<Page>


                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

(Mark One)
[X]      QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE
                  SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2001

                                       OR

[  ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
                  SECURITIES EXCHANGE ACT OF 1934

For the transition period from....................to...........................
Commission file number 333-57103-01

                             Mack-Cali Realty, L.P.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


              Delaware                                          22-3315804
--------------------------------------                   -----------------------
(State or other jurisdiction of                              (I.R.S. Employer
  incorporation or organization)                          Identification Number)


               11 Commerce Drive, Cranford, New Jersey 07016-3501
--------------------------------------------------------------------------------
                     (Address or principal executive office)
                                   (Zip Code)

                                 (908) 272-8000
--------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)

                                 Not Applicable
--------------------------------------------------------------------------------
         (Former name, former address and former fiscal year, if changed
                               since last report)

     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding twelve (12) months (or such shorter period that the
Registrant was required to file such report) YES X NO and (2) has been subject
to such filing requirements for the past ninety (90) days YES X NO .



                                       1
<Page>

                             MACK-CALI REALTY, L.P.

                                    FORM 10-Q

                                      INDEX

<Table>
<Caption>
PART I     FINANCIAL INFORMATION            PAGE

<S>       <C>                                                                                            <C>
           Item 1.    Financial Statements:

                      Consolidated Balance Sheets as of June 30, 2001
                           and December 31, 2000                                                            4

                      Consolidated Statements of Operations for the three and six month
                           periods ended June 30, 2001 and 2000                                             5

                      Consolidated Statement of Changes in Partners' Capital
                           for the six months ended June 30, 2001                                           6

                      Consolidated Statements of Cash Flows for the six months
                           ended June 30, 2001 and 2000                                                     7

                      Notes to Consolidated Financial Statements                                           8-27

           Item 2.    Management's Discussion and Analysis of Financial Condition
                           and Results of Operations                                                      28-36

           Item 3.    Quantitative and Qualitative Disclosures about Market Risk                           37

PART II    OTHER INFORMATION AND SIGNATURES

           Item 1.    Legal Proceedings                                                                    38

           Item 2.    Changes in Securities and Use of Proceeds                                            38

           Item 3.    Defaults Upon Senior Securities                                                      38

           Item 4.    Submission of Matters to a Vote of Security Holders                                  38

           Item 5.    Other Information                                                                    38

           Item 6.    Exhibits                                                                            39-42

                      Signatures                                                                           43
</Table>


                                       2
<Page>


                             MACK-CALI REALTY, L.P.

                         PART I - FINANCIAL INFORMATION


ITEM I.    FINANCIAL STATEMENTS

           The accompanying unaudited consolidated balance sheets, statements of
           operations, of changes in partners' capital, and of cash flows and
           related notes, have been prepared in accordance with generally
           accepted accounting principles ("GAAP") for interim financial
           information and in conjunction with the rules and regulations of the
           Securities and Exchange Commission ("SEC"). Accordingly, they do not
           include all of the disclosures required by GAAP for complete
           financial statements. The financial statements reflect all
           adjustments consisting only of normal, recurring adjustments, which
           are in the opinion of management, necessary for a fair presentation
           for the interim periods.

           The aforementioned financial statements should be read in conjunction
           with the notes to the aforementioned financial statements and
           Management's Discussion and Analysis of Financial Condition and
           Results of Operations and the financial statements and notes thereto
           included in Mack-Cali Realty, L.P.'s Annual Report on Form 10-K and
           Form 10-K/A for the fiscal year ended December 31, 2000.

           The results of operations for the three and six month periods ended
           June 30, 2001 are not necessarily indicative of the results to be
           expected for the entire fiscal year or any other period.



                                       3
<Page>

<Table>
<Caption>

MACK-CALI REALTY, L.P. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT PER UNIT AMOUNTS)
=====================================================================================================================

                                                                                        June 30,
                                                                                            2001         December 31,
ASSETS                                                                               (UNAUDITED)               2000
---------------------------------------------------------------------------------------------------------------------
<S>                                                                                 <C>                 <C>
Rental property
   Land and leasehold interests                                                      $  488,288          $  542,841
   Buildings and improvements                                                         2,679,435           2,934,383
   Tenant improvements                                                                  120,707             106,208
   Furniture, fixtures and equipment                                                      7,046               6,445
---------------------------------------------------------------------------------------------------------------------
                                                                                      3,295,476           3,589,877
   Less - accumulated depreciation and amortization                                    (314,239)           (302,932)
---------------------------------------------------------------------------------------------------------------------
                                                                                      2,981,237           3,286,945
   Rental property held for sale, net                                                   450,932             107,458
---------------------------------------------------------------------------------------------------------------------
     Net investment in rental property                                                3,432,169           3,394,403
Cash and cash equivalents                                                                22,738              13,179
Investments in unconsolidated joint ventures                                            130,944             101,438
Unbilled rents receivable, net                                                           58,118              50,499
Deferred charges and other assets, net                                                  100,337             102,655
Restricted cash                                                                           7,492               6,557
Accounts receivable, net of allowance for doubtful accounts
     of $693 and $552                                                                     8,121               8,246
---------------------------------------------------------------------------------------------------------------------

Total assets                                                                         $3,759,919          $3,676,977
=====================================================================================================================

LIABILITIES AND STOCKHOLDERS' EQUITY
---------------------------------------------------------------------------------------------------------------------
Senior unsecured notes                                                               $1,096,599          $  798,099
Revolving credit facilities                                                              76,500             348,840
Mortgages and loans payable                                                             547,701             481,573
Distributions payable                                                                    43,080              43,496
Accounts payable and accrued expenses                                                    51,712              53,608
Rents received in advance and security deposits                                          31,592              31,146
Accrued interest payable                                                                 26,814              17,477
---------------------------------------------------------------------------------------------------------------------
     Total liabilities                                                                1,873,998           1,774,239
---------------------------------------------------------------------------------------------------------------------

Minority interest in consolidated partially-owned properties                                 --               1,925

Commitments and contingencies

PARTNERS' CAPITAL:
Preferred units, 220,340 and 220,340 units outstanding                                  226,005             226,005
General partner, 56,299,124 and 56,980,893 common units outstanding                   1,437,833           1,453,290
Limited partners, 7,956,525 and 7,963,725 common units outstanding                      213,559             212,994
Unit warrants, 2,000,000 and 2,000,000 outstanding                                        8,524               8,524
---------------------------------------------------------------------------------------------------------------------
     Total partners' capital                                                          1,885,921           1,900,813
---------------------------------------------------------------------------------------------------------------------

Total liabilities and partners' capital                                              $3,759,919          $3,676,977
=====================================================================================================================



THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
</Table>


                                       4
<Page>

<Table>
<Caption>
MACK-CALI REALTY, L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER UNIT AMOUNTS) (UNAUDITED)
============================================================================================================================

                                                                       Three Months Ended              Six Months Ended
                                                                            June 30,                       June 30,
REVENUES                                                              2001              2000         2001             2000
----------------------------------------------------------------------------------------------------------------------------
<S>                                                              <C>               <C>            <C>              <C>
Base rents                                                        $129,419          $122,072       $254,795         $243,670
Escalations and recoveries from tenants                             13,430            14,627         28,192           31,295
Parking and other                                                    3,060             6,128          5,406            9,450
Equity in earnings of unconsolidated joint ventures                  2,037             1,070          5,446            2,207
Interest income                                                        472             1,992          1,085            2,246
----------------------------------------------------------------------------------------------------------------------------
     Total revenues                                                148,418           145,889        294,924          288,868
----------------------------------------------------------------------------------------------------------------------------

EXPENSES
----------------------------------------------------------------------------------------------------------------------------
Real estate taxes                                                   15,510            14,733         30,797           29,437
Utilities                                                           10,699            10,014         22,655           20,393
Operating services                                                  17,686            16,822         35,565           34,564
General and administrative                                           6,856             5,159         12,866           11,272
Depreciation and amortization                                       21,951            22,945         45,435           45,127
Interest expense                                                    28,555            26,835         56,920           53,261
Non-recurring charges                                                   --             9,228             --            9,228
----------------------------------------------------------------------------------------------------------------------------
     Total expenses                                                101,257           105,736        204,238          203,282
Income before realized gains and unrealized losses
   on disposition of rental property and minority interest          47,161            40,153         90,686           85,586
Realized gains and unrealized losses on disposition of
   rental property                                                  22,510            73,921          1,947           76,169
----------------------------------------------------------------------------------------------------------------------------
Income before minority interest                                     69,671           114,074         92,633          161,755
Minority interest in consolidated partially-owned
   properties                                                           --             2,982             --             5,072
----------------------------------------------------------------------------------------------------------------------------
Net income                                                          69,671           111,092         92,633          156,683
Preferred unit distributions                                        (3,879)           (3,765)        (7,758)          (7,634)
----------------------------------------------------------------------------------------------------------------------------

Net income available to common unitholders                        $ 65,792          $107,327        $84,875         $149,049
============================================================================================================================

Basic earnings per unit                                           $   1.02          $   1.61        $  1.31         $  2.24

Diluted earnings per unit                                         $   0.98          $   1.52        $  1.30         $  2.14
----------------------------------------------------------------------------------------------------------------------------

Distributions declared per common unit                            $   0.61          $   0.58        $  1.22         $  1.16
----------------------------------------------------------------------------------------------------------------------------

Basic weighted average units outstanding                            64,476            66,627         64,621          66,527

Diluted weighted average units outstanding                          71,044            73,284         71,198          73,237
----------------------------------------------------------------------------------------------------------------------------



THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
</Table>


                                       5
<Page>


<Table>
<Caption>

MACK-CALI REALTY, L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' CAPITAL (IN THOUSANDS) (UNAUDITED)
======================================================================================================================

                                             General   Limited
                                 Preferred   Partner   Partner       Unit     Preferred        General        Limited
                                    Units      Units     Units   Warrants   Unitholders        Partner       Partners
----------------------------------------------------------------------------------------------------------------------
<S>                                  <C>    <C>        <C>        <C>        <C>          <C>              <C>
Balance at January 1, 2001            220    56,981     7,964      2,000      $226,005     $1,453,290       $212,994
   Net income                          --        --        --         --         7,758         74,411         10,464
   Distributions                       --        --        --         --        (7,758)       (69,099)        (9,707)
   Redemption of limited
     partner units for
     shares of common stock            --         7        (7)        --            --            192           (192)
   Contributions - proceeds
     from stock
     options exercised                 --       106        --         --            --          2,389             --
   Deferred compensation
     plan for directors                --        --        --         --            --             76             --
   Issuance of Restricted
     Stock Awards                      --        94        --         --            --             --             --
   Amortization of stock
     compensation                      --        --        --         --            --            630             --
   Cancellation of Restricted
     Stock Awards                      --        (7)       --         --            --             --             --
   Repurchase of general
     partner units                     --      (882)       --         --            --        (24,056)            --

----------------------------------------------------------------------------------------------------------------------

Balance at June 30, 2001              220    56,299     7,957      2,000      $226,005     $1,437,833       $213,559
======================================================================================================================




<Caption>

===========================================================
                                          Unit
                                      Warrants        Total
-----------------------------------------------------------
<S>                                   <C>      <C>
Balance at January 1, 2001             $8,524   $1,900,813
   Net income                              --       92,633
   Distributions                           --      (86,564)
   Redemption of limited
     partner units for
     shares of common stock                --           --
   Contributions - proceeds
     from stock
     options exercised                     --        2,389
   Deferred compensation
     plan for directors                    --           76
   Issuance of Restricted
     Stock Awards                          --           --
   Amortization of stock
     compensation                          --          630
   Cancellation of Restricted
     Stock Awards                          --           --
   Repurchase of general
     partner units                         --      (24,056)

-----------------------------------------------------------

Balance at June 30, 2001               $8,524    $1,885,921
===========================================================


THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
</Table>


                                       6
<Page>


<Table>
<Caption>
MACK-CALI REALTY, L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) (UNAUDITED)
=====================================================================================================================

                                                                                           Six Months Ended
                                                                                               June 30,
CASH FLOWS FROM OPERATING ACTIVITIES                                                     2001               2000
--------------------------------------------------------------------------------------------------------------------
<S>                                                                                  <C>              <C>
Net income                                                                            $92,633          $ 156,683
Adjustments to reconcile net income to net cash
     provided by operating activities:
       Depreciation and amortization                                                   45,435             45,127
       Amortization of stock compensation                                                 630              1,410
       Amortization of deferred financing costs and debt discount                       2,513              1,802
       Stock options charge                                                                --              1,550
       Equity in earnings of unconsolidated joint ventures                             (5,446)            (2,207)
       Realized gains and unrealized losses on disposition of rental property          (1,947)           (76,169)
       Minority interest in consolidated partially-owned properties                        --              5,072
Changes in operating assets and liabilities:
       Increase in unbilled rents receivable, net                                      (7,737)            (5,537)
       Increase in deferred charges and other assets, net                              (1,454)           (15,697)
       Decrease (increase) in accounts receivable, net                                    125               (140)
       (Decrease) increase in accounts payable and accrued expenses                    (1,896)            10,982
       Increase (decrease) in rents received in advance and security deposits             829             (1,937)
       Increase (decrease) in accrued interest payable                                  9,337               (363)
--------------------------------------------------------------------------------------------------------------------

     Net cash provided by operating activities                                      $ 133,022          $ 120,576
====================================================================================================================

CASH FLOWS FROM INVESTING ACTIVITIES
--------------------------------------------------------------------------------------------------------------------
Additions to rental property                                                        $(148,144)         $(170,062)
Repayment of mortgage note receivable                                                   5,983                 --
Investments in unconsolidated joint ventures                                          (24,462)           (11,081)
Distributions from unconsolidated joint ventures                                       19,056              7,040
Proceeds from sales of rental property                                                 44,787            235,849
(Increase) decrease in restricted cash                                                   (935)               583
--------------------------------------------------------------------------------------------------------------------

     Net cash (used in) provided by investing activities                            $(103,715)           $62,329
====================================================================================================================

CASH FLOWS FROM FINANCING ACTIVITIES
--------------------------------------------------------------------------------------------------------------------
Proceeds from senior unsecured notes                                                $ 298,269            $    --
Proceeds from revolving credit facilities                                             218,484            435,030
Proceeds from mortgages and loans payable                                              70,000                 --
Repayments of revolving credit facilities                                            (490,825)          (396,300)
Repayments of mortgages and loans payable                                              (3,871)           (41,785)
Distributions to minority interest in partially-owned properties                           --            (88,672)
Repurchase of common stock                                                            (24,055)                --
Payment of financing costs                                                             (3,159)            (5,979)
Proceeds from stock options exercised                                                   2,389              1,665
Payment of dividends and distributions                                                (86,980)           (85,000)
--------------------------------------------------------------------------------------------------------------------

     Net cash used in financing activities                                          $ (19,748)           $(181,041)
====================================================================================================================

Net increase in cash and cash equivalents                                          $    9,559            $ 1,864
Cash and cash equivalents, beginning of period                                         13,179              8,671
--------------------------------------------------------------------------------------------------------------------

Cash and cash equivalents, end of period                                              $22,738            $10,535
====================================================================================================================


THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
</Table>



                                       7
<Page>



MACK-CALI REALTY, L.P. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (DOLLARS IN THOUSANDS, EXCEPT PER
UNIT AMOUNTS)
================================================================================

1.    ORGANIZATION AND BASIS OF PRESENTATION

ORGANIZATION
Mack-Cali Realty, L.P., a Delaware limited partnership, and its subsidiaries
(the "Operating Partnership"), was formed on May 31, 1994 to conduct the
business of leasing, management, acquisition, development, construction and
tenant-related services for its sole general partner, Mack-Cali Realty
Corporation and its subsidiaries (the "Corporation" or "General Partner"). The
Operating Partnership, through its operating divisions and subsidiaries,
including the Mack-Cali property-owning partnerships and limited liability
companies (collectively, the "Property Partnerships"), as described below, is
the entity through which all of the General Partner's operations are conducted.
The Property Partnerships, not a legal entity, consist of partnerships and
limited liability companies which are engaged in the ownership and operation of
the Properties (as hereinafter defined) of the Operating Partnership.

The General Partner is a fully integrated, self-administered, self-managed real
estate investment trust ("REIT"). The General Partner controls the Operating
Partnership as its sole general partner, and owned an 87.6 percent and 87.7
percent common unit interest in the Operating Partnership as of June 30, 2001
and December 31, 2000, respectively.

The General Partner's business is the ownership of interests in and operation of
the Operating Partnership, and all of the General Partner's expenses are
incurred for the benefit of the Operating Partnership. The General Partner is
reimbursed by the Operating Partnership for all expenses it incurs relating to
the ownership and operation of the Operating Partnership. The Operating
Partnership earns a management fee of between three percent and five percent of
revenues, as defined, for its management of the Property Partnerships.

As of June 30, 2001, the Operating Partnership owned or had interests in 269
properties plus developable land (collectively, the "Properties"). The
Properties aggregate approximately 28.5 million square feet, and are comprised
of 164 office buildings and 93 office/flex buildings totaling approximately 28.1
million square feet (which includes eight office buildings and one office/flex
building aggregating 1.2 million square feet, owned by unconsolidated joint
ventures in which the Operating Partnership has investment interests), six
industrial/warehouse buildings totaling approximately 387,400 square feet, one
multi-family residential complex consisting of 124 units, two stand-alone retail
properties and three land leases. The Properties are located in 11 states,
primarily in the Northeast, plus the District of Columbia.

BASIS OF PRESENTATION
The accompanying consolidated financial statements include all accounts of the
Operating Partnership and its controlled subsidiaries, including the Property
Partnerships. See Investments in Unconsolidated Joint Ventures in Note 2 for the
Operating Partnership's treatment of unconsolidated joint venture interests. All
significant intercompany accounts and transactions have been eliminated.

The preparation of financial statements in conformity with generally accepted
accounting principles ("GAAP") requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.



                                       8
<Page>

2.    SIGNIFICANT ACCOUNTING POLICIES

RENTAL
PROPERTY                Rental properties are stated at cost less accumulated
                        depreciation and amortization. Costs directly related to
                        the acquisition and development of rental properties are
                        capitalized. Capitalized development costs include
                        interest, property taxes, insurance and other project
                        costs incurred during the period of development.
                        Included in total rental property is
                        construction-in-progress of $141,623 and $188,077 as of
                        June 30, 2001 and December 31, 2000, respectively.
                        Ordinary repairs and maintenance are expensed as
                        incurred; major replacements and betterments, which
                        improve or extend the life of the asset, are capitalized
                        and depreciated over their estimated useful lives.
                        Fully-depreciated assets are removed from the accounts.

                        Properties are depreciated using the straight-line
                        method over the estimated useful lives of the assets.
                        The estimated useful lives are as follows:

<Table>
<Caption>
                        Leasehold interests                                 Remaining lease term
                        -------------------------------------------------------------------------
                       <S>                                     <C>
                        Buildings and improvements                                 5 to 40 years
                        -------------------------------------------------------------------------
                        Tenant improvements                           The shorter of the term of
                                                                the related lease or useful life
                        -------------------------------------------------------------------------
                        Furniture, fixtures and equipment                          5 to 10 years
                        -------------------------------------------------------------------------
</Table>

                        On a periodic basis, management assesses whether there
                        are any indicators that the value of the real estate
                        properties may be impaired. A property's value is
                        impaired only if management's estimate of the aggregate
                        future cash flows (undiscounted and without interest
                        charges) to be generated by the property are less than
                        the carrying value of the property. To the extent
                        impairment has occurred, the loss shall be measured as
                        the excess of the carrying amount of the property over
                        the fair value of the property. Management does not
                        believe that the value of any of its rental properties
                        is impaired.

                        When assets are identified by management as held for
                        sale, the Operating Partnership discontinues
                        depreciating the assets and estimates the sales price,
                        net of selling costs, of such assets. If, in
                        management's opinion, the net sales price of the assets
                        which have been identified for sale is less than the net
                        book value of the assets, a valuation allowance is
                        established. See Note 7.

INVESTMENTS IN
UNCONSOLIDATED
JOINT VENTURES          The Operating Partnership accounts for its
                        investments in unconsolidated joint ventures under the
                        equity method of accounting as the Operating Partnership
                        exercises significant influence, but does not control
                        these entities. These investments are recorded initially
                        at cost, as Investments in Unconsolidated Joint
                        Ventures, and subsequently adjusted for equity in
                        earnings and cash contributions and distributions. Any
                        difference between the carrying amount of these
                        investments on the balance sheet of the Operating
                        Partnership and the underlying equity in net assets is
                        amortized as an adjustment to equity in earnings of
                        unconsolidated joint ventures over 40 years. See Note 4.

PARTIALLY-OWNED
PROPERTIES              The Operating Partnership controlled operations of the
                        partially-owned properties and has consolidated the
                        financial position and results of operations of
                        partially-owned properties in the financial statements
                        of the Operating Partnership. The equity interests of
                        the other members are reflected as minority interests:
                        partially-owned properties in the consolidated financial
                        statements of the Operating Partnership.



                                       9
<Page>


CASH AND CASH
EQUIVALENTS             All highly liquid investments with a maturity of
                        three months or less when purchased are considered to
                        be cash equivalents.

DEFERRED
FINANCING
COSTS                   Costs incurred in obtaining financing are capitalized
                        and amortized on a straight-line basis, which
                        approximates the effective interest method, over the
                        term of the related indebtedness. Amortization of such
                        costs is included in interest expense and was $1,161 and
                        $901 for the three months ended June 30, 2001 and 2000,
                        respectively, and $2,282 and $1,802 for the six months
                        ended June 30, 2001 and 2000, respectively.

DEFERRED
LEASING COSTS           Costs incurred in connection with leases are
                        capitalized and amortized on a straight-line basis over
                        the terms of the related leases and included in
                        depreciation and amortization. Unamortized deferred
                        leasing costs are charged to amortization expense upon
                        early termination of the lease. Certain employees of the
                        Operating Partnership provide leasing services to the
                        Properties and receive compensation based on space
                        leased. The portion of such compensation, which is
                        capitalized and amortized, approximated $863 and $896
                        for the three months ended June 30, 2001 and 2000,
                        respectively, and $1,603 and $1,589 for the six months
                        ended June 30, 2001 and 2000, respectively.

REVENUE
RECOGNITION             Base rental revenue is recognized on a straight-line
                        basis over the terms of the respective leases. Unbilled
                        rents receivable represents the amount by which
                        straight-line rental revenue exceeds rents currently
                        billed in accordance with the lease agreements. Parking
                        and other revenue includes income from parking spaces
                        leased to tenants, income from tenants for additional
                        services provided by the Operating Partnership, income
                        from tenants for early lease terminations and income
                        from managing properties for third parties. Rental
                        income on residential property under operating leases
                        having terms generally of one year or less is recognized
                        when earned.

                        Reimbursements are received from tenants for certain
                        costs as provided in the lease agreements. These costs
                        generally include real estate taxes, utilities,
                        insurance, common area maintenance and other recoverable
                        costs. See Note 14.

INCOME AND
OTHER TAXES             The Operating Partnership is a partnership and, as a
                        result, all income and losses of the partnership are
                        allocated to the partners for inclusion in their
                        respective income tax returns. Accordingly, no provision
                        or benefit for income taxes has been made in the
                        accompanying financial statements.

DERIVATIVE
INSTRUMENTS             The Operating Partnership has adopted Statement of
                        Financial Accounting Standards No. 133, Accounting for
                        Derivative Instruments and Hedging Activities ("FASB No.
                        133") as of January 1, 2001. Due to its limited use of
                        derivative instruments, adoption of FASB No. 133 did not
                        have a material impact on the Operating Partnership's
                        financial statements.

                        Interest rate contracts are utilized by the Operating
                        Partnership to reduce interest rate risks. The Operating
                        Partnership does not hold or issue derivative financial
                        instruments for trading purposes. The differentials to
                        be received or paid under contracts designated as hedges
                        are recognized over the life of the contracts as
                        adjustments to interest expense.

                        In certain situations, the Operating Partnership uses
                        forward treasury lock agreements to mitigate the
                        potential effects of changes in interest rates for
                        prospective transactions. Gains and losses are deferred
                        and amortized as adjustments to interest expense over
                        the remaining life of the associated debt to the extent
                        that such debt remains outstanding.



                                       10
<Page>


 EARNINGS
 PER UNIT               In accordance with the Statement of Financial
                        Accounting Standards No. 128 ("FASB No. 128"), the
                        Operating Partnership presents both basic and diluted
                        earnings per unit ("EPU"). Basic EPU excludes dilution
                        and is computed by dividing net income available to
                        common unitholders by the weighted average number of
                        shares outstanding for the period. Diluted EPU reflects
                        the potential dilution that could occur if securities or
                        other contracts to issue common units were exercised or
                        converted into common units, where such exercise or
                        conversion would result in a lower EPU amount.

DISTRIBUTIONS
  PAYABLE               The distributions payable at June 30, 2001 represents
                        distributions payable to common unitholders of record as
                        of July 5, 2001 (64,263,589 common units), and preferred
                        distributions payable to preferred unitholders (220,340
                        preferred units) for the second quarter 2001. The second
                        quarter 2001 common unit distribution of $0.61 per
                        common unit, as well as the second quarter preferred
                        unit distribution of $17.6046 per preferred unit, were
                        approved by the Board of Directors of the General
                        Partner on June 21, 2001 and paid on July 23, 2001.

                        The distributions payable at December 31, 2000
                        represents distributions payable to common unitholders
                        of record as of January 4, 2001 (64,946,618 common
                        units), and preferred distributions payable to preferred
                        unitholders (220,340 preferred units) for the fourth
                        quarter 2000. The fourth quarter 2000 common unit
                        distribution of $0.61 per common unit, as well as the
                        fourth quarter preferred unit distribution of $17.6046
                        per preferred unit, were approved by the Board of
                        Directors of the General Partner on December 20, 2000
                        and paid on January 22, 2001.

UNDERWRITING
COMMISSIONS
AND COSTS               Underwriting commissions and costs incurred in
                        connection with the Corporation's stock offerings and
                        subsequent reinvestment in general partner units are
                        reflected as a reduction of these unit values.

STOCK OPTIONS           The Operating Partnership accounts for stock-based
                        compensation using the intrinsic value method prescribed
                        in Accounting Principles Board Opinion No. 25,
                        "Accounting for Stock Issued to Employees," and related
                        Interpretations ("APB No. 25"). Under APB No. 25,
                        compensation cost is measured as the excess, if any, of
                        the quoted market price of the Corporation's stock at
                        the date of grant over the exercise price of the option
                        granted. Compensation cost for stock options, if any, is
                        recognized ratably over the vesting period. The
                        Corporation's policy is to grant options with an
                        exercise price equal to the quoted closing market price
                        of the Corporation's stock on the business day preceding
                        the grant date. Accordingly, no compensation cost has
                        been recognized under the Corporation's stock option
                        plans for the granting of stock options. See Note 11.


                                       11
<Page>

3.    ACQUISITIONS, PROPERTY SALES AND OTHER TRANSACTIONS

OPERATING PROPERTY ACQUISITIONS
The Operating Partnership acquired the following operating properties during the
six months ended June 30, 2001:

<Table>
<Caption>
-----------------------------------------------------------------------------------------------------------------------
                                                                                                         INVESTMENT BY
ACQUISITION                                                                           # OF     RENTABLE      OPERATING
DATE            PROPERTY/PORTFOLIO NAME         LOCATION                            BLDGS.  SQUARE FEET    PARTNERSHIP
-----------------------------------------------------------------------------------------------------------------------
<S>             <C>                            <C>                                     <C>     <C>            <C>
OFFICE:
4/6/01          4 & 6 Campus Drive (a)          Parsippany, Morris County, NJ            2      295,766        $48,404
-----------------------------------------------------------------------------------------------------------------------

Total Office Property Acquisitions:                                                      2      295,766        $48,404
=======================================================================================================================

OFFICE/FLEX:
2/14/01          31 & 41 Twosome Drive (b) (c)  Moorestown, Burlington County, NJ        2      127,250         $7,155
4/27/01          1245 & 1247 N. Church St,
                   2 Twosome Drive (b) (c)      Moorestown, Burlington County, NJ        3      154,200         11,083
-----------------------------------------------------------------------------------------------------------------------

Total Office/Flex Property Acquisitions:                                                 5      281,450        $18,238
=======================================================================================================================

Total Operating Property Acquisitions:                                                   7      577,216        $66,642
=======================================================================================================================
</Table>

(a)   Transaction was funded primarily through borrowing on the Operating
      Partnership's revolving credit facility.
(b)   Transactions were funded primarily from net proceeds received in the sale
      of a rental property as well as the Operating Partnership's cash reserves.
(c)   The properties were acquired through the exercise of a purchase option
      obtained in the initial acquisition of the McGarvey portfolio in January
      1998.

PROPERTIES PLACED IN SERVICE
The Operating Partnership placed in service the following properties during the
six months ended June 30, 2001:

<Table>
<Caption>
-----------------------------------------------------------------------------------------------------------------------
                                                                                                       Investment by
Date Placed                                                                       # of     Rentable        Operating
in Service       Property/Portfolio Name      Location                          Bldgs.  Square Feet  Partnership (a)
-----------------------------------------------------------------------------------------------------------------------
OFFICE:
<S>             <C>                            <C>                                     <C>     <C>            <C>
1/15/01          105 Eisenhower Parkway       Roseland, Essex County, NJ             1      220,000          $43,300
3/1/01           8181 East Tufts Avenue       Denver, Denver County, CO              1      185,254           34,371
-----------------------------------------------------------------------------------------------------------------------

Total Properties Placed in Service                                                   2      405,254          $77,671
=======================================================================================================================
</Table>

(a)   Transactions were funded primarily through draws on the Operating
      Partnership's revolving credit facilities and amounts presented are as of
      June 30, 2001.

LAND ACQUISITIONS
On January 5, 2001, the Operating Partnership acquired approximately 7.1 acres
of developable land located in Littleton, Arapahoe County, Colorado. The land
was acquired for approximately $2,711. When the Operating Partnership had
committed itself to acquire the land, the Operating Partnership had intended to
develop the site consistent with its then business strategy. Due to a change in
the Operating Partnership's strategy, this land is now being held for sale (see
Note 7).


                                       12
<Page>

PROPERTY SALES
The Operating Partnership sold the following properties during the six months
ended June 30, 2001:

<Table>
<Caption>
------------------------------------------------------------------------------------------------------------------------------
SALE                                                                  # OF      RENTABLE   NET SALES    NET BOOK     REALIZED
DATE            PROPERTY NAME          LOCATION                      BLDGS.  SQUARE FEET    PROCEEDS       VALUE         GAIN
------------------------------------------------------------------------------------------------------------------------------
<S>             <C>                   <C>                             <C>   <C>            <C>           <C>         <C>
OFFICE:
6/1/01          1777 N.E. Loop 410     San Antonio, Bexar               1     256,137       $21,313       $16,703      $4,610
                                       County, TX
6/15/01         14511 Falling Creek    Houston, Harris County, TX       1      70,999         2,982         2,458         524

RESIDENTIAL:
6/21/01         Tenby Chase            Delran, Burlington               1   327 units        19,336         2,399      16,937
                Apartments             County, NJ

OTHER:
4/3/01          North Pier-Harborside  Jersey City, Hudson             --         n/a         3,357         2,918         439
                                       County, NJ
------------------------------------------------------------------------------------------------------------------------------

Totals:                                                                 3     327,136       $46,988       $24,478     $22,510
==============================================================================================================================
</Table>


4.    INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES

PRU-BETA 3 (NINE CAMPUS DRIVE)
On March 27, 1998, the Operating Partnership acquired a 50 percent interest in
an existing joint venture with The Prudential Insurance Company of America
("Prudential"), known as Pru-Beta 3, which owns and operates Nine Campus Drive,
a 156,495 square-foot office building, located in the Mack-Cali Business Campus
office complex in Parsippany, Morris County, New Jersey. The Operating
Partnership performs management and leasing services for the property owned by
the joint venture and recognized $75 and $75 in fees for such services in the
six months ended June 30, 2001 and 2000, respectively.

HPMC
On April 23, 1998, the Operating Partnership entered into a joint venture
agreement with HCG Development, L.L.C. and Summit Partners I, L.L.C. to form
HPMC Development Partners, L.P. and, on July 21, 1998, entered into a second
joint venture, HPMC Development Partners II, L.P. (formerly known as HPMC Lava
Ridge Partners, L.P.), with these same parties. HPMC Development Partners,
L.P.'s efforts have focused on two development projects, commonly referred to as
Continental Grand II and Summit Ridge. HPMC Development Partners II, L.P.'s
efforts have focused on three development projects, commonly referred to as Lava
Ridge, Pacific Plaza I & II and Stadium Gateway. Among other things, the
partnership agreements provide for a preferred return on the Operating
Partnership's invested capital in each venture, in addition to 50 percent of
such venture's profit above the preferred returns, as defined in each agreement.

   CONTINENTAL GRAND II
   Continental Grand II is a 239,085 square-foot office building located in El
   Segundo, Los Angeles County, California, which was constructed and placed in
   service by the venture. On June 29, 2001, the venture sold the office
   property for approximately $67,000.

   SUMMIT RIDGE
   Summit Ridge is an office complex of three one-story buildings aggregating
   133,841 square feet located in San Diego, San Diego County, California, which
   was constructed and placed in service by the venture. On January 29, 2001,
   the venture sold the office complex for approximately $17,450.

   LAVA RIDGE
   Lava Ridge is an office complex of three two-story buildings aggregating
   183,200 square feet located in Roseville, Placer County, California, which
   was constructed and placed in service by the venture.

   PACIFIC PLAZA I & II
   Pacific Plaza I & II is a parcel of land purchased from the city of Daly
   City, located in San Mateo County, California, upon which the venture has
   commenced construction of an office building and theater and retail complex
   aggregating 471,379 square feet.


                                       13
<Page>


   STADIUM GATEWAY
   Stadium Gateway is a 1.5 acre site located in Anaheim, Orange County,
   California, acquired by the venture upon which it has commenced construction
   of a six-story 261,554 square-foot office building.

G&G MARTCO (CONVENTION PLAZA)
On April 30, 1998, the Operating Partnership acquired a 49.9 percent interest in
an existing joint venture, known as G&G Martco, which owns Convention Plaza, a
305,618 square-foot office building, located in San Francisco, San Francisco
County, California. A portion of its initial investment was financed through the
issuance of common units, as well as funds drawn from the Operating
Partnership's credit facilities. Subsequently, on June 4, 1999, the Operating
Partnership acquired an additional 0.1 percent interest in G&G Martco through
the issuance of common units. The Operating Partnership performs management and
leasing services for the property owned by the joint venture and recognized $110
and $104 in fees for such services in the six months ended June 30, 2001 and
2000, respectively.

AMERICAN FINANCIAL EXCHANGE L.L.C.
On May 20, 1998, the Operating Partnership entered into a joint venture
agreement with Columbia Development Company, L.L.C. to form American Financial
Exchange L.L.C. The venture was initially formed to acquire land for future
development, located on the Hudson River waterfront in Jersey City, Hudson
County, New Jersey, adjacent to the Operating Partnership's Harborside Financial
Center office complex. The Operating Partnership holds a 50 percent interest in
the joint venture. Among other things, the partnership agreement provides for a
preferred return on the Operating Partnership's invested capital in the venture,
in addition to the Operating Partnership's proportionate share of the venture's
profit, as defined in the agreement. The joint venture acquired land on which it
constructed a parking facility, which is currently leased to a parking operator
under a 10-year agreement. Such parking facility serves a ferry service between
the Operating Partnership's Harborside property and Manhattan. In the fourth
quarter 2000, the Operating Partnership started construction of a 575,000
square-foot office building and terminated the parking agreement on certain of
the land owned by the venture. The total costs of the project are currently
projected to be approximately $140,000. The project, which is currently 100
percent pre-leased, is anticipated to be completed in the third quarter of 2002.

RAMLAND REALTY ASSOCIATES L.L.C. (ONE RAMLAND ROAD)
On August 20, 1998, the Operating Partnership entered into a joint venture
agreement with S.B. New York Realty Corp. to form Ramland Realty Associates
L.L.C. The venture was formed to own, manage and operate One Ramland Road, a
232,000 square-foot office/flex building plus adjacent developable land, located
in Orangeburg, Rockland County, New York. In August 1999, the joint venture
completed redevelopment of the property and placed the office/flex building in
service. The Operating Partnership holds a 50 percent interest in the joint
venture. The Operating Partnership performs management, leasing and other
services for the property owned by the joint venture and recognized $58 and $147
in fees for such services in the six months ended June 30, 2001 and 2000,
respectively.

ASHFORD LOOP ASSOCIATES L.P. (1001 SOUTH DAIRY ASHFORD/2100 WEST LOOP SOUTH)
On September 18, 1998, the Operating Partnership entered into a joint venture
agreement with Prudential to form Ashford Loop Associates L.P. The venture was
formed to own, manage and operate 1001 South Dairy Ashford, a 130,000
square-foot office building acquired on September 18, 1998 and 2100 West Loop
South, a 168,000 square-foot office building acquired on November 25, 1998, both
located in Houston, Harris County, Texas. The Operating Partnership holds a 20
percent interest in the joint venture. Subsequently, through June 30, 2001, the
venture paid $19,907 ($3,943 representing the Operating Partnership's share) in
accordance with earn-out provisions in the acquisition contracts. The Operating
Partnership performs management and leasing services for the properties owned by
the joint venture and recognized $94 and $59 in fees for such services in the
six months ended June 30, 2001 and 2000, respectively.

ARCAP INVESTORS, L.L.C.
On March 18, 1999, the Operating Partnership invested in ARCap Investors,
L.L.C., a joint venture with several participants, which was formed to invest in
sub-investment grade tranches of commercial mortgage-backed securities ("CMBS").
The Operating Partnership has invested $20,000 in the venture. William L. Mack,
Chairman of the Board of Directors of the Operating Partnership and an equity
holder in the Operating Partnership, is a principal of the managing member of
the venture. At June 30, 2001, the venture held approximately $859,448 face
value of CMBS bonds at an aggregate cost of approximately $440,951.


                                       14
<Page>


SOUTH PIER AT HARBORSIDE - HOTEL DEVELOPMENT
On November 17, 1999, the Operating Partnership entered into an agreement with
Hyatt Corporation to develop a 350-room hotel on the Operating Partnership's
South Pier at Harborside Financial Center, Jersey City, Hudson County, New
Jersey. In July 2000, the joint venture began development of the hotel project.

NORTH PIER AT HARBORSIDE - RESIDENTIAL DEVELOPMENT
On August 5, 1999, the Operating Partnership entered into an agreement which
provided for the sale of its North Pier at Harborside Financial Center, Jersey
City, Hudson County, New Jersey to a joint venture with Lincoln Property Company
Southwest, Inc., in exchange for cash and an equity interest in the venture. In
April 2001, the Operating Partnership sold the North Pier to the venture for net
sales proceeds of approximately $3,357 and retained an equity interest. The
venture intends to develop residential housing on the property for rental.

MC-SJP MORRIS V REALTY, LLC AND MC-SJP MORRIS VI REALTY, LLC
On August 24, 2000, the Operating Partnership entered into a joint venture with
SJP Properties Company ("SJP Properties") to form MC-SJP Morris V Realty, LLC
and MC-SJP Morris VI Realty, LLC, which acquired approximately 47.5 acres of
developable land located in Parsippany, Morris County, New Jersey. The land was
acquired for approximately $16,193.



                                       15
<Page>


SUMMARIES OF UNCONSOLIDATED JOINT VENTURES
The following is a summary of the financial position of the unconsolidated joint
ventures in which the Operating Partnership had investment interests as of June
30, 2001 and December 31, 2000:

<Table>
<Caption>
                                                      June 30, 2001
-----------------------------------------------------------------------------------------------------------------------
                                                                                   American
                                                                           G&G    Financial      Ramland     Ashford
                                        Pru-Beta 3          HPMC        Martco     Exchange       Realty        Loop
-----------------------------------------------------------------------------------------------------------------------
ASSETS:
<S>                                       <C>          <C>           <C>           <C>          <C>         <C>
   Rental property, net                    $20,330      $ 92,224      $ 10,027      $42,446      $18,491     $37,637
   Other assets                              2,540        33,240         3,098          694        4,686         560
-----------------------------------------------------------------------------------------------------------------------

   Total assets                            $22,870      $125,464      $ 13,125      $43,140      $23,177     $38,197
=======================================================================================================================
LIABILITIES AND PARTNERS'/
MEMBERS' CAPITAL:
   Mortgages and loans payable             $    --      $ 67,782      $ 50,000      $    --      $16,319     $    --
   Other liabilities                           101         3,124         1,642       10,980          130         538
   Partners'/members' capital               22,769        54,558      (38,517)       32,160        6,728      37,659
-----------------------------------------------------------------------------------------------------------------------
   Total liabilities and
   partners'/members' capital              $22,870      $125,464      $ 13,125      $43,140      $23,177     $38,197
=======================================================================================================================
Operating Partnership's net
   investment in unconsolidated
   joint ventures                          $15,747      $ 37,647      $  3,549      $33,405      $ 2,936      $7,880
-----------------------------------------------------------------------------------------------------------------------



<Caption>
                                            June 30, 2001
---------------------------------------------------------------------------------------------------

                                                                MC-SJP
                                                                Morris      Harborside      Combined
                                                 ARCap          Realty      South Pier         Total
---------------------------------------------------------------------------------------------------
ASSETS:
<S>                                          <C>               <C>           <C>          <C>
   Rental property, net                       $     --          $17,271       $33,441      $271,867
   Other assets                                482,329               96            --       527,243
---------------------------------------------------------------------------------------------------

   Total assets                               $482,329          $17,367        $33,441     $799,110
===================================================================================================
LIABILITIES AND PARTNERS'/
MEMBERS' CAPITAL:
   Mortgages and loans payable                $266,030          $16,028        $10,000     $426,159
   Other liabilities                             5,111               --          4,425       26,051
   Partners'/members' capital                  211,188            1,339         19,016      346,900
---------------------------------------------------------------------------------------------------
   Total liabilities and
   partners'/members' capital                 $482,329          $17,367        $33,441     $799,110
===================================================================================================
Operating Partnership's net
   investment in unconsolidated
   joint ventures                             $ 19,745          $   176        $ 9,859     $130,944
---------------------------------------------------------------------------------------------------
</Table>


<Table>
<Caption>
                                                      December 31, 2000
-------------------------------------------------------------------------------------------------------------------------
                                                                                   American
                                                                           G&G    Financial      Ramland     Ashford
                                        Pru-Beta 3          HPMC        Martco     Exchange       Realty        Loop
-------------------------------------------------------------------------------------------------------------------------
<S>                                       <C>           <C>          <C>           <C>          <C>         <C>
ASSETS:
   Rental property, net                    $20,810       $78,119      $ 10,589      $12,546      $18,947     $37,665
   Other assets                              2,737        27,082         2,508       11,851        4,755         849
-------------------------------------------------------------------------------------------------------------------------

   Total assets                            $23,547      $105,201      $ 13,097      $24,397      $23,702     $38,514
=========================================================================================================================
LIABILITIES AND PARTNERS'/
MEMBERS' CAPITAL:
   Mortgages and loans payable               $  --       $63,486      $ 50,000        $  --      $16,666       $  --
   Other liabilities                           160         5,035         1,368        9,400          522       1,005
   Partners'/members' capital               23,387        36,680      (38,271)       14,997        6,514      37,509
-------------------------------------------------------------------------------------------------------------------------
   Total liabilities and
   partners'/members' capital              $23,547      $105,201      $ 13,097      $24,397      $23,702     $38,514
=========================================================================================================================
Operating Partnership's net
   investment in unconsolidated
   joint ventures                          $16,110       $35,079       $ 3,973      $15,809       $2,782      $7,874
-------------------------------------------------------------------------------------------------------------------------


<Caption>


                                                 December 31, 2000
------------------------------------------------------------------------------------------------
                                                             MC-SJP
                                                             Morris        Harborside   Combined
                                              ARCap          Realty        South Pier      Total
------------------------------------------------------------------------------------------------
<S>                                       <C>                                 <C>      <C>
ASSETS:
   Rental property, net                    $     --              --            --       $178,676
   Other assets                             310,342              --            --        360,124
------------------------------------------------------------------------------------------------

   Total assets                            $310,342              --            --       $538,800
================================================================================================
LIABILITIES AND PARTNERS'/
MEMBERS' CAPITAL:
   Mortgages and loans payable             $129,562              --            --       $259,714
   Other liabilities                          3,750              --            --         21,240
   Partners'/members' capital               177,030              --            --        257,846
------------------------------------------------------------------------------------------------
   Total liabilities and
   partners'/members' capital              $310,342              --            --       $538,800
================================================================================================
Operating Partnership's net
   investment in unconsolidated
   joint ventures                          $ 19,811              --            --       $101,438
------------------------------------------------------------------------------------------------
</Table>


                                       16
<Page>


The following is a summary of the results of operations of the unconsolidated
joint ventures for the period in which the Operating Partnership had investment
interests during the three and six month periods ended June 30, 2001 and 2000:


<Table>
<Caption>
                                             Three Months Ended June 30, 2001
----------------------------------------------------------------------------------------------------------------------
                                                                                  American
                                                                          G&G    Financial      Ramland      Ashford
                                       Pru-Beta 3         HPMC         Martco     Exchange       Realty         Loop
----------------------------------------------------------------------------------------------------------------------
<S>                                       <C>         <C>             <C>           <C>          <C>         <C>
Total revenues                             $1,235      $13,936         $ 3,084       $ 158        $ 989       $ 1,491
Operating and other expenses                 (369)        (774)           (845)         (7)        (264)         (699)
Depreciation and amortization                (299)        (592)           (387)         (5)        (236)         (232)
Interest expense                               --         (929)           (808)         --         (299)         --
----------------------------------------------------------------------------------------------------------------------
Net income                                 $  567      $11,641         $ 1,044       $ 146        $ 190       $   560
======================================================================================================================
Operating Partnership's equity in
   earnings of unconsolidated
   joint ventures                          $  245      $ 1,311         $  366       $ (617)       $  95       $   112
----------------------------------------------------------------------------------------------------------------------


<Caption>



                          Three Months Ended June 30, 2001
----------------------------------------------------------------------------------------------

                                                           MC-SJP
                                                           Morris    Harborside     Combined
                                           ARCap           Realty    South Pier        Total
----------------------------------------------------------------------------------------------
<S>                                     <C>                                        <C>
Total revenues                           $ 8,504               --            --     $ 29,397
Operating and other expenses              (2,179)              --            --       (5,137)
Depreciation and amortization                 --               --            --       (1,751)
Interest expense                          (4,903)              --            --       (6,939)
----------------------------------------------------------------------------------------------

Net income                               $ 1,422               --            --     $ 15,570
================================================================================ =============
Operating Partnership's equity
   in earnings of unconsolidated
   joint ventures                        $   525               --            --     $  2,037
----------------------------------------------------------------------------------------------
</Table>




<Table>
<Caption>

                        Three Months Ended June 30, 2000
----------------------------------------------------------------------------------------------------------------------
                                                                                  American
                                                                          G&G    Financial      Ramland      Ashford
                                       Pru-Beta 3          HPMC        Martco     Exchange       Realty         Loop
----------------------------------------------------------------------------------------------------------------------
<S>                                       <C>           <C>          <C>             <C>         <C>         <C>
Total revenues                             $1,234        $2,504       $ 2,569         $254        $ 969       $1,469
Operating and other expenses                 (401)         (813)         (793)         (51)        (273)        (641)
Depreciation and amortization                (305)       (1,065)         (336)          (7)        (241)        (210)
Interest expense                               --          (793)       (1,039)          --         (377)          --
----------------------------------------------------------------------------------------------------------------------

Net income                                 $  528        $ (167)      $   401         $196        $  78       $  618
======================================================================================================================
Operating Partnership's equity in
   earnings of unconsolidated
   joint ventures                          $  225        $  102       $    43         $139         $ 37       $  124
----------------------------------------------------------------------------------------------------------------------


<Caption>


                         Three Months Ended June 30, 2000
-------------------------------------------------------------------------------------------
                                                        MC-SJP
                                                        Morris    Harborside     Combined
                                         ARCap          Realty    South Pier        Total
-------------------------------------------------------------------------------------------
<S>                                   <C>                  <C>           <C>
Total revenues                          $4,606              --            --      $ 13,605
Operating and other expenses              (721)             --            --        (3,693)
Depreciation and amortization              --               --            --        (2,164)
Interest expense                          (932)             --            --        (3,141)
-------------------------------------------------------------------------------------------

Net income                              $2,953              --            --      $  4,607
=============================================== =============== ============= =============
Operating Partnership's equity in
   earnings of unconsolidated
   joint ventures                       $ 400               --            --      $  1,070
-------------------------------------------------------------------------------------------
</Table>



                                       17
<Page>

<Table>
<Caption>
                                             Six Months Ended June 30, 2001
-----------------------------------------------------------------------------------------------------------------------
                                                                                  American
                                                                          G&G    Financial      Ramland      Ashford
                                       Pru-Beta 3          HPMC        Martco     Exchange       Realty         Loop
-----------------------------------------------------------------------------------------------------------------------
<S>                                       <C>          <C>           <C>            <C>         <C>         <C>
Total revenues                             $2,488       $14,992       $ 5,807        $ 379       $1,958      $ 3,064
Operating and other expenses                 (782)         (948)       (1,650)         (41)        (607)      (1,416)
Depreciation and amortization                (592)         (933)         (777)         (20)        (483)        (462)
Interest expense                               --        (1,256)       (1,793)          --         (654)          --
-----------------------------------------------------------------------------------------------------------------------

Net income                                 $1,114       $11,855       $ 1,587        $ 318       $  214      $ 1,186
======================================================================================================================
Operating Partnership's equity
   in earnings of unconsolidated
   joint ventures                           $ 503     $3,464            $ 536        $(445)       $ 154     $    209
-----------------------------------------------------------------------------------------------------------------------



<Caption>
                               Six Months Ended June 30, 2001
---------------------------------------------------------------------------------------------
                                                         MC-SJP
                                                         Morris     Harborside     Combined
                                           ARCap         Realty     South Pier        Total
---------------------------------------------------------------------------------------------
<S>                                    <C>                   <C>          <C>      <C>
Total revenues                           $27,830              --            --      $ 56,518
Operating and other expenses              (4,003)             --            --        (9,447)
Depreciation and amortization                --               --            --        (3,267)
Interest expense                          (7,890)             --            --       (11,593)
---------------------------------------------------------------------------------------------

Net income                               $15,937              --            --      $ 32,211
=============================================================================================
Operating Partnership's equity
   in earnings of unconsolidated
   joint ventures                        $1,025               --            --      $  5,446
---------------------------------------------------------------------------------------------
</Table>


<Table>
<Caption>

                                          Six Months Ended June 30, 2000
-----------------------------------------------------------------------------------------------------------------------
                                                                                  American
                                                                          G&G    Financial      Ramland      Ashford
                                       Pru-Beta 3          HPMC        Martco     Exchange       Realty         Loop
-----------------------------------------------------------------------------------------------------------------------
<S>                                       <C>          <C>           <C>             <C>        <C>         <C>
Total revenues                             $2,468       $ 3,560       $ 5,281         $504       $1,947      $ 2,832
Operating and other expenses                 (819)         (987)       (1,553)         (82)        (590)      (1,271)
Depreciation and amortization                (611)       (1,406)         (762)         (20)        (482)        (403)
Interest expense                               --        (1,120)       (1,914)          --         (746)          --
-----------------------------------------------------------------------------------------------------------------------

Net income                                 $1,038       $    47       $ 1,052         $402       $  129      $ 1,158
===================================== ============= ============= ============= ============ ============ ============
Operating Partnership's equity
   in earnings of unconsolidated
   joint ventures                           $ 441       $   102       $   212         $345       $   62      $   245
-----------------------------------------------------------------------------------------------------------------------


<Caption>


                                                Six Months Ended June 30, 2000
---------------------------------------------------------------------------------------------
                                                         MC-SJP
                                                         Morris     Harborside     Combined
                                           ARCap         Realty     South Pier        Total
---------------------------------------------------------------------------------------------
<S>                                     <C>               <C>             <C>      <C>
Total revenues                           $11,150              --            --      $27,742
Operating and other expenses              (1,292)             --            --       (6,594)
Depreciation and amortization                --               --            --       (3,684)
Interest expense                          (1,701)             --            --       (5,481)
---------------------------------------------------------------------------------------------

Net income                               $ 8,157              --            --      $11,983
================================================= =============== ============= =============
Operating Partnership's equity
   in earnings of unconsolidated
   joint ventures                         $ 800               --            --      $ 2,207
---------------------------------------------------------------------------------------------
</Table>



                                       18
<Page>


5.    DEFERRED CHARGES AND OTHER ASSETS

<Table>
<Caption>
                                                                                 June 30,              December 31,
                                                                                    2001                     2000
----------------------------------------------------------------------------------------------------------------------
<S>                                                                             <C>                     <C>
Deferred leasing costs                                                           $84,963                 $ 80,667
Deferred financing costs                                                          26,443                   23,085
----------------------------------------------------------------------------------------------------------------------
                                                                                 111,406                  103,752
Accumulated amortization                                                         (29,673)                 (26,303)
----------------------------------------------------------------------------------------------------------------------
Deferred charges, net                                                             81,733                   77,449
Prepaid expenses and other assets                                                 18,604                   25,206
----------------------------------------------------------------------------------------------------------------------

Total deferred charges and other assets, net                                    $100,337                 $102,655
======================================================================================================================
</Table>


6.    RESTRICTED CASH

Restricted cash includes security deposits for the Operating Partnership's
residential properties and certain commercial properties, and escrow and reserve
funds for debt service, real estate taxes, property insurance, capital
improvements, tenant improvements, and leasing costs established pursuant to
certain mortgage financing arrangements, and is comprised of the following:

<Table>
<Caption>
                                                                                 June 30,             December 31,
                                                                                     2001                     2000
----------------------------------------------------------------------------------------------------------------------
<S>                                                                               <C>                      <C>
Security deposits                                                                  $7,409                  $6,477
Escrow and other reserve funds                                                         83                      80
----------------------------------------------------------------------------------------------------------------------

Total restricted cash                                                              $7,492                  $6,557
======================================================================================================================
</Table>


7.    RENTAL PROPERTY HELD FOR SALE

As of June 30, 2001, the Operating Partnership has identified 41 office
properties, aggregating approximately 4.8 million square feet, and two land
parcels as held for sale. These properties are located in Texas, Arizona,
Colorado, Iowa and Florida. Such properties carried an aggregate book value of
$450,932, net of accumulated depreciation of $34,926 and a valuation allowance
of $20,563.

As of December 31, 2000, the Operating Partnership had identified 10 office
properties, aggregating approximately 1.6 million square feet, and a land parcel
as held for sale, all located in San Antonio and Houston, Texas. Such properties
carried an aggregate book value of $107,458, net of accumulated depreciation of
$7,019.

The following is a summary of the condensed results of operations of the rental
properties held for sale at June 30, 2001 for the six month periods ended June
30, 2001 and 2000:

<Table>
<Caption>
                                                                                  Six Months Ended June 30,
                                                                                 2001                    2000
----------------------------------------------------------------------------------------------------------------------
<S>                                                                         <C>                     <C>
Total revenues                                                               $ 41,528                $ 40,125
Operating and other expenses                                                  (16,939)                (15,838)
Depreciation                                                                   (2,474)                 (5,781)
----------------------------------------------------------------------------------------------------------------------

Net income                                                                   $ 22,115                $ 18,506
======================================================================================================================
</Table>

There can be no assurance if and when sales of the Operating Partnership's
rental properties held for sale will occur.


                                       19
<Page>


During the six months ended June 30, 2001, the Operating Partnership determined
that the carrying amounts of certain properties identified as held for sale are
not expected to be recovered from estimated net sale proceeds from these
property sales and, accordingly, recognized a valuation allowance of $20,563.

The following table summarizes realized gains and unrealized losses on
disposition of rental property:

<Table>
<Caption>
                                                                                  Six Months Ended June 30,
                                                                                 2001                    2000
----------------------------------------------------------------------------------------------------------------------
<S>                                                                          <C>                      <C>
Realized gain on sale of rental property and land                            $ 22,510                 $76,169
Valuation allowance on rental property held for sale                          (20,563)                     --
----------------------------------------------------------------------------------------------------------------------

Total realized gains and unrealized losses                                    $ 1,947                 $76,169
======================================================================================================================
</Table>


8.    SENIOR UNSECURED NOTES

On January 29, 2001, the Operating Partnership issued $300,000 face amount of
7.75 percent senior unsecured notes with interest payable semi-annually in
arrears. The total proceeds from the issuance (net of selling commissions and
discount) of approximately $296,300 were used primarily to pay down outstanding
borrowings under the 2000 Unsecured Facility, as defined in Note 9. The senior
unsecured notes were issued at a discount of approximately $1,731, which is
being amortized over the term as an adjustment to interest expense.

The Operating Partnership's senior unsecured notes are redeemable at any time at
the option of the Operating Partnership, subject to certain conditions including
yield maintenance.

A summary of the terms of the senior unsecured notes (collectively, "Senior
Unsecured Notes") outstanding as of June 30, 2001 and December 31, 2000 is as
follows:

<Table>
<Caption>
                                                                           June 30,       December 31,   Effective
                                                                              2001               2000     Rate (1)
----------------------------------------------------------------------------------------------------------------------
<S>                                                                      <C>                <C>                <C>
7.180% Senior Unsecured Notes, due December 31, 2003                      $185,283           $185,283           7.23%
7.000% Senior Unsecured Notes, due March 15, 2004                          299,784            299,744           7.27%
7.250% Senior Unsecured Notes, due March 15, 2009                          298,189            298,072           7.49%
7.835% Senior Unsecured Notes, due December 15, 2010                        15,000             15,000           7.95%
7.750% Senior Unsecured Notes, due February 15, 2011                       298,343                 --           7.93%
----------------------------------------------------------------------------------------------------------------------

Total Senior Unsecured Notes                                            $1,096,599           $798,099           7.51%
======================================================================================================================
</Table>

(1)   Includes the cost of terminated treasury lock agreements (if any),
      offering and other transaction costs and the discount on the notes, as
      applicable.

The terms of the Senior Unsecured Notes include certain restrictions and
covenants which require compliance with financial ratios relating to the maximum
amount of debt leverage, the maximum amount of secured indebtedness, the minimum
amount of debt service coverage and the maximum amount of unsecured debt as a
percent of unsecured assets.


9.    REVOLVING CREDIT FACILITIES

2000 UNSECURED FACILITY
On June 22, 2000, the Operating Partnership obtained an unsecured revolving
credit facility ("2000 Unsecured Facility") with a current borrowing capacity of
$800,000 from a group of 24 lenders. The interest rate on outstanding borrowings
under the credit line is currently the London Inter-Bank Offered Rate ("LIBOR")
(3.86 percent at June 30, 2001) plus 80 basis points. The Operating Partnership
may instead elect an interest rate representing the higher of the lender's prime
rate or the Federal Funds rate plus 50 basis points. The 2000 Unsecured Facility
also requires a 20 basis point facility fee on the current borrowing capacity
payable quarterly in arrears. In the event of a change in the Operating
Partnership's unsecured debt rating, the interest rate and facility fee will be
changed on a sliding scale. Subject to certain conditions, the Operating
Partnership has the ability to increase the borrowing capacity of the credit
line up to $1,000,000. The 2000 Unsecured Facility matures in June 2003, with an
extension option of one year, which would require a payment of 25 basis points
of the then borrowing capacity of the credit line upon exercise.


                                       20
<Page>


The terms of the 2000 Unsecured Facility include certain restrictions and
covenants which limit, among other things, the payment of dividends (as
discussed below), the incurrence of additional indebtedness, the incurrence of
liens and the disposition of assets, and which require compliance with financial
ratios relating to the maximum leverage ratio, the maximum amount of secured
indebtedness, the minimum amount of tangible net worth, the minimum amount of
debt service coverage, the minimum amount of fixed charge coverage, the maximum
amount of unsecured indebtedness, the minimum amount of unencumbered property
debt service coverage and certain investment limitations. The dividend
restriction referred to above provides that, except to enable the Corporation to
continue to qualify as a REIT under the Code, the Corporation will not during
any four consecutive fiscal quarters make distributions with respect to common
stock or other equity interests in an aggregate amount in excess of 90 percent
of funds from operations (as defined) for such period, subject to certain other
adjustments.

PRUDENTIAL FACILITY
The Operating Partnership had a revolving credit facility ("Prudential
Facility") with Prudential Securities Corp. ("PSC") in the amount of $100,000,
which bore interest at 110 basis points over one-month LIBOR, with a maturity
date of June 29, 2001. The Prudential Facility was a recourse liability of the
Operating Partnership and was secured by the Operating Partnership's equity
interest in Harborside Plazas 2 and 3. The Prudential Facility limited the
ability of the Operating Partnership to make any distributions during any fiscal
quarter in an amount in excess of 100 percent of the Operating Partnership's
available funds from operations (as defined) for the immediately preceding
fiscal quarter (except to the extent such excess distributions or dividends are
attributable to gains from the sale of the Operating Partnership's assets or are
required for the Corporation to maintain its status as a REIT under the Code);
provided, however, that the Operating Partnership may make distributions and pay
dividends in excess of 100 percent of available funds from operations (as
defined) for the preceding fiscal quarter for not more than three consecutive
quarters. In addition to the foregoing, the Prudential Facility limited the
liens placed upon the subject property and certain collateral, the use of
proceeds from the Prudential Facility, and the maintenance of ownership of the
subject property and assets derived from said ownership. The Operating
Partnership repaid in full and terminated the Prudential Facility on June 29,
2001.

SUMMARY
As of June 30, 2001 and December 31, 2000, the Operating Partnership had
outstanding borrowings of $76,500 and $348,840, respectively, under its
revolving credit facilities. The total outstanding borrowings were from the 2000
Unsecured Facility, with no outstanding borrowings under the Prudential
Facility.


10.   MORTGAGES AND LOANS PAYABLE

The Operating Partnership has mortgages and loans payable which are comprised of
various loans collateralized by certain of the Operating Partnership's rental
properties. Payments on mortgages and loans payable are generally due in monthly
installments of principal and interest, or interest only.

A summary of the Operating Partnership's mortgages and loans payable as of June
30, 2001 and December 31, 2000 is as follows:

<Table>
<Caption>
                                                                    EFFECTIVE       PRINCIPAL BALANCE AT
                                                                     INTEREST     JUNE 30,   DECEMBER 31,
PROPERTY NAME                   LENDER                                   RATE         2001            2000      MATURITY
-------------------------------------------------------------------------------------------------------------------------
<S>                            <C>                                    <C>          <C>            <C>          <C>
101 & 225 Executive Drive       Sun Life Assurance Co.                 6.27%        $   --         $ 2,198      06/01/01
Mack-Cali Morris Plains         Corestates Bank                        7.51%         2,133           2,169      12/31/01
Mack-Cali Willowbrook           CIGNA                                  8.67%         9,038           9,460      10/01/03
400 Chestnut Ridge              Prudential Insurance Co.               9.44%        13,128          13,588      07/01/04
Mack-Cali Centre VI             Principal Life Insurance Co.           6.87%        35,000          35,000      04/01/05
Various (a)                     Prudential Insurance Co.               7.10%       150,000         150,000      05/15/05
Mack-Cali Bridgewater I         New York Life Ins. Co.                 7.00%        23,000          23,000      09/10/05
Mack-Cali Woodbridge II         New York Life Ins. Co.                 7.50%        17,500          17,500      09/10/05
Mack-Cali Short Hills           Prudential Insurance Co.               7.74%        25,571          25,911      10/01/05
500 West Putnam Avenue          New York Life Ins. Co.                 6.52%         9,679          10,069      10/10/05
Harborside - Plaza 1            U.S. West Pension Trust                5.61%        56,141          54,370      01/01/06
Harborside - Plazas 2 and 3     Northwestern/Principal                 7.36%       163,859          95,630      01/01/06
Mack-Cali Airport               Allstate Life Insurance Co.            7.05%        10,474          10,500      04/01/07
Kemble Plaza I                  Mitsubishi Tr & Bk Co.         LIBOR+0.65%          32,178          32,178      01/31/09
-------------------------------------------------------------------------------------------------------------------------

Total Property Mortgages                                                          $547,701        $481,573
=========================================================================================================================
</Table>
a)    The Operating Partnership has the option to convert the mortgage loan,
      which is secured by 12 properties, to unsecured debt.



                                       21
<Page>

SCHEDULED PRINCIPAL PAYMENTS
Scheduled principal payments and related weighted average annual interest rates
for the Operating Partnership's Senior Unsecured Notes (see Note 8), revolving
credit facilities (see Note 9) and mortgages and loans payable as of June 30,
2001 are as follows:

<Table>
<Caption>
                                                                                                        WEIGHTED AVG.
                                                 SCHEDULED       PRINCIPAL                           INTEREST RATE OF
PERIOD                                        AMORTIZATION      MATURITIES           TOTAL      FUTURE REPAYMENTS (A)
----------------------------------------------------------------------------------------------------------------------
<S>                                             <C>              <C>             <C>                          <C>
July through December 2001                       $  1,554         $  2,096        $  3,650                      9.08%
2002                                                3,260               --           3,260                     10.25%
2003                                                3,407          268,594         272,001                      6.61%
2004                                                2,247          309,863         312,110                      7.34%
2005                                                1,420          253,178         254,598                      7.14%
Thereafter                                         (1,361)         876,542         875,181                      7.46%
----------------------------------------------------------------------------------------------------------------------

Totals/Weighted Average                           $10,527       $1,710,273      $1,720,800                      7.27%
======================================================================================================================
</Table>

(a)   Assumes weighted average LIBOR at June 30, 2001 of 4.04 percent in
      calculating revolving credit facility and other variable rate debt
      interest rates.

CASH PAID FOR INTEREST AND INTEREST CAPITALIZED
Cash paid for interest for the six months ended June 30, 2001 and 2000 was
$52,530 and $56,035, respectively. Interest capitalized by the Operating
Partnership for the six months ended June 30, 2001 and 2000 was $7,315 and
$4,189, respectively.

SUMMARY OF INDEBTEDNESS
As of June 30, 2001, the Operating Partnership's total indebtedness of
$1,720,800 (weighted average interest rate of 7.27 percent) was comprised of
$108,678 of revolving credit facility borrowings and other variable rate
mortgage debt (weighted average rate of 5.07 percent) and fixed rate debt of
$1,612,122 (weighted average rate of 7.42 percent).

As of December 31, 2000, the Operating Partnership's total indebtedness of
$1,628,512 (weighted average interest rate of 7.29 percent) was comprised of
$381,018 of revolving credit facility borrowings and other variable rate
mortgage debt (weighted average rate of 7.53 percent) and fixed rate debt of
$1,247,494 (weighted average rate of 7.25 percent).


11.   PARTNERS' CAPITAL

Partners' capital in the accompanying consolidated financial statements relates
to common units held by the Corporation in the Operating Partnership, common
units held by the limited partners, preferred units ("Preferred Units") held by
the preferred unitholders of the Operating Partnership and warrants to purchase
common units ("Unit Warrants") in the Operating Partnership.

Net income allocated to the preferred unitholders and limited partners reflects
their pro-rata share of net income and distributions.

REPURCHASE OF GENERAL PARTNER UNITS
On September 13, 2000, the Board of Directors of the Corporation authorized the
Corporation to purchase up to $150,000 of the Corporation's outstanding common
stock ("Repurchase Program"). The Corporation purchased for constructive
retirement 2,026,300 shares of its outstanding common stock for an aggregate
cost of approximately $55,514 from September 13, 2000 through December 31, 2000.
Concurrent with these purchases, the Corporation sold to the Operating
Partnership 2,026,300 common units for approximately $55,514.

Under the Repurchase Program, the Corporation purchased for constructive
retirement 881,500 shares of its outstanding common stock for an aggregate cost
of approximately $24,056 for the six months ended June 30, 2001. Concurrent with
these purchases, the Corporation sold to the Operating Partnership 881,500
common units for approximately $24,056.



                                       22
<Page>

STOCK OPTION PLANS
In September 2000, the Corporation established the 2000 Employee Stock Option
Plan ("2000 Employee Plan") and the 2000 Director Stock Option Plan ("2000
Director Plan") under which a total of 2,700,000 shares (subject to adjustment)
of the Corporation's common stock have been reserved for issuance (2,500,000
shares under the 2000 Employee Plan and 200,000 shares under the 2000 Director
Plan). In 1994, and as subsequently amended, the Corporation established the
Mack-Cali Employee Stock Option Plan ("Employee Plan") and the Mack-Cali
Director Stock Option Plan ("Director Plan") under which a total of 5,380,188
shares (subject to adjustment) of the Corporation's common stock have been
reserved for issuance (4,980,188 shares under the Employee Plan and 400,000
shares under the Director Plan). Stock options granted under the Employee Plan
in 1994 and 1995 have become exercisable over a three-year period and those
options granted under both the 2000 Employee Plan and Employee Plan in 1996,
1997, 1998, 1999 and 2000 become exercisable over a five-year period. All stock
options granted under both the 2000 Director Plan and Director Plan become
exercisable in one year. All options were granted at the fair market value at
the dates of grant and have terms of ten years. There were 60,000 stock options
granted for the six months ended June 30, 2001. As of June 30, 2001, stock
options outstanding had a weighted average remaining contractual life of
approximately 6.9 years.

Information regarding the Corporation's stock option plans is summarized below:

<Table>
<Caption>
                                                                                                           Weighted
                                                                                            Shares          Average
                                                                                             Under         Exercise
                                                                                           Options           Price
----------------------------------------------------------------------------------------------------------------------
<S>                                                                                      <C>                <C>
Outstanding at January 1, 2001                                                           4,633,319          $30.14
Granted                                                                                     60,000          $26.31
Exercised                                                                                 (106,340)         $22.51
Lapsed or canceled                                                                        (122,412)         $29.81
----------------------------------------------------------------------------------------------------------------------
Outstanding at June 30, 2001                                                             4,464,567          $30.28
======================================================================================================================
Options exercisable at June 30, 2001                                                     2,630,748          $31.28
Available for grant at June 30, 2001                                                     2,320,978
----------------------------------------------------------------------------------------------------------------------
</Table>

STOCK WARRANTS
The Corporation has 360,000 warrants outstanding which enable the holders to
purchase an equal number of shares of its common stock ("Stock Warrants") at $33
per share (the market price at date of grant). Such warrants are all currently
exercisable and expire on January 31, 2007.

The Corporation also has 389,976 Stock Warrants outstanding which enable the
holders to purchase an equal number of its shares of common stock at $38.75 per
share (the market price at date of grant). Such warrants vest equally over a
five-year period through December 31, 2001 and expire on December 12, 2007.

As of June 30, 2001, there were a total of 749,976 Stock Warrants outstanding.
As of June 30, 2001, there were 671,980 Stock Warrants exercisable. For the six
months ended June 30, 2001, no Stock Warrants were canceled. No Stock Warrants
have been exercised through June 30, 2001.

STOCK COMPENSATION
In connection with stock awards granted to officers and certain other employees
of the Corporation (collectively, "Restricted Stock Awards"), officers and
certain other employees are to receive up to a total of 198,279 shares of the
Corporation's common stock generally vesting over a three or five-year period.
Certain Restricted Stock Awards are contingent upon the Corporation meeting
certain performance and/or stock price appreciation objectives. The Restricted
Stock Awards provided to the officers and certain other employees were granted
under the 2000 Employee Plan and Employee Plan.

Effective January 1, 2001, 24,019 Restricted Stock Awards vested and therefore
were released to the officers and certain other employees. For the six months
ended June 30, 2001, 7,408 unvested Restricted Stock Awards were canceled.



                                       23
<Page>

EARNINGS PER UNIT
FASB No. 128 requires a dual presentation of basic and diluted EPU on the face
of the income statement for all companies with complex capital structures even
where the effect of such dilution is not material. Basic EPU excludes dilution
and is computed by dividing net income available to common unitholders by the
weighted average number of units outstanding for the period. Diluted EPU
reflects the potential dilution that could occur if securities or other
contracts to issue common units were exercised or converted into common units.

The following information presents the Operating Partnership's results for the
three and six month periods ended June 30, 2001 and 2000 in accordance with FASB
No. 128:

<Table>
<Caption>
                                                                          Three Months Ended June 30,
                                                                       2001                          2000
                                                           ----------------------------- -----------------------------
                                                               Basic EPU    Diluted EPU    Basic EPU       Diluted EPU
----------------------------------------------------------------------------------------------------------------------
<S>                                                             <C>            <C>         <C>               <C>
Net income available to common unitholders                       $65,792        $65,792     $107,327          $107,327
Add:  Net income attributable to
        Operating Partnership - preferred units                       --          3,879           --             3,765
----------------------------------------------------------------------------------------------------------------------
Adjusted net income                                              $65,792        $69,671     $107,327          $111,092
======================================================================================================================

Weighted average units                                            64,476         71,044       66,627            73,284
----------------------------------------------------------------------------------------------------------------------
Per Unit                                                    $       1.02  $        0.98  $      1.61           $  1.52
======================================================================================================================

<Caption>

                                                                           Six Months Ended June 30,
                                                                       2001                          2000
                                                           ----------------------------- -----------------------------
                                                               Basic EPU    Diluted EPU    Basic EPU       Diluted EPU
----------------------------------------------------------------------------------------------------------------------
<S>                                                             <C>            <C>         <C>               <C>
Net income available to common unitholders                       $84,875        $84,875     $149,049          $149,049
Add:  Net income attributable to
        Operating Partnership - preferred units                       --          7,758           --             7,634
----------------------------------------------------------------------------------------------------------------------
Adjusted net income                                              $84,875        $92,633     $149,049          $156,683
======================================================================================================================

Weighted average units                                            64,621         71,198       66,527            73,237
----------------------------------------------------------------------------------------------------------------------

Per Unit                                                   $        1.31  $        1.30  $      2.24           $  2.14
======================================================================================================================
</Table>

The following schedule reconciles the units used in the basic EPU calculation to
the units used in the diluted EPU calculation:

<Table>
<Caption>
                                                                 Three Months                 Six Months
                                                                Ended June 30,              Ended June 30,
                                                                2001          2000           2001          2000
------------------------------------------------------------------------------------------------------------------
<S>                                                          <C>           <C>            <C>           <C>
Basic EPU Units:                                              64,476        66,627         64,621        66,527
     Add:  Operating Partnership - preferred units             6,359         6,457          6,359         6,537
           (after conversion to common units)
           Stock options                                         209           200            218           173
------------------------------------------------------------------------------------------------------------------

Diluted EPU Units:                                            71,044        73,284         71,198        73,237
==================================================================================================================
</Table>

Through June 30, 2001, under the Repurchase Program, the Corporation purchased
for constructive retirement, a total of 4,777,000 shares of its outstanding
common stock for an aggregate cost of approximately $132,131. Concurrent with
these purchases, the Corporation sold an equal numbers of common units to the
Operating Partnership.



                                       24
<Page>

12.   EMPLOYEE BENEFIT PLAN

All employees of the Corporation who meet certain minimum age and period of
service requirements are eligible to participate in a 401(k) defined
contribution plan (the "401(k) Plan"). The 401(k) Plan allows eligible employees
to defer up to 15 percent of their annual compensation, subject to certain
limitations imposed by federal law. The amounts contributed by employees are
immediately vested and non-forfeitable. The Corporation, at management's
discretion, may match employee contributions and/or make discretionary
contributions. Management has approved, for the year ended December 31, 2001, a
matching contribution to be paid under the 401(k) Plan equal to 50 percent of
the first 3.5 percent of annual salary, as defined in the 401(k) Plan,
contributed to the plan for 2001. Total expense recognized by the Operating
Partnership for both the six month periods ended June 30, 2001 and 2000 was
$200.


13.   COMMITMENTS AND CONTINGENCIES

GROUND LEASE AGREEMENTS
Future minimum rental payments under the terms of all non-cancelable ground
leases under which the Operating Partnership is the lessee, as of June 30, 2001,
are as follows:

<Table>
<Caption>
Period                                                                              Amount
---------------------------------------------------------------------------------------------
<S>                                                                              <C>
July through December 2001                                                        $    266
2002                                                                                   531
2003                                                                                   531
2004                                                                                   534
2005                                                                                   534
Thereafter                                                                          21,997
---------------------------------------------------------------------------------------------

Total                                                                              $24,393
=============================================================================================
</Table>

Ground lease expense incurred during the six months ended June 30, 2001 and 2000
amounted to $284 and $285, respectively.

OTHER
On June 27, 2000, both Brant Cali and John R. Cali resigned their positions as
officers of the Corporation and Brant Cali resigned as a director of the
Corporation. John R. Cali was appointed to the Board of Directors of the
Corporation to take the seat previously held by Brant Cali. As required by Brant
Cali and John R. Cali's employment agreements with the Corporation: (i) the
Corporation paid $2,820 and $2,806 (less applicable withholding) to Brant Cali
and John R. Cali, respectively; (ii) all options to acquire shares of the
Corporation's common stock and Restricted Stock Awards (as hereinafter defined)
held by Brant Cali and John R. Cali became fully vested on the effective date of
their resignations from the Corporation. All costs associated with Brant Cali
and John R. Cali's resignations, which totaled approximately $9,228, are
included in non-recurring charges for the six months ended June 30, 2000.

The Operating Partnership is a defendant in certain litigation arising in the
normal course of business activities. Management does not believe that the
resolution of these matters will have a materially adverse effect upon the
Operating Partnership and the Property Partnerships.


14.   TENANT LEASES

The Properties are leased to tenants under operating leases with various
expiration dates through 2016. 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.


                                       25
<Page>

15.   SEGMENT REPORTING

The Operating Partnership operates in one business segment - real estate. The
Operating Partnership provides leasing, management, acquisition, development,
construction and tenant-related services for its portfolio. The Operating
Partnership does not have any foreign operations. The accounting policies of the
segments are the same as those described in Note 2, excluding straight-line rent
adjustments, depreciation and amortization and non-recurring charges.

The Operating Partnership evaluates performance based upon net operating income
from the combined properties in the segment.


                                       26
<Page>


Selected results of operations for the three and six month periods ended June
30, 2001 and 2000 and selected asset information as of June 30, 2001 and
December 31, 2000 regarding the Operating Partnership's operating segment are as
follows:

<Table>
<Caption>
                                                                                                        Total
                                                                        Total      Corporate &      Operating
                                                                      Segment        Other (e)    Partnership
-------------------------------------------------------------------------------------------------------------------------
<S>                                                             <C>                  <C>         <C>
TOTAL CONTRACT REVENUES (A):
   Three months ended:
     June 30, 2001                                               $    143,252         $  1,109    $   144,361   (f)
     June 30, 2000                                                    140,117            2,372        142,489   (g)
   Six  months ended:
     June 30, 2001                                               $    284,556         $  2,505    $   287,061   (h)
     June 30, 2000                                                    280,258            3,020        283,278   (i)

TOTAL OPERATING AND INTEREST EXPENSES (B):
   Three months ended:
     June 30, 2001                                               $     43,617         $ 35,689    $    79,306   (j)
     June 30, 2000                                                     42,044           31,519         73,563   (k)
   Six  months ended:
     June 30, 2001                                               $     88,893         $ 69,910    $   158,803   (l)
     June 30, 2000                                                     84,808           64,119        148,927   (m)

NET OPERATING INCOME (C):
   Three months ended:
     June 30, 2001                                               $     99,635         $(34,580)   $    65,055   (f) (j)
     June 30, 2000                                                     98,073          (29,147)        68,926   (g) (k)
   Six  months ended:
     June 30, 2001                                               $    195,663         $(67,405)   $   128,258   (h) (l)
     June 30, 2000                                                    195,450          (61,099)       134,351   (i) (m)

TOTAL ASSETS:
     June 30, 2001                                                 $3,711,992         $ 47,927    $3,759,919
     December 31, 2000                                              3,623,107           53,870      3,676,977

TOTAL LONG-LIVED ASSETS (D):
     June 30, 2001                                                 $3,592,243         $ 28,987    $3,621,230
     December 31, 2000                                              3,522,766           23,574      3,546,340
-------------------------------------------------------------------------------------------------------------------------
</Table>

(a)   Total contract revenues represent all revenues during the period
      (including the Operating Partnership's share of net income from
      unconsolidated joint ventures), excluding adjustments for straight-lining
      of rents and the Operating Partnership's share of straight-line rent
      adjustments from unconsolidated joint ventures. All interest income is
      excluded from segment amounts and is classified in Corporate and Other for
      all periods.
(b)   Total operating and interest expenses represent the sum of real estate
      taxes, utilities, operating services, general and administrative and
      interest expense. All interest expense (including for property-level
      mortgages) is excluded from segment amounts and classified in Corporate
      and Other for all periods.
(c)   Net operating income represents total contract revenues [as defined in
      Note (a)] less total operating and interest expenses [as defined in Note
      (b)] for the period.
(d)   Long-lived assets are comprised of total rental property, unbilled rents
      receivable and investments in unconsolidated joint ventures.
(e)   Corporate & Other represents all corporate-level items (including interest
      and other investment income, interest expense and non-property general and
      administrative expense) as well as intercompany eliminations necessary to
      reconcile to consolidated Operating Partnership totals.
(f)   Excludes $3,967 of adjustments for straight-lining of rents and $90 for
      the Operating Partnership's share of straight-line rent adjustments from
      unconsolidated joint ventures.
(g)   Excludes $3,403 of adjustments for straight-lining of rents and ($3) for
      the Operating Partnership's share of straight-line rent adjustments from
      unconsolidated joint ventures.
(h)   Excludes $7,737 of adjustments for straight-lining of rents and $126 for
      the Operating Partnership's share of straight-line rent adjustments from
      unconsolidated joint ventures.
(i)   Excludes $5,536 of adjustments for straight-lining of rents and $54 for
      the Operating Partnership's share of straight-line rent adjustments from
      unconsolidated joint ventures.
(j)   Excludes $21,951 of depreciation and amortization.
(k)   Excludes $22,945 of depreciation and amortization and non-recurring
      charges of $9,228.
(l)   Excludes $45,435 of depreciation and amortization.
(m)   Excludes $45,127 of depreciation and amortization and non-recurring
      charges of $9,228.



                                       27
<Page>


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

The following discussion should be read in conjunction with the Consolidated
Financial Statements of Mack-Cali Realty, L.P. and the notes thereto. Certain
defined terms used herein have the meaning ascribed to them in the Consolidated
Financial Statements.

The following comparisons for the three and six month periods ended June 30,
2001 ("2001"), as compared to the three and six month periods ended June 30,
2000 ("2000"), make reference to the following: (i) the effect of the
"Same-Store Properties," which represents all in-service properties owned by the
Operating Partnership at March 31, 2000 (for the three-month period
comparisons), and which represent all in-service properties owned by the
Operating Partnership at December 31, 1999 (for the six-month period
comparisons), excluding Dispositions as defined below, (ii) the effect of the
"Acquired Properties," which represent all properties acquired or placed in
service by the Operating Partnership from April 1, 2000 through June 30, 2001
(for the three-month period comparisons), and which represent all properties
acquired or placed in service by the Operating Partnership from January 1, 2000
through June 30, 2001 (for the six-month period comparisons), and (iii) the
effect of the "Dispositions", which represent results for each period for those
rental properties sold by the Operating Partnership during the same periods.

  THREE MONTHS ENDED JUNE 30, 2001 COMPARED TO THREE MONTHS ENDED JUNE 30, 2000

<Table>
<Caption>
                                                                  Quarter Ended
                                                                      June 30,             Dollar         Percent
(DOLLARS IN THOUSANDS)                                         2001            2000        Change          Change
----------------------------------------------------------------------------------------------------------------------
<S>                                                       <C>             <C>            <C>                <C>
REVENUE FROM RENTAL OPERATIONS:
Base rents                                                 $129,419        $122,072       $   7,347          6.0%
Escalations and recoveries from tenants                      13,430          14,627          (1,197)        (8.2)
Parking and other                                             3,060           6,128          (3,068)       (50.1)
----------------------------------------------------------------------------------------------------------------------
  Sub-total                                                 145,909         142,827           3,082          2.2

Equity in earnings of unconsolidated joint ventures           2,037           1,070             967         90.4
Interest income                                                 472           1,992          (1,520)       (76.3)
----------------------------------------------------------------------------------------------------------------------
  Total revenues                                            148,418         145,889           2,529          1.7
----------------------------------------------------------------------------------------------------------------------

PROPERTY EXPENSES:
Real estate taxes                                            15,510          14,733             777          5.3
Utilities                                                    10,699          10,014             685          6.8
Operating services                                           17,686          16,822             864          5.1
----------------------------------------------------------------------------------------------------------------------
  Sub-total                                                  43,895          41,569           2,326          5.6

General and administrative                                    6,856           5,159           1,697         32.9
Depreciation and amortization                                21,951          22,945            (994)        (4.3)
Interest expense                                             28,555          26,835           1,720          6.4
Non-recurring charges                                            --           9,228          (9,228)      (100.0)
----------------------------------------------------------------------------------------------------------------------
  Total expenses                                            101,257         105,736          (4,479)        (4.2)
----------------------------------------------------------------------------------------------------------------------

Income before realized gains and unrealized losses
  on disposition of rental property and
  minority interest                                          47,161          40,153           7,008         17.5
Realized gains and unrealized losses on disposition
  of rental property                                         22,510          73,921         (51,411)       (69.5)
----------------------------------------------------------------------------------------------------------------------

Income before minority interest                              69,671         114,074         (44,403)       (38.9)
Minority interest in consolidated
partially-owned properties                                       --             2,982        (2,982)      (100.0)
----------------------------------------------------------------------------------------------------------------------

Net income                                                   69,671         111,092         (41,421)       (37.3)
Preferred unit distributions                                 (3,879)        (3,765)            (114)        (3.0)

----------------------------------------------------------------------------------------------------------------------
Net income available to common unitholders                 $ 65,792       $107,327        $(41,535)        (38.7)%
======================================================================================================================
</Table>



                                       28
<Page>



The following is a summary of the changes in revenue from rental operations and
property expenses divided into Same-Store Properties, Acquired Properties and
Dispositions (dollars in thousands):


<Table>
<Caption>

                                         TOTAL
                                 OPERATING PARTNERSHIP  SAME-STORE PROPERTIES  ACQUIRED PROPERTIES      DISPOSITIONS
                                   DOLLAR     PERCENT   DOLLAR     PERCENT      DOLLAR    PERCENT     DOLLAR    PERCENT
                                   CHANGE     CHANGE    CHANGE     CHANGE       CHANGE    CHANGE      CHANGE     CHANGE
-------------------------------------------------------------------------------------------------------------------------
<S>                                 <C>         <C>     <C>         <C>        <C>       <C>        <C>         <C>
REVENUE FROM RENTAL OPERATIONS:
Base rents                           $7,347      6.0%    $ 3,963     3.2%       $8,043    6.6%       $(4,659)    (3.8)%
Escalations and recoveries
  from tenants                      (1,197)     (8.2)     (1,141)   (7.8)          566    3.9           (622)    (4.3)
Parking and other                   (3,068)    (50.1)     (3,014)  (49.2)          142    2.3           (196)    (3.2)
-------------------------------------------------------------------------------------------------------------------------

Total                                $3,082      2.2%     $ (192)   (0.1)%      $8,751    6.1%       $(5,477)    (3.8)%
=========================================================================================================================

PROPERTY EXPENSES:
Real estate taxes                    $  777      5.3%     $  149     1.0%       $1,029    7.0%       $  (401)    (2.7)%
Utilities                               685      6.8         624     6.2           469    4.7           (408)    (4.1)
Operating services                      864      5.1         453     2.7         1,282    7.6           (871)    (5.2)
-------------------------------------------------------------------------------------------------------------------------

Total                                $2,326      5.6%     $1,226     2.9%       $2,780    6.7%       $(1,680)    (4.0)%
=========================================================================================================================

OTHER DATA:
Number of Consolidated
Properties                              261                  246                    15                10
Square feet (in thousands)           27,353               25,358                 1,995             2,276
</Table>

Base rents for the Same-Store Properties increased $4.0 million, or 3.2 percent,
for 2001 as compared to 2000, due primarily to rental rate increases in 2001.
Escalations and recoveries from tenants for the Same-Store Properties decreased
$1.1 million, or 7.8 percent, for 2001 over 2000, due to the recovery of a
decreased amount of total property expenses in 2001, as well as increased
settle-up billings during the second quarter 2000. Parking and other income for
the Same-Store Properties decreased $3.0 million, or 49.2 percent, due primarily
to fewer lease termination fees in 2001.

Real estate taxes on the Same-Store Properties increased $0.1 million, or 1.0
percent, for 2001 as compared to 2000, due primarily to property tax rate
increases in certain municipalities in 2001. Utilities for the Same-Store
Properties increased $0.6 million, or 6.2 percent, for 2001 as compared to 2000,
due primarily to increased gas rates. Operating services for the Same-Store
Properties increased $0.5 million, or 2.7 percent, due primarily to an increase
in maintenance costs in 2001.

Equity in earnings of unconsolidated joint ventures increased $1.0 million, or
90.4 percent, for 2001 as compared to 2000. This is due primarily to properties
developed by joint ventures being placed in service during 2000 and higher
occupancies at certain properties in 2001 (see Note 4 to the Financial
Statements).

Interest income decreased $1.5 million, or 76.3 percent, for 2001 as compared to
2000. This decrease was due primarily to additional interest income in 2000 on
investment of proceeds from the Dispositions in cash and cash equivalents.

General and administrative increased by $1.7 million, or 32.9 percent, for 2001
as compared to 2000. This increase is due primarily to increased professional
fees, mostly on account of costs for transactions not consummated, and increased
payroll and related costs in 2001.

Depreciation and amortization decreased by $1.0 million, or 4.3 percent, for
2001 over 2000. Of this decrease, $1.7 million, or 7.4 percent, is attributable
to the Same-Store Properties, and $0.7 million, or 3.1 percent, is due to the
Dispositions, partially offset by an increase of $1.4 million, or 6.2 percent,
due to the Acquired Properties.

Interest expense increased $1.7 million, or 6.4 percent, for 2001 as compared to
2000. This increase is due primarily to the replacement in early 2001 of
short-term credit facility borrowings with higher long-term fixed rate unsecured
debt.


                                       29
<Page>

Income before realized and unrealized gain on disposition of rental property and
minority interest increased to $47.2 million in 2001 from $40.2 million in 2000.
The increase of approximately $7.0 million is due to the factors discussed
above.

Net income available to common unitholders decreased by $41.5 million, from
$107.3 million in 2000 to $65.8 million in 2001. This decrease was a result of a
gain on sale of rental property in 2000 of $73.9 million and an increase in
preferred unit distributions of $0.1 million, which was partially offset by a
gain on sale of rental property in 2001 of $22.5 million, an increase in income
before realized and unrealized gain on disposition of rental property and
minority interest of $7.0 million in 2001 as compared to 2000, and a decrease in
minority interest in consolidated partially-owned properties of $3.0 million in
2001.


    SIX MONTHS ENDED JUNE 30, 2001 COMPARED TO SIX MONTHS ENDED JUNE 30, 2000

<Table>
<Caption>
                                                               Six Months Ended
                                                                   June 30,                Dollar         Percent
(DOLLARS IN THOUSANDS)                                         2001            2000        Change          Change
----------------------------------------------------------------------------------------------------------------------
<S>                                                       <C>             <C>            <C>                <C>
REVENUE FROM RENTAL OPERATIONS:
Base rents                                                 $254,795        $243,670       $  11,125          4.6%
Escalations and recoveries from tenants                      28,192          31,295          (3,103)        (9.9)
Parking and other                                             5,406           9,450          (4,044)       (42.8)
----------------------------------------------------------------------------------------------------------------------
  Sub-total                                                 288,393         284,415           3,978          1.4

Equity in earnings of unconsolidated joint ventures           5,446           2,207           3,239        146.8
Interest income                                               1,085           2,246          (1,161)       (51.7)
----------------------------------------------------------------------------------------------------------------------
  Total revenues                                            294,924         288,868           6,056          2.1
----------------------------------------------------------------------------------------------------------------------

PROPERTY EXPENSES:
Real estate taxes                                            30,797          29,437           1,360          4.6
Utilities                                                    22,655          20,393           2,262         11.1
Operating services                                           35,565          34,564           1,001          2.9
----------------------------------------------------------------------------------------------------------------------
  Sub-total                                                  89,017          84,394           4,623          5.5

General and administrative                                   12,866          11,272           1,594         14.1
Depreciation and amortization                                45,435          45,127             308          0.7
Interest expense                                             56,920          53,261           3,659          6.9
Non-recurring charges                                            --           9,228          (9,228)      (100.0)
----------------------------------------------------------------------------------------------------------------------
  Total expenses                                            204,238         203,282             956          0.5
----------------------------------------------------------------------------------------------------------------------

Income before realized gains and unrealized losses
  on disposition of rental property and
  minority interest                                          90,686          85,586           5,100          6.0
Realized gains and unrealized losses on disposition
  of rental property                                          1,947          76,169         (74,222)       (97.4)
----------------------------------------------------------------------------------------------------------------------
Income before minority interest                              92,633         161,755         (69,122)       (42.7)
Minority interest in consolidated
partially-owned properties                                       --           5,072          (5,072)      (100.0)
----------------------------------------------------------------------------------------------------------------------

Net income                                                   92,633        156,683          (64,050)       (40.9)
Preferred unit distributions                                 (7,758)        (7,634)            (124)        (1.6)
----------------------------------------------------------------------------------------------------------------------

Net income available to common unitholders                 $ 84,875       $149,049        $(64,174)        (43.1)%
======================================================================================================================
</Table>



                                       30
<Page>

The following is a summary of the changes in revenue from rental operations and
property expenses divided into Same-Store Properties, Acquired Properties and
Dispositions (dollars in thousands):


<Table>
<Caption>
                                           TOTAL
                                   OPERATING PARTNERSHIP   SAME-STORE  PROPERTIES      ACQUIRED PROPERTIES     DISPOSITIONS
                                   ---------------------   ----------------------      -------------------     ------------
                                     Dollar      Percent   Dollar         Percent      Dollar      Percent   Dollar     Percent
                                     Change      Change    Change          Change      Change      Change    Change      Change
--------------------------------------------------------------------------------------------------------------------------------
<S>                                 <C>         <C>     <C>                 <C>       <C>          <C>     <C>          <C>
REVENUE FROM RENTAL OPERATIONS:
Base rents                           $11,125     4.6%    $ 9,273             3.8%      $14,055      5.8%    $(12,203)    (5.0)%
Escalations and recoveries
  from tenants                        (3,103)   (9.9)     (1,835)           (5.9)        1,081      3.5       (2,349)    (7.5)
Parking and other                     (4,044)  (42.8)     (3,683)          (39.0)          171      1.8         (532)    (5.6)
--------------------------------------------------------------------------------------------------------------------------------

Total                                $ 3,978     1.4%     $3,755             1.3%      $15,307      5.4%    $(15,084)    (5.3)%
================================================================================================================================

PROPERTY EXPENSES:
Real estate taxes                    $ 1,360     4.6%     $  461             1.6%      $ 1,952      6.6%    $ (1,053)    (3.6)%
Utilities                              2,262    11.1       1,910             9.4         1,236      6.1         (884)    (4.4)
Operating services                     1,001     2.9       1,024             3.0         2,140      6.2       (2,163)    (6.3)
--------------------------------------------------------------------------------------------------------------------------------

Total                                $ 4,623     5.5%     $3,395             4.0%      $ 5,328      6.3%    $  (4,100)   (4.8)%
================================================================================================================================

OTHER DATA:
Number of Consolidated Properties        261                 245                            16                    10
Square feet (in thousands)            27,353              25,297                         2,056                 2,276
</Table>

Base rents for the Same-Store Properties increased $9.3 million, or 3.8 percent,
for 2001 as compared to 2000, due primarily to rental rate increases in 2001.
Escalations and recoveries from tenants for the Same-Store Properties decreased
$1.8 million, or 5.9 percent, for 2001 over 2000, due to the recovery of a
decreased amount of total property expenses in 2001, as well as increased
settle-up billings in 2000. Parking and other income for the Same-Store
Properties decreased $3.7 million, or 39.0 percent, due primarily to fewer lease
termination fees in 2001.

Real estate taxes on the Same-Store Properties increased $0.5 million, or 1.6
percent, for 2001 as compared to 2000, due primarily to property tax rate
increases in certain municipalities in 2001. Utilities for the Same-Store
Properties increased $1.9 million, or 9.4 percent, for 2001 as compared to 2000,
due primarily to increased gas rates. Operating services for the Same-Store
Properties increased $1.0 million, or 3.0 percent, due primarily to an increase
in maintenance costs in 2001.

Equity in earnings of unconsolidated joint ventures increased $3.2 million, or
146.8 percent, for 2001 as compared to 2000. This is due primarily to properties
developed by joint ventures being placed in service during 2000 and higher
occupancies at certain properties (see Note 4 to the Financial Statements).

Interest income decreased $1.2 million, or 51.7 percent, for 2001 as compared to
2000. This decrease was due primarily to additional interest income in 2000 on
investment of proceeds from the Dispositions in cash and cash equivalents.

General and administrative increased by $1.6 million, or 14.1 percent, for 2001
as compared to 2000. This increase is due primarily to increased professional
fees, mostly on account of costs for transactions not consummated, and increased
payroll and related costs in 2001.

Depreciation and amortization decreased by $0.3 million, or 0.7 percent, for
2001 over 2000. Of this increase, $2.6 million, or 5.9 percent, is due to the
Acquired Properties, partially offset by a decrease of $1.4 million, or 3.2
percent, due to the Dispositions and $0.9 million, or 2.0 percent, attributable
to the Same-Store Properties.

Interest expense increased $3.7 million, or 6.9 percent, for 2001 as compared to
2000. This increase is due primarily to the replacement in 2001 of short-term
credit facility borrowings with higher, long-term fixed rate unsecured debt.


                                       31
<Page>


Income before realized gains and unrealized losses on disposition of rental
property and minority interest increased to $90.7 million in 2001 from $85.6
million in 2000. The increase of approximately $5.1 million is due to the
factors discussed above.

Net income available to common unitholders decreased by $64.2 million, from
$149.1 million in 2000 to $84.9 million in 2001. This decrease was a result of a
gain on sale of rental property of $76.2 million and an increase in preferred
unit distributions of $0.1 million. This was partially offset by a gain on sale
of rental property of $1.9 million in 2001, an increase in income before
realized gains and unrealized losses on disposition of rental property and
minority interest of $5.1 million, and a decrease in minority interest in
consolidated partially-owned properties of $5.1 million in 2001.

LIQUIDITY AND CAPITAL RESOURCES

STATEMENT OF CASH FLOWS
During the six months ended June 30, 2001, the Operating Partnership generated
$133.0 million in cash flows from operating activities, and together with $586.8
million in borrowings from the Operating Partnership's senior unsecured notes,
revolving credit facilities and additional mortgage financing, $44.8 million in
proceeds from sales of rental property, $19.1 million in distributions received
from unconsolidated joint ventures, $6.0 million in proceeds from repayment of a
mortgage note receivable and $2.4 million in proceeds from stock options
exercised used an aggregate of approximately $792.1 million to acquire
properties and land parcels and pay for other tenant and building improvements
totaling $148.1 million, repay outstanding borrowings on its revolving credit
facilities and other mortgage debt of $494.7 million, pay quarterly dividends
and distributions of $87.0 million, invest $24.5 million in unconsolidated joint
ventures, pay financing costs of $3.2 million, repurchase 881,500 shares of the
Corporation's outstanding common stock for $24.1 million, add $0.9 million to
restricted cash and add $9.6 million to cash and cash equivalents.

CAPITALIZATION
The Operating Partnership has a focused strategy geared to attractive
opportunities in high-barrier-to-entry markets, primarily predicated on the
Operating Partnership's strong presence in the Northeast region and, to a lesser
extent, certain markets in California. The Operating Partnership plans to sell
substantially all of its properties located in the Southwestern and Western
regions, using such proceeds to invest in property acquisitions and development
projects in its core Northeast markets, as well as to repay debt and fund stock
repurchases.

Consistent with its strategy, in the fourth quarter 2000, the Operating
Partnership started construction of a 980,000 square-foot office property, to be
known as Plaza 5, at its Harborside Financial Center office complex in Jersey
City, Hudson County, New Jersey. The total cost of the project is currently
projected to be approximately $260 million and is anticipated to be completed in
late 2002. Additionally, in the fourth quarter 2000, the Operating Partnership,
through a joint venture, started construction of a 575,000 square-foot office
property, to be known as Plaza 10, on land owned by the joint venture located
adjacent to the Operating Partnership's Harborside complex. The total cost of
this project is currently projected to be approximately $140 million and is
anticipated to be completed in late 2002. Plaza 10 is 100 percent pre-leased to
Charles Schwab & Co. Inc. for a 15-year term. The lease agreement obligates the
Operating Partnership, among other things, to deliver space to the tenant by
required timelines and offers expansion options, at the tenant's election, to
additional space in any adjacent Harborside projects. Such options may obligate
the Operating Partnership to construct an additional building at Harborside if
vacant space is not available in any of its existing Harborside properties.
Should the Operating Partnership be unable to or choose not to provide such
expansion space, the Operating Partnership could be liable to Schwab for its
actual damages, in no event to exceed $15.0 million. The Operating Partnership
expects to finance its funding requirements under both Plazas 5 and 10 projects
through drawing on its revolving credit facilities, construction financing, or
through joint venture arrangements.

On August 6, 1998, the Board of Directors of the Corporation authorized a
Repurchase Program under which the Corporation was permitted to purchase up to
$100.0 million of the Corporation's outstanding common stock. Under the
Repurchase Program, the Corporation purchased for constructive retirement
1,869,200 shares of its outstanding common stock for an aggregate cost of
approximately $52.6 million through September 12, 2000.

On September 13, 2000, the Board of Directors authorized an increase to the
Repurchase Program under which the Corporation is permitted to purchase up to an
additional $150.0 million of the Corporation's outstanding common stock above
the $52.6 million that had previously been purchased. From that date through
July 31, 2001, the Corporation



                                       32
<Page>

purchased for constructive retirement 2.9 million shares of its outstanding
common stock for an aggregate cost of approximately $79.7 million under the
Repurchase Program. The Corporation has authorization to repurchase up to an
additional $70.3 million of its outstanding common stock which it may repurchase
from time to time in open market transactions at prevailing prices or through
privately negotiated transactions.

As of June 30, 2001, the Operating Partnership's total indebtedness of $1.7
billion (weighted average interest rate of 7.27 percent) was comprised of $108.7
million of revolving credit facility borrowings and other variable rate mortgage
debt (weighted average rate of 5.07 percent) and fixed rate debt of $1.6 billion
(weighted average rate of 7.42 percent).

As of June 30, 2001, the Operating Partnership had outstanding borrowings of
$76.5 million under its 2000 Unsecured Facility (with aggregate borrowing
capacity of $800.0 million). The interest rate on outstanding borrowings under
the 2000 Unsecured Facility is currently LIBOR plus 80 basis points. The
Operating Partnership may instead elect an interest rate representing the higher
of the lender's prime rate or the Federal Funds rate plus 50 basis points. The
2000 Unsecured Facility also requires a 20 basis point facility fee on the
current borrowing capacity payable quarterly in arrears. In the event of a
change in the Operating Partnership's unsecured debt rating, the interest and
facility fee rate will be changed on a sliding scale. Subject to certain
conditions, the Operating Partnership has the ability to increase the borrowing
capacity of the 2000 Unsecured Facility up to $1.0 billion. The 2000 Unsecured
Facility matures in June 2003, with an extension option of one year, which would
require a payment of 25 basis points of the then borrowing capacity of the
credit line upon exercise. The Operating Partnership believes that the 2000
Unsecured Facility is sufficient to meet its revolving credit facility needs.

The terms of the 2000 Unsecured Facility include certain restrictions and
covenants which limit, among other things, the payment of dividends (as
discussed below), the incurrence of additional indebtedness, the incurrence of
liens and the disposition of assets, and which require compliance with financial
ratios relating to the maximum leverage ratio, the maximum amount of secured
indebtedness, the minimum amount of tangible net worth, the minimum amount of
debt service coverage, the minimum amount of fixed charge coverage, the maximum
amount of unsecured indebtedness, the minimum amount of unencumbered property
debt service coverage and certain investment limitations. The dividend
restriction referred to above provides that, except to enable the Corporation to
continue to qualify as a REIT under the Code, the Corporation will not during
any four consecutive fiscal quarters make distributions with respect to common
stock or other equity interests in an aggregate amount in excess of 90 percent
of funds from operations (as defined) for such period, subject to certain other
adjustments.

On January 29, 2001, the Operating Partnership issued $300.0 million face amount
of 7.75 percent senior unsecured notes due February 15, 2011 with interest
payable semi-annually in arrears. The total proceeds from the issuance (net of
selling commissions and discount) of approximately $296.3 million were used to
pay down outstanding borrowings under the 2000 Unsecured Facility, as defined in
Note 9 to the Financial Statements. The senior unsecured notes were issued at a
discount of approximately $1.7 million.

The terms of the Operating Partnership's unsecured debt include certain
restrictions and covenants which require compliance with financial ratios
relating to the maximum amount of debt leverage, the maximum amount of secured
indebtedness, the minimum amount of debt service coverage and the maximum amount
of unsecured debt as a percent of unsecured assets.

The Operating Partnership has three investment grade credit ratings. Standard &
Poor's Rating Services ("S&P") and Fitch, Inc. ("Fitch") have each assigned
their BBB rating to existing and prospective senior unsecured debt of the
Operating Partnership. S&P and Fitch have also assigned their BBB- rating to
prospective preferred stock offerings of the Corporation. Moody's Investors
Service has assigned its Baa3 rating to the existing and prospective senior
unsecured debt of the Operating Partnership and its Ba1 rating to prospective
preferred stock offerings of the Corporation.

On May 18, 2001, the Operating Partnership obtained $70.0 million in additional
mortgage financing secured by Harborside Financial Center Plazas II and III from
the existing lender. The 7.42 percent interest only financing matures concurrent
with the existing financing on January 1, 2006. The total financing secured by
Harborside Financial Center Plazas II and III of $163.9 million at June 30,
2001, has a weighted average interest rate of 7.36 percent. Proceeds from the
financing were used to pay down the outstanding borrowings on the 2000 Unsecured
Facility.

As of June 30, 2001, the Operating Partnership had 236 unencumbered properties,
totaling 21.3 million square feet, representing 77.3 percent of the Operating
Partnership's total portfolio on a square footage basis.



                                       33
<Page>

The Operating Partnership and Corporation also have an effective shelf
registration statement with the SEC for an aggregate of $2.0 billion in debt
securities, preferred stock and preferred stock represented by depositary
shares, under which the Operating Partnership has issued an aggregate of $1.1
billion of unsecured debt.

Historically, rental revenue has been the principal source of funds to pay
operating expenses, debt service and capital expenditures, excluding
non-recurring capital expenditures. Management believes that the Operating
Partnership will have access to the capital resources necessary to expand and
develop its business. To the extent that the Operating Partnership's cash flow
from operating activities is insufficient to finance its non-recurring capital
expenditures such as property acquisition and construction project costs and
other capital expenditures, the Operating Partnership expects to finance such
activities through borrowings under its revolving credit facilities and other
debt and equity financing.

The Operating Partnership expects to meet its short-term liquidity requirements
generally through its working capital, net cash provided by operating activities
and from the 2000 Unsecured Facility. The Operating Partnership is frequently
examining potential property acquisitions and construction projects and, at any
given time, one or more of such acquisitions or construction projects may be
under consideration. Accordingly, the ability to fund property acquisitions and
construction projects is a major part of the Operating Partnership's financing
requirements. The Operating Partnership expects to meet its financing
requirements through funds generated from operating activities, proceeds from
property sales, long-term or short-term borrowings (including draws on the
Operating Partnership's revolving credit facilities) and the issuance of
additional debt or equity securities.

As of June 30, 2001, the Operating Partnership's total debt had a weighted
average term to maturity of approximately 5.3 years. The Operating Partnership
does not intend to reserve funds to retire the Operating Partnership's unsecured
corporate debt or its mortgages and loans payable upon maturity. Instead, the
Operating Partnership will seek to refinance such debt at maturity or retire
such debt through the issuance of additional equity or debt securities. The
Operating Partnership is reviewing various refinancing options, including the
issuance of additional unsecured debt, preferred stock, and/or obtaining
additional mortgage debt, some or all of which may be completed during 2001. The
Operating Partnership anticipates that its available cash and cash equivalents
and cash flows from operating activities, together with cash available from
borrowings and other sources, will be adequate to meet the Operating
Partnership's capital and liquidity needs both in the short and long-term.
However, if these sources of funds are insufficient or unavailable, the
Operating Partnership's ability to make the expected distributions discussed
below may be adversely affected.

To maintain its qualification as a REIT, the Corporation must make annual
distributions to its stockholders of at least 90 percent of its REIT taxable
income, determined without regard to the dividends paid deduction and by
excluding net capital gains. Moreover, the Corporation intends to continue to
make regular quarterly distributions to its stockholders which, based upon
current policy, in the aggregate would equal approximately $139.1 million on an
annualized basis. However, any such distribution, whether for federal income tax
purposes or otherwise, would only be paid out of available cash after meeting
both operating requirements and scheduled debt service on mortgages and loans
payable and preferred unit distributions.

FUNDS FROM OPERATIONS

The Operating Partnership considers funds from operations ("FFO"), after
adjustment for straight-lining of rents and non-recurring charges, one measure
of REIT performance. Funds from operations is defined as net income (loss)
before distribution to preferred unitholders, computed in accordance with
generally accepted accounting principles ("GAAP"), excluding gains (or losses)
from debt restructuring, other extraordinary items, and realized gains and
unrealized losses on disposition of depreciable rental property, plus real
estate-related depreciation and amortization. Funds from operations should not
be considered as an alternative to net income as an indication of the Operating
Partnership's performance or to cash flows as a measure of liquidity. Funds from
operations presented herein is not necessarily comparable to funds from
operations presented by other real estate companies due to the fact that not all
real estate companies use the same definition. However, the Operating
Partnership's funds from operations is comparable to the funds from operations
of real estate companies that use the current definition of the National
Association of Real Estate Investment Trusts ("NAREIT"), after the adjustment
for straight-lining of rents and non-recurring charges.



                                       34
<Page>


Funds from operations for the three and six month periods ended June 30, 2001
and 2000, as calculated in accordance with NAREIT's definition as published in
October 1999, after adjustment for straight-lining of rents and non-recurring
charges, are summarized in the following table (IN THOUSANDS):

<Table>
<Caption>
                                                                   Three Months                        Six Months
                                                                  Ended June 30,                     Ended June 30,
                                                                2001          2000               2001                2000
-----------------------------------------------------------------------------------------------------------------------------
<S>                                                        <C>             <C>             <C>                  <C>
Income before realized gains and unrealized losses
     on disposition of rental property and
     minority interest                                      $47,161         $40,153         $   90,686          $  85,586
Add:     Real estate-related depreciation and
           amortization (1)                                   23,068         23,434             47,071             46,152
         Gain on sale of land                                     --             --                 --              2,248
         Non-recurring charges                                    --          9,228                 --              9,228
Deduct:  Rental income adjustment for
           straight-lining of rents (2)                       (4,057)        (3,400)            (7,862)            (5,590)
         Minority interest in consolidated
           partially-owned properties                             --         (2,982)                --             (5,072)
-----------------------------------------------------------------------------------------------------------------------------
Funds from operations, after adjustment
     for straight-lining of rents and non-recurring
     charges                                                 $66,172        $66,433          $ 129,895          $ 132,552
Deduct:  Distributions to preferred unitholders               (3,879)        (3,765)            (7,758)            (7,634)
-----------------------------------------------------------------------------------------------------------------------------
Funds from operations, after adjustment for
     straight-lining of rents and non-recurring charges,
     after distributions to preferred unitholders            $62,293        $62,668          $ 122,137          $ 124,918
=============================================================================================================================
Cash flows provided by operating activities                                                  $ 133,022          $ 120,576
Cash flows used in investing activities                                                      $(103,715)         $  62,329
Cash flows used in financing activities                                                      $ (19,748)         $(181,041)
-----------------------------------------------------------------------------------------------------------------------------
Basic weighted averages units
     outstanding (3)                                          64,476         66,627             64,621             66,527
-----------------------------------------------------------------------------------------------------------------------------
Diluted weighted average units
     outstanding (3)                                          71,044         73,284             71,198             73,237
-----------------------------------------------------------------------------------------------------------------------------
</Table>

(1)   Includes the Operating Partnership's share from unconsolidated joint
      ventures of $1,471 and $686 for the three months ended June 30, 2001 and
      2000, respectively, and $2,193 and $1,420 for the six months ended June
      30, 2001 and 2000, respectively.
(2)   Includes the Operating Partnership's share from unconsolidated joint
      ventures of $90 and $(3) for the three months ended June 30, 2001 and
      2000, respectively, and $126 and $54 for the six months ended June 30,
      2001
      and 2000, respectively.
(3)   See calculations for the amounts presented in the following
      reconciliation.



                                       35
<Page>


The following schedule reconciles the Operating Partnership's basic weighted
average units to the basic and diluted weighted average units presented above:

<Table>
<Caption>
                                                                   Three Months                    Six Months
                                                                  Ended June 30,                 Ended June 30,
                                                               2001            2000           2001            2000
----------------------------------------------------------------------------------------------------------------------
<S>                                                         <C>             <C>              <C>            <C>
Basic weighted average units:                                64,476          66,627           64,621         66,527
Add: Weighted average preferred units
      (after conversion to common units)                      6,359           6,457            6,359          6,537
Stock options                                                   209             200              218            173
----------------------------------------------------------------------------------------------------------------------

Diluted weighted average units:                              71,044          73,284           71,198         73,237
======================================================================================================================
</Table>

INFLATION

The Operating Partnership's leases with the majority of its tenants provide for
recoveries and escalation charges based upon the tenant's proportionate share
of, and/or increases in, real estate taxes and certain operating costs, which
reduce the Operating Partnership's exposure to increases in operating costs
resulting from inflation.



                                       36
<Page>


ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk is the exposure to loss resulting from changes in interest rates,
foreign currency exchange rates, commodity prices and equity prices. In pursuing
its business plan, the primary market risk to which the Operating Partnership is
exposed is interest rate risk. Changes in the general level of interest rates
prevailing in the financial markets may affect the spread between the Operating
Partnership's yield on invested assets and cost of funds and, in turn, our
ability to make distributions or payments to our investors.

Approximately $1.6 billion of the Operating Partnership's long-term debt bears
interest at fixed rates and therefore the fair value of these instruments is
affected by changes in market interest rates. The following table presents
principal cash flows (in thousands) based upon maturity dates of the debt
obligations and the related weighted-average interest rates by expected maturity
dates for the fixed rate debt. The interest rate on the variable rate debt as of
June 30, 2001 ranged from LIBOR plus 65 basis points to LIBOR plus 80 basis
points.

JUNE 30, 2001

<Table>
<Caption>
DEBT,                         7/1/01 -
INCLUDING CURRENT PORTION     12/31/01      2002        2003       2004       2005   THEREAFTER        TOTAL   FAIR VALUE
-------------------------     --------      ----        ----       ----       ----   ----------        -----   ----------

<S>                            <C>       <C>       <C>        <C>        <C>          <C>        <C>          <C>
Fixed Rate                      $3,650    $3,260    $195,500   $312,110   $254,598     $843,004   $1,612,122   $1,619,032

Average Interest Rate            9.08%    10.25%       7.31%      7.34%      7.14%        7.53%        7.42%

Variable Rate                                        $76,500                            $32,178    $ 108,678    $ 108,678
</Table>

While the Operating Partnership has not experienced any significant credit
losses, in the event of a significant rising interest rate environment and/or
economic downturn, defaults could increase and result in losses to the Operating
Partnership which adversely affect its operating results and liquidity.



                                       37
<Page>


                             MACK-CALI REALTY, L.P.

                           PART II - OTHER INFORMATION

ITEM 1.     LEGAL PROCEEDINGS

            Reference is made to "Other" in Note 13 (Commitments and
            Contingencies) to the Consolidated Financial Statements, which is
            specifically incorporated by reference herein.

ITEM 2.     CHANGES IN SECURITIES AND USE OF PROCEEDS

            Not Applicable.

ITEM 3.     DEFAULTS UPON SENIOR SECURITIES

            Not Applicable.

ITEM 4.     SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

            Not Applicable.

ITEM 5.     OTHER INFORMATION

            Not Applicable.


                                       38
<Page>



                             MACK-CALI REALTY, L.P.

                     PART II - OTHER INFORMATION (CONTINUED)

                                ITEM 6 - EXHIBITS

(a)   Exhibits

      The following exhibits are filed herewith or are incorporated by reference
      to exhibits previously filed:

      EXHIBIT
      NUMBER      EXHIBIT TITLE

      *3.1        Restated Charter of Mack-Cali Realty Corporation dated June
                  11, 2001.

       3.2        Amended and Restated Bylaws of Mack-Cali Realty Corporation
                  dated June 10, 1999 (filed as Exhibit 3.2 to the Corporation's
                  Form 8-K dated June 10, 1999 and incorporated herein by
                  reference).

       3.3        Second Amended and Restated Agreement of Limited Partnership
                  of Mack-Cali Realty, L.P. dated December 11, 1997 (filed as
                  Exhibit 10.110 to the Corporation's Form 8-K dated December
                  11, 1997 and incorporated herein by reference).

       3.4        Amendment No. 1 to the Second Amended and Restated Agreement
                  of Limited Partnership of Mack-Cali Realty, L.P. dated August
                  21, 1998 (filed as Exhibit 3.1 to the Corporation's and the
                  Operating Partnership's Registration Statement on Form S-3,
                  Registration No. 333-57103, and incorporated herein by
                  reference).

       3.5        Second Amendment to the Second Amended and Restated Agreement
                  of Limited Partnership of Mack-Cali Realty, L.P. dated July 6,
                  1999 (filed as Exhibit 10.1 to the Operating Partnership's
                  Form 8-K dated July 6, 1999 and incorporated herein by
                  reference).

       4.1        Amended and Restated Shareholder Rights Agreement, dated as of
                  March 7, 2000, between Mack-Cali Realty Corporation and
                  EquiServe Trust Company, N.A., as Rights Agent (filed as
                  Exhibit 4.1 to the Operating Partnership's Form 8-K dated
                  March 7, 2000 and incorporated herein by reference).

       4.2        Amendment No. 1 to the Amended and Restated Shareholder Rights
                  Agreement, dated as of June 27, 2000, by and among Mack-Cali
                  Realty Corporation and Equiserve Trust Company, N.A. (filed as
                  Exhibit 4.1 to the Operating Partnership's Form 8-K dated June
                  27, 2000).

       4.3        Indenture dated as of March 16, 1999, by and among Mack-Cali
                  Realty, L.P., as issuer, Mack-Cali Realty Corporation, as
                  guarantor, and Wilmington Trust Company, as trustee (filed as
                  Exhibit 4.1 to the Operating Partnership's Form 8-K dated
                  March 16, 1999 and incorporated herein by reference).

       4.4        Supplemental Indenture No. 1 dated as of March 16, 1999, by
                  and among Mack-Cali Realty, L.P., as issuer, and Wilmington
                  Trust Company, as trustee (filed as Exhibit 4.2 to the
                  Operating Partnership's Form 8-K dated March 16, 1999 and
                  incorporated herein by reference).


                                       39
<Page>


      EXHIBIT
      NUMBER      EXHIBIT TITLE

       4.5        Supplemental Indenture No. 2 dated as of August 2, 1999, by
                  and among Mack-Cali Realty, L.P., as issuer, and Wilmington
                  Trust Company, as trustee (filed as Exhibit 4.4 to the
                  Operating Partnership's Form 10-Q dated June 30, 1999 and
                  incorporated herein by reference).

       4.6        Supplemental Indenture No. 3 dated as of December 21, 2000, by
                  and among Mack-Cali Realty, L.P., as issuer, and Wilmington
                  Trust Company, as trustee (filed as Exhibit 4.2 to the
                  Operating Partnership's Form 8-K dated December 21, 2000 and
                  incorporated herein by reference).

       4.7        Supplemental Indenture No. 4 dated as of January 29, 2001, by
                  and among Mack-Cali Realty, L.P., as issuer, and Wilmington
                  Trust Company, as trustee (filed as Exhibit 4.2 to the
                  Operating Partnership's Form 8-K dated January 29, 2001 and
                  incorporated herein by reference).

       10.1       Amended and Restated Employment Agreement dated as of July 1,
                  1999 between Mitchell E. Hersh and Mack-Cali Realty
                  Corporation (filed as Exhibit 10.2 to the Operating
                  Partnership's Form 10-Q dated June 30, 1999 and incorporated
                  herein by reference).

       10.2       Second Amended and Restated Employment Agreement dated as of
                  July 1, 1999 between Timothy M. Jones and Mack-Cali Realty
                  Corporation (filed as Exhibit 10.3 to the Operating
                  Partnership's Form 10-Q dated June 30, 1999 and incorporated
                  herein by reference).

       10.3       Second Amended and Restated Employment Agreement dated as of
                  July 1, 1999 between Barry Lefkowitz and Mack-Cali Realty
                  Corporation (filed as Exhibit 10.6 to the Operating
                  Partnership's Form 10-Q dated June 30, 1999 and incorporated
                  herein by reference).

       10.4       Second Amended and Restated Employment Agreement dated as of
                  July 1, 1999 between Roger W. Thomas and Mack-Cali Realty
                  Corporation (filed as Exhibit 10.7 to the Operating
                  Partnership's Form 10-Q dated June 30, 1999 and incorporated
                  herein by reference).

       10.5       Employment Agreement dated as of December 5, 2000 between
                  Michael Grossman and Mack-Cali Realty Corporation (filed as
                  Exhibit 10.5 to the Operating Partnership's Form 10-K for the
                  year ended December 31, 2000 and incorporated herein by
                  reference).

       10.6       Restricted Share Award Agreement dated as of July 1, 1999
                  between Mitchell E. Hersh and Mack-Cali Realty Corporation
                  (filed as Exhibit 10.8 to the Operating Partnership's Form
                  10-Q dated June 30, 1999 and incorporated herein by
                  reference).

       10.7       Restricted Share Award Agreement dated as of July 1, 1999
                  between Timothy M. Jones and Mack-Cali Realty Corporation
                  (filed as Exhibit 10.9 to the Operating Partnership's Form
                  10-Q dated June 30, 1999 and incorporated herein by
                  reference).

       10.8       Restricted Share Award Agreement dated as of July 1, 1999
                  between Barry Lefkowitz and Mack-Cali Realty Corporation
                  (filed as Exhibit 10.12 to the Operating Partnership's Form
                  10-Q dated June 30, 1999 and incorporated herein by
                  reference).


                                       40
<Page>



      EXHIBIT
      NUMBER      EXHIBIT TITLE

       10.9       Restricted Share Award Agreement dated as of July 1, 1999
                  between Roger W. Thomas and Mack-Cali Realty Corporation
                  (filed as Exhibit 10.13 to the Operating Partnership's Form
                  10-Q dated June 30, 1999 and incorporated herein by
                  reference).

       10.10      Restricted Share Award Agreement dated as of March 12, 2001
                  between Roger W. Thomas and Mack-Cali Realty Corporation
                  (filed as Exhibit 10.10 to the Operating Partnership's Form
                  10-Q dated March 31, 2001 and incorporated herein by
                  reference).

       10.11      Restricted Share Award Agreement dated as of March 12, 2001
                  between Michael Grossman and Mack-Cali Realty Corporation
                  (filed as Exhibit 10.11 to the Operating Partnership's Form
                  10-Q dated March 31, 2001 and incorporated herein by
                  reference).

       10.12      Amendment No. 3 to and Restatement of Revolving Credit
                  Agreement dated as of June 22, 2000, by and among Mack-Cali
                  Realty, L.P. and The Chase Manhattan Bank, Fleet National Bank
                  and Other Lenders Which May Become Parties Thereto with The
                  Chase Manhattan Bank, as administrative agent, Fleet National
                  Bank, as syndication agent, Bank of America, N.A., as
                  documentation agent, Chase Securities Inc. and FleetBoston
                  Robertson Stephens Inc., as arrangers, Bank One, N.A., First
                  Union National Bank and Commerzbank Aktiengesellschaft, as
                  senior managing agents, PNC Bank National Association, as
                  managing agent, and Societe Generale, Dresdner Bank AG, Wells
                  Fargo Bank, National Association, Bank Austria Creditanstalt
                  Corporate Finance, Inc., Bayerische Hypo-und Vereinsbank and
                  Summit Bank, as co-agents (filed as Exhibit 10.10 to the
                  Operating Partnership's Form 10-K for the year ended December
                  31, 2000 and incorporated herein by reference).

       10.13      Contribution and Exchange Agreement among The MK Contributors,
                  The MK Entities, The Patriot Contributors, The Patriot
                  Entities, Patriot American Management and Leasing Corp., Cali
                  Realty, L.P. and Cali Realty Corporation, dated September 18,
                  1997 (filed as Exhibit 10.98 to the Corporation's Form 8-K
                  dated September 19, 1997 and incorporated herein by
                  reference).

       10.14      First Amendment to Contribution and Exchange Agreement, dated
                  as of December 11, 1997, by and among the Cali Realty
                  Corporation and the Mack Group (filed as Exhibit 10.99 to the
                  Corporation's Form 8-K dated December 11, 1997 and
                  incorporated herein by reference).

       10.15      Employee Stock Option Plan of Mack-Cali Realty Corporation
                  (filed as Exhibit 10.1 to the Corporation's Post-Effective
                  Amendment No. 1 to Form S-8, Registration No. 333-44443, and
                  incorporated herein by reference).

       10.16      Director Stock Option Plan of Mack-Cali Realty Corporation
                  (filed as Exhibit 10.2 to the Corporation's Post-Effective
                  Amendment No. 1 to Form S-8, Registration No. 333-44443, and
                  incorporated herein by reference).

       10.17      2000 Employee Stock Option Plan (filed as Exhibit 10.1 to the
                  Corporation's Registration Statement on Form S-8, Registration
                  No. 333-52478, and incorporated herein by reference).

       10.18      2000 Director Stock Option Plan (filed as Exhibit 10.2 to the
                  Corporation's Registration Statement on Form S-8, Registration
                  No. 333-52478, and incorporated herein by reference).



                                       41
<Page>



      EXHIBIT
      NUMBER      EXHIBIT TITLE


       *10.19     Amended and Restated Mortgage and Security made as of May 18,
                  2001 between Cali Harborside (Fee) Associates L.P., a New
                  Jersey limited partnership, Cal-Harbor II & III Urban Renewal
                  Associates L.P., a New Jersey limited partnership, Cal-Harbor
                  IV Urban Renewal Associates L.P., a New Jersey limited
                  partnership and Cal-Harbor VI Urban Renewal Associates L.P., a
                  New Jersey limited partnership, and The Northwestern Mutual
                  Life Insurance Company, a Wisconsin corporation, and Principal
                  Life Insurance Company, an Iowa corporation, formerly known as
                  Principal Mutual Life Insurance Company.

       *10.20     Promissory Note of Cali Harborside (Fee) Associates L.P., a
                  New Jersey limited partnership, Cal-Harbor II & III Urban
                  Renewal Associates L.P., a New Jersey limited partnership,
                  Cal-Harbor IV Urban Renewal Associates L.P., a New Jersey
                  limited partnership and Cal-Harbor VI Urban Renewal Associates
                  L.P., a New Jersey limited partnership, dated as of May 18,
                  2001 in the amount of $35,000,000.00 payable to the order of
                  Principal Life Insurance Company, an Iowa corporation.

       *10.21     Promissory Note of Cali Harborside (Fee) Associates L.P., a
                  New Jersey limited partnership, Cal-Harbor II & III Urban
                  Renewal Associates L.P., a New Jersey limited partnership,
                  Cal-Harbor IV Urban Renewal Associates L.P., a New Jersey
                  limited partnership and Cal-Harbor VI Urban Renewal Associates
                  L.P., a New Jersey limited partnership, dated as of May 18,
                  2001 in the amount of $35,000,000.00 payable to the order of
                  The Northwestern Mutual Life Insurance Company, a Wisconsin
                  corporation.

       *10.22     Purchase and Sale Agreement dated August 3, 2001, between
                  Robert Martin Company, LLC, a New York limited liability
                  company, and 5/6 Skyline Realty L.L.C., a New York limited
                  liability company.

       *10.23     Partnership Interest Purchase Agreement dated August 3, 2001,
                  by and between Madeira-RMC L.P., a New York limited
                  partnership, Madeira Management Company, Inc., a Delaware
                  corporation, Merlot Management Company, Inc., a Delaware
                  corporation, Robert Martin Company, LLC, a New York limited
                  liability company, and Robert Martin Company, LLC, as agent
                  for 5/6 Skyline Realty L.L.C., a New York limited liability
                  company.

       *10.24     Nominee Agreement dated as of August 3, 2001, by and between
                  Robert Martin Company, LLC, a New York limited liability
                  company, and 5/6 Skyline Realty L.L.C., a New York limited
                  liability company.


(b)   Reports on Form 8-K

      The Operating Partnership did not file a Current Report on Form 8-K
      during the second quarter of 2001.

--------------
*filed herewith



                                       42
<Page>

                             MACK-CALI REALTY, L.P.

                                   SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



                                           Mack-Cali Realty, L.P.
                                           ---------------------------------
                                           (Registrant)
                                           By:  Mack-Cali Realty Corporation,
                                                its General Partner

Date: August 13, 2001                By:    /s/ Mitchell E. Hersh
                                            --------------------------------
                                            Mitchell E. Hersh
                                            Chief Executive Officer


Date: August 13, 2001                By:    /s/ Barry Lefkowitz
                                            --------------------------------
                                            Barry Lefkowitz
                                            Executive Vice President &
                                            Chief Financial Officer



                                       43