 15.02
111 Soledad...................... 1918 248,153 93.0 2,519 0.51 10.92
COLLIN COUNTY, TEXAS
PLANO
555 Republic Place............... 1986 97,889 80.8 1,464 0.30 18.51
DALLAS COUNTY,TEXAS
DALLAS
3030 LBJ Freeway................. 1984 367,018 95.4 6,438 1.30 18.39
3100 Monticello.................. 1984 173,837 93.8 2,723 0.55 16.70
8214 Westchester................. 1983 95,509 81.3 1,292 0.26 16.64
IRVING
2300 Valley View................. 1985 142,634 88.6 2,057 0.42 16.28
RICHARDSON
1122 Alma Road................... 1977 82,576 100.0 607 0.12 7.35
HARRIS COUNTY, TEXAS
HOUSTON
14511 Falling Creek.............. 1982 70,999 98.8 891 0.18 12.70
5225 Katy Freeway................ 1983 112,213 93.3 1,494 0.30 14.27
5300 Memorial.................... 1982 155,099 99.3 2,219 0.45 14.41
1717 St. James Place............. 1975 109,574 91.7 1,349 0.27 13.43
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE FOOTNOTES ON PAGE 62.
55
<PAGE>
CONSOLIDATED PROPERTY LISTING
OFFICE PROPERTIES
(CONTINUED)
<TABLE>
<CAPTION>
PERCENTAGE OF
PERCENTAGE TOTAL OFFICE,
NET LEASED ANNUAL OFFICE/FLEX, AVERAGE
RENTABLE AS OF BASE AND INDUSTRIAL/ BASE RENT
PROPERTY YEAR AREA 9/30/00 RENT WAREHOUSE PER SQ. FT.
LOCATION BUILT (SQ. FT.) (%)(1) ($000'S)(2) BASE RENT(%) ($)(3)(5)
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1770 St. James Place............. 1973 103,689 89.3 1,398 0.28 15.10
10497 Town & Country Way......... 1981 148,434 77.6 1,824 0.37 15.84
POTTER COUNTY, TEXAS
AMARILLO
6900 IH - 40 West (7)............ 1986 n/a n/a 320 0.06 n/a
TARRANT COUNTY, TEXAS
EULESS
150 West Parkway................. 1984 74,429 95.9 1,044 0.21 14.63
TRAVIS COUNTY, TEXAS
AUSTIN
1250 Capital of Texas Hwy. South (7) 1985 n/a n/a 5,682 1.15 n/a
----------------------------------------------------------------------------------------------------------------------------
TOTAL TEXAS OFFICE 2,674,202 91.8 43,918 8.87 17.88
----------------------------------------------------------------------------------------------------------------------------
MARICOPA COUNTY, ARIZONA
GLENDALE
5551 West Talavi Boulevard....... 1991 181,596 100.0 1,613 0.33 8.88
PHOENIX
19640 North 31st Street.......... 1990 124,171 100.0 1,192 0.24 9.60
20002 North 19th Avenue (6)...... 1986 n/a n/a 137 0.04 n/a
SCOTTSDALE
9060 E. Via Linda Boulevard...... 1984 111,200 100.0 2,408 0.49 21.65
----------------------------------------------------------------------------------------------------------------------------
TOTAL ARIZONA OFFICE 416,967 100.0 5,350 1.10 12.83
----------------------------------------------------------------------------------------------------------------------------
ARAPAHOE COUNTY, COLORADO
AURORA
750 South Richfield Street....... 1997 108,240 100.0 2,911 0.59 26.89
DENVER
400 South Colorado Boulevard..... 1983 125,415 97.8 2,134 0.43 17.40
ENGLEWOOD
9359 East Nichols Avenue......... 1997 72,610 100.0 903 0.18 12.44
5350 South Roslyn Street......... 1982 63,754 96.2 1,068 0.22 17.41
BOULDER COUNTY, COLORADO
BROOMFIELD
105 South Technology Court....... 1997 37,574 100.0 547 0.11 14.56
303 South Technology Court-A..... 1997 34,454 100.0 427 0.09 12.39
303 South Technology Court-B..... 1997 40,416 100.0 427 0.09 10.57
LOUISVILLE
1172 Century Drive............... 1996 49,566 100.0 568 0.12 11.46
248 Centennial Parkway........... 1996 39,266 100.0 567 0.11 14.44
285 Century Place................ 1997 69,145 100.0 1,115 0.23 16.13
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE FOOTNOTES ON PAGE 62.
56
<PAGE>
CONSOLIDATED PROPERTY LISTING
OFFICE PROPERTIES
(CONTINUED)
<TABLE>
<CAPTION>
PERCENTAGE OF
PERCENTAGE TOTAL OFFICE,
NET LEASED ANNUAL OFFICE/FLEX, AVERAGE
RENTABLE AS OF BASE AND INDUSTRIAL/ BASE RENT
PROPERTY YEAR AREA 9/30/00 RENT WAREHOUSE PER SQ. FT.
LOCATION BUILT (SQ. FT.) (%)(1) ($000'S)(2) BASE RENT(%) ($)(3)(5)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
DENVER COUNTY, COLORADO
DENVER
3600 South Yosemite.............. 1974 133,743 100.0 1,291 0.26 9.65
DOUGLAS COUNTY, COLORADO
ENGLEWOOD
384 Inverness Drive South........ 1985 51,523 100.0 820 0.17 15.92
400 Inverness Drive.............. 1997 111,608 99.9 2,759 0.56 24.75
67 Inverness Drive East.......... 1996 54,280 100.0 674 0.14 12.42
5975 South Quebec Street......... 1996 102,877 99.8 2,374 0.48 23.12
PARKER
9777 Pyramid Court............... 1995 120,281 100.0 1,323 0.27 11.00
EL PASO COUNTY, COLORADO
COLORADO SPRINGS
8415 Explorer.................... 1998 47,368 100.0 602 0.12 12.71
1975 Research Parkway............ 1997 115,250 100.0 1,680 0.34 14.58
2375 Telstar Drive............... 1998 47,369 100.0 602 0.12 12.71
JEFFERSON COUNTY, COLORADO
LAKEWOOD
141 Union Boulevard.............. 1985 63,600 98.9 1,087 0.22 17.28
------------------------------------------------------------------------------------------------------------------------
TOTAL COLORADO OFFICE 1,488,339 99.6 23,879 4.85 16.11
------------------------------------------------------------------------------------------------------------------------
SAN FRANCISCO COUNTY, CALIFORNIA
SAN FRANCISCO
795 Folsom Street (4)............ 1977 183,445 100.0 5,468 1.11 29.81
760 Market Street................ 1908 267,446 96.8 8,148 1.65 31.47
------------------------------------------------------------------------------------------------------------------------
TOTAL CALIFORNIA OFFICE 450,891 98.1 13,616 2.76 30.78
------------------------------------------------------------------------------------------------------------------------
HILLSBOROUGH COUNTY, FLORIDA
TAMPA
501 Kennedy Boulevard............ 1982 297,429 91.4 3,861 0.78 14.20
------------------------------------------------------------------------------------------------------------------------
TOTAL FLORIDA OFFICE 297,429 91.4 3,861 0.78 14.20
------------------------------------------------------------------------------------------------------------------------
POLK COUNTY, IOWA
WEST DES MOINES
2600 Westown Parkway............. 1988 72,265 100.0 1,127 0.23 15.60
------------------------------------------------------------------------------------------------------------------------
TOTAL IOWA OFFICE 72,265 100.0 1,127 0.23 15.60
------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE FOOTNOTES ON PAGE 62.
57
<PAGE>
CONSOLIDATED PROPERTY LISTING
OFFICE PROPERTIES
(CONTINUED)
<TABLE>
<CAPTION>
PERCENTAGE OF
PERCENTAGE TOTAL OFFICE,
NET LEASED ANNUAL OFFICE/FLEX, AVERAGE
RENTABLE AS OF BASE AND INDUSTRIAL/ BASE RENT
PROPERTY YEAR AREA 9/30/00 RENT WAREHOUSE PER SQ. FT.
LOCATION BUILT (SQ. FT.) (%)(1) ($000'S)(2) BASE RENT(%) ($)(3)(5)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
DOUGLAS COUNTY, NEBRASKA
OMAHA
210 South 16th Street............ 1894 319,535 93.4 3,291 0.67 11.03
------------------------------------------------------------------------------------------------------------------------
TOTAL NEBRASKA OFFICE 319,535 93.4 3,291 0.67 11.03
------------------------------------------------------------------------------------------------------------------------
TOTAL OFFICE PROPERTIES 22,236,005 97.0 443,580 89.83 20.57
========================================================================================================================
</TABLE>
SEE FOOTNOTES ON PAGE 62.
58
<PAGE>
CONSOLIDATED PROPERTY LISTING
OFFICE/FLEX PROPERTIES
<TABLE>
<CAPTION>
PERCENTAGE OF
PERCENTAGE TOTAL OFFICE,
NET LEASED ANNUAL OFFICE/FLEX, AVERAGE
RENTABLE AS OF BASE AND INDUSTRIAL/ BASE RENT
PROPERTY YEAR AREA 9/30/00 RENT WAREHOUSE PER SQ. FT.
LOCATION BUILT (SQ. FT.) (%)(1) ($000'S)(2) BASE RENT(%) ($)(3)(5)
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
BURLINGTON COUNTY, NEW JERSEY
BURLINGTON
3 Terri Lane..................... 1991 64,500 61.4 370 0.07 9.34
5 Terri Lane..................... 1992 74,555 83.9 362 0.07 5.79
MOORESTOWN
2 Commerce Drive (4)............. 1986 49,000 100.0 363 0.07 7.42
101 Commerce Drive............... 1988 64,700 100.0 336 0.07 5.19
102 Commerce Drive (4)........... 1987 38,400 87.5 182 0.04 5.43
201 Commerce Drive............... 1986 38,400 100.0 196 0.04 5.10
202 Commerce Drive (4)........... 1988 51,200 100.0 268 0.05 5.24
1 Executive Drive................ 1989 20,570 100.0 138 0.03 6.71
2 Executive Drive (4)............ 1988 60,800 100.0 475 0.10 5.43
101 Executive Drive.............. 1990 29,355 70.5 124 0.03 5.99
102 Executive Drive.............. 1990 64,000 80.0 406 0.08 7.93
225 Executive Drive.............. 1990 50,600 100.0 336 0.07 6.64
97 Foster Road................... 1982 43,200 100.0 187 0.04 4.33
1507 Lancer Drive................ 1995 32,700 100.0 139 0.03 4.25
1510 Lancer Drive................ 1998 88,000 100.0 370 0.07 4.20
1256 North Church................ 1984 63,495 68.9 262 0.05 8.27
840 North Lenola Road............ 1995 38,300 100.0 271 0.05 10.27
844 North Lenola Road............ 1995 28,670 100.0 213 0.04 7.43
915 North Lenola Road (4)........ 1998 52,488 100.0 283 0.06 5.38
30 Twosome Drive................. 1997 39,675 100.0 224 0.05 5.65
40 Twosome Drive................. 1996 40,265 63.1 172 0.03 6.77
50 Twosome Drive................. 1997 34,075 100.0 268 0.05 7.87
WEST DEPTFORD
1451 Metropolitan Drive.......... 1996 21,600 100.0 148 0.03 6.85
MERCER COUNTY, NEW JERSEY
HAMILTON TOWNSHIP
100 Horizon Drive................ 1989 13,275 -- -- -- --
200 Horizon Drive................ 1991 45,770 100.0 447 0.09 9.77
300 Horizon Drive................ 1989 69,780 73.8 752 0.15 14.60
500 Horizon Drive................ 1990 41,205 57.8 276 0.06 11.59
MONMOUTH COUNTY, NEW JERSEY
WALL TOWNSHIP
1325 Campus Parkway.............. 1988 35,000 100.0 310 0.06 8.86
1340 Campus Parkway.............. 1992 72,502 100.0 802 0.16 11.06
1345 Campus Parkway.............. 1995 76,300 100.0 709 0.14 9.29
1433 Highway 34.................. 1985 69,020 89.5 490 0.10 7.93
1320 Wyckoff Avenue.............. 1986 20,336 100.0 88 0.02 4.33
1324 Wyckoff Avenue.............. 1987 21,168 100.0 183 0.04 8.65
PASSAIC COUNTY, NEW JERSEY
TOTOWA
1 Center Court................... 1999 38,961 37.8 141 0.03 9.57
2 Center Court................... 1998 30,600 99.3 351 0.07 11.55
11 Commerce Way.................. 1989 47,025 100.0 510 0.10 10.85
20 Commerce Way.................. 1992 42,540 100.0 433 0.09 10.18
--------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE FOOTNOTES ON PAGE 62.
59
<PAGE>
<TABLE>
<CAPTION>
PERCENTAGE OF
PERCENTAGE TOTAL OFFICE,
NET LEASED ANNUAL OFFICE/FLEX, AVERAGE
RENTABLE AS OF BASE AND INDUSTRIAL/ BASE RENT
PROPERTY YEAR AREA 9/30/00 RENT WAREHOUSE PER SQ. FT.
LOCATION BUILT (SQ. FT.) (%)(1) ($000'S)(2) BASE RENT(%) ($)(3)(5)
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
29 Commerce Way.................. 1990 48,930 100.0 493 0.10 10.08
40 Commerce Way.................. 1987 50,576 100.0 559 0.11 11.05
45 Commerce Way.................. 1992 51,207 100.0 498 0.10 9.73
60 Commerce Way.................. 1988 50,333 100.0 396 0.08 7.87
80 Commerce Way.................. 1996 22,500 100.0 282 0.06 12.53
100 Commerce Way................. 1996 24,600 100.0 299 0.06 11.79
120 Commerce Way................. 1994 9,024 100.0 95 0.04 21.05
140 Commerce Way................. 1994 26,881 99.5 286 0.04 7.10
--------------------------------------------------------------------------------------------------------------------
TOTAL NEW JERSEY OFFICE/FLEX 1,996,081 90.5 14,493 2.92 8.02
--------------------------------------------------------------------------------------------------------------------
WESTCHESTER COUNTY, NEW YORK
ELMSFORD
11 Clearbrook Road............... 1974 31,800 100.0 321 0.06 10.09
75 Clearbrook Road............... 1990 32,720 100.0 816 0.17 24.94
150 Clearbrook Road.............. 1975 74,900 93.8 1,041 0.21 14.82
175 Clearbrook Road.............. 1973 98,900 98.5 1,439 0.29 14.77
200 Clearbrook Road.............. 1974 94,000 99.8 1,198 0.24 12.77
250 Clearbrook Road.............. 1973 155,000 94.5 1,315 0.27 8.98
50 Executive Boulevard........... 1969 45,200 97.2 384 0.08 8.74
77 Executive Boulevard........... 1977 13,000 55.4 137 0.03 19.02
85 Executive Boulevard........... 1968 31,000 99.4 446 0.09 14.47
300 Executive Boulevard.......... 1970 60,000 99.7 589 0.12 9.85
350 Executive Boulevard.......... 1970 15,400 98.8 243 0.05 15.97
399 Executive Boulevard.......... 1962 80,000 100.0 968 0.20 12.10
400 Executive Boulevard.......... 1970 42,200 100.0 610 0.12 14.45
500 Executive Boulevard.......... 1970 41,600 100.0 594 0.12 14.28
525 Executive Boulevard.......... 1972 61,700 100.0 874 0.18 14.17
1 Westchester Plaza.............. 1967 25,000 100.0 298 0.06 11.92
2 Westchester Plaza.............. 1968 25,000 100.0 421 0.09 16.84
3 Westchester Plaza.............. 1969 93,500 98.5 1,123 0.23 12.19
4 Westchester Plaza.............. 1969 44,700 99.8 629 0.13 14.10
5 Westchester Plaza.............. 1969 20,000 100.0 298 0.06 14.90
6 Westchester Plaza.............. 1968 20,000 100.0 302 0.06 15.10
7 Westchester Plaza.............. 1972 46,200 100.0 650 0.13 14.07
8 Westchester Plaza.............. 1971 67,200 100.0 872 0.18 12.98
HAWTHORNE
200 Saw Mill River Road.......... 1965 51,100 100.0 616 0.12 12.05
4 Skyline Drive.................. 1987 80,600 100.0 1,255 0.25 15.57
8 Skyline Drive.................. 1985 50,000 98.9 828 0.17 16.74
10 Skyline Drive................. 1985 20,000 100.0 283 0.06 14.15
11 Skyline Drive................. 1989 45,000 100.0 689 0.14 15.31
12 Skyline Drive................. 1999 46,850 100.0 760 0.15 16.22
15 Skyline Drive................. 1989 55,000 100.0 952 0.19 17.31
YONKERS
100 Corporate Boulevard.......... 1987 78,000 98.2 1,342 0.27 17.52
200 Corporate Boulevard South.... 1990 84,000 99.8 1,387 0.28 16.54
4 Executive Plaza................ 1986 80,000 99.9 1,039 0.21 13.00
6 Executive Plaza................ 1987 80,000 100.0 1,069 0.22 13.36
--------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE FOOTNOTES ON PAGE 62.
60
<PAGE>
<TABLE>
<CAPTION>
PERCENTAGE OF
PERCENTAGE TOTAL OFFICE,
NET LEASED ANNUAL OFFICE/FLEX, AVERAGE
RENTABLE AS OF BASE AND INDUSTRIAL/ BASE RENT
PROPERTY YEAR AREA 9/30/00 RENT WAREHOUSE PER SQ. FT.
LOCATION BUILT (SQ. FT.) (%)(1) ($000'S)(2) BASE RENT(%) ($)(3)(5)
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1 Odell Plaza.................... 1980 106,000 100.0 1,269 0.26 11.97
5 Odell Plaza.................... 1983 38,400 99.6 519 0.11 13.57
7 Odell Plaza.................... 1984 42,600 99.6 665 0.13 15.67
--------------------------------------------------------------------------------------------------------------------
TOTAL NEW YORK OFFICE/FLEX 2,076,570 98.7 28,241 5.73 13.78
--------------------------------------------------------------------------------------------------------------------
FAIRFIELD COUNTY, CONNECTICUT
STAMFORD
419 West Avenue.................. 1986 88,000 96.8 1,426 0.29 16.74
500 West Avenue.................. 1988 25,000 100.0 384 0.08 15.36
550 West Avenue.................. 1990 54,000 100.0 779 0.16 14.43
600 West Avenue (4).............. 1999 66,000 100.0 684 0.14 10.36
650 West Avenue.................. 1998 40,000 100.0 631 0.13 15.78
-------------------------------------------------------------------------------------------------------------------
TOTAL CONNECTICUT OFFICE/FLEX 273,000 99.0 3,904 0.80 14.45
-------------------------------------------------------------------------------------------------------------------
TOTAL OFFICE/FLEX PROPERTIES..... 4,345,651 95.0 46,638 9.45 11.30
===================================================================================================================
</TABLE>
SEE FOOTNOTES ON PAGE 62.
61
<PAGE>
CONSOLIDATED PROPERTY LISTING
INDUSTRIAL/WAREHOUSE PROPERTIES
<TABLE>
<CAPTION>
PERCENTAGE OF
PERCENTAGE TOTAL OFFICE,
NET LEASED ANNUAL OFFICE/FLEX, AVERAGE
RENTABLE AS OF BASE AND INDUSTRIAL/ BASE RENT
PROPERTY YEAR AREA 9/30/00 RENT WAREHOUSE PER SQ. FT.
LOCATION BUILT (SQ. FT.) (%)(1) ($000'S)(2) BASE RENT(%) ($)(3)(5)
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
WESTCHESTER COUNTY, NEW YORK
ELMSFORD
1 Warehouse Lane................. 1957 6,600 100.0 57 0.01 8.64
2 Warehouse Lane................. 1957 10,900 100.0 118 0.02 10.83
3 Warehouse Lane................. 1957 77,200 100.0 290 0.06 3.76
4 Warehouse Lane................. 1957 195,500 97.4 1,943 0.39 10.20
5 Warehouse Lane................. 1957 75,100 97.1 753 0.15 10.33
6 Warehouse Lane................. 1982 22,100 100.0 514 0.09 23.26
-------------------------------------------------------------------------------------------------------------------
TOTAL INDUSTRIAL/WAREHOUSE PROPERTIES 387,400 98.1 3,675 0.72 9.67
-------------------------------------------------------------------------------------------------------------------
TOTAL OFFICE, OFFICE/FLEX,
AND INDUSTRIAL/WAREHOUSE
PROPERTIES 26,969,056 96.7 493,893 100.00 18.95
===================================================================================================================
</TABLE>
(1) Based on all leases in effect as of September 30, 2000.
(2) Total base rent for 12 months ended September 30, 2000, determined in
accordance with GAAP. Substantially all of the leases provide for annual
base rents plus recoveries and escalation charges based upon the tenant's
proportionate share of and/or increases in real estate taxes and certain
operating costs, as defined, and the pass through of charges for electrical
usage. For those properties acquired or placed in service during the 12
months ended September 30, 2000, amounts are annualized, as per Note 4.
(3) Base rent for the 12 months ended September 30, 2000 divided by net
rentable square feet leased at September 30, 2000. For those properties
acquired or placed in service during 12 months ended September 30, 2000,
amounts are annualized, as per Note 4.
(4) As this property was acquired or placed in service during the 12 months
ended September 30, 2000, the amounts represented for base rent are
annualized. These annualized amounts may not be indicative of the
property's results had the Company owned or placed such property in service
for the entire 12 months ended September 30, 2000.
(5) Excludes office space leased by the Company.
(6) The property was sold by the Company in 1999.
(7) The property was sold by the Company in 2000.
(8) Calculation based on square feet in service as of September 30, 2000.
62
<PAGE>
SIGNIFICANT TENANTS
The following table sets forth a schedule of the Company's 20 largest tenants
for the Consolidated Properties as of September 30, 2000, based upon annualized
base rents:
<TABLE>
<CAPTION>
PERCENTAGE OF
ANNUALIZED COMPANY SQUARE PERCENTAGE OF YEAR OF
NUMBER OF BASE RENTAL ANNUALIZED BASE FEET TOTAL COMPANY LEASE
PROPERTIES REVENUE($)(1) RENTAL REVENUE(%) LEASED LEASED SQ.FT.(%) EXPIRATION
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Donaldson, Lufkin &
Jenrette Securities Corp. 1 8,316,096 1.7 271,953 1.1 2011
AT&T Wireless Services 2 8,199,960 1.7 382,030 1.5 2007 (2)
AT&T Corporation 3 8,030,828 1.7 516,546 2.0 2009 (3)
Keystone Mercy Health Plan 3 7,429,219 1.6 325,843 1.3 2015 (4)
IBM Corporation 4 7,028,473 1.5 362,753 1.4 2007 (5)
Prentice-Hall Inc. 1 6,744,495 1.4 474,801 1.9 2014
Allstate Insurance Company 9 5,863,006 1.2 270,154 1.0 2009 (6)
Nabisco Inc. 3 5,694,073 1.2 310,243 1.2 2005 (7)
Toys `R' Us - NJ, Inc. 1 5,342,672 1.1 242,518 0.9 2012
Waterhouse Securities, Inc. 1 5,253,555 1.1 184,222 0.7 2015
American Institute of Certified
Public Accountants 1 4,981,357 1.0 249,768 1.0 2012
Board of Gov./Federal Reserve 1 4,705,391 1.0 117,008 0.5 2009 (8)
Dean Witter Trust Company 1 4,319,507 0.9 221,019 0.9 2008
Winston & Strawn 1 4,302,008 0.9 108,100 0.4 2003
CMP Media Inc. 1 4,206,598 0.9 206,274 0.8 2014
KPMG Peat Marwick, LLP 2 3,824,080 0.8 161,760 0.6 2007 (9)
Move.com Operations, Inc. 1 3,701,763 0.8 94,917 0.4 2006
Bank of Tokyo - Mitsubishi Ltd. 1 3,378,924 0.7 137,076 0.5 2009
Bankers Trust Harborside Inc. 1 3,272,500 0.7 385,000 1.5 2003
Cendant Operations Inc. 1 3,117,051 0.7 148,431 0.6 2008
-----------------------------------------------------------------------------------------------------------------------------------
Totals 107,711,556 22.6 5,170,416 20.2
===================================================================================================================================
</TABLE>
(1) Annualized base rental revenue is based on actual September 2000 billings
times 12. For leases whose rent commences after October 1, 2000, annualized
base rental revenue is based on the first full month's billing times 12. As
annualized base rental revenue is not derived from historical GAAP results,
historical results may differ from those set forth above.
(2) 12,150 square feet expire September 2004; 345,799 square feet expire
March 2007; 24,081 square feet expire June 2007.
(3) 66,268 square feet expire December 2000; 63,278 square feet expire
May 2004; 387,000 square feet expire January 2009.
(4) 22,694 square feet expire January 2003; 303,149 square feet expire
April 2015.
(5) 1,065 square feet expire November 2000; 28,289 square feet expire January
2002; 85,000 square feet expire December 2005; 248,399 square feet expire
December 2007.
(6) 22,444 square feet expire July 2001; 47,364 square feet expire September
2002; 18,882 square feet expire April 2003; 2,867 square feet expire
January 2004; 36,305 square feet expire January 2005; 23,024 square feet
expire October 2005; 6,108 square feet expire August 2006; 70,517 square
feet expire June 2007; 31,143 square feet expire April 2008; 11,500 square
feet expire April 2009.
(7) 9,865 square feet expire September 2001; 300,378 square feet expire
December 2005.
(8) 94,719 square feet expire May 2005; 22,289 square feet expire
July 2009.
(9) 104,556 square feet expire September 2002; 57,204 square feet expire
July 2007.
63
<PAGE>
SCHEDULE OF LEASE EXPIRATIONS
ALL CONSOLIDATED PROPERTIES
The following table sets forth a schedule of the lease expirations for the total
of the Company's office, office/flex, industrial/warehouse and stand-alone
retail properties, included in the Consolidated Properties, beginning October 1,
2000, assuming that none of the tenants exercise renewal options:
<TABLE>
<CAPTION>
AVERAGE ANNUAL
PERCENTAGE OF RENT PER NET
NET RENTABLE TOTAL LEASED ANNUALIZED RENTABLE PERCENTAGE OF
AREA SUBJECT SQUARE FEET BASE RENTAL SQUARE FOOT ANNUAL BASE
NUMBER OF TO EXPIRING REPRESENTED BY REVENUE UNDER REPRESENTED RENT UNDER
YEAR OF LEASES LEASES EXPIRING EXPIRING BY EXPIRING EXPIRING
EXPIRATION EXPIRING(1) (SQ. FT.) LEASES(%)(2) LEASES($)(3) LEASES($) LEASES(%)
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
2000.......... 148 894,766 3.5 15,187,953 16.97 3.2
2001.......... 509 2,676,232 10.4 42,714,473 15.96 8.9
2002.......... 526 3,476,104 13.6 60,234,599 17.33 12.6
2003.......... 479 3,845,066 15.0 66,571,285 17.31 14.0
2004.......... 338 2,344,632 9.1 44,880,367 19.14 9.4
2005.......... 313 3,061,998 11.9 60,416,528 19.73 12.7
2006.......... 124 1,562,751 6.1 32,853,037 21.02 6.9
2007.......... 70 1,552,681 6.1 32,440,045 20.89 6.8
2008.......... 42 1,100,853 4.3 18,528,030 16.83 3.9
2009.......... 36 1,127,196 4.4 21,791,717 19.33 4.6
2010.......... 71 1,080,376 4.2 21,925,633 20.29 4.6
2011 and thereafter 58 2,935,854 11.4 58,980,091 20.09 12.4
-----------------------------------------------------------------------------------------------------------------------------------
TOTALS/WEIGHTED
AVERAGE 2,714 25,658,509 100.0 476,523,758 18.57 100.0
===================================================================================================================================
</TABLE>
(1) Includes office, office/flex, industrial/warehouse and stand-alone retail
property tenants only. Excludes leases for amenity, retail, parking and
month-to-month tenants. Some tenants have multiple leases.
(2) Excludes all unleased space as of September 30, 2000.
(3) Annualized base rental revenue is based on actual September 2000 billings
times 12. For leases whose rent commences after October 1, 2000, annualized
base rental revenue is based on the first full month's billing times 12. As
annualized base rental revenue is not derived from historical GAAP results,
historical results may differ from those set forth above.
(4) Reconciliation to Company's total net rentable square footage is as
follows:
<TABLE>
<CAPTION>
SQUARE FEET PERCENTAGE OF TOTAL
----------- -------------------
<S> <C> <C>
Square footage leased to commercial tenants 25,658,509 95.1%
Square footage used for corporate offices, management offices, building use,
retail tenants, food services, other ancillary service tenants and
occupancy adjustments 427,751 1.6
Square footage unleased 900,096 3.3
---------- -----
Total net rentable square footage (does not include
residential, land lease, retail or not-in-service properties) 26,986,356 100.0%
========== =====
</TABLE>
64
<PAGE>
SCHEDULE OF LEASE EXPIRATIONS
OFFICE PROPERTIES
The following table sets forth a schedule of the lease expirations for the
office properties beginning October 1, 2000, assuming that none of the tenants
exercise renewal options:
<TABLE>
<CAPTION>
AVERAGE ANNUAL
PERCENTAGE OF RENT PER NET
NET RENTABLE TOTAL LEASED ANNUALIZED RENTABLE PERCENTAGE OF
AREA SUBJECT SQUARE FEET BASE RENTAL SQUARE FOOT ANNUAL BASE
NUMBER OF TO EXPIRING REPRESENTED BY REVENUE UNDER REPRESENTED RENT UNDER
YEAR OF LEASES LEASES EXPIRING EXPIRING BY EXPIRING EXPIRING
EXPIRATION EXPIRING(1) (SQ. FT.) LEASES(%)(2) LEASES($)(3) LEASES($) LEASES(%)
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
2000.......... 115 666,211 3.2 12,422,310 18.65 2.9
2001.......... 425 2,052,625 9.7 36,358,740 17.71 8.5
2002.......... 420 2,597,727 12.3 51,074,486 19.66 12.0
2003.......... 399 3,198,170 15.1 60,219,181 18.83 14.2
2004.......... 286 1,815,421 8.6 38,790,477 21.37 9.1
2005.......... 259 2,600,424 12.3 54,815,528 21.08 12.9
2006.......... 105 1,285,488 6.1 28,350,841 22.05 6.7
2007.......... 62 1,417,250 6.7 30,468,811 21.50 7.2
2008.......... 37 933,806 4.4 17,378,500 18.61 4.1
2009.......... 26 996,136 4.7 19,963,197 20.04 4.7
2010.......... 53 855,944 4.1 18,703,411 21.85 4.4
2011 and thereafter 51 2,714,830 12.8 56,415,731 20.78 13.3
-----------------------------------------------------------------------------------------------------------------------------------
TOTALS/WEIGHTED
AVERAGE 2,238 21,134,032 100.0 424,961,213 20.11 100.0
===================================================================================================================================
</TABLE>
(1) Includes office tenants only. Excludes leases for amenity, retail, parking
and month-to-month office tenants. Some tenants have multiple leases.
(2) Excludes all unleased space as of September 30, 2000.
(3) Annualized base rental revenue is based on actual September 2000 billings
times 12. For leases whose rent commences after October 1, 2000, annualized
base rental revenue is based on the first full month's billing times 12. As
annualized base rental revenue is not derived from historical GAAP results,
historical results may differ from those set forth above.
65
<PAGE>
SCHEDULE OF LEASE EXPIRATIONS
OFFICE/FLEX PROPERTIES
The following table sets forth a schedule of the lease expirations for the
office/flex properties beginning October 1, 2000, assuming that none of the
tenants exercise renewal options:
<TABLE>
<CAPTION>
AVERAGE ANNUAL
PERCENTAGE OF RENT PER NET
NET RENTABLE TOTAL LEASED ANNUALIZED RENTABLE PERCENTAGE OF
AREA SUBJECT SQUARE FEET BASE RENTAL SQUARE FOOT ANNUAL BASE
NUMBER OF TO EXPIRING REPRESENTED BY REVENUE UNDER REPRESENTED RENT UNDER
YEAR OF LEASES LEASES EXPIRING EXPIRING BY EXPIRING EXPIRING
EXPIRATION EXPIRING(1) (SQ. FT.) LEASES(%)(2) LEASES($)(3) LEASES($) LEASES(%)
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
2000.......... 30 227,220 5.5 2,748,747 12.10 5.8
2001.......... 81 614,160 14.9 6,263,456 10.20 13.2
2002.......... 104 831,937 20.2 8,659,361 10.41 18.3
2003.......... 76 548,922 13.3 5,850,986 10.66 12.3
2004.......... 41 319,791 7.7 3,597,398 11.25 7.6
2005.......... 51 448,420 10.9 5,419,124 12.08 11.4
2006.......... 19 277,263 6.7 4,502,196 16.24 9.5
2007.......... 8 135,431 3.3 1,971,234 14.56 4.2
2008.......... 5 167,047 4.0 1,149,530 6.88 2.4
2009.......... 9 119,260 2.9 1,722,320 14.44 3.6
2010.......... 18 224,432 5.4 3,222,222 14.36 6.8
2011 and thereafter 6 213,024 5.2 2,299,360 10.79 4.9
----------------------------------------------------------------------------------------------------------------------------------
TOTALS/WEIGHTED
AVERAGE 448 4,126,907 100.0 47,405,934 11.49 100.0
==================================================================================================================================
</TABLE>
(1) Includes office/flex tenants only. Excludes leases for amenity, retail,
parking and month-to-month office/flex tenants. Some tenants have multiple
leases.
(2) Excludes all unleased space as of September 30, 2000.
(3) Annualized base rental revenue is based on actual September 2000 billings
times 12. For leases whose rent commences after October 1, 2000, annualized
base rental revenue is based on the first full month's billing times 12. As
annualized base rental revenue is not derived from historical GAAP results,
historical results may differ from those set forth above.
66
<PAGE>
SCHEDULE OF LEASE EXPIRATIONS
INDUSTRIAL/WAREHOUSE PROPERTIES
The following table sets forth a schedule of the lease expirations for the
industrial/warehouse properties beginning October 1, 2000, assuming that none of
the tenants exercise renewal options:
<TABLE>
<CAPTION>
AVERAGE ANNUAL
PERCENTAGE OF RENT PER NET
NET RENTABLE TOTAL LEASED ANNUALIZED RENTABLE PERCENTAGE OF
AREA SUBJECT SQUARE FEET BASE RENTAL SQUARE FOOT ANNUAL BASE
NUMBER OF TO EXPIRING REPRESENTED BY REVENUE UNDER REPRESENTED RENT UNDER
YEAR OF LEASES LEASES EXPIRING EXPIRING BY EXPIRING EXPIRING
EXPIRATION EXPIRING(1) (SQ. FT.) LEASES(%)(2) LEASES($)(3) LEASES($) LEASES(%)
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
2000.......... 3 1,335 0.3 16,896 12.66 0.5
2001.......... 3 9,447 2.5 92,277 9.77 2.5
2002.......... 2 46,440 12.2 500,752 10.78 13.5
2003.......... 4 97,974 25.8 501,118 5.11 13.6
2004.......... 10 200,120 52.6 2,297,492 11.48 62.1
2005.......... 3 13,154 3.5 181,876 13.83 4.9
2009.......... 1 11,800 3.1 106,200 9.00 2.9
-------------------------------------------------------------------------------------------------------------------------------
TOTALS/WEIGHTED
AVERAGE 26 380,270 100.0 3,696,611 9.72 100.0
===============================================================================================================================
</TABLE>
(1) Includes industrial/warehouse tenants only. Excludes leases for amenity,
retail, parking and month-to-month industrial/warehouse tenants. Some
tenants have multiple leases.
(2) Excludes all unleased space as of September 30, 2000.
(3) Annualized base rental revenue is based on actual September 2000 billings
times 12. For leases whose rent commences after October 1, 2000, annualized
base rental revenue is based on the first full month's billing times 12. As
annualized base rental revenue is not derived from historical GAAP results,
the historical results may differ from those set forth above.
STAND-ALONE RETAIL PROPERTIES
The following table sets forth a schedule of the lease expirations for the
stand-alone retail properties beginning October 1, 2000, assuming that none of
the tenants exercise renewal options:
<TABLE>
<CAPTION>
AVERAGE ANNUAL
PERCENTAGE OF RENT PER NET
NET RENTABLE TOTAL LEASED ANNUALIZED RENTABLE PERCENTAGE OF
AREA SUBJECT SQUARE FEET BASE RENTAL SQUARE FOOT ANNUAL BASE
NUMBER OF TO EXPIRING REPRESENTED BY REVENUE UNDER REPRESENTED RENT UNDER
YEAR OF LEASES LEASES EXPIRING EXPIRING BY EXPIRING EXPIRING
EXPIRATION EXPIRING(1) (SQ. FT.) LEASES(%)(2) LEASES($)(3) LEASES($) LEASES(%)
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
2004.......... 1 9,300 53.8 195,000 20.97 42.4
2012 ......... 1 8,000 46.2 265,000 33.12 57.6
-------------------------------------------------------------------------------------------------------------------------------
TOTALS/WEIGHTED
AVERAGE 2 17,300 100.0 460,000 26.59 100.0
===============================================================================================================================
</TABLE>
(1) Includes stand-alone retail property tenants only.
(2) Annualized base rental revenue is based on actual September 2000 billings
times 12. For leases whose rent commences after October 1, 2000, annualized
base rental revenue is based on the first full month's billing times 12. As
annualized base rental revenue is not derived from historical GAAP results,
historical results may differ from those set forth above.
67
