<Page>

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

                                    FORM 10-K

|X|   ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
      ACT OF 1934

      FOR THE FISCAL YEAR ENDED DECEMBER 31, 2001

|_|   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934

                        COMMISSION FILE NUMBER: 333-57103

                             MACK-CALI REALTY, L.P.
--------------------------------------------------------------------------------
             (Exact Name of Registrant as specified in its charter)

         DELAWARE                                               22-3315804
--------------------------------------------------------------------------------
(State or other jurisdiction of                                (IRS Employer
incorporation or organization)                               Identification No.)

11 COMMERCE DRIVE, CRANFORD, NEW JERSEY                          07016-3599
--------------------------------------------------------------------------------
(Address of principal executive offices)                          (Zip code)

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

Securities registered pursuant to Section 12(b) of the Act:

 (Title of Each Class)               (Name of Each Exchange on Which Registered)

           Securities registered pursuant to Section 12(g) of the Act:
                                      None

      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 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes |X| No |_|

      Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of the registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendments to this Form 10-K. |X|

      LOCATION OF EXHIBIT INDEX: The index of exhibits is contained in Part IV
herein on page number 60.

      DOCUMENTS INCORPORATED BY REFERENCE: Portions of the Mack-Cali Realty
Corporation's definitive proxy statement to be issued in conjunction with the
Mack-Cali Realty Corporation's annual meeting of shareholders to be held on May
14, 2002 are incorporated by reference in Part III of this Form 10-K.
<Page>

                                TABLE OF CONTENTS
                                    FORM 10-K

PART I                                                                  PAGE NO.
                                                                        --------

   Item 1  Business ........................................................   3
   Item 2  Properties.......................................................  15
   Item 3  Legal Proceedings................................................  46
   Item 4  Submission of Matters to a Vote of Security Holders..............  46

PART II

   Item 5  Market for Registrant's Common Equity and Related Stockholder
                Matters.....................................................  46
   Item 6  Selected Financial Data..........................................  47
   Item 7  Management's Discussion and Analysis of Financial Condition
                and Results of Operations...................................  48
   Item 7a Quantitative and Qualitative Disclosures About Market Risk.......  59
   Item 8  Financial Statements and Supplementary Data......................  59
   Item 9  Changes in and Disagreements with Accountants on Accounting
                and Financial Disclosure....................................  59

PART III

   Item 10 Directors and Executive Officers of the Registrant...............  60
   Item 11 Executive Compensation...........................................  60
   Item 12 Security Ownership of Certain Beneficial Owners and Management...  60
   Item 13 Certain Relationships and Related Transactions...................  60

PART IV

   Item 14 Exhibits, Financial Statements, Schedules and Reports
                on Form 8-K.................................................  60


                                       2
<Page>

                                     PART I

ITEM 1. BUSINESS

GENERAL

Mack-Cali Realty, L.P., a Delaware limited partnership (together with its
subsidiaries, the "Operating Partnership"), is a majority-owned subsidiary of
Mack-Cali Realty Corporation, a Maryland corporation (the "Corporation"). The
Operating Partnership owns and operates a real estate portfolio comprised
predominantly of Class A office and office/flex properties located primarily in
the Northeast. The Operating Partnership performs substantially all commercial
real estate leasing, management, acquisition, development and construction
services on an in-house basis. The Operating Partnership was formed on May 31,
1994. The Operating Partnership's executive offices are located at 11 Commerce
Drive, Cranford, New Jersey 07016, and its telephone number is (908) 272-8000.
The Corporation has an internet website at www.mack-cali.com.

As of December 31, 2001, the Operating Partnership owned or had interests in 267
properties, aggregating approximately 28.4 million square feet (collectively,
the "Properties"), plus developable land. The Properties are comprised of: (a)
259 wholly-owned or Operating Partnership controlled properties consisting of
153 office buildings and 94 office/flex buildings totaling approximately 26.6
million square feet, 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 (collectively,
the "Consolidated Properties"); and (b) seven office buildings and one
office/flex building aggregating 1.4 million square feet, owned by
unconsolidated joint ventures in which the Operating Partnership has investment
interests. Unless otherwise indicated, all references to square feet represent
net rentable area. As of December 31, 2001, the office, office/flex and
industrial/warehouse properties included in the Consolidated Properties
(excluding development properties in service for less than 12 months) were 94.6
percent leased to approximately 2,300 tenants. See Item 2: Properties. The
Properties are located in 10 states, primarily in the Northeast, and the
District of Columbia.

The general partner of the Operating Partnership is the Corporation, which has
elected to be treated and operated so as to qualify as a real estate investment
trust ("REIT") under the Internal Revenue Code of 1986, as amended. The common
stock, par value $0.01 (the "Common Stock") of the Corporation is listed on the
New York Stock Exchange and the Pacific Exchange under the symbol "CLI."
Substantially all of the Corporation's interests in the Properties are held
through, and its operations are conducted through, the Operating Partnership, or
through entities controlled by the Operating Partnership. As of February 14,
2002, 56,923,090 shares of Common Stock were outstanding. Also, as of February
14, 2002, the Corporation owned a 79.8 percent general partnership interest in
the Operating Partnership, assuming conversion of all preferred limited
partnership units of the Operating Partnership into common limited partnership
units. Without giving effect to the preferred limited partnership units of the
Operating Partnership, the Corporation would own an 87.7 percent general
partnership interest in the Operating Partnership. As used herein, the term
"Units" refers to common limited partnership interests in the Operating
Partnership. Units are redeemable for an equal number of shares of Common Stock
or cash.

The Operating Partnership's strategy has been to focus its operations,
acquisition and development of office properties in markets and sub-markets
where it believes it is, or can become, a significant and preferred owner and
operator. The Operating Partnership will continue this strategy by expanding,
through acquisitions and/or development in Northeast markets and sub-markets
where it has, or can achieve, similar status. The Operating Partnership believes
that its Properties have excellent locations and access and are well-maintained
and professionally managed. As a result, the Operating Partnership believes that
its Properties attract high quality tenants and achieve among the highest
rental, occupancy and tenant retention rates within their markets. The Operating
Partnership also believes that its extensive market knowledge provides it with a
significant competitive advantage which is further enhanced by its strong
reputation for, and emphasis on, delivering highly responsive, professional
management services. See "Business Strategies".

The Operating Partnership's executive officers have been employed by the
Corporation and/or its predecessor companies for an average of approximately 14
years.


                                       3
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BUSINESS STRATEGIES

OPERATIONS

REPUTATION: The Operating Partnership has established a reputation as a
highly-regarded landlord with an emphasis on delivering quality tenant services
in buildings it owns and/or manages. The Operating Partnership believes that its
continued success depends in part on enhancing its reputation as an operator of
choice, which will facilitate the retention of current tenants and the
attraction of new tenants. The Operating Partnership believes it provides a
superior level of service to its tenants, which should in turn allow the
Operating Partnership to outperform the market with respect to occupancy rates,
as well as improve tenant retention.

COMMUNICATION WITH TENANTS: The Operating Partnership emphasizes frequent
communication with tenants to ensure first-class service to the Properties.
Property managers generally are located on site at the Properties to provide
convenient access to management and to ensure that the Properties are
well-maintained. Property management's primary responsibility is to ensure that
buildings are operated at peak efficiency in order to meet both the Operating
Partnership's and tenants' needs and expectations. Property managers
additionally budget and oversee capital improvements and building system
upgrades to enhance the Properties' competitive advantages in their markets and
to maintain the quality of the Operating Partnership's properties.

Additionally, the Operating Partnership's in-house leasing representatives
develop and maintain long-term relationships with the Operating Partnership's
diverse tenant base and coordinate leasing, expansion, relocation and
build-to-suit opportunities within the Operating Partnership's portfolio. This
approach allows the Operating Partnership to offer office space in the
appropriate size and location to current or prospective tenants in any of its
sub-markets.

GROWTH

The Operating Partnership plans to continue to own and operate a portfolio of
properties in high-barrier-to-entry markets, with a primary focus in the
Northeast. The Operating Partnership's primary objectives are to maximize funds
from operations and to enhance the value of its portfolio through effective
management, acquisition, development and property sales strategies, as follows:

INTERNAL GROWTH: The Operating Partnership seeks to maximize the value of its
existing portfolio through implementing operating strategies designed to produce
increased effective rental and occupancy rates and decreased tenant installation
costs. The Operating Partnership continues to pursue internal growth through
re-leasing space at higher effective rents with contractual rent increases and
developing or redeveloping space for its diverse base of high credit tenants,
including IBM Corporation, Nabisco Inc. and Allstate Insurance Company. In
addition, the Operating Partnership seeks economies of scale through volume
discounts to take advantage of its size and dominance in particular sub-markets,
and operating efficiencies through the use of in-house management, leasing,
marketing, financing, accounting, legal, development and construction services.

ACQUISITIONS: The Operating Partnership also believes that growth opportunities
exist through acquiring operating properties or properties for redevelopment
with attractive returns in its core Northeast sub-markets where, based on its
expertise in leasing, managing and operating properties, it believes it is, or
can become, a significant and preferred owner and operator. The Operating
Partnership intends to acquire, invest in or redevelop additional properties
that: (i) provide attractive initial yields with potential for growth in cash
flow from operations; (ii) are well-located, of high quality and competitive in
their respective sub-markets; (iii) are located in its existing sub-markets or
in sub-markets in which the Operating Partnership can become a significant and
preferred owner and operator; and (iv) have been under-managed or are otherwise
capable of improved performance through intensive management, capital
improvements and/or leasing that should result in increased occupancy and rental
revenues.

DEVELOPMENT: The Operating Partnership seeks to selectively develop additional
properties where it believes such development will result in a favorable
risk-adjusted return on investment in coordination with the above operating
strategies. Such development primarily will occur: (i) when leases have been
executed prior to construction; (ii) in stable core Northeast sub-markets where
the demand for such space exceeds available supply; and (iii) where the
Operating Partnership is, or can become, a significant and preferred owner and
operator.


                                       4
<Page>

The Operating Partnership, directly or through joint ventures, is underway on
the construction of six office and office/flex buildings. The most significant
of this development activity is currently at the Operating Partnership's
Harborside Financial Center office complex in Jersey City, New Jersey. Three of
the six properties currently under construction are located at the complex and
consist of two office towers, aggregating approximately 1.6 million square feet,
and a 350-room Hyatt Regency hotel. See "Liquidity and Capital Resources -
Capitalization."

PROPERTY SALES: The Operating Partnership plans to sell substantially all of its
properties located in the Southwestern and Western regions, using such proceeds
primarily to invest in property acquisitions and development projects in its
core Northeast markets. Additionally, while management's principal intention is
to own and operate its properties on a long-term basis, it is constantly
assessing the attributes of each of its properties, with a particular focus on
the supply and demand fundamentals of the sub-markets in which they are located.
Based on these ongoing assessments, the Operating Partnership may, from time to
time, decide to sell any of its properties.

FINANCIAL

The Operating Partnership currently intends to maintain a ratio of
debt-to-undepreciated assets (total debt of the Operating Partnership as a
percentage of total undepreciated assets) of approximately 50 percent or less.
As of December 31, 2001, the Operating Partnership's total debt constituted
approximately 41.5 percent of total undepreciated assets of the Operating
Partnership. 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 ("Moody's") has assigned its Baa3 rating to existing and
prospective senior unsecured debt of the Operating Partnership and its Ba1
rating to prospective preferred stock offerings of the Corporation. Although
there is no limit in the Operating Partnership's organizational documents on the
amount of indebtedness that the Operating Partnership may incur or the
requirement for maintenance of investment grade credit ratings, the Operating
Partnership has entered into certain financial agreements which contain
covenants that limit the Operating Partnership's ability to incur indebtedness
under certain circumstances. The Operating Partnership intends to conduct its
operations so as to best be able to maintain its investment grade rated status.
The Operating Partnership intends to utilize the most appropriate sources of
capital for future acquisitions, development, capital improvements and other
investments, which may include funds from operating activities, proceeds from
property sales, short-term and long-term borrowings (including draws on the
Operating Partnership's revolving credit facility), and the issuance of
additional debt or equity securities.

EMPLOYEES

As of December 31, 2001, the Operating Partnership had no employees. The
Corporation had approximately 380 employees.

COMPETITION

The leasing of real estate is highly competitive. The Properties compete for
tenants with lessors and developers of similar properties located in their
respective markets primarily on the basis of location, rent charged, services
provided, and the design and condition of the Properties. The Operating
Partnership also experiences competition when attempting to acquire or dispose
of real estate, including competition from domestic and foreign financial
institutions, other REITs, life insurance companies, pension trusts, trust
funds, partnerships and individual investors.

REGULATIONS

Many laws and governmental regulations are applicable to the Properties and
changes in these laws and regulations, or their interpretation by agencies and
the courts, occur frequently.


                                       5
<Page>

Under various laws and regulations relating to the protection of the
environment, an owner of real estate may be held liable for the costs of removal
or remediation of certain hazardous or toxic substances located on or in the
property. These laws often impose liability without regard to whether the owner
was responsible for, or even knew of, the presence of such substances. The
presence of such substances may adversely affect the owner's ability to rent or
sell the property or to borrow using such property as collateral and may expose
it to liability resulting from any release of, or exposure to, such substances.
Persons who arrange for the disposal or treatment of hazardous or toxic
substances at another location may also be liable for the costs of removal or
remediation of such substances at the disposal or treatment facility, whether or
not such facility is owned or operated by such person. Certain environmental
laws impose liability for release of asbestos-containing materials into the air,
and third parties may also seek recovery from owners or operators of real
properties for personal injury associated with asbestos-containing materials and
other hazardous or toxic substances.

In connection with the ownership (direct or indirect), operation, management and
development of real properties, the Operating Partnership may be considered an
owner or operator of such properties or as having arranged for the disposal or
treatment of hazardous or toxic substances and, therefore, potentially liable
for removal or remediation costs, as well as certain other related costs,
including governmental penalties and injuries to persons and property.

There can be no assurance that (i) future laws, ordinances or regulations will
not impose any material environmental liability, (ii) the current environmental
condition of the Properties will not be affected by tenants, by the condition of
land or operations in the vicinity of the Properties (such as the presence of
underground storage tanks), or by third parties unrelated to the Operating
Partnership, or (iii) the Operating Partnership's assessments reveal all
environmental liabilities and that there are no material environmental
liabilities of which the Operating Partnership is aware. If compliance with the
various laws and regulations, now existing or hereafter adopted, exceeds the
Operating Partnership's budgets for such items, the Operating Partnership's
ability to make expected distributions to stockholders could be adversely
affected.

There are no other laws or regulations which have a material effect on the
Operating Partnership's operations, other than typical federal, state and local
laws affecting the development and operation of real property, such as zoning
laws.

INDUSTRY SEGMENTS

The Operating Partnership operates in only one industry segment - real estate.
The Operating Partnership does not have any foreign operations and its business
is not seasonal.

RECENT DEVELOPMENTS

In September 2001, the Operating Partnership increased its quarterly common
unit distribution by 1.6 percent, commencing with the distribution with
respect to the third quarter of 2001, from $0.61 per common unit ($2.44 per
common unit on an annualized basis) to $0.62 per common unit ($2.48 per
common unit on an annualized basis). The Operating Partnership declared a
cash common unit distribution of $0.62 per common unit on December 18, 2001
to unitholders of record as of January 4, 2002, with respect to the fourth
quarter of 2001. The distributions were paid on January 22, 2002.

In 2001, the Operating Partnership:

      o     acquired ten office and office/flex properties aggregating 901,888
            square feet at a total cost of approximately $96.6 million;
      o     placed in service two office properties aggregating 405,254 square
            feet at a total cost of approximately $82.3 million;
      o     acquired two developable land parcels at a total cost of
            approximately $3.7 million; and
      o     sold seven office properties aggregating 1,021,823 square feet, a
            multi-family residential property and a vacant pier for aggregate
            net sales proceeds of approximately $164.1 million.

Additionally, in 2001, the Operating Partnership, through unconsolidated joint
ventures, placed in service a 369,682 square foot office property; and sold two
office properties, aggregating 372,926 square feet, for aggregate net sales
proceeds of approximately $84.5 million. See Note 4 to the Financial Statements
for further information regarding joint venture activity.


                                       6
<Page>

OPERATING PROPERTY ACQUISITIONS

The Operating Partnership acquired the following operating properties during the
year ended December 31, 2001:

<Table>
<Caption>
----------------------------------------------------------------------------------------------------------------------
                                                                                                         Investment by
                                                                                                             Operating
                                                                                                           Partnership
Acquisition                                                                        # of       Rentable             (a)
Date            Property/Portfolio Name       Location                           Bldgs.    Square Feet  (IN THOUSANDS)
----------------------------------------------------------------------------------------------------------------------
<S>             <C>                           <C>                                     <C>      <C>             <C>
OFFICE:
4/6/01          4 & 6 Campus Drive            Parsippany, Morris County, NJ           2        295,766         $48,404
11/6/01         9 Campus Drive(b)             Parsippany, Morris County, NJ           1        156,495          15,073
----------------------------------------------------------------------------------------------------------------------

Total Office Property Acquisitions:                                                   3        452,261         $63,477
----------------------------------------------------------------------------------------------------------------------

OFFICE/FLEX:
2/14/01          31 & 41 Twosome Drive        Moorestown, Burlington County, NJ       2        127,250         $ 7,155
4/27/01          1245 & 1247 N. Church St,
                   2 Twosome Drive            Moorestown, Burlington County, NJ       3        154,200          11,083
8/3/01           5 & 6 Skyline Drive(c)       Hawthorne, Westchester County, NY       2        168,177          14,846
----------------------------------------------------------------------------------------------------------------------

Total Office/Flex Property Acquisitions:                                              7        449,627         $33,084
----------------------------------------------------------------------------------------------------------------------

Total Operating Property Acquisitions:                                               10        901,888         $96,561
======================================================================================================================
</Table>

(a)   Transactions were funded primarily through borrowings on the Operating
      Partnership's revolving credit facility, from net proceeds received in the
      sale or sales of rental property, and/or from the Operating Partnership's
      cash reserves.
(b)   The Operating Partnership acquired the remaining 50 percent interest in
      this property from an unconsolidated joint venture. Investment by
      Operating Partnership represents the net cost of acquiring the remaining
      interest.
(c)   The property was acquired from an entity whose principals include Timothy
      M. Jones, Robert F. Weinberg and Martin S. Berger, each of whom are
      affiliated with the Operating Partnership as the President of the
      Corporation, a current member of the Board of Directors and a former
      member of the Board of Directors of the Corporation, respectively. See
      Note 19 to the Financial Statements.

PROPERTIES PLACED IN SERVICE

The Operating Partnership placed in service the following properties during the
year ended December 31, 2001:

<Table>
<Caption>
--------------------------------------------------------------------------------------------------------------------
                                                                                                       Investment by
                                                                                                           Operating
Date Placed                                                                       # of     Rentable   Partnership(a)
in Service       Property/Portfolio Name      Location                          Bldgs.  Square Feet   (IN THOUSANDS)
--------------------------------------------------------------------------------------------------------------------
OFFICE:
<S>              <C>                          <C>                                    <C>    <C>              <C>
1/15/01          105 Eisenhower Parkway       Roseland, Essex County, NJ             1      220,000          $47,328
3/1/01           8181 East Tufts Avenue       Denver, Denver County, CO              1      185,254           34,993
--------------------------------------------------------------------------------------------------------------------

Total Properties Placed in Service                                                   2      405,254          $82,321
====================================================================================================================
</Table>

(a)   Development costs were funded primarily through draws on the Operating
      Partnership's revolving credit facility.

LAND ACQUISITIONS

On January 5, 2001, the Operating Partnership acquired approximately 7.1 acres
of developable land located in Littleton, Arapahoe County, Colorado, for
approximately $2.7 million. 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 currently held for sale (see Note 7 to the
Financial Statements).


                                       7
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On September 13, 2001, the Operating Partnership acquired approximately 5.0
acres of developable land located in Elmsford, Westchester County, New York. The
land was acquired for approximately $1.0 million from an entity whose principals
include Timothy M. Jones, Robert F. Weinberg and Martin S. Berger, each of whom
are affiliated with the Corporation as the President of the Operating
Partnership, a current member of the Board of Directors and a former member of
the Board of Directors of the Corporation, respectively. The Operating
Partnership has commenced construction of a fully pre-leased 33,000 square-foot
office/flex building on the acquired land.

PROPERTY SALES

The Operating Partnership sold the following properties during the year ended
December 31, 2001:

<Table>
<Caption>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                            Net Sales       Net Book        Realized
Sale                                                                 # of     Rentable       Proceeds          Value     Gain/(Loss)
Date      Property Name            Location                        Bldgs.  Square Feet (IN THOUSANDS) (IN THOUSANDS)  (IN THOUSANDS)
------------------------------------------------------------------------------------------------------------------------------------
<S>       <C>                      <C>                                  <C>    <C>           <C>            <C>             <C>
OFFICE:
6/1/01    1777 N.E. Loop 410       San Antonio, Bexar County, TX        1      256,137       $ 21,313       $ 16,703        $ 4,610
6/15/01   14511 Falling Creek      Houston, Harris County, TX           1       70,999          2,982          2,458            524
7/17/01   8214 Westchester         Dallas, Dallas County, TX            1       95,509          8,966          8,465            501
8/1/01    2600 Westown Parkway     West Des Moines, Polk County, IA     1       72,265          5,165          5,570           (405)
9/26/01   1709 New York Ave, NW    Washington, DC                       1      166,000         65,151         50,640         14,511
11/14/01  200 Concord Plaza Drive  San Antonio, Bexar County, TX        1      248,700         30,927         32,609         (1,682)
12/21/01  5225 Katy Freeway        Houston, Harris County, TX           1      112,213          6,887          7,393           (506)

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

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

Totals:                                                                 8    1,021,823       $164,084       $129,155        $34,929
====================================================================================================================================
</Table>

(a)   Net sales proceeds consisted of $1,330 in cash and $2,027 of a note
      receivable due in 2002.

In January 2002, the Operating Partnership sold 25 Martine Avenue, a 124-unit
multi-family residential property located in White Plains, Westchester County,
New York, for net sales proceeds of approximately $17.8 million, which resulted
in a gain of approximately $7.3 million.

FINANCING ACTIVITY

ISSUANCES OF SENIOR UNSECURED NOTES

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 (see Note 8 to
the Financial Statements). The senior unsecured notes were issued at a discount
of approximately $1.7 million.

MORTGAGE FINANCING

On May 18, 2001, the Operating Partnership obtained an additional $70.0 million
in proceeds from Northwestern Mutual Life Insurance Operating Partnership and
Principal Capital Management, LLC on a mortgage loan secured by Harborside
Financial Center Plazas 2 and 3. The mortgage on Plazas 2 and 3, with a balance
of $162.0 million at December 31, 2001, bears interest at a weighted average
fixed rate of 7.36 percent and matures in January 2006. Proceeds from the
financing were used to pay down outstanding borrowings on the Operating
Partnership's revolving credit facility.

STOCK REPURCHASES

On September 13, 2000, the Board of Directors authorized an increase to the
Corporation's repurchase program under which the Corporation is permitted to
purchase up to an additional $150.0 million of the Corporation's outstanding
common stock ("Repurchase Program"). From that date through February 14,
2002, the Corporation purchased for constructive retirement under the
Repurchase Program 3.3 million shares of its outstanding common stock for an
aggregate cost of approximately $91.1 million, of which 1.3 million shares
were repurchased in 2001 for a total cost of $35.4 million. Concurrent with
these purchases, the Corporation sold to the Operating Partnership 3.3
million common units for approximately $91.1 million. As a result, the
Corporation has a remaining authorization to repurchase up to an additional
$58.9 million

                                       8
<Page>

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.

RISK FACTORS

Our results from operations and ability to make distributions on our equity and
debt service on our indebtedness may be affected by the risk factors set forth
below. All investors should consider the following risk factors before deciding
to purchase securities of the Operating Partnership. The Operating Partnership
refers to itself as "we" or "our" in the following risk factors.

WE ARE DEPENDENT UPON THE ECONOMICS OF THE NORTHEASTERN OFFICE MARKETS.

A majority of our revenues are derived from our properties located in the
Northeast, particularly in New Jersey, New York, Pennsylvania and Connecticut.
Adverse economic developments in this region could adversely impact the
operations of our properties and, therefore, our profitability. Because our
portfolio consists primarily of office and office/flex buildings (as compared to
a more diversified real estate portfolio), a decline in the economy and/or a
decline in the demand for office space may adversely affect our ability to make
distributions or payments to our investors.

The current economic downturn has resulted in a receding real estate market, the
relocation of companies and an uncertain economic future for many businesses. We
are uncertain how long the current downturn will last. The terrorist attacks on
September 11, 2001 in New York and Washington, D.C. (and the uncertainty as to
whether there may be more) may exacerbate this downturn or cause it to linger
and may also result in increases in certain of our expenses for items such as
security. The current economic downturn and the events of September 11 may also
be having a negative economic impact on most industries, including securities,
insurance services, telecommunications and computer systems and other
technology, businesses in which many of our tenants are involved. Such economic
impact may cause our tenants to have difficulty or be unable to meet their
obligations to us.

OUR PERFORMANCE IS SUBJECT TO RISKS ASSOCIATED WITH THE REAL ESTATE INDUSTRY.

GENERAL: Our ability to make distributions or payments to our investors depends
on the ability of our properties to generate funds in excess of operating
expenses (including scheduled principal payments on debt and capital expenditure
requirements). Events or conditions that are beyond our control may adversely
affect our operations and the value of our properties. Such events or conditions
could include:

      o     changes in the general economic climate;
      o     changes in local conditions such as oversupply of office space or a
            reduction in demand for office space;
      o     decreased attractiveness of our properties to potential tenants;
      o     competition from other office and office/flex buildings;
      o     our inability to provide adequate maintenance;
      o     increased operating costs, including insurance premiums and real
            estate taxes, due to inflation and other factors which may not
            necessarily be offset by increased rents;
      o     changes in laws and regulations (including tax, environmental and
            housing laws and regulations) and agency or court interpretations of
            such laws and regulations and the related costs of compliance;
      o     changes in interest rate levels and the availability of financing;
      o     the inability of a significant number of tenants to pay rent;
      o     our inability to rent office space on favorable terms; and
      o     civil unrest, earthquakes and other natural disasters or acts of God
            that may result in uninsured losses.

FINANCIALLY DISTRESSED TENANTS MAY BE UNABLE TO PAY RENT: If a tenant defaults,
we may experience delays and incur substantial costs in enforcing our rights as
landlord and protecting our investments. If a tenant files for bankruptcy, a
potential court judgment rejecting and terminating such tenant's lease could
adversely affect our ability to make distributions or payments to our investors.


                                       9
<Page>

OUR INSURANCE COVERAGE ON OUR PROPERTIES MAY BE INADEQUATE: We currently carry
comprehensive insurance on all of our properties, including insurance for
liability, fire and flood. Our existing insurance policies expire in April 2002.
As a consequence of the September 11, 2001 terrorist attacks, we may be unable
to renew or duplicate our current insurance coverage in adequate amounts or at
reasonable prices. In addition, insurance companies may no longer offer coverage
against certain types of losses, such as losses due to terrorist acts and toxic
mold, or, if offered, these types of insurance may be prohibitively expensive.
If any or all of the foregoing should occur, we may not have insurance coverage
against certain types of losses and/or there may be decreases in the limits of
insurance available. Should an uninsured loss or a loss in excess of our insured
limits occur, we could lose all or a portion of the capital we have invested in
a property or properties, as well as the anticipated future revenue from the
property or properties. Nevertheless, we might remain obligated for any mortgage
debt or other financial obligations related to the property or properties. We
cannot guarantee that material losses in excess of insurance proceeds will not
occur in the future. If any of our properties were to experience a catastrophic
loss, it could seriously disrupt our operations, delay revenue and result in
large expenses to repair or rebuild the property. Such events could adversely
affect our ability to make distributions or payments to our investors.

ILLIQUIDITY OF REAL ESTATE LIMITS OUR ABILITY TO ACT QUICKLY: Real estate
investments are relatively illiquid. Such illiquidity may limit our ability to
react quickly in response to changes in economic and other conditions. If we
want to sell an investment, we might not be able to dispose of that investment
in the time period we desire, and the sales price of that investment might not
recoup or exceed the amount of our investment. The prohibition in the Internal
Revenue Code of 1986, as amended, and related regulations on a real estate
investment trust holding property for sale also may restrict our ability to sell
property. In addition, we acquired a significant number of our properties from
individuals to whom we issued limited partnership units as part of the purchase
price. In connection with the acquisition of these properties, in order to
preserve such individual's tax deferral, we contractually agreed not to sell or
otherwise transfer the properties for a specified period of time, subject to
certain exceptions. As of December 31, 2001, 141 of our properties, with an
aggregate net book value of approximately $1.9 billion, were subject to these
restrictions. The above limitations on our ability to sell our investments could
adversely affect our ability to make distributions or payments to our investors.

AMERICANS WITH DISABILITIES ACT COMPLIANCE COULD BE COSTLY: Under the Americans
with Disabilities Act of 1990, all public accommodations and commercial
facilities must meet certain federal requirements related to access and use by
disabled persons. Compliance with the ADA requirements could involve removal of
structural barriers from certain disabled persons' entrances. Other federal,
state and local laws may require modifications to or restrict further
renovations of our properties with respect to such accesses. Although we believe
that our properties are substantially in compliance with present requirements,
noncompliance with the ADA or related laws or regulations could result in the
United States government imposing fines or private litigants being awarded
damages against us. Such costs may adversely affect our ability to make
distributions or payments to our investors.

ENVIRONMENTAL PROBLEMS ARE POSSIBLE AND MAY BE COSTLY: Various federal, state
and local laws and regulations subject property owners or operators to liability
for the costs of removal or remediation of certain hazardous or toxic substances
located on or in the property. These laws often impose liability without regard
to whether the owner or operator was responsible for or even knew of the
presence of such substances. The presence of or failure to properly remediate
hazardous or toxic substances (such as toxic mold) may adversely affect our
ability to rent, sell or borrow against contaminated property. Various laws and
regulations also impose liability on persons who arrange for the disposal or
treatment of hazardous or toxic substances at another location for the costs of
removal or remediation of such substances at the disposal or treatment facility.
These laws often impose liability whether or not the person arranging for such
disposal ever owned or operated the disposal facility. Certain other
environmental laws and regulations impose liability on owners or operators of
property for injuries relating to the release of asbestos-containing materials
into the air. As owners and operators of property and as potential arrangers for
hazardous substance disposal, we may be liable under such laws and regulations
for removal or remediation costs, governmental penalties, property damage,
personal injuries and related expenses. Payment of such costs and expenses could
adversely affect our ability to make distributions or payments to our investors.


                                       10
<Page>

COMPETITION FOR ACQUISITIONS MAY RESULT IN INCREASED PRICES FOR PROPERTIES: We
plan to acquire additional properties in New Jersey, New York and Pennsylvania
and in the Northeast generally. We may be competing for investment opportunities
with entities that have greater financial resources. Several office building
developers and real estate companies may compete with us in seeking properties
for acquisition, land for development and prospective tenants. Such competition
may adversely affect our ability to make distributions or payments to our
investors by:

      o     reducing the number of suitable investment opportunities offered to
            us;
      o     increasing the bargaining power of property owners;
      o     interfering with our ability to attract and retain tenants;
      o     increasing vacancies which lowers market rental rates and limits our
            ability to negotiate rental rates; and/or
      o     adversely affecting our ability to minimize expenses of operation.

DEVELOPMENT OF REAL ESTATE COULD BE COSTLY: As part of our operating strategy,
we may acquire land for development under certain conditions. Included among the
risks of the real estate development business are the following, which may
adversely affect our ability to make distributions or payments to our investors:

      o     financing for development projects may not be available on favorable
            terms;
      o     long-term financing may not be available upon completion of
            construction; and
      o     failure to complete construction on schedule or within budget may
            increase debt service expense and construction costs.

PROPERTY OWNERSHIP THROUGH JOINT VENTURES COULD SUBJECT US TO THE CONTRARY
BUSINESS OBJECTIVES OF OUR CO-VENTURERS: We, from time to time, invest in
joint ventures or partnerships in which we do not hold a controlling
interest. These investments involve risks that do not exist with properties
in which we own a controlling interest, including the possibility that our
co-venturers or partners may, at any time, have business, economic or other
objectives that are inconsistent with our objectives. Because we lack a
controlling interest, our co-venturers or partners may be in a position to
take action contrary to our instructions or requests or contrary to our
policies or objectives. While we seek protective rights against such company
action, there can be no assurance that we will be successful in procuring any
such protective rights, or if procured, that the rights will be sufficient to
fully protect us against contrary actions. Our organizational documents do
not limit the amount of available funds that we may invest in joint ventures
or partnerships. If the objectives of our co-venturers or partners are
inconsistent with ours, it may adversely affect our ability to make
distributions or payments to our investors.

DEBT FINANCING COULD ADVERSELY AFFECT OUR ECONOMIC PERFORMANCE.

SCHEDULED DEBT PAYMENTS AND REFINANCING COULD ADVERSELY AFFECT OUR FINANCIAL
CONDITION: We are subject to the risks normally associated with debt financing.
These risks, including the following, may adversely affect our ability to make
distributions or payments to our investors:

      o     our cash flow may be insufficient to meet required payments of
            principal and interest;
      o     payments of principal and interest on borrowings may leave us with
            insufficient cash resources to pay operating expenses;
      o     we may not be able to refinance indebtedness on our properties at
            maturity; and
      o     if refinanced, the terms of refinancing may not be as favorable as
            the original terms of the related indebtedness.

As of December 31, 2001, we had total outstanding indebtedness of $1.7 billion
comprised of $1.1 billion of senior unsecured notes, outstanding borrowings of
$59.5 million under our unsecured $800.0 million revolving credit facility and
approximately $543.8 million of mortgage indebtedness. We may have to refinance
the principal due on our indebtedness at maturity, and we may not be able to
refinance any indebtedness we incur in the future.


                                       11
<Page>

If we are unable to refinance our indebtedness on acceptable terms, or at all,
events or conditions that may adversely affect our ability to make distributions
or payments to our investors include the following:

      o     we may need to dispose of one or more of our properties upon
            disadvantageous terms;
      o     prevailing interest rates or other factors at the time of
            refinancing could increase interest rates and, therefore, our
            interest expense;
      o     if we mortgage property to secure payment of indebtedness and are
            unable to meet mortgage payments, the mortgagee could foreclose upon
            such property or appoint a receiver to receive an assignment of our
            rents and leases; and
      o     foreclosures upon mortgaged property could create taxable income
            without accompanying cash proceeds and, therefore, hinder our
            ability to meet the real estate investment trust distribution
            requirements of the Internal Revenue Code.

RISING INTEREST RATES MAY ADVERSELY AFFECT OUR CASH FLOW: Outstanding borrowings
of approximately $59.5 million (as of December 31, 2001) under our revolving
credit facility and approximately $32.2 million (as of December 31, 2001) of our
mortgage indebtedness bear interest at variable rates. We may incur additional
indebtedness in the future that also bears interest at variable rates. Variable
rate debt creates higher debt service requirements if market interest rates
increase. Higher debt service requirements could adversely affect our ability to
make distributions or payments to our investors and/or cause us to default under
certain debt covenants.

OUR DEGREE OF LEVERAGE COULD ADVERSELY AFFECT OUR CASH FLOW: We fund acquisition
opportunities and development partially through short-term borrowings (including
our revolving credit facility), as well as from proceeds from property sales and
undistributed cash. We expect to refinance projects purchased with short-term
debt either with long-term indebtedness or equity financing depending upon the
economic conditions at the time of refinancing. The Board of Directors of
Mack-Cali Realty Corporation's, our general partner, has a general policy of
limiting the ratio of our indebtedness to total undepreciated assets (total debt
as a percentage of total undepreciated assets) to 50 percent or less, although
there is no limit in Mack-Cali Realty Corporation's or our organizational
documents on the amount of indebtedness that we may incur. However, we have
entered into certain financial agreements which contain financial and operating
covenants that limit our ability under certain circumstances to incur additional
secured and unsecured indebtedness. The Board of Directors could alter or
eliminate its current policy on borrowing at any time in its discretion. If this
policy were changed, we could become more highly leveraged, resulting in an
increase in debt service that could adversely affect our cash flow and our
ability to make distributions or payments to our investors and/or could cause an
increased risk of default on our obligations.

WE ARE DEPENDENT ON OUR KEY PERSONNEL WHOSE CONTINUED SERVICE IS NOT GUARANTEED.

We are dependent upon our executive officers for strategic business direction
and real estate experience. While we believe that we could find replacements for
these key personnel, loss of their services could adversely affect our
operations. We have entered into an employment agreement (including
non-competition provisions) which provides for a continuous four-year employment
term with each of Mitchell E. Hersh, Timothy M. Jones, Barry Lefkowitz and Roger
W. Thomas. We also have entered into an employment agreement (including
non-competition provisions) with Michael A. Grossman which provides for an
initial three year employment term and a continuous one-year term from and after
the two-year anniversary of the execution of the agreement. We do not have key
man life insurance for our executive officers.


                                       12
<Page>

CONSEQUENCES OF FAILURE TO QUALIFY AS A REAL ESTATE INVESTMENT TRUST COULD
ADVERSELY AFFECT OUR FINANCIAL CONDITION.

FAILURE TO MAINTAIN OWNERSHIP LIMITS COULD CAUSE US TO LOSE OUR QUALIFICATION AS
A REAL ESTATE INVESTMENT TRUST: In order for Mack-Cali Realty Corporation to
maintain its qualification as a real estate investment trust, not more than 50
percent in value of its outstanding stock may be actually and/or constructively
owned by five or fewer individuals (as defined in the Internal Revenue Code to
include certain entities). Mack-Cali Realty Corporation has limited the
ownership of its outstanding shares of common stock by any single stockholder to
9.8 percent of the outstanding shares of our common stock. The Board of
Directors of Mack-Cali Realty Corporation could waive this restriction if they
were satisfied, based upon the advice of tax counsel or otherwise, that such
action would be in the best interests of Mack-Cali Realty Corporation and would
not affect its qualifications as a real estate investment trust. Common stock of
Mack-Cali Realty Corporation acquired or transferred in breach of the limitation
may be redeemed by Mack-Cali Realty Corporation for the lesser of the price paid
and the average closing price for the 10 trading days immediately preceding
redemption or sold at the direction of us. Mack-Cali Realty Corporation may
elect to redeem such shares of common stock for limited partnership units, which
are nontransferable except in very limited circumstances. Any transfer of shares
of common stock which, as a result of such transfer, causes Mack-Cali Realty
Corporation to be in violation of any ownership limit will be deemed void.
Although Mack-Cali Realty Corporation currently intends to continue to operate
in a manner which will enable Mack-Cali Realty Corporation to continue to
qualify as a real estate investment trust, it is possible that future economic,
market, legal, tax or other considerations may cause Mack-Cali Realty
Corporation's Board of Directors to revoke the election for Mack-Cali Realty
Corporation to qualify as a real estate investment trust. Under Mack-Cali Realty
Corporation organizational documents, its Board of Directors can make such
revocation without the consent of Mack-Cali Realty Corporation's stockholders.

In addition, the consent of the holders of at least 85 percent of our
partnership units is required: (i) to merge (or permit the merger of) us with
another unrelated person, pursuant to a transaction in which we are not the
surviving entity; (ii) to dissolve, liquidate or wind up, or (iii) to convey or
otherwise transfer all or substantially all of our assets. As of December 31,
2001, Mack-Cali Realty Corporation, as our general partner, owned approximately
79.8 percent of our outstanding partnership units (assuming conversion of all
preferred limited partnership units).

TAX LIABILITIES AS A CONSEQUENCE OF FAILURE TO QUALIFY AS A REAL ESTATE
INVESTMENT TRUST: Mack-Cali Realty Corporation has elected to be treated and has
operated so as to qualify as a real estate investment trust for federal income
tax purposes since its taxable year ended December 31, 1994. Although Mack-Cali
Realty Corporation believes it will continue to operate in such manner, we
cannot guarantee that Mack-Cali Realty Corporation will do so. Qualification as
a real estate investment trust involves the satisfaction of various requirements
(some on an annual and quarterly basis) established under highly technical and
complex tax provisions of the Internal Revenue Code. Because few judicial or
administrative interpretations of such provisions exist and qualification
determinations are fact sensitive, we cannot assure you that Mack-Cali Realty
Corporation will qualify as a real estate investment trust for any taxable year.

If Mack-Cali Realty Corporation fails to qualify as a real estate investment
trust in any taxable year, it will be subject to the following:

      o     it will not be allowed a deduction for dividends to shareholders;
      o     it will be subject to federal income tax at regular corporate rates,
            including any alternative minimum tax, if applicable; and
      o     unless it is entitled to relief under certain statutory provisions,
            it will not be permitted to qualify as a real estate investment
            trust for the four taxable years following the year during which it
            was disqualified.

A loss of Mack-Cali Realty Corporation's status as a real estate investment
trust could have an adverse effect on us. Failure to qualify as a real estate
investment trust also would eliminate the requirement that Mack-Cali Realty
Corporation pay dividends to its stockholders.


                                       13
<Page>

OTHER TAX LIABILITIES: Even if Mack-Cali Realty Corporation qualifies as a real
estate investment trust, it is subject to certain federal, state and local taxes
on our income and property and, in some circumstances, certain other state and
local taxes. Our net income from third party management and tenant improvements,
if any, also may be subject to federal income tax.

RISK OF CHANGES IN THE TAX LAW APPLICABLE TO REAL ESTATE INVESTMENT TRUSTS:
Since the Internal Revenue Service, the United States Treasury Department and
Congress frequently review federal income tax legislation, we cannot predict
whether, when or to what extent new federal tax laws, regulations,
interpretations or rulings will be adopted. Any of such legislative action may
prospectively or retroactively modify our and Mack-Cali Realty Corporation's tax
treatment and, therefore, may adversely affect taxation of us, Mack-Cali Realty
Corporation, and/or our investors.

THERE IS NO PUBLIC MARKET FOR OUR UNSECURED INDEBTEDNESS.

We may issue debt securities for which there is no active trading market. If
traded after their initial issuance, such securities may trade at a discount
from their initial offering price, depending upon prevailing interest rates, the
market for similar securities, our financial condition and performance and other
factors beyond our control, including general economic conditions. We may not
list our debt securities on any securities exchange.

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS

The Operating Partnership considers portions of this information to be
forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934. The Operating Partnership intends such
forward-looking statements to be covered by the safe harbor provisions for
forward-looking statements contained in Section 21E of the Exchange Act. Such
forward-looking statements relate to, without limitation, the Operating
Partnership's future economic performance, plans and objectives for future
operations and projections of revenue and other financial items.
Forward-looking statements can be identified by the use of words such as
"may," "will," "should," "expect," "anticipate," "estimate," "continue" or
comparable terminology. Forward-looking statements are inherently subject to
risks and uncertainties, many of which the Operating Partnership cannot
predict with accuracy and some of which the Operating Partnership might not
even anticipate. Although the Operating Partnership believes that the
expectations reflected in such forward-looking statements are based upon
reasonable assumptions at the time made, it can give no assurance that its
expectations will be achieved. Future events and actual results, financial
and otherwise, may differ materially from the results discussed in the
forward-looking statements. Readers are cautioned not to place undue reliance
on these forward-looking statements. Among the factors about which the
Operating Partnership has made assumptions are changes in the general
economic climate; conditions, including those affecting industries in which
the Operating Partnership's principal tenants compete; any failure of the
general economy to recover timely from the current economic downturn; the
extent of any tenant bankruptcies; the Operating Partnership's ability to
lease or re-lease space at current or anticipated rents; changes in the
supply of and demand for office, office/flex and industrial/warehouse
properties; changes in interest rate levels; changes in operating costs; the
Operating Partnership's ability to obtain adequate insurance, including
coverage for terrorist acts; the availability of financing; and other risks
associated with the development and acquisition of properties, including
risks that the development may not be completed on schedule, that the tenants
will not take occupancy or pay rent, or that development or operating costs
may be greater than anticipated. For further information on factors which
could impact the Operating Partnership and the statements contained herein,
see the "Risk Factors" section. The Operating Partnership assumes no
obligation to update and supplement forward-looking statements that become
untrue because of subsequent events.

                                       14
<Page>

ITEM 2. PROPERTIES

PROPERTY LIST

As of December 31, 2001, the Operating Partnership's Consolidated Properties
consisted of 253 in-service office, office/flex and industrial/warehouse
properties, ranging from one to 20 stories, as well as one multi-family
residential property, two stand-alone retail properties and three land leases.
The Consolidated Properties are located primarily in the Northeast. The
Consolidated Properties are easily accessible from major thoroughfares and are
in close proximity to numerous amenities. The Consolidated Properties contain a
total of approximately 27.0 million square feet, with the individual properties
ranging from approximately 6,200 to 761,200 square feet. The Consolidated
Properties, managed by on-site employees, generally have attractively landscaped
sites, atriums and covered parking in addition to quality design and
construction. The Operating Partnership's tenants include many service sector
employers, including a large number of professional firms and national and
international businesses. The Operating Partnership believes that all of its
properties are well-maintained and do not require significant capital
improvements.


                                       15
<Page>

                                PROPERTY LISTING

                                OFFICE PROPERTIES

<Table>
<Caption>
                                                                                                  PERCENTAGE
                                                                                               OF TOTAL 2001
                                                  PERCENTAGE                                         OFFICE,
                                            NET       LEASED            2001           2001      OFFICE/FLEX
                                       RENTABLE        AS OF            BASE      EFFECTIVE  AND INDUSTRIAL/
PROPERTY                       YEAR        AREA     12/31/01            RENT           RENT        WAREHOUSE
LOCATION                      BUILT   (SQ. FT.)       (%)(a)  ($000's)(b)(f) ($000's)(c)(f)     BASE RENT(%)
-------------------------------------------------------------------------------------------------------------
<S>                            <C>       <C>           <C>             <C>            <C>               <C>
ATLANTIC COUNTY, NEW JERSEY

EGG HARBOR
100 Decadon Drive..........    1987      40,422        100.0             784            737             0.16
200 Decadon Drive..........    1991      39,922        100.0             731            688             0.15

BERGEN COUNTY, NEW JERSEY

FAIR LAWN
17-17 Route 208 North......    1987     143,000        100.0           3,248          3,162             0.65

FORT LEE
One Bridge Plaza...........    1981     200,000         98.7           4,994          4,643             0.99


2115 Linwood Avenue........    1981      68,000         99.7           1,687          1,292             0.34


LITTLE FERRY
200 Riser Road.............    1974     286,628        100.0           2,081          2,022             0.41


MONTVALE
95 Chestnut Ridge Road.....    1975      47,700        100.0             567            567             0.11
135 Chestnut Ridge Road....    1981      66,150        100.0           1,558          1,338             0.31


PARAMUS
15 East Midland Avenue.....    1988     259,823        100.0           6,729          6,726             1.34
461 From Road..............    1988     253,554         99.8           6,041          6,034             1.20
650 From Road..............    1978     348,510         92.8           6,083          5,931             1.21

140 Ridgewood Avenue ......    1981     239,680        100.0           5,326          5,187             1.06

61 South Paramus Avenue....    1985     269,191        100.0           6,167          5,670             1.23

ROCHELLE PARK
120 Passaic Street.........    1972      52,000         99.6           1,439          1,366             0.29

<Caption>
                                                  2001
                                      2001     AVERAGE
                                   AVERAGE   EFFECTIVE    TENANTS LEASING 10% OR
                                 BASE RENT        RENT    MORE OF NET RENTABLE
PROPERTY                       PER SQ. FT. PER SQ. FT.    AREA PER PROPERTY
LOCATION                         ($)(d)(f)   ($)(e)(f)    AS OF 12/31/01(f)
-----------------------------------------------------------------------------------------------------------
<S>                                  <C>         <C>      <C>
ATLANTIC COUNTY, NEW JERSEY

EGG HARBOR
100 Decadon Drive..........          19.40       18.23    Computer Sciences Corp. (100%)
200 Decadon Drive..........          18.31       17.23    Computer Sciences Corp. (100%)

BERGEN COUNTY, NEW JERSEY

FAIR LAWN
17-17 Route 208 North......          22.71       22.11    Lonza, Inc. (63%)

FORT LEE
One Bridge Plaza...........          25.30       23.52    PricewaterhouseCoopers, LLP (35%), Broadview
                                                          Associates, LLP (16%), Bozell Worldwide, Inc.
                                                          (16%)
2115 Linwood Avenue........          24.88       19.06    US Depot Inc. (23%), Ameribrom Inc. (14%), Mack
                                                          Management & Construction (12%), Morgan
                                                          Stanley Dean Witter (10%)

LITTLE FERRY
200 Riser Road.............           7.26        7.05    Ford Motor Company (34%), Casio Inc. (33%),
                                                          Dassault Falcon Jet Corp. (33%)
MONTVALE
95 Chestnut Ridge Road.....          11.89       11.89    Aventis Environmental Science (100%)
135 Chestnut Ridge Road....          23.55       20.23    Paycheck Inc. (45%), Automated Resources Group
                                                          Inc. (26%), Sys-Con Publications Inc. (11%),
                                                          Lexmark International (10%)

PARAMUS
15 East Midland Avenue.....          25.90       25.89    AT&T Wireless Services (100%)
461 From Road..............          23.87       23.85    Toys 'R' Us, Inc. (96%)
650 From Road..............          18.81       18.34    Movado Group Inc. (18%), Long Beach Acceptance
                                                          Corp. (10%)
140 Ridgewood Avenue ......          22.22       21.64    AT&T Wireless Services (57%), Smith Barney
                                                          Shearson Inc. (19%)
61 South Paramus Avenue....          22.91       21.06    Morgan Stanley Dean Witter, Inc. (10%)

ROCHELLE PARK
120 Passaic Street.........          27.78       26.37    SBC Telecom Inc. (53%), Cantor Fitzgerald LP
                                                          (46%)
</Table>


                                       16
<Page>

                                PROPERTY LISTING

                                OFFICE PROPERTIES
                                   (CONTINUED)

<Table>
<Caption>
                                                                                                             PERCENTAGE
                                                                                                          OF TOTAL 2001
                                                    PERCENTAGE                                                  OFFICE,
                                               NET      LEASED               2001              2001         OFFICE/FLEX
                                          RENTABLE       AS OF               BASE         EFFECTIVE     AND INDUSTRIAL/
PROPERTY                           YEAR       AREA    12/31/01               RENT              RENT           WAREHOUSE
LOCATION                          BUILT  (SQ. FT.)      (%)(a)      ($000's)(b)(f)   ($000's)(c)(f)        BASE RENT(%)
-----------------------------------------------------------------------------------------------------------------------
<S>                             <C>        <C>           <C>                <C>               <C>                  <C>
365 West Passaic Street.......     1976    212,578        95.2              4,219             3,887                0.84

SADDLE RIVER
1 Lake Street.................  1973/94    474,801       100.0              7,466             7,466                1.49

UPPER SADDLE RIVER
10 Mountainview Road..........     1986    192,000        98.0              3,988             3,923                0.79



WOODCLIFF LAKE
400 Chestnut Ridge Road.......     1982     89,200       100.0              2,124             2,124                0.42
470 Chestnut Ridge Road.......     1987     52,500       100.0              1,192             1,192                0.24
530 Chestnut Ridge Road.......     1986     57,204       100.0              1,166             1,166                0.23
50 Tice Boulevard.............     1984    235,000        95.0              5,288             4,570                1.05
300 Tice Boulevard............     1991    230,000        99.3              4,831             4,647                0.96


BURLINGTON COUNTY, NEW JERSEY

MOORESTOWN
224 Strawbridge Drive.........     1984     74,000       100.0              1,467             1,104                0.29

228 Strawbridge Drive.........     1984     74,000       100.0              1,433             1,072                0.29

ESSEX COUNTY, NEW JERSEY

MILLBURN
150 J.F. Kennedy Parkway......     1980    247,476        88.5              6,228             6,068                1.24


ROSELAND
101 Eisenhower Parkway........     1980    237,000        83.8              4,136             3,778                0.82

103 Eisenhower Parkway........     1985    151,545        90.0              3,157             2,852                0.63


105 Eisenhower Parkway(g)(k)..     2001    220,000        50.9              3,340             2,980                0.67

HUDSON COUNTY, NEW JERSEY

<Caption>
                                                        2001
                                         2001        AVERAGE
                                      AVERAGE      EFFECTIVE     TENANTS LEASING 10% OR
                                    BASE RENT           RENT     MORE OF NET RENTABLE
PROPERTY                          PER SQ. FT.    PER SQ. FT.     AREA PER PROPERTY
LOCATION                            ($)(d)(f)      ($)(e)(f)     AS OF 12/31/01 (f)
--------------------------------------------------------------------------------------------------------------------
<S>                                     <C>            <C>       <C>
365 West Passaic Street.......          20.85          19.21     United Retail Inc. (31%), Catalina Marketing Corp.
                                                                 (10%), Regulus LLC (10%)
SADDLE RIVER
1 Lake Street.................          15.72          15.72     Prentice-Hall Inc. (100%)

UPPER SADDLE RIVER
10 Mountainview Road..........          21.19          20.85     Thomson Minwax Company (23%), Professional
                                                                 Detailing Inc. (20%), Corning Life Sciences Inc.
                                                                 (15%), ITT Fluid Technology (14%), Pearson
                                                                 Education (14%)
WOODCLIFF LAKE
400 Chestnut Ridge Road.......          23.81          23.81     Timeplex, Inc. (100%)
470 Chestnut Ridge Road.......          22.70          22.70     Andermatt LP (100%)
530 Chestnut Ridge Road.......          20.38          20.38     KPMG Peat Marwick, LLP (100%)
50 Tice Boulevard.............          23.69          20.47     Syncsort, Inc. (25%)
300 Tice Boulevard............          21.15          20.35     Chase Home Mortgage Corp. (25%), KPMG LLP
                                                                 (20%), BMW of North America, LLC (15%),
                                                                 NYCE Corp. (11%)

BURLINGTON COUNTY, NEW JERSEY

MOORESTOWN
224 Strawbridge Drive.........          19.82          14.92     Allstate Insurance Company (49%), Harleysville
                                                                 Mutual Insurance (28%)
228 Strawbridge Drive.........          19.36          14.49     Cendant Mortgage Corporation (100%)

ESSEX COUNTY, NEW JERSEY

MILLBURN
150 J.F. Kennedy Parkway......          28.44          27.71     KPMG Peat Marwick, LLP (34%), Budd Larner
                                                                 Gross Et Al (23%)

ROSELAND
101 Eisenhower Parkway........          20.83          19.02     Brach, Eichler, Rosenberg, Silver, Bernstein &
                                                                 Hammer (13%)
103 Eisenhower Parkway........          23.15          20.91     CPG Partners L.P. (24%), Lum, Danzis, Drasco
                                                                 Positan & Kleinberg (16%), Salomon Smith Barney,
                                                                 Inc. (11%)
105 Eisenhower Parkway(g)(k)..          31.02          27.67     Arthur Andersen (51%)

HUDSON COUNTY, NEW JERSEY
</Table>


                                       17
<Page>

                                PROPERTY LISTING

                                OFFICE PROPERTIES
                                   (CONTINUED)

<Table>
<Caption>
                                                                                                                         PERCENTAGE
                                                                                                                      OF TOTAL 2001
                                                                     PERCENTAGE                                             OFFICE,
                                                             NET         LEASED             2001              2001      OFFICE/FLEX
                                                        RENTABLE          AS OF             BASE         EFFECTIVE  AND INDUSTRIAL/
PROPERTY                                         YEAR       AREA       12/31/01             RENT              RENT        WAREHOUSE
LOCATION                                        BUILT   SQ. FT.)         (%)(a)   ($000's)(b)(f)    ($000's)(c)(f)     BASE RENT(%)
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                              <C>     <C>              <C>             <C>               <C>                <C>
JERSEY CITY
Harborside Financial Center Plaza 1......        1983    400,000           99.0            3,375             3,372             0.67
Harborside Financial Center Plaza 2......        1990    761,200          100.0           18,998            18,073             3.78



Harborside Financial Center Plaza 3......        1990    725,600          100.0           18,108            17,227             3.61

Harborside Financial Center Plaza 4-A (i)        2000    207,670           93.9            5,935             5,715             1.18

MERCER COUNTY, NEW JERSEY

PRINCETON
103 Carnegie Center......................        1984     96,000          100.0            2,313             2,147             0.46

100 Overlook Center......................        1988    149,600          100.0            3,386             3,231             0.67

5 Vaughn Drive...........................        1987     98,500           75.7            2,159             2,037             0.43



MIDDLESEX COUNTY, NEW JERSEY

EAST BRUNSWICK
377 Summerhill Road......................        1977     40,000          100.0              373               368             0.07


PLAINSBORO
500 College Road East....................        1984    158,235          100.0            3,207             3,163             0.64

SOUTH BRUNSWICK
3 Independence Way.......................        1983    111,300          100.0            2,205             2,139             0.44

WOODBRIDGE
581 Main Street..........................        1991    200,000          100.0            4,842             4,736             0.96


MONMOUTH COUNTY, NEW JERSEY

NEPTUNE
3600 Route 66............................        1989    180,000          100.0            2,410             2,410             0.48

<Caption>
                                                                        2001
                                                         2001        AVERAGE
                                                      AVERAGE      EFFECTIVE    TENANTS LEASING 10% OR
                                                    BASE RENT           RENT    MORE OF NET RENTABLE
PROPERTY                                          PER SQ. FT.    PER SQ. FT.    AREA PER PROPERTY
LOCATION                                            ($)(d)(f)      ($)(e)(f)    AS OF 12/31/01(f)
----------------------------------------------------------------------------------------------------------------------------------
<S>                                                     <C>            <C>      <C>
JERSEY CITY
Harborside Financial Center Plaza 1......                8.52           8.52    Bankers Trust Harborside, Inc. (96%)
Harborside Financial Center Plaza 2......               24.96          23.74    Dean Witter Trust Company (26%), DLJ Securities
                                                                                (24%), Dow Jones & Company, Inc. (11%),
                                                                                Morgan Stanley Dean Witter, Inc. (10%), Lewco
                                                                                Securities Corp. (10%)
Harborside Financial Center Plaza 3......               24.96          23.74    AICPA (36%), BTM Information Services, Inc.
                                                                                (20%), Exodus Communications (10%)
Harborside Financial Center Plaza 4-A (i)               33.91          32.66    TD Waterhouse Securities Inc. (89%)

MERCER COUNTY, NEW JERSEY

PRINCETON
103 Carnegie Center......................               24.09          22.36    Ronin Development Corp. (15%), R.G. Vanderweil
                                                                                Engineers (14%), Kurt Salmon Assoc. Inc. (11%)
100 Overlook Center......................               22.63          21.60    Regus Business Centre Corp. (26%), Xerox
                                                                                Corporation (23%), Paine Webber Inc. (14%)
5 Vaughn Drive...........................               28.95          27.32    Woodrow Wilson National Fellowship Foundation
                                                                                (17%), Floorgraphics Inc. (14%), Villeroy & Boch
                                                                                Tableware Ltd. (11%)

MIDDLESEX COUNTY, NEW JERSEY

EAST BRUNSWICK
377 Summerhill Road......................                9.33           9.20    Greater New York Mutual Insurance Company
                                                                                (100%)

PLAINSBORO
500 College Road East....................               20.27          19.99    SSB Realty, LLC (72%), Buchanan Ingersoll P.C.
                                                                                (17%), PNC Bank, N.A. (10%)
SOUTH BRUNSWICK
3 Independence Way.......................               19.81          19.22    Merrill Lynch Pierce Fenner & Smith (82%)

WOODBRIDGE
581 Main Street..........................               24.21          23.68    First Investors Management Company, Inc. (38%),
                                                                                Cast North America Ltd. (11%)

MONMOUTH COUNTY, NEW JERSEY

NEPTUNE
3600 Route 66............................               13.39          13.39    United States Life Insurance Company (100%)
</Table>


                                       18
<Page>

                                PROPERTY LISTING

                                OFFICE PROPERTIES
                                   (CONTINUED)

<Table>
<Caption>
                                                                                                                        PERCENTAGE
                                                                                                                     OF TOTAL 2001
                                                               PERCENTAGE                                                  OFFICE,
                                                       NET         LEASED               2001              2001         OFFICE/FLEX
                                                  RENTABLE          AS OF               BASE         EFFECTIVE     AND INDUSTRIAL/
PROPERTY                                 YEAR         AREA       12/31/01               RENT              RENT           WAREHOUSE
LOCATION                                BUILT    (SQ. FT.)         (%)(a)     ($000's)(b)(f)    ($000's)(c)(f)        BASE RENT(%)
----------------------------------------------------------------------------------------------------------------------------------
<S>                                      <C>        <C>              <C>                 <C>               <C>                <C>
WALL TOWNSHIP
1305 Campus Parkway...........           1988       23,350           92.4                389               364                0.08

1350 Campus Parkway...........           1990       79,747           99.9              1,430             1,317                0.28




MORRIS COUNTY, NEW JERSEY

FLORHAM PARK
325 Columbia Turnpike.........           1987      168,144          100.0              4,413             3,959                0.88


MORRIS PLAINS
250 Johnson Road..............           1977       75,000          100.0              1,594             1,433                0.32
201 Littleton Road............           1979       88,369           80.3              1,796             1,716                0.36

MORRIS TOWNSHIP
340 Mt. Kemble Avenue.........           1985      387,000          100.0              5,530             5,530                1.10

PARSIPPANY
4 Campus Drive (g)............           1983      147,475           86.8              2,461             2,461                0.49
6 Campus Drive (g)............           1983      148,291           82.2              2,734             2,734                0.54
7 Campus Drive................           1982      154,395          100.0              2,041             1,927                0.41
8 Campus Drive................           1987      215,265          100.0              5,631             5,401                1.12


9 Campus Drive (g)............           1983      156,495           94.5                693               692                0.14
2 Dryden Way..................           1990        6,216          100.0                 70                68                0.01
4 Gatehall Drive..............           1988      248,480           91.2              5,850             5,802                1.17

2 Hilton Court................           1991      181,592          100.0              4,764             4,542                0.95

600 Parsippany Road...........           1978       96,000           78.2              1,734             1,626                0.35
1 Sylvan Way..................           1989      150,557          100.0              3,513             3,109                0.70
5 Sylvan Way..................           1989      151,383          100.0              4,010             3,881                0.80


7 Sylvan Way..................           1987      145,983          100.0              2,920             2,772                0.58

<Caption>
                                                               2001
                                                2001        AVERAGE
                                             AVERAGE      EFFECTIVE    TENANTS LEASING 10% OR
                                           BASE RENT           RENT    MORE OF NET RENTABLE
PROPERTY                                 PER SQ. FT.    PER SQ. FT.    AREA PER PROPERTY
LOCATION                                   ($)(d)(f)      ($)(e)(f)    AS OF 12/31/01(f)
----------------------------------------------------------------------------------------------------------------------------
<S>                                            <C>            <C>      <C>
WALL TOWNSHIP
1305 Campus Parkway...........                 18.03          16.87    Waterford Wedgewood USA Inc. (47%),
                                                                       McLaughlin, Bennett, Gelson (45%)
1350 Campus Parkway...........                 17.95          16.53    Meridan Health Realty Corp. (22%), Milestone
                                                                       Material Inc. (18%), Stephen E. Gertler Law Office
                                                                       (17%), Sportsgolf L.L.C. (12%), Amper Politzner
                                                                       & Mattia PA (11%)

MORRIS COUNTY, NEW JERSEY

FLORHAM PARK
325 Columbia Turnpike.........                 26.25          23.55    Bressler Amery & Ross (24%), Salomon Smith
                                                                       Barney Inc. (13%), Atlantic Health Systems (12%),
                                                                       Dun & Bradstreet Inc. (12%)
MORRIS PLAINS
250 Johnson Road..............                 21.25          19.11    Electronic Data Systems Corp. (100%)
201 Littleton Road............                 25.31          24.18    Xerox Corporation (50%), Bozell Worldwide Inc.
                                                                       (19%), CHEP USA (11%)
MORRIS TOWNSHIP
340 Mt. Kemble Avenue.........                 14.29          14.29    AT&T Corporation (100%)

PARSIPPANY
4 Campus Drive (g)............                 25.99          25.99    Nabisco Inc. (27%), Summit Equities Inc. (20%)
6 Campus Drive (g)............                 30.32          30.32    Prudential Insurance Company (37%)
7 Campus Drive................                 13.22          12.48    Nabisco Inc. (100%)
8 Campus Drive................                 26.16          25.09    Prudential Insurance Co. (31%), MCI
                                                                       Telecommunications Corp. (26%), Ayco Company
                                                                       L.P. (13%)
9 Campus Drive (g)............                 30.54          30.50    GAB Business Service Inc. (63%)
2 Dryden Way..................                 11.26          10.94    Bright Horizons Childrens Center (100%)
4 Gatehall Drive..............                 25.81          25.60    J.B. Hanauer & Company (20%), Royal Indemnity
                                                                       Company (16%), Toyota Motor Credit Corp. (10%)
2 Hilton Court................                 26.23          25.01    Deloitte & Touche USA LLP (64%), Sankyo Parke
                                                                       Davis (31%)
600 Parsippany Road...........                 23.10          21.66    Exario Networks Inc. (36%)
1 Sylvan Way..................                 23.33          20.65    Cendant Operations Inc. (99%)
5 Sylvan Way..................                 26.49          25.64    Integrated Communications (41%), Experian
                                                                       Information Solution (15%), DRS Technologies
                                                                       Inc. (13%)
7 Sylvan Way..................                 20.00          18.99    Nabisco Inc. (100%)
</Table>


                                       19
<Page>

                                PROPERTY LISTING

                                OFFICE PROPERTIES
                                   (CONTINUED)

<Table>
<Caption>
                                                                                                                      PERCENTAGE
                                                                                                                   OF TOTAL 2001
                                                             PERCENTAGE                                                  OFFICE,
                                                     NET         LEASED               2001              2001         OFFICE/FLEX
                                                RENTABLE          AS OF               BASE         EFFECTIVE     AND INDUSTRIAL/
PROPERTY                                YEAR        AREA       12/31/01               RENT              RENT           WAREHOUSE
LOCATION                               BUILT   (SQ. FT.)         (%)(a)     ($000's)(b)(f)    ($000's)(c)(f)        BASE RENT(%)
--------------------------------------------------------------------------------------------------------------------------------
<S>                                     <C>       <C>             <C>                <C>               <C>                  <C>
PASSAIC COUNTY, NEW JERSEY

CLIFTON
777 Passaic Avenue.............         1983      75,000           97.9              1,402             1,238                0.28
TOTOWA
999 Riverview Drive............         1988      56,066           65.0                881               782                0.18
WAYNE
201 Willowbrook Boulevard......         1970     178,329           49.1              2,042             2,020                0.41


SOMERSET COUNTY, NEW JERSEY

BASKING RIDGE
222 Mt. Airy Road..............         1986      49,000          100.0                738               686                0.15
233 Mt. Airy Road..............         1987      66,000          100.0              1,315             1,193                0.26
BERNARDS
106 Allen Road (i).............         2000     132,010           66.7              2,073             1,671                0.41
BRIDGEWATER
721 Route 202/206..............         1989     192,741          100.0              4,406             4,228                0.88



UNION COUNTY, NEW JERSEY

CLARK
100 Walnut Avenue..............         1985     182,555          100.0              4,399             3,826                0.88

CRANFORD
6 Commerce Drive...............         1973      56,000           93.1              1,073             1,001                0.21
11 Commerce Drive (f)..........         1981      90,000           95.8              1,019               912                0.20

12 Commerce Drive..............         1967      72,260           84.1                870               842                0.17

20 Commerce Drive..............         1990     176,600          100.0              4,310             3,897                0.86

65 Jackson Drive...............         1984      82,778          100.0              1,712             1,411                0.34


NEW PROVIDENCE

<Caption>
                                                                2001
                                                 2001        AVERAGE
                                              AVERAGE      EFFECTIVE    TENANTS LEASING 10% OR
                                            BASE RENT           RENT    MORE OF NET RENTABLE
PROPERTY                                  PER SQ. FT.    PER SQ. FT.    AREA PER PROPERTY
LOCATION                                    ($)(d)(f)      ($)(e)(f)    AS OF 12/31/01(f)
-------------------------------------------------------------------------------------------------------------------------
<S>                                             <C>            <C>      <C>
PASSAIC COUNTY, NEW JERSEY

CLIFTON
777 Passaic Avenue.............                 19.09          16.86    Grosvenor Marketing Ltd. (10%)

TOTOWA
999 Riverview Drive............                 24.17          21.46    Telsource Corporation (19%), Humana Press (15%)

WAYNE
201 Willowbrook Boulevard......                 23.32          23.07    URS Corporation (26%), Meridian Benefit Inc.
                                                                        (22%)

SOMERSET COUNTY, NEW JERSEY

BASKING RIDGE
222 Mt. Airy Road..............                 15.06          14.00    Avaya Inc. (100%)
233 Mt. Airy Road..............                 19.92          18.08    Avaya Inc. (100%)

BERNARDS
106 Allen Road (i).............                 24.37          19.65    KPMG Consulting LLC (59%)

BRIDGEWATER
721 Route 202/206..............                 22.86          21.94    Allstate Insurance Company (37%), Norris,
                                                                        McLaughlin & Marcus, PA (32%), Johnson and
                                                                        Johnson (15%), Datatek Applications Inc. (12%)

UNION COUNTY, NEW JERSEY

CLARK
100 Walnut Avenue..............                 24.10          20.96    CAP Gemini America Inc. (40%), DFDS Transport
                                                                        (14%), Mastercare Companies Inc. (10%)

CRANFORD
6 Commerce Drive...............                 20.58          19.20    Kendle International Inc. (50%)
11 Commerce Drive (f)..........                 11.82          10.58    Northeast Administrators (10%), Countrywide
                                                                        Home Loans (10%)
12 Commerce Drive..............                 14.32          13.86    Registrar & Transfer Company (36%), URS
                                                                        Corporation (28%)
20 Commerce Drive..............                 24.41          22.07    Public Service Electric & Gas Company (26%),
                                                                        Quintiles Inc. (21%)
65 Jackson Drive...............                 20.68          17.05    PMK Group Inc. (35%), Allstate Insurance
                                                                        Company (27%), Procter & Gamble Distribution
                                                                        Co., Inc. (18%), Provident Companies Inc. (14%)
NEW PROVIDENCE
</Table>


                                       20
<Page>

                                PROPERTY LISTING

                                OFFICE PROPERTIES
                                   (CONTINUED)

<Table>
<Caption>
                                                                                                                 PERCENTAGE
                                                                                                              OF TOTAL 2001
                                                        PERCENTAGE                                                  OFFICE,
                                                NET         LEASED               2001              2001         OFFICE/FLEX
                                           RENTABLE          AS OF               BASE         EFFECTIVE     AND INDUSTRIAL/
PROPERTY                          YEAR         AREA       12/31/01               RENT              RENT           WAREHOUSE
LOCATION                         BUILT    (SQ. FT.)         (%)(a)     ($000's)(b)(f)    ($000's)(c)(f)        BASE RENT(%)
---------------------------------------------------------------------------------------------------------------------------
<S>                               <C>    <C>                  <C>             <C>               <C>                   <C>
890 Mountain Road............     1977       80,000          100.0              2,436             2,363                0.49


---------------------------------------------------------------------------------------------------------------------------
TOTAL NEW JERSEY OFFICE                  12,103,070           96.0            245,030           232,214               48.80
---------------------------------------------------------------------------------------------------------------------------

DUTCHESS COUNTY, NEW YORK
FISHKILL
300 South Lake Drive.........     1987      118,727           92.4              2,143             2,107                0.43

NASSAU COUNTY, NEW YORK
NORTH HEMPSTEAD
600 Community Drive (j)......     1983      237,274          100.0              5,533             5,533                1.10
111 East Shore Road..........     1980       55,575          100.0              1,518             1,504                0.30

ROCKLAND COUNTY, NEW YORK
SUFFERN
400 Rella Boulevard..........     1988      180,000          100.0              3,882             3,690                0.77



WESTCHESTER COUNTY, NEW YORK
ELMSFORD
100 Clearbrook Road (f)......     1975       60,000          100.0                875               803                0.17
101 Executive Boulevard......     1971       50,000           83.8                951               912                0.19

555 Taxter Road..............     1986      170,554          100.0              4,005             4,003                0.80

565 Taxter Road..............     1988      170,554           90.5              3,712             3,673                0.74

570 Taxter Road..............     1972       75,000           94.7              1,594             1,502                0.32

HAWTHORNE
1 Skyline Drive..............     1980       20,400           99.0                342               327                0.07

2 Skyline Drive..............     1987       30,000           98.9                477               433                0.10
7 Skyline Drive..............     1987      109,000           97.9              2,190             2,177                0.44

17 Skyline Drive.............     1989       85,000          100.0              1,359             1,333                0.27

<Caption>
                                                          2001
                                           2001        AVERAGE
                                        AVERAGE      EFFECTIVE    TENANTS LEASING 10% OR
                                      BASE RENT           RENT    MORE OF NET RENTABLE
PROPERTY                            PER SQ. FT.    PER SQ. FT.    AREA PER PROPERTY
LOCATION                              ($)(d)(f)      ($)(e)(f)    AS OF 12/31/01(f)
--------------------------------------------------------------------------------------------------------------------
<S>                                       <C>            <C>      <C>
890 Mountain Road............             30.45          29.54    Aspen Technology Inc. (52%), Dun & Bradstreet
                                                                  (27%), K Line America, Inc. (16%)

--------------------------------------------------------------------------------------------------------------------
TOTAL NEW JERSEY OFFICE                   21.58          20.47
--------------------------------------------------------------------------------------------------------------------

DUTCHESS COUNTY, NEW YORK
FISHKILL
300 South Lake Drive.........             19.53          19.21    Allstate Insurance Company (16%)

NASSAU COUNTY, NEW YORK
NORTH HEMPSTEAD
600 Community Drive (j)......             23.32          23.32    CMP Media, LLC. (100%)
111 East Shore Road..........             27.31          27.06    Administrators For The Professions, Inc. (100%)

ROCKLAND COUNTY, NEW YORK
SUFFERN
400 Rella Boulevard..........             21.57          20.50    Provident Savings Bank F.A. (20%), Allstate
                                                                  Insurance Company (19%), Aetna Life Insurance
                                                                  Company (14%)

WESTCHESTER COUNTY, NEW YORK
ELMSFORD
100 Clearbrook Road (f)......             14.58          13.38    MIM Corporation (18%), Pyrotek Inc. (11%)
101 Executive Boulevard......             22.70          21.77    Pennysaver Group Inc. (23%), Kyocera Mita
                                                                  America Inc. (11%)
555 Taxter Road..............             23.48          23.47    Fuji Photo Film USA Inc. (71%), Royal Indemnity
                                                                  Company (12%)
565 Taxter Road..............             24.05          23.80    Nextel of New York Inc. (29%), KLM Royal Dutch
                                                                  Airlines (10%), National Mutual Insurance (10%)
570 Taxter Road..............             22.44          21.15    New York State United Teachers Association
                                                                  (15%), Wilder Balter Partners LLC (15%)
HAWTHORNE
1 Skyline Drive..............             16.93          16.19    Boxx International Corp. (50%), Childtime
                                                                  Childcare Inc. (49%)
2 Skyline Drive..............             16.08          14.59    MW Samara (56%), Perini Construction (43%)
7 Skyline Drive..............             20.52          20.40    E.M. Industries Inc. (42%), Cortlandt Group Inc.
                                                                  (14%)
17 Skyline Drive.............             15.99          15.68    IBM Corporation (100%)
</Table>


                                       21
<Page>

                                PROPERTY LISTING

                                OFFICE PROPERTIES
                                   (CONTINUED)

<Table>
<Caption>
                                                                                                                     PERCENTAGE
                                                                                                                  OF TOTAL 2001
                                                            PERCENTAGE                                                  OFFICE,
                                                    NET         LEASED               2001              2001         OFFICE/FLEX
                                               RENTABLE          AS OF               BASE         EFFECTIVE     AND INDUSTRIAL/
PROPERTY                          YEAR             AREA       12/31/01               RENT              RENT           WAREHOUSE
LOCATION                         BUILT        (SQ. FT.)         (%)(a)     ($000's)(b)(f)    ($000's)(c)(f)        BASE RENT(%)
-------------------------------------------------------------------------------------------------------------------------------
<S>                               <C>           <C>              <C>                <C>               <C>                  <C>
19 Skyline Drive.............     1982          248,400          100.0              4,407             3,972                0.88

TARRYTOWN
200 White Plains Road........     1982           89,000           77.0              1,527             1,366                0.30

220 White Plains Road........     1984           89,000           99.4              2,074             1,983                0.41

WHITE PLAINS
1 Barker Avenue..............     1975           68,000           99.0              1,666             1,612                0.33

3 Barker Avenue..............     1983           65,300          100.0              1,142             1,080                0.23

50 Main Street...............     1985          309,000           99.7              8,347             7,828                1.66

11 Martine Avenue............     1987          180,000          100.0              4,563             4,215                0.91


1 Water Street...............     1979           45,700           68.1              1,037               997                0.21

YONKERS
1 Executive Boulevard........     1982          112,000           99.4              2,536             2,414                0.51


3 Executive Plaza............     1987           58,000          100.0              1,427             1,305                0.28




-------------------------------------------------------------------------------------------------------------------------------
TOTAL NEW YORK OFFICE                         2,626,484           97.0             57,307            54,769               11.42
-------------------------------------------------------------------------------------------------------------------------------

CHESTER COUNTY, PENNSYLVANIA

BERWYN
1000 Westlakes Drive.........     1989           60,696           93.4              1,545             1,531                0.31

1055 Westlakes Drive.........     1990          118,487           52.0              1,108             1,071                0.22

1205 Westlakes Drive.........     1988          130,265           83.7              2,695             2,612                0.54


1235 Westlakes Drive.........     1986          134,902           93.3              3,225             3,110                0.64

<Caption>
                                                          2001
                                           2001        AVERAGE
                                        AVERAGE      EFFECTIVE    TENANTS LEASING 10% OR
                                      BASE RENT           RENT    MORE OF NET RENTABLE
PROPERTY                            PER SQ. FT.    PER SQ. FT.    AREA PER PROPERTY
LOCATION                              ($)(d)(f)    ($) (E) (F)    AS OF 12/31/01(f)
---------------------------------------------------------------------------------------------------------------------
<S>                                       <C>            <C>      <C>
19 Skyline Drive.............             17.74          15.99    IBM Corporation (100%)

TARRYTOWN
200 White Plains Road........             22.28          19.93    Allmerica Financial (17%), NYS Dept. of
                                                                  Environmental Services (13%)
220 White Plains Road........             23.44          22.42    Eagle Family Foods Inc. (17%), ATM Services Inc.
                                                                  (10%)

WHITE PLAINS
1 Barker Avenue..............             24.75          23.95    O'Connor McGuinness Conte (19%), United Skys
                                                                  Realty Corp. (18%)
3 Barker Avenue..............             17.49          16.54    Trigen Energy Corporation (56%), TNS Intersearch
                                                                  Corporation (10%)
50 Main Street...............             27.09          25.41    TMP Worldwide Inc. (15%), National Economic
                                                                  Research (10%)
11 Martine Avenue............             25.35          23.42    Salomon Smith Barney Inc. (12%), McCarthy
                                                                  Fingar Donovan Et Al (11%), David Worby (11%),
                                                                  Dean Witter Reynolds Inc. (11%)
1 Water Street...............             33.32          32.04    AMG In-Store Inc. (32%)

YONKERS
1 Executive Boulevard........             22.78          21.68    Bronx Healthplan Inc. (18%), AVR Realty
                                                                  Company (11%), Protective Tech International
                                                                  (11%), York International Agency Inc. (11%)
3 Executive Plaza............             24.60          22.50    Montefiore Medical Center (46%), Metropolitan
                                                                  Life Insurance (21%), Allstate Insurance Company
                                                                  (19%), City & Suburban Federal Savings Bank
                                                                  (14%)

---------------------------------------------------------------------------------------------------------------------
TOTAL NEW YORK OFFICE                     22.49          21.49
---------------------------------------------------------------------------------------------------------------------

CHESTER COUNTY, PENNSYLVANIA

BERWYN
1000 Westlakes Drive.........             27.25          27.01    Drinker Biddle & Reath (42%), PNC Bank, NA
                                                                  (38%)
1055 Westlakes Drive.........             17.98          17.38    Regus Business Centre Corp. (35%), Zarix Inc.
                                                                  (18%)
1205 Westlakes Drive.........             24.72          23.96    Oracle Corporation (30%), Provident Mutual Life
                                                                  Insurance Co. (11%), International Rehab Assoc.
                                                                  (10%)
1235 Westlakes Drive.........             25.62          24.71    Ratner & Prestia (19%), Chartwell Investment
                                                                  Partners (17%) Turner Investment Partners (16%)
</Table>


                                       22
<Page>

                                PROPERTY LISTING

                                OFFICE PROPERTIES
                                   (CONTINUED)

<Table>
<Caption>
                                                                                                                        PERCENTAGE
                                                                                                                     OF TOTAL 2001
                                                                 PERCENTAGE                                                OFFICE,
                                                         NET         LEASED               2001              2001       OFFICE/FLEX
                                                    RENTABLE          AS OF               BASE         EFFECTIVE   AND INDUSTRIAL/
PROPERTY                                   YEAR         AREA       12/31/01               RENT              RENT         WAREHOUSE
LOCATION                                  BUILT    (SQ. FT.)         (%)(a)     ($000's)(b)(f)    ($000's)(c)(f)      BASE RENT(%)
----------------------------------------------------------------------------------------------------------------------------------
<S>                                        <C>        <C>             <C>                <C>               <C>                <C>
DELAWARE COUNTY, PENNSYLVANIA

LESTER
100 Stevens Drive.................         1986       95,000          100.0              2,554             2,379              0.51
200 Stevens Drive.................         1987      208,000          100.0              5,493             5,252              1.09
300 Stevens Drive.................         1992       68,000           52.2              1,402             1,330              0.28

MEDIA
1400 Providence Road - Center I...         1986      100,000          91.4               1,954             1,874              0.39

1400 Providence Road - Center II..         1990      160,000          77.2               2,816             2,625              0.56

MONTGOMERY COUNTY, PENNSYLVANIA

LOWER PROVIDENCE
1000 Madison Avenue...............         1990      100,700           89.4              1,832             1,796              0.36

PLYMOUTH MEETING
1150 Plymouth Meeting Mall........         1970      167,748           98.0              3,212             3,082              0.64



Five Sentry Parkway East..........         1984       91,600          100.0              1,700             1,666              0.34

Five Sentry Parkway West..........         1984       38,400          100.0                835               813              0.17


----------------------------------------------------------------------------------------------------------------------------------
TOTAL PENNSYLVANIA OFFICE                          1,473,798           87.6             30,371            29,141              6.05
----------------------------------------------------------------------------------------------------------------------------------

FAIRFIELD COUNTY, CONNECTICUT

GREENWICH
500 West Putnam Avenue............         1973      121,250           96.0              3,042             2,897              0.61


NORWALK
40 Richards Avenue................         1985      145,487           91.7              3,312             3,065              0.67


SHELTON
1000 Bridgeport Avenue............         1986      133,000          100.0              2,523             2,332              0.50

<Caption>
                                                                  2001
                                                   2001        AVERAGE
                                                AVERAGE      EFFECTIVE    TENANTS LEASING 10% OR
                                              BASE RENT           RENT    MORE OF NET RENTABLE
PROPERTY                                    PER SQ. FT.    PER SQ. FT.    AREA PER PROPERTY
LOCATION                                      ($)(d)(f)      ($)(e)(f)    AS OF 12/31/01(f)
-----------------------------------------------------------------------------------------------------------------------------
<S>                                               <C>            <C>      <C>
DELAWARE COUNTY, PENNSYLVANIA

LESTER
100 Stevens Drive.................                26.88          25.04    Keystone Mercy Health Plan (100%)
200 Stevens Drive.................                26.41          25.25    Keystone Mercy Health Plan (100%)
300 Stevens Drive.................                39.50          37.47    Hewlett Packard Company (35%)

MEDIA
1400 Providence Road - Center I...                21.38          20.50    General Services Admin. (13%), Erie Insurance
                                                                          Company (11%)
1400 Providence Road - Center II..                22.80          21.25    Barnett International (36%)

MONTGOMERY COUNTY, PENNSYLVANIA

LOWER PROVIDENCE
1000 Madison Avenue...............                20.35          19.95    Reality Online Inc. (42%), Banc One National
                                                                          Processing (21%), Seton Company (15%)
PLYMOUTH MEETING
1150 Plymouth Meeting Mall........                19.54          18.75    Lincoln Technical Institute (18%), Ken-Crest
                                                                          Services (18%), Ikea US General Partners Inc.
                                                                          (14%), ECC Management Services (13%)
Five Sentry Parkway East..........                18.56          18.19    Merck & Co. Inc. (77%), Selas Fluid Processing
                                                                          Corp. (23%)
Five Sentry Parkway West..........                21.74          21.17    Merck & Co. Inc. (70%), David Cutler Group
                                                                          (30%)

-----------------------------------------------------------------------------------------------------------------------------
TOTAL PENNSYLVANIA OFFICE                         23.52          22.57
-----------------------------------------------------------------------------------------------------------------------------

FAIRFIELD COUNTY, CONNECTICUT

GREENWICH
500 West Putnam Avenue............                26.13          24.89    Hachette Filipacchi Magazines (27%), McMahan
                                                                          Securities Co, LP (15%), Greenwich Hospital
                                                                          (13%), Winklevoss Consultants Inc. (12%)
NORWALK
40 Richards Avenue................                24.83          22.97    South Beach Beverage Co., LLC (17%), Media
                                                                          Horizons Inc. (12%), Programmed Solutions Inc.
                                                                          (10%)
SHELTON
1000 Bridgeport Avenue............                18.97          17.53    William Carter Company (23%), Weseley Software
                                                                          Development (22%), Toyota Motor Credit
                                                                          Corporation (11%), LandStar Gemini Inc. (11%)
</Table>


                                       23
<Page>

                                PROPERTY LISTING

                               OFFICE PROPERTIES
                                  (CONTINUED)

<Table>
<Caption>
                                                                                                                        PERCENTAGE
                                                                                                                     OF TOTAL 2001
                                                               PERCENTAGE                                                  OFFICE,
                                                       NET         LEASED               2001              2001         OFFICE/FLEX
                                                  RENTABLE          AS OF               BASE         EFFECTIVE     AND INDUSTRIAL/
PROPERTY                             YEAR             AREA       12/31/01               RENT              RENT           WAREHOUSE
LOCATION                            BUILT        (SQ. FT.)         (%)(a)     ($000's)(b)(f)    ($000's)(c)(f)        BASE RENT(%)
----------------------------------------------------------------------------------------------------------------------------------
<S>                                  <C>           <C>               <C>              <C>               <C>                   <C>
----------------------------------------------------------------------------------------------------------------------------------
TOTAL CONNECTICUT OFFICE                           399,737           95.8              8,877             8,294                1.78
----------------------------------------------------------------------------------------------------------------------------------

WASHINGTON, D.C.
1201 Connecticut Avenue, NW.......   1940          169,549          100.0              5,201             5,025                1.04

1400 L Street, NW.................   1987          159,000          100.0              6,267             6,089                1.25
1709 New York Avenue, NW (h)......   1972               --             --              5,491             5,270                1.09

----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRICT OF COLUMBIA OFFICE                  328,549          100.0             16,959            16,384                3.38
----------------------------------------------------------------------------------------------------------------------------------

PRINCE GEORGE'S COUNTY, MARYLAND

LANHAM
4200 Parliament Place.............   1989          122,000           95.2              2,482             2,321                0.49



----------------------------------------------------------------------------------------------------------------------------------
TOTAL MARYLAND OFFICE                              122,000           95.2              2,482             2,321                0.49
----------------------------------------------------------------------------------------------------------------------------------

BEXAR COUNTY, TEXAS

SAN ANTONIO
200 Concord Plaza Drive (h).......   1986               --             --              3,991             3,990                0.79
84 N.E. Loop 410..................   1971          187,312           90.9              2,675             2,674                0.53

1777 N.E. Loop 410 (h)............   1986               --             --              1,437             1,436                0.29
111 Soledad.......................   1918          248,153           49.9              2,004             1,996                0.40

COLLIN COUNTY, TEXAS

PLANO
555 Republic Place................   1986           97,889           93.6              1,286             1,269                0.26


DALLAS COUNTY, TEXAS

DALLAS
3030 LBJ Freeway (f)..............   1984          367,018           86.2              6,725             6,640                1.34

<Caption>
                                                            2001
                                             2001        AVERAGE
                                          AVERAGE      EFFECTIVE    TENANTS LEASING 10% OR
                                        BASE RENT           RENT    MORE OF NET RENTABLE
PROPERTY                              PER SQ. FT.    PER SQ. FT.    AREA PER PROPERTY
LOCATION                                ($)(d)(f)      ($)(e)(f)    AS OF 12/31/01(f)
-----------------------------------------------------------------------------------------------------------------------
<S>                                         <C>            <C>      <C>
-----------------------------------------------------------------------------------------------------------------------
TOTAL CONNECTICUT OFFICE                    23.19          21.67
-----------------------------------------------------------------------------------------------------------------------

WASHINGTON, D.C.
1201 Connecticut Avenue, NW.......          30.68          29.64    Zuckerman Spaeder Goldstein (30%), Leo A. Daly
                                                                    Company (18%), RFE/RL Inc. (16%)
1400 L Street, NW.................          39.42          38.30    Winston & Strawn (68%)
1709 New York Avenue, NW (h)......             --             --    --

-----------------------------------------------------------------------------------------------------------------------
TOTAL DISTRICT OF COLUMBIA OFFICE           51.62          49.87
-----------------------------------------------------------------------------------------------------------------------

PRINCE GEORGE'S COUNTY, MARYLAND

LANHAM
4200 Parliament Place.............          21.37          19.98    Group I Software Inc. (56%), Infinity Broadcasting
                                                                    Company (16%), State Farm Mutual Auto Ins. Co.
                                                                    (11%)

-----------------------------------------------------------------------------------------------------------------------
TOTAL MARYLAND OFFICE                       21.37          19.98
-----------------------------------------------------------------------------------------------------------------------

BEXAR COUNTY, TEXAS

SAN ANTONIO
200 Concord Plaza Drive (h).......             --             --    --
84 N.E. Loop 410..................          15.71          15.70    KBL Cable, Inc. (26%), Chase Bank and Services
                                                                    Inc. (25%), Philip Morris Mgmt. Corp. (25%)
1777 N.E. Loop 410 (h)............             --             --    --
111 Soledad.......................          16.18          16.12    --

COLLIN COUNTY, TEXAS

PLANO
555 Republic Place................          14.04          13.85    William F. Smith Enterprises (19%), Dayton
                                                                    Hudson Corporation (14%)

DALLAS COUNTY, TEXAS

DALLAS
3030 LBJ Freeway (f)..............          21.26          20.99    Club Corporation of America (38%)
</Table>


                                       24
<Page>

                                PROPERTY LISTING

                                OFFICE PROPERTIES
                                   (CONTINUED)

<Table>
<Caption>
                                                                                                                         PERCENTAGE
                                                                                                                      OF TOTAL 2001
                                                                PERCENTAGE                                                  OFFICE,
                                                        NET         LEASED               2001              2001         OFFICE/FLEX
                                                   RENTABLE          AS OF               BASE         EFFECTIVE     AND INDUSTRIAL/
PROPERTY                                  YEAR         AREA       12/31/01               RENT              RENT           WAREHOUSE
LOCATION                                 BUILT    (SQ. FT.)         (%)(a)     ($000's)(b)(f)    ($000's)(c)(f)        BASE RENT(%)
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                       <C>       <C>              <C>                <C>               <C>                  <C>
3100 Monticello...................        1984      173,837           84.3              2,743             2,713                0.55



8214 Westchester (h)..............        1983           --             --                720               705                0.14

IRVING
2300 Valley View..................        1985      142,634           84.1              2,492             2,447                0.50


RICHARDSON
1122 Alma Road....................        1977       82,576          100.0                607               607                0.12

HARRIS COUNTY, TEXAS

HOUSTON
14511 Falling Creek (h)...........        1982           --             --                289               289                0.06
5225 Katy Freeway (h).............        1983           --             --              1,445             1,440                0.29
5300 Memorial.....................        1982      155,099           87.6              2,278             2,269                0.45

1717 St. James Place..............        1975      109,574           97.0              1,487             1,485                0.30
1770 St. James Place..............        1973      103,689           68.3              1,216             1,211                0.24
10497 Town & Country Way..........        1981      148,434           82.9              1,756             1,751                0.35

TARRANT COUNTY, TEXAS

EULESS
150 West Parkway..................        1984       74,429           98.1              1,095             1,086                0.22



-----------------------------------------------------------------------------------------------------------------------------------
TOTAL TEXAS OFFICE                                1,890,644           82.5             34,246            34,008                6.83
-----------------------------------------------------------------------------------------------------------------------------------

MARICOPA COUNTY, ARIZONA

GLENDALE
5551 West Talavi Boulevard........        1991      181,596          100.0              1,709             1,707                0.34

PHOENIX
19640 North 31st Street...........        1990      124,171          100.0              1,599             1,567                0.32


SCOTTSDALE

<Caption>
                                                                 2001
                                                  2001        AVERAGE
                                               AVERAGE      EFFECTIVE    TENANTS LEASING 10% OR
                                             BASE RENT           RENT    MORE OF NET RENTABLE
PROPERTY                                   PER SQ. FT.    PER SQ. FT.    AREA PER PROPERTY
LOCATION                                     ($)(d)(f)      ($)(e)(f)    AS OF 12/31/01(f)
------------------------------------------------------------------------------------------------------------------------------
<S>                                              <C>            <C>      <C>
3100 Monticello...................               18.72          18.51    Insignia Commercial, Inc. (23%), Time Marketing
                                                                         Corporation/Evans Group (12%), Tarragon Realty
                                                                         Adv. Inc. (11%), Heath Insurance Brokers, Inc.
                                                                         (10%)
8214 Westchester (h)..............                  --             --    --

IRVING
2300 Valley View..................               20.77          20.40    Alltel Information Services, Inc. (18%), US
                                                                         Personnel Inc. (18%), Allied Integrated Services
                                                                         (16%), Tricon Restaurant Services (12%)
RICHARDSON
1122 Alma Road....................                7.35           7.35    MCI Telecommunications Corp. (100%)

HARRIS COUNTY, TEXAS

HOUSTON
14511 Falling Creek (h)...........                  --             --    --
5225 Katy Freeway (h).............                  --             --    --
5300 Memorial.....................               16.77          16.70    Datavox, Inc. (20%), HCI Chemicals USA, Inc.
                                                                         (19%)
1717 St. James Place..............               13.99          13.97    MCX Corp (14%)
1770 St. James Place..............               17.17          17.10    --
10497 Town & Country Way..........               14.27          14.23    Vastar Resources, Inc. (23%)

TARRANT COUNTY, TEXAS

EULESS
150 West Parkway..................               15.00          14.87    Warrantech Automotive, Inc. (34%), Mike Bowman
                                                                         Realtors/Century 21 Inc. (17%), Landmark Bank-
                                                                         Mid Cities (16%)

------------------------------------------------------------------------------------------------------------------------------
TOTAL TEXAS OFFICE                               21.95          21.80
------------------------------------------------------------------------------------------------------------------------------

MARICOPA COUNTY, ARIZONA

GLENDALE
5551 West Talavi Boulevard........                9.41           9.40    Honeywell, Inc. (100%)

PHOENIX
19640 North 31st Street...........               12.88          12.62    American Express Travel Related Services Co., Inc.
                                                                         (100%)

SCOTTSDALE
</Table>


                                       25
<Page>

                                PROPERTY LISTING

                                OFFICE PROPERTIES
                                   (CONTINUED)

<Table>
<Caption>
                                                                                                                          PERCENTAGE
                                                                                                                       OF TOTAL 2001
                                                                 PERCENTAGE                                                  OFFICE,
                                                         NET         LEASED               2001              2001         OFFICE/FLEX
                                                    RENTABLE          AS OF               BASE         EFFECTIVE     AND INDUSTRIAL/
PROPERTY                                     YEAR       AREA       12/31/01               RENT              RENT           WAREHOUSE
LOCATION                                    BUILT  (SQ. FT.)         (%)(a)     ($000's)(b)(f)    ($000's)(c)(f)        BASE RENT(%)
------------------------------------------------------------------------------------------------------------------------------------
<S>                                          <C>     <C>              <C>                <C>               <C>                  <C>
9060 E. Via Linda Boulevard.......           1984    111,200          100.0              2,431             2,429                0.48


------------------------------------------------------------------------------------------------------------------------------------
TOTAL ARIZONA OFFICE                                 416,967          100.0              5,739             5,703                1.14
------------------------------------------------------------------------------------------------------------------------------------

ARAPAHOE COUNTY, COLORADO

AURORA
750 South Richfield Street........           1997    108,240          100.0              2,901             2,901                0.58

DENVER
400 South Colorado Boulevard......           1983    125,415           98.6              2,259             2,228                0.45


ENGLEWOOD
9359 East Nichols Avenue..........           1997     72,610          100.0                900               900                0.18
5350 South Roslyn Street..........           1982     63,754          100.0              1,256             1,245                0.25



BOULDER COUNTY, COLORADO

BROOMFIELD
105 South Technology Court........           1997     37,574          100.0                558               558                0.11
303 South Technology Court-A......           1997     34,454          100.0                403               403                0.08
303 South Technology Court-B......           1997     40,416          100.0                472               472                0.09

LOUISVILLE
248 Centennial Parkway............           1996     39,266          100.0                644               643                0.13

1172 Century Drive................           1996     49,566          100.0                511               511                0.10


285 Century Place.................           1997     69,145          100.0              1,092             1,092                0.22

DENVER COUNTY, COLORADO

DENVER
3600 South Yosemite...............           1974    133,743          100.0              1,287             1,287                0.26

DOUGLAS COUNTY, COLORADO

ENGLEWOOD
8181 East Tufts Avenue (g) (k)....           2001    185,254           77.2              2,776             2,741                0.55

<Caption>
                                                                    2001
                                                     2001        AVERAGE
                                                  AVERAGE      EFFECTIVE    TENANTS LEASING 10% OR
                                                BASE RENT           RENT    MORE OF NET RENTABLE
PROPERTY                                      PER SQ. FT.    PER SQ. FT.    AREA PER PROPERTY
LOCATION                                        ($)(d)(f)      ($)(e)(f)    AS OF 12/31/01(f)
-------------------------------------------------------------------------------------------------------------------------------
<S>                                                 <C>            <C>      <C>
9060 E. Via Linda Boulevard.......                  21.86          21.84    Sentry Insurance (63%), PCS Health Systems Inc.
                                                                            (37%)

-------------------------------------------------------------------------------------------------------------------------------
TOTAL ARIZONA OFFICE                                13.76          13.68
-------------------------------------------------------------------------------------------------------------------------------

ARAPAHOE COUNTY, COLORADO

AURORA
750 South Richfield Street........                  26.80          26.80    T.R.W. Inc. (100%)

DENVER
400 South Colorado Boulevard......                  18.27          18.02    Community Health Plan (36%), State of Colorado
                                                                            (12%), Wells Fargo Bank West NA (11%), Senter
                                                                            Goldfarb & Rice LLC (11%)
ENGLEWOOD
9359 East Nichols Avenue..........                  12.39          12.39    First Tennessee Bank NA (100%)
5350 South Roslyn Street..........                  19.70          19.53    Alliance Metro Real Estate (19%), Business Word
                                                                            Inc. (17%), Walker Parking Consultants (12%),
                                                                            First Industrial Realty Trust (10%)

BOULDER COUNTY, COLORADO

BROOMFIELD
105 South Technology Court........                  14.85          14.85    Sun Microsystems Inc. (100%)
303 South Technology Court-A......                  11.70          11.70    Sun Microsystems Inc. (100%)
303 South Technology Court-B......                  11.68          11.68    Sun Microsystems Inc. (100%)

LOUISVILLE
248 Centennial Parkway............                  16.40          16.38    Walnut Brewery Inc. (80%), Global Imaging Inc.
                                                                            (10%), RX Kinetix Inc. (10%)
1172 Century Drive................                  10.31          10.31    nCube Corporation (33%), Evolving Systems Inc.
                                                                            (18%), MCI Systemhouse Corp. (18%), Aircell Inc.
                                                                            (18%), RX Kinetix Inc. (13%)
285 Century Place.................                  15.79          15.79    HBO & Company of Georgia (100%)

DENVER COUNTY, COLORADO

DENVER
3600 South Yosemite...............                   9.62           9.62    MDC Holding Inc. (100%)

DOUGLAS COUNTY, COLORADO

ENGLEWOOD
8181 East Tufts Avenue (g) (k)....                  23.15          22.86    URS Greiner (63%)
</Table>


                                       26
<Page>

                                PROPERTY LISTING

                                OFFICE PROPERTIES
                                   (CONTINUED)

<Table>
<Caption>
                                                                                                                         PERCENTAGE
                                                                                                                      OF TOTAL 2001
                                                                PERCENTAGE                                                  OFFICE,
                                                        NET         LEASED               2001              2001         OFFICE/FLEX
                                                   RENTABLE          AS OF               BASE         EFFECTIVE     AND INDUSTRIAL/
PROPERTY                              YEAR             AREA       12/31/01               RENT              RENT           WAREHOUSE
LOCATION                             BUILT        (SQ. FT.)         (%)(a)     ($000's)(b)(f)    ($000's)(c)(f)        BASE RENT(%)
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                   <C>         <C>                <C>               <C>               <C>                   <C>
400 Inverness Drive...............    1997          111,608          100.0              2,366             2,351                0.47



67 Inverness Drive East...........    1996           54,280            0.0                492               488                0.10
384 Inverness Drive South.........    1985           51,523           78.4                742               734                0.15

5975 South Quebec Street (f)......    1996          102,877           49.1              1,882             1,871                0.37

PARKER
9777 Mount Pyramid Court..........    1995          120,281          100.0              1,323             1,323                0.26

EL PASO COUNTY, COLORADO

COLORADO SPRINGS
8415 Explorer.....................    1998           47,368          100.0                605               604                0.12

1975 Research Parkway.............    1997          115,250          100.0              1,792             1,757                0.36


2375 Telstar Drive................    1998           47,369          100.0                605               603                0.12


JEFFERSON COUNTY, COLORADO

LAKEWOOD
141 Union Boulevard...............    1985           63,600          100.0              1,164             1,146                0.23


-----------------------------------------------------------------------------------------------------------------------------------
TOTAL COLORADO OFFICE                             1,673,593           92.0             26,030            25,858                5.18
-----------------------------------------------------------------------------------------------------------------------------------

SAN FRANCISCO COUNTY, CALIFORNIA

SAN FRANCISCO
795 Folsom Street.................    1977          183,445          100.0              7,428             6,666                1.48

760 Market Street.................    1908          267,446           95.9              8,611             8,309                1.72

-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CALIFORNIA OFFICE                             450,891           97.6             16,039            14,975                3.20
-----------------------------------------------------------------------------------------------------------------------------------

HILLSBOROUGH COUNTY, FLORIDA

<Caption>
                                                             2001
                                              2001        AVERAGE
                                           AVERAGE      EFFECTIVE    TENANTS LEASING 10% OR
                                         BASE RENT           RENT    MORE OF NET RENTABLE
PROPERTY                               PER SQ. FT.    PER SQ. FT.    AREA PER PROPERTY
LOCATION                                 ($)(d)(f)      ($)(e)(f)    AS OF 12/31/01(f)
-----------------------------------------------------------------------------------------------------------------------------
<S>                                          <C>            <C>      <C>
400 Inverness Drive...............           21.20          21.06    Cochlear Corporation (33%), Ciber Inc. (22%)
                                                                     Compuware Corp. (18%), HQ Global Workplaces
                                                                     Inc. (16%)

67 Inverness Drive East...........              --             --    --
384 Inverness Drive South.........           18.37          18.17    Quickpen International Corp. (37%), Worth Group
                                                                     Architects (10%)
5975 South Quebec Street (f)......           37.26          37.04    Silicon Graphics Inc. (28%), Qwest
                                                                     Communications Corp. (15%)
PARKER
9777 Mount Pyramid Court..........           11.00          11.00    Evolving System Inc. (100%)

EL PASO COUNTY, COLORADO

COLORADO SPRINGS
8415 Explorer.....................           12.77          12.75    Encoda Systems Inc. (74%), URS Greiner
                                                                     Consultants Inc. (22%)
1975 Research Parkway.............           15.55          15.25    Bombardier Capital Florida Inc. (52%), Concert
                                                                     Management Services (18%), General Dynamics
                                                                     Govt Systems (17%)
2375 Telstar Drive................           12.77          12.73    Narwhal Corporation (44%), Memorial Hospital
                                                                     (38%), Aerotek Inc. (13%)

JEFFERSON COUNTY, COLORADO

LAKEWOOD
141 Union Boulevard...............           18.30          18.02    Arbitration Forums Inc. (18%), Frontier Real Estate
                                                                     - BH&G (15%)

-----------------------------------------------------------------------------------------------------------------------------
TOTAL COLORADO OFFICE                        17.26          17.14
-----------------------------------------------------------------------------------------------------------------------------

SAN FRANCISCO COUNTY, CALIFORNIA

SAN FRANCISCO
795 Folsom Street.................           40.49          36.34    Move.com Operations Inc.(51%), AT&T Corp.
                                                                     (34%), Regus Business Centre Corp. (15%)
760 Market Street.................           33.57          32.40    R.H. Macy & Company, Inc. (19%)

-----------------------------------------------------------------------------------------------------------------------------
TOTAL CALIFORNIA OFFICE                      36.46          34.04
-----------------------------------------------------------------------------------------------------------------------------

HILLSBOROUGH COUNTY, FLORIDA
</Table>


                                       27
<Page>

                                PROPERTY LISTING

                                OFFICE PROPERTIES
                                   (CONTINUED)

<Table>
<Caption>
                                                                                                                        PERCENTAGE
                                                                                                                     OF TOTAL 2001
                                                               PERCENTAGE                                                  OFFICE,
                                                         NET       LEASED               2001              2001         OFFICE/FLEX
                                                    RENTABLE        AS OF               BASE         EFFECTIVE     AND INDUSTRIAL/
PROPERTY                                  YEAR          AREA     12/31/01               RENT              RENT           WAREHOUSE
LOCATION                                 BUILT     (SQ. FT.)       (%)(a)     ($000's)(b)(f)    ($000's)(c)(f)       BASE RENT (%)

----------------------------------------------------------------------------------------------------------------------------------
<S>                                       <C>     <C>                <C>             <C>               <C>                   <C>
TAMPA
501 Kennedy Boulevard.............        1982       297,429         91.4              3,829             3,769                0.76


----------------------------------------------------------------------------------------------------------------------------------
TOTAL FLORIDA OFFICE                                 297,429         91.4              3,829             3,769                0.76
----------------------------------------------------------------------------------------------------------------------------------

POLK COUNTY, IOWA

WEST DES MOINES
2600 Westown Parkway (h)..........        1988            --           --                656               628                0.13

----------------------------------------------------------------------------------------------------------------------------------
TOTAL IOWA OFFICE                                         --           --                656               628                0.13
----------------------------------------------------------------------------------------------------------------------------------

TOTAL OFFICE PROPERTIES                           21,783,162         94.2            447,565           428,064               89.16
==================================================================================================================================

<Caption>
                                                               2001
                                                2001        AVERAGE
                                             AVERAGE      EFFECTIVE     TENANTS LEASING 10% OR
                                           BASE RENT           RENT     MORE OF NET RENTABLE
PROPERTY                                 PER SQ. FT.    PER SQ. FT.     AREA PER PROPERTY
LOCATION                                   ($)(d)(f)      ($)(e)(f)     AS OF 12/31/01(f)

-----------------------------------------------------------------------------------------------------------------------------------
<S>                                            <C>            <C>      <C>
TAMPA
501 Kennedy Boulevard.............             14.08          13.86    Fowler, White, Gillen, Boggs, Villareal & Banker,
                                                                       PA (33%), Sykes Enterprises Inc. (23%)

-----------------------------------------------------------------------------------------------------------------------------------
TOTAL FLORIDA OFFICE                           14.08          13.86
-----------------------------------------------------------------------------------------------------------------------------------

POLK COUNTY, IOWA

WEST DES MOINES
2600 Westown Parkway (h)..........                --             --    --

-----------------------------------------------------------------------------------------------------------------------------------
TOTAL IOWA OFFICE                                 --             --
-----------------------------------------------------------------------------------------------------------------------------------

TOTAL OFFICE PROPERTIES                        22.12          21.17
===================================================================================================================================
</Table>


                                       28
<Page>

                                PROPERTY LISTING

                             OFFICE/FLEX PROPERTIES

<Table>
<Caption>
                                                                                                                    PERCENTAGE
                                                                                                                 OF TOTAL 2001
                                                           PERCENTAGE                                                  OFFICE,
                                                   NET         LEASED               2001              2001         OFFICE/FLEX
                                              RENTABLE          AS OF               BASE         EFFECTIVE     AND INDUSTRIAL/
PROPERTY                         YEAR             AREA       12/31/01               RENT              RENT           WAREHOUSE
LOCATION                        BUILT        (SQ. FT.)         (%)(a)     ($000'S)(b)(f)    ($000'S)(d)(f)        BASE RENT(%)
------------------------------------------------------------------------------------------------------------------------------
<S>                              <C>            <C>              <C>                 <C>               <C>                <C>
BURLINGTON COUNTY, NEW JERSEY

BURLINGTON
3 Terri Lane.................    1991           64,500           61.4                302               287                0.06


5 Terri Lane.................    1992           74,555           82.2                525               503                0.10

MOORESTOWN
2 Commerce Drive.............    1986           49,000          100.0                371               367                0.07
101 Commerce Drive...........    1988           64,700          100.0                336               296                0.07
102 Commerce Drive...........    1987           38,400          100.0                187               185                0.04




201 Commerce Drive...........    1986           38,400          100.0                203               197                0.04


202 Commerce Drive...........    1988           51,200          100.0                268               268                0.05
1 Executive Drive............    1989           20,570          100.0                207               165                0.04
2 Executive Drive ...........    1988           60,800           75.5                403               394                0.08


101 Executive Drive..........    1990           29,355          100.0                254               205                0.05

102 Executive Drive..........    1990           64,000          100.0                372               319                0.07



225 Executive Drive..........    1990           50,600          100.0                318               300                0.06

<Caption>

                                                        2001
                                         2001        AVERAGE
                                      AVERAGE      EFFECTIVE    TENANTS LEASING 10% OR
                                    BASE RENT           RENT    MORE OF NET RENTABLE
PROPERTY                          PER SQ. FT.    PER SQ. FT.    AREA PER PROPERTY
LOCATION                            ($)(d)(f)      ($)(e)(f)    AS OF 12/31/01(f)
-----------------------------------------------------------------------------------------------------------------
<S>                                      <C>            <C>     <C>
BURLINGTON COUNTY, NEW JERSEY

BURLINGTON
3 Terri Lane.................            7.63           7.25    Tempel Steel Company (18%), ATC Group
                                                                Services Inc. (10%), General Service
                                                                Administrators (10%)
5 Terri Lane.................            8.57           8.21    United Rentals Inc. (22%), Lykes Dispensing
                                                                Systems Inc. (20%), West Electronics Inc. (12%)
MOORESTOWN
2 Commerce Drive.............            7.57           7.49    Computer Sciences Corporation (100%)
101 Commerce Drive...........            5.19           4.57    Beckett Corporation (100%)
102 Commerce Drive...........            4.87           4.82    Nelson Associates (25%), Compaq Computer
                                                                Company (13%), D&A Eastern Fasteners Inc.
                                                                (13%), Moorestown Weightlifting Club (13%),
                                                                Opex Corporation (13%), RGP Impressions Inc.
                                                                (13%), Transaction Payment Systems (10%)
201 Commerce Drive...........            5.29           5.13    Flow Thru Metals Inc. (25%), Franchise Stores
                                                                Realty Corp. (25%), RE/Com Group (25%),
                                                                Tropicana Products Inc. (25%)
202 Commerce Drive...........            5.23           5.23    Standard Register Co. (100%)
1 Executive Drive............           10.06           8.02    Bechtel Infrastructure Corp. (57%), T.T.I. (18%)
2 Executive Drive ...........            8.78           8.58    CSI Computer Specialists Inc. (32%), On-Campus
                                                                Marketing Concepts (16%), Nia Zia D/B/A Alpha
                                                                Academy (10%)
101 Executive Drive..........            8.65           6.98    Bayada Nurses Inc. (56%), Foundations Inc. (15%),
                                                                ABC Financial (10%), Bechtel Infrastructure Corp.
                                                                (10%)
102 Executive Drive..........            5.81           4.98    Comtrex Systems Corp. (29%), Kencom
                                                                Communications & Svcs. (21%), Schermerhorn
                                                                Bros. Co. (20%), Xermis Inc. (20%), Innovasystems
                                                                Inc. (10%)
225 Executive Drive..........            6.28           5.93    Eastern Research Inc. (77%), Langston 21, LLC
                                                                (14%)
</Table>


                                       29
<Page>

                                PROPERTY LISTING

                             OFFICE/FLEX PROPERTIES
                                   (CONTINUED)

<Table>
<Caption>
                                                                                                                         PERCENTAGE
                                                                                                                      OF TOTAL 2001
                                                                   PERCENTAGE                                               OFFICE,
                                                           NET         LEASED            2001              2001         OFFICE/FLEX
                                                      RENTABLE          AS OF            BASE         EFFECTIVE     AND INDUSTRIAL/
PROPERTY                                      YEAR        AREA       12/31/01            RENT              RENT           WAREHOUSE
LOCATION                                     BUILT   (SQ. FT.)         (%)(a)  ($000's)(b)(f)    ($000's)(d)(f)        BASE RENT(%)
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                           <C>       <C>             <C>               <C>               <C>                <C>
97 Foster Road........................        1982      43,200          100.0             188               188                0.04

1507 Lancer Drive.....................        1995      32,700          100.0             139               130                0.03
1510 Lancer Drive.....................        1998      88,000          100.0             370               370                0.07
1245 North Church Street (g)..........        1998      52,810          100.0             252               252                0.05

1247 North Church Street (g)..........        1998      52,790          100.0             313               312                0.06


1256 North Church Street..............        1984      63,495          100.0             227               190                0.05

840 North Lenola Road.................        1995      38,300          100.0             218               198                0.04


844 North Lenola Road.................        1995      28,670          100.0             217               209                0.04

915 North Lenola Road.................        1998      52,488          100.0             261               261                0.05

2 Twosome Drive (g)...................        2000      48,600          100.0             265               265                0.05
30 Twosome Drive......................        1997      39,675           89.9             221               221                0.04



31 Twosome Drive (g)..................        1998      84,200          100.0             385               385                0.08

40 Twosome Drive......................        1996      40,265           93.4             267               263                0.05

41 Twosome Drive (g)..................        1998      43,050           89.2             259               259                0.05



50 Twosome Drive......................        1997      34,075           86.6             258               256                0.05

WEST DEPTFORD
1451 Metropolitan Drive...............        1996      21,600          100.0             148               148                0.03

MERCER COUNTY, NEW JERSEY

<Caption>

                                                                       2001
                                                        2001        AVERAGE
                                                     AVERAGE      EFFECTIVE    TENANTS LEASING 10% OR
                                                   BASE RENT           RENT    MORE OF NET RENTABLE
PROPERTY                                         PER SQ. FT.    PER SQ. FT.    AREA PER PROPERTY
LOCATION                                           ($)(d)(f)      ($)(e)(f)    AS OF 12/31/01(f)
----------------------------------------------------------------------------------------------------------------------------------
<S>                                                     <C>            <C>     <C>
97 Foster Road........................                  4.35           4.35    Consumer Response Company Inc. (50%), Pioneer
                                                                               and Company Inc. (33%), Colornet Inc. (17%)
1507 Lancer Drive.....................                  4.25           3.98    Tad's Delivery Service Inc. (100%)
1510 Lancer Drive.....................                  4.20           4.20    Tad's Delivery Service Inc. (100%)
1245 North Church Street(g)...........                  6.99           6.99    Health Ink, LLC (38%), C&L Properties L.L.C.
                                                                               (35%), C&L Packaging Inc. (27%)
1247 North Church Street(g)...........                  8.69           8.66    Otis Elevator Company (23%), Dilks Agency Inc.
                                                                               (23%), Telesciences Inc. (17%), Spot-Coolers Inc.
                                                                               (14%)
1256 North Church Street..............                  3.58           2.99    Weiler Labeling Systems, Inc. (50%), James C.
                                                                               Anderson Associates (30%), Ketec Inc. (20%)
840 North Lenola Road.................                  5.69           5.17    Millar Elevator Service (31%), Omega Storage Inc.
                                                                               (31%), Payroll Associates (20%), Innovasystems
                                                                               Inc. (18%)
844 North Lenola Road.................                  7.57           7.29    Lockheed Martin Corp. (41%), Curbell Inc. (34%),
                                                                               James J. Martin Inc. (25%)
915 North Lenola Road.................                  4.97           4.97    Premier Percussion USA Inc. (37%), Vision Realty
                                                                               LLC (23%), Riley Sales Inc. (18%), United States
                                                                               Postal Service (13%)
2 Twosome Drive(g)....................                  7.99           7.99    Sterling Medical Services LLC (100%)
30 Twosome Drive......................                  6.20           6.20    Hartman Cards Inc. (28%), Commercial Office
                                                                               Furniture (24%), Aramark Sports Entertainment
                                                                               (14%), The Closet Factory (12%), C&L Packaging
                                                                               Inc. (12%)
31 Twosome Drive(g)...................                  5.20           5.20    Cort Furniture Rental Corp. (56%), Prism Color
                                                                               Corp. (44%)
40 Twosome Drive......................                  7.10           6.99    Neighborcare - TCI Inc. (49%), Marconi
                                                                               Communications Inc. (30%), Bellstar Inc. (14%)
41 Twosome Drive(g)...................                  7.67           7.67    Kit Industries Inc. (22%), Momentum Systems
                                                                               Limited (22%), DIA - Nielsen USA Inc. (11%),
                                                                               Harrington Robb Company (11%), S&S Specialty
                                                                               Products (11%), Williams Communications (11%)
50 Twosome Drive......................                  8.74           8.68    Wells Fargo Alarm Services (44%), Sussex Wine
                                                                               Merchants (42%)

WEST DEPTFORD
1451 Metropolitan Drive...............                  6.85           6.85    Garlock Bearings Inc. (100%)

MERCER COUNTY, NEW JERSEY
</Table>

                                       30
<Page>

                                PROPERTY LISTING

                             OFFICE/FLEX PROPERTIES
                                   (CONTINUED)

<Table>
<Caption>
                                                                                                                         PERCENTAGE
                                                                                                                      OF TOTAL 2001
                                                                   PERCENTAGE                                               OFFICE,
                                                           NET         LEASED            2001              2001         OFFICE/FLEX
                                                      RENTABLE          AS OF            BASE         EFFECTIVE     AND INDUSTRIAL/
PROPERTY                                      YEAR        AREA       12/31/01            RENT              RENT           WAREHOUSE
LOCATION                                     BUILT   (SQ. FT.)         (%)(a)  ($000's)(b)(f)    ($000's)(d)(f)        BASE RENT(%)
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                           <C>       <C>             <C>            <C>               <C>                <C>
HAMILTON TOWNSHIP
100 Horizon Drive...................          1989      13,275          100.0             192               170                0.04
200 Horizon Drive...................          1991      45,770          100.0             475               457                0.10
300 Horizon Drive...................          1989      69,780           86.4           1,124             1,096                0.22


500 Horizon Drive...................          1990      41,205          100.0             349               326                0.07


MONMOUTH COUNTY, NEW JERSEY

WALL TOWNSHIP
1325 Campus Parkway.................          1988      35,000          100.0             466               435                0.09
1340 Campus Parkway.................          1992      72,502          100.0             856               729                0.17



1345 Campus Parkway.................          1995      76,300           62.6             744               736                0.15
1433 Highway 34.....................          1985      69,020           65.1             701               522                0.14

1320 Wyckoff Avenue.................          1986      20,336          100.0             176               166                0.04
1324 Wyckoff Avenue.................          1987      21,168          100.0             220               175                0.04


PASSAIC COUNTY, NEW JERSEY

TOTOWA
1 Center Court......................          1999      38,961          100.0             366               265                0.07


2 Center Court......................          1998      30,600           99.3             348               237                0.07

11 Commerce Way.....................          1989      47,025          100.0             507               434                0.10


20 Commerce Way.....................          1992      42,540           75.9             387               375                0.08

<Caption>
                                                                       2001
                                                        2001        AVERAGE
                                                     AVERAGE      EFFECTIVE    TENANTS LEASING 10% OR
                                                   BASE RENT           RENT    MORE OF NET RENTABLE
PROPERTY                                         PER SQ. FT.    PER SQ. FT.    AREA PER PROPERTY
LOCATION                                           ($)(d)(f)      ($)(e)(f)    AS OF 12/31/01(f)
----------------------------------------------------------------------------------------------------------------------------------
<S>                                                    <C>            <C>      <C>
HAMILTON TOWNSHIP
100 Horizon Drive...................                   14.46          12.81    PSEG Energy Technologies Inc. (100%)
200 Horizon Drive...................                   10.38           9.98    O.H.M. Remediation Services Corp. (100%)
300 Horizon Drive...................                   18.64          18.18    State of New Jersey/DEP (50%), Lucent
                                                                               Technologies Inc. (26%), Stephen Gould of
                                                                               Pennsylvania (10%)
500 Horizon Drive...................                    8.47           7.91    Yardville National Bank (42%), Lakeview Child
                                                                               Center Inc. (19%), New Jersey Builders Assoc.
                                                                               (14%), Diedre Moire Corp. (11%)
MONMOUTH COUNTY, NEW JERSEY

WALL TOWNSHIP
1325 Campus Parkway.................                   13.31          12.43    Cisco Systems Inc. (100%)
1340 Campus Parkway.................                   11.81          10.05    Groundwater & Environmental Services Inc. (33%),
                                                                               GEAC Computers Inc. (22%), State Farm Mutual
                                                                               Insurance (17%), Association For Retarded Citizens
                                                                               (11%), Digital Lightwave, Inc. (11%)
1345 Campus Parkway.................                   15.58          15.41    Quadramed Corp. (24%), De Vine Corp. (11%)
1433 Highway 34.....................                   15.60          11.62    State Farm Mutual Insurance Co. (48%), Applied
                                                                               Image Inc. (11%)
1320 Wyckoff Avenue.................                    8.65           8.16    The County of Monmouth (100%)
1324 Wyckoff Avenue.................                   10.39           8.27    Blackhawk Management Corp. (53%), Systems
                                                                               Fulfillment (25%), Supply Saver, Inc. (22%)

PASSAIC COUNTY, NEW JERSEY

TOTOWA
1 Center Court......................                    9.39           6.80    Rock-Tenn Converting Company (46%), Eizo
                                                                               Nanao Technologies Inc. (38%), Onyx Waste
                                                                               Services Inc. (16%)
2 Center Court......................                   11.45           7.80    Nomadic Display (36%), Electro Rent Corp. (33%),
                                                                               Alpine Electronics of America (30%)
11 Commerce Way.....................                   10.78           9.23    Coram Alternative Site Services (56%), D.A. Kopp
                                                                               & Associates Inc. (22%), Gentiva Health Services
                                                                               (22%)
20 Commerce Way.....................                   11.99          11.61    Lodan Totowa Inc. F/K/A Emersub (62%), Dish
                                                                               Network Service
</Table>


                                       31
<Page>

                                PROPERTY LISTING

                             OFFICE/FLEX PROPERTIES
                                   (CONTINUED)

<Table>
<Caption>
                                                                                                                         PERCENTAGE
                                                                                                                      OF TOTAL 2001
                                                                   PERCENTAGE                                               OFFICE,
                                                           NET         LEASED            2001              2001         OFFICE/FLEX
                                                      RENTABLE          AS OF            BASE         EFFECTIVE     AND INDUSTRIAL/
PROPERTY                                      YEAR        AREA       12/31/01            RENT              RENT           WAREHOUSE
LOCATION                                     BUILT   (SQ. FT.)         (%)(a)  ($000's)(b)(f)    ($000's)(d)(f)        BASE RENT(%)
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                           <C>    <C>                 <C>           <C>               <C>                   <C>
29 Commerce Way.....................          1990      48,930          100.0             285               236                0.06

40 Commerce Way.....................          1987      50,576          100.0             512               422                0.10


45 Commerce Way.....................          1992      51,207          100.0             502               461                0.10

60 Commerce Way.....................          1988      50,333           83.2             483               416                0.10


80 Commerce Way.....................          1996      22,500          100.0             282               174                0.06


100 Commerce Way....................          1996      24,600          100.0             308               190                0.06

120 Commerce Way....................          1994       9,024           99.6             100                95                0.02

140 Commerce Way....................          1994      26,881           99.6             298               285                0.06




-----------------------------------------------------------------------------------------------------------------------------------
TOTAL NEW JERSEY OFFICE/FLEX                         2,277,531           93.4          17,415            15,795                3.45
-----------------------------------------------------------------------------------------------------------------------------------

WESTCHESTER COUNTY, NEW YORK

ELMSFORD
11 Clearbrook Road..................          1974      31,800          100.0             384               379                0.08


75 Clearbrook Road..................          1990      32,720          100.0             816               816                0.16
150 Clearbrook Road.................          1975      74,900          100.0           1,095             1,049                0.22


175 Clearbrook Road.................          1973      98,900           98.5           1,492             1,429                0.30

200 Clearbrook Road.................          1974      94,000           99.8           1,209             1,137                0.24

<Caption>
                                                                       2001
                                                        2001        AVERAGE
                                                     AVERAGE      EFFECTIVE    TENANTS LEASING 10% OR
                                                   BASE RENT           RENT    MORE OF NET RENTABLE
PROPERTY                                         PER SQ. FT.    PER SQ. FT.    AREA PER PROPERTY
LOCATION                                           ($)(d)(f)      ($)(e)(f)    AS OF 12/31/01(f)
----------------------------------------------------------------------------------------------------------------------------------
<S>                                                    <C>            <C>      <C>
29 Commerce Way.....................                    5.82           4.82    ADT Security Services Inc. (55%), Patterson Dental
                                                                               Supply Inc. (23%), Fujitec America Inc. (22%)
40 Commerce Way.....................                   10.12           8.34    Thales Components Corporation (43%), Intertek
                                                                               Testing Services Inc. (29%), System 3R USA Inc.
                                                                               (14%), Pitney Bowes Inc. (14%)
45 Commerce Way.....................                    9.80           9.00    Ericsson Inc. (52%), Woodward Clyde Consultants
                                                                               (27%), Oakwood Corporate Housing (21%)
60 Commerce Way.....................                   11.53           9.93    Jen Mar Graphics Inc. (27%), Dolan & Traynor
                                                                               Building Prod (16%), Prestige Telecom Ltd. (14%),
                                                                               HW Exhibits (14%), Bearings Ltd. (12%)
80 Commerce Way.....................                   12.53           7.73    Learning Stop LLC (40%), Idexx Veterinary
                                                                               Services (37%), Inter-American Safety Council
                                                                               (12%), Haas Publishing Companies (11%)
100 Commerce Way....................                   12.52           7.72    Geri Script LLC (34%), Minolta Business Systems
                                                                               Inc. (34%), CCH Incorporated (32%)
120 Commerce Way....................                   11.13          10.57    Senior Care Centers of America (62%), Showa Tool
                                                                               USA Inc. (19%), Telsource Corporation (19%)
140 Commerce Way....................                   11.13          10.64    Universal Hospital Services (36%), Advanced
                                                                               Image Systems Inc. (25%), Alpha Testing
                                                                               Laboratories (13%), Holder Group Inc. (13%),
                                                                               Dairygold (12%)

----------------------------------------------------------------------------------------------------------------------------------
TOTAL NEW JERSEY OFFICE/FLEX                            8.41           7.65
----------------------------------------------------------------------------------------------------------------------------------

WESTCHESTER COUNTY, NEW YORK

ELMSFORD
11 Clearbrook Road..................                   12.08          11.92    Eastern Jungle Gym Inc. (27%), MCS Marketing
                                                                               Group Inc. (24%), Treetops Inc. (21%), Portables
                                                                               Unlimited Inc. (14%), Karate Kat Inc. (14%)
75 Clearbrook Road..................                   24.94          24.94    Evening Out Inc. (100%)
150 Clearbrook Road.................                   14.62          14.01    Sportive Ventures I LLC (24%), Philips Medical
                                                                               Systems N.A. (18%), Transwestern Publications
                                                                               (12%), ADT Security Services Inc. (11%)
175 Clearbrook Road.................                   15.32          14.67    Nextel of New York Inc. (35%), Hypres Inc. (15%),
                                                                               Perk-Up Inc. (10%)
200 Clearbrook Road.................                   12.89          12.12    Brunschwig & Fils Inc. (39%), Proftech Corp (20%)
</Table>


                                       32
<Page>

                                PROPERTY LISTING

                             OFFICE/FLEX PROPERTIES
                                   (CONTINUED)

<Table>
<Caption>
                                                                                                                         PERCENTAGE
                                                                                                                      OF TOTAL 2001
                                                                   PERCENTAGE                                               OFFICE,
                                                           NET         LEASED            2001              2001         OFFICE/FLEX
                                                      RENTABLE          AS OF            BASE         EFFECTIVE     AND INDUSTRIAL/
PROPERTY                                      YEAR        AREA       12/31/01            RENT              RENT           WAREHOUSE
LOCATION                                     BUILT   (SQ. FT.)         (%)(a)  ($000's)(b)(f)    ($000's)(d)(f)        BASE RENT(%)
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                           <C>    <C>                 <C>           <C>               <C>                   <C>
250 Clearbrook Road.................          1973     155,000           94.5           1,340             1,281                0.27



50 Executive Boulevard..............          1969      45,200           75.8             265               256                0.05
77 Executive Boulevard..............          1977      13,000          100.0             126               122                0.03


85 Executive Boulevard..............          1968      31,000           99.4             432               423                0.09


300 Executive Boulevard.............          1970      60,000           99.7             633               595                0.13


350 Executive Boulevard.............          1970      15,400           98.8             263               262                0.05
399 Executive Boulevard.............          1962      80,000          100.0             965               928                0.19


400 Executive Boulevard.............          1970      42,200          100.0             656               602                0.13


500 Executive Boulevard.............          1970      41,600          100.0             647               604                0.13


525 Executive Boulevard.............          1972      61,700          100.0             894               865                0.18


1 Westchester Plaza.................          1967      25,000          100.0             307               289                0.06


2 Westchester Plaza.................          1968      25,000          100.0             452               441                0.09


3 Westchester Plaza.................          1969      93,500          100.0           1,405             1,383                0.28


4 Westchester Plaza.................          1969      44,700           99.8             627               600                0.12

5 Westchester Plaza.................          1969      20,000          100.0             277               272                0.06



6 Westchester Plaza.................          1968      20,000          100.0             312               291                0.06

<Caption>

                                                                       2001
                                                        2001        AVERAGE
                                                     AVERAGE      EFFECTIVE    TENANTS LEASING 10% OR
                                                   BASE RENT           RENT    MORE OF NET RENTABLE
PROPERTY                                         PER SQ. FT.    PER SQ. FT.    AREA PER PROPERTY
LOCATION                                           ($)(d)(f)      ($)(e)(f)    AS OF 12/31/01(f)
----------------------------------------------------------------------------------------------------------------------------------
<S>                                                    <C>            <C>      <C>
250 Clearbrook Road.................                    9.15           8.75    AFP Imaging Corp (31%), The Artina Group Inc. (14%),
                                                                               Prints Plus Inc. (13%), Conri Services Inc. (13%),
                                                                               Merrill-Sharpe Ltd (10%)

50 Executive Boulevard..............                    7.73           7.47    MMO Music Group (74%)
77 Executive Boulevard..............                    9.69           9.38    Bright Horizons Children Center (55%), Richmonds
                                                                               Childrens Center Inc. (45%)

85 Executive Boulevard..............                   14.02          13.73    VREX Inc. (49%), Westhab Inc. (32%), Wald Optics
                                                                               Laboratory Inc. (13%)

300 Executive Boulevard.............                   10.58           9.95    Princeton Ski Outlet Corp. (57%), Varta Batteries
                                                                               Inc. (31%), Infovalue Computing Inc. (12%)

350 Executive Boulevard.............                   17.29          17.22    Fujitsu Network Communication (99%)
399 Executive Boulevard.............                   12.06          11.60    American Banknote Holographic (72%), Game Sportswear
                                                                               Ltd (28%)

400 Executive Boulevard.............                   15.55          14.27    Baker Engineering NY, Inc. (39%), Ultra Fabrics Inc.
                                                                               (25%), Blum Promotions and Display (10%)

500 Executive Boulevard.............                   15.55          14.52    Original Consume (36%), Thyssen Krupp Elevator Corp.
                                                                               (16%), Angelica Corporation (16%), Olympia Sports
                                                                               Inc. (13%), Philips Medical Systems N.A. (13%)

525 Executive Boulevard.............                   14.49          14.02    Vie De France Yamazaki Inc. (59%), New York Blood
                                                                               Center Inc. (21%)

1 Westchester Plaza.................                   12.28          11.56    British Apparel (40%), Thin Film Concepts Inc. (20%),
                                                                               RS Knapp (20%), JT Lynne Representatives (20%)

2 Westchester Plaza.................                   18.08          17.64    Board of Cooperative Education (80%), Kin-Tronics
                                                                               (10%), Squires Productions Inc. (10%)

3 Westchester Plaza.................                   15.03          14.79    Reveo Inc. (51%), Kangol Headwear (28%), Esperya USA
                                                                               Inc. (12%)

4 Westchester Plaza.................                   14.05          13.45    Metropolitan Life Insurance (38%), Marconi Applied
                                                                               Technologies (34%)
5 Westchester Plaza.................                   13.85          13.60    Apria Healthcare Inc. (38%), Rokonet Industries USA
                                                                               Inc. (25%), UA Plumbers Education Fund (25%), BBA
                                                                               Project Inc. (12%)

6 Westchester Plaza.................                   15.60          14.55    Pinkerton Systems Integration (28%), Xerox
                                                                               Corporation (28%), Game Parts Inc. (24%),
                                                                               Girard Rubber Co. (12%)
</Table>


                                       33
<Page>

                                PROPERTY LISTING

                             OFFICE/FLEX PROPERTIES
                                   (CONTINUED)

<Table>
<Caption>
                                                                                                                         PERCENTAGE
                                                                                                                      OF TOTAL 2001
                                                                   PERCENTAGE                                               OFFICE,
                                                           NET         LEASED            2001              2001         OFFICE/FLEX
                                                      RENTABLE          AS OF            BASE         EFFECTIVE     AND INDUSTRIAL/
PROPERTY                                      YEAR        AREA       12/31/01            RENT              RENT           WAREHOUSE
LOCATION                                     BUILT   (SQ. FT.)         (%)(a)  ($000's)(b)(f)    ($000's)(d)(f)        BASE RENT(%)
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                           <C>    <C>                 <C>            <C>               <C>                   <C>
7 Westchester Plaza.................          1972      46,200          100.0             652               646                0.13


8 Westchester Plaza.................          1971      67,200          100.0             864               766                0.17


HAWTHORNE
200 Saw Mill River Road.............          1965      51,100          100.0             656               622                0.13




4 Skyline Drive.....................          1987      80,600          100.0           1,405             1,286                0.28
5 Skyline Drive (g).................          1980     124,022          100.0             657               657                0.13


6 Skyline Drive (g).................          1980      44,155          100.0             290               290                0.06


8 Skyline Drive.....................          1985      50,000           98.7             618               487                0.12

10 Skyline Drive....................          1985      20,000          100.0             285               263                0.06

11 Skyline Drive....................          1989      45,000          100.0             724               674                0.14
12 Skyline Drive....................          1999      46,850          100.0             806               633                0.16


15 Skyline Drive....................          1989      55,000          100.0             966               843                0.19


YONKERS
100 Corporate Boulevard.............          1987      78,000           98.2           1,384             1,307                0.28



200 Corporate Boulevard South.......          1990      84,000           99.8           1,377             1,348                0.27



4 Executive Plaza...................          1986      80,000           99.0             939               867                0.19


6 Executive Plaza...................          1987      80,000           98.7           1,184             1,162                0.24


<Caption>
                                                                       2001
                                                        2001        AVERAGE
                                                     AVERAGE      EFFECTIVE    TENANTS LEASING 10% OR
                                                   BASE RENT           RENT    MORE OF NET RENTABLE
PROPERTY                                         PER SQ. FT.    PER SQ. FT.    AREA PER PROPERTY
LOCATION                                           ($)(d)(f)      ($)(e)(f)    AS OF 12/31/01(f)
----------------------------------------------------------------------------------------------------------------------------------
<S>                                                    <C>            <C>      <C>
7 Westchester Plaza.................                   14.11          13.98    Emigrant Savings Bank (69%), Fire End Croker Corp.
                                                                               (27%)

8 Westchester Plaza.................                   12.86          11.40    Mamiya America Corp. (24%), Ciba Specialty Chemicals
                                                                               Corp. (17%), Kubra Data Transfer Ltd. (15%)

HAWTHORNE
200 Saw Mill River Road.............                   12.84          12.17    Walter DeGruyter Inc. (21%), Abscoa Industries Inc.
                                                                               (18%), TJ Quatroni Plumbing and Heat (17%),
                                                                               Cablevision Lighpath Inc. (12%), SI International
                                                                               Instruments Inc. (10%)

4 Skyline Drive.....................                   17.43          15.96    Alstom USA Inc. (33%), Evonyx Inc. (23%)
5 Skyline Drive (g).................                   12.81          12.81    Taro Pharmaceuticals USA Inc. (75%), Westco Closet
                                                                               Corp. (20%)

6 Skyline Drive (g).................                   15.88          15.88    Evonyx Inc. (73%), Anvik Corporation (27%)
8 Skyline Drive.....................                   12.52           9.87    Ameriquest Mortgage Company (51%), Evonyx Inc. (29%),
                                                                               Minolta Business Solutions Inc. (20%)

10 Skyline Drive....................                   14.25          13.15    Bi-Tronic Inc/LCA Sales Corp. (51%), Phoenix Systems
                                                                               Int'l (32%), ENSR Corp. (17%)
11 Skyline Drive....................                   16.09          14.98    Xand Corporation (100%)
12 Skyline Drive....................                   17.20          13.51    Creative Visual Enterprises (38%), Medelec Inc.
                                                                               (32%), Savin Corporation (30%)

15 Skyline Drive....................                   17.56          15.33    Accorda Therapeutics Inc. (54%), Tellabs Operations
                                                                               Inc. (46%)

YONKERS
100 Corporate Boulevard.............                   18.07          17.06    Montefiore Medical Center (28%), Sempra Energy
                                                                               Trading Corp. (13%), Minami International Corp.
                                                                               (12%), Otis Elevator Company (11%), Genzyme Genetics
                                                                               Corp. (11%)
200 Corporate Boulevard South.......                   16.43          16.08    Belmay Inc. (32%), Montefiore Medical Center (23%),
                                                                               Advanced Viral Research Corp. (20%), Micromold
                                                                               Products Inc. (10%)

4 Executive Plaza...................                   11.86          10.95    Wise Contact US Optical Corp. (35%), E&B Giftware
                                                                               Inc. (22%), TT Systems LLC (10%)

6 Executive Plaza...................                   14.99          14.72    CSC Holdings Inc. (52%), Yonkers Savings & Loan
                                                                               Assoc. (11%), Empire Managed Care Inc. (10%)
</Table>


                                       34
<Page>
                                PROPERTY LISTING

                             OFFICE/FLEX PROPERTIES
                                   (CONTINUED)

<Table>
<Caption>
                                                                                                                         PERCENTAGE
                                                                                                                      OF TOTAL 2001
                                                                   PERCENTAGE                                               OFFICE,
                                                           NET         LEASED            2001              2001         OFFICE/FLEX
                                                      RENTABLE          AS OF            BASE         EFFECTIVE     AND INDUSTRIAL/
PROPERTY                                      YEAR        AREA       12/31/01            RENT              RENT           WAREHOUSE
LOCATION                                     BUILT   (SQ. FT.)         (%)(a)  ($000's)(b)(f)    ($000's)(d)(f)        BASE RENT(%)
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                           <C>    <C>                 <C>           <C>               <C>                   <C>
1 Odell Plaza.......................          1980     106,000           90.8           1,217             1,166                0.24


5 Odell Plaza.......................          1983      38,400           99.6             599               577                0.12


7 Odell Plaza.......................          1984      42,600           95.9             657               650                0.13


-----------------------------------------------------------------------------------------------------------------------------------
TOTAL NEW YORK OFFICE/FLEX                           2,244,747           98.3          29,877            28,268                5.96
-----------------------------------------------------------------------------------------------------------------------------------

FAIRFIELD COUNTY, CONNECTICUT

STAMFORD
419 West Avenue.....................          1986      88,000           99.7           1,282             1,233                0.26


500 West Avenue.....................          1988      25,000           74.9             349               294                0.07


550 West Avenue.....................          1990      54,000          100.0             808               685                0.16


600 West Avenue.....................          1999      66,000          100.0             826               789                0.16
650 West Avenue.....................          1998      40,000          100.0             173                61                0.03

-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CONNECTICUT OFFICE/FLEX                          273,000           97.6           3,438             3,062                0.68
-----------------------------------------------------------------------------------------------------------------------------------

TOTAL OFFICE/FLEX PROPERTIES                         4,795,278           96.0          50,730            47,125               10.09
===================================================================================================================================

<Caption>
                                                                       2001
                                                        2001        AVERAGE
                                                     AVERAGE      EFFECTIVE    TENANTS LEASING 10% OR
                                                   BASE RENT           RENT    MORE OF NET RENTABLE
PROPERTY                                         PER SQ. FT.    PER SQ. FT.    AREA PER PROPERTY
LOCATION                                           ($)(d)(f)      ($)(e)(f)    AS OF 12/31/01(f)
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                                    <C>            <C>      <C>
1 Odell Plaza.......................                   12.64          12.11    Sportive Ventures 2 LLC (19%), Market Dynamics Group
                                                                               LLC (11%)

5 Odell Plaza.......................                   15.66          15.09    Voyetra Technologies Inc. (44%), Photo File Inc.
                                                                               (34%), The New Geri Care of Yonkers (22%)

7 Odell Plaza.......................                   16.08          15.91    US Postal Service (41%), TT Systems Corp. (24%),
                                                                               Bright Horizons Childrens Center (16%)

-----------------------------------------------------------------------------------------------------------------------------------
TOTAL NEW YORK OFFICE/FLEX                             14.14          13.41
-----------------------------------------------------------------------------------------------------------------------------------

FAIRFIELD COUNTY, CONNECTICUT

STAMFORD
419 West Avenue.....................                   14.61          14.05    Fuji Medical Systems USA Inc. (90%), Instill and
                                                                               Company Inc. (10%)

500 West Avenue.....................                   18.64          15.70    Lead Trackers Inc. (47%), Inter Tel Technologies Inc.
                                                                               (17%), M Cohen and Sons Inc. (11%)

550 West Avenue.....................                   14.96          12.69    Lifecodes Corp. (68%), Davidoff of Geneva (CT) Inc.
                                                                               (32%)

600 West Avenue.....................                   12.52          11.95    Clarence House Imports, Ltd (100%)
650 West Avenue.....................                    4.33           1.53    Davidoff of Geneva (CT) Inc. (100%)

-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CONNECTICUT OFFICE/FLEX                          12.90          11.49
-----------------------------------------------------------------------------------------------------------------------------------

TOTAL OFFICE/FLEX PROPERTIES                           11.42          10.64
===================================================================================================================================
</Table>


                                       35
<Page>

                                PROPERTY LISTING

                         INDUSTRIAL/WAREHOUSE PROPERTIES

<Table>
<Caption>
                                                                                                                         PERCENTAGE
                                                                                                                      OF TOTAL 2001
                                                                    PERCENTAGE                                              OFFICE,
                                                            NET         LEASED             2001              2001       OFFICE/FLEX
                                                       RENTABLE          AS OF             BASE         EFFECTIVE   AND INDUSTRIAL/
PROPERTY                                     YEAR          AREA       12/31/01             RENT              RENT         WAREHOUSE
LOCATION                                    BUILT     (SQ. FT.)         (%)(a)   ($000's)(b)(f)    ($000's)(c)(f)      BASE RENT(%)
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                          <C>     <C>                  <C>           <C>               <C>                 <C>
WESTCHESTER COUNTY, NEW YORK

ELMSFORD
1 Warehouse Lane........................     1957         6,600          100.0               71                71              0.01
2 Warehouse Lane........................     1957        10,900           96.3              134               127              0.03

3 Warehouse Lane........................     1957        77,200          100.0              290               279              0.06
4 Warehouse Lane........................     1957       195,500           97.4            1,941             1,890              0.40

5 Warehouse Lane........................     1957        75,100           97.1              776               668              0.15

6 Warehouse Lane........................     1982        22,100          100.0              511               509              0.10

-----------------------------------------------------------------------------------------------------------------------------------
TOTAL INDUSTRIAL/WAREHOUSE PROPERTIES                   387,400           98.0            3,723             3,544              0.75
-----------------------------------------------------------------------------------------------------------------------------------

TOTAL OFFICE, OFFICE/FLEX,
 AND INDUSTRIAL/WAREHOUSE
 PROPERTIES                                          26,965,840           94.6          502,018           478,733             100.0
===================================================================================================================================

<Caption>

                                                                    2001
                                                     2001        AVERAGE
                                                  AVERAGE      EFFECTIVE    TENANTS LEASING 10% OR
                                                BASE RENT           RENT    MORE OF NET RENTABLE
PROPERTY                                      PER SQ. FT.    PER SQ. FT.    AREA PER PROPERTY
LOCATION                                        ($)(d)(f)      ($)(e)(f)    AS OF 12/31/01(f)
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                 <C>            <C>      <C>
WESTCHESTER COUNTY, NEW YORK

ELMSFORD
1 Warehouse Lane........................            10.76          10.76    JP Trucking Service Center Inc. (100%)
2 Warehouse Lane........................            12.77          12.10    RJ Bruno Roofing Inc. (55%), Teleport Communications
                                                                            Group (41%)
3 Warehouse Lane........................             3.76           3.61    United Parcel Service (100%)
4 Warehouse Lane........................            10.19           9.93    San Mar Laboratories Inc. (63%), Westinghouse Air
                                                                            Brake Co. Inc. (14%)
5 Warehouse Lane........................            10.64           9.16    Great Spring Waters of America (48%), Chamart
                                                                            Exclusives Inc. (16%), Mallory Kotzen Tire Company (11%)
6 Warehouse Lane........................            23.12          23.03    Conway Central Express (100%)

------------------------------------------------------------------------------------------------------------------------------------
TOTAL INDUSTRIAL/WAREHOUSE PROPERTIES                9.80           9.33
------------------------------------------------------------------------------------------------------------------------------------

TOTAL OFFICE, OFFICE/FLEX,
 AND INDUSTRIAL/WAREHOUSE
 PROPERTIES                                         20.00          19.08
====================================================================================================================================
</Table>

(a)   Based on all leases in effect as of December 31, 2001.
(b)   Total base rent for 2001, determined in accordance with generally accepted
      accounting principles ("GAAP"). Substantially all of the leases provide
      for annual base rents plus recoveries and escalation charges based upon
      the tenant's proportionate share of and/or increases in real estate taxes
      and certain operating costs, as defined, and the pass through of charges
      for electrical usage.
(c)   Total base rent for 2001 minus total 2001 amortization of tenant
      improvements, leasing commissions and other concessions and costs,
      determined in accordance with GAAP.
(d)   Base rent for 2001 divided by net rentable square feet leased at December
      31, 2001. For those properties acquired or placed in service during 2001,
      amounts are annualized, as per Note g.
(e)   Effective rent for 2001 divided by net rentable square feet leased at
      December 31, 2001. For those properties acquired or placed in service
      during 2001, amounts are annualized, as per Note g.
(f)   Excludes space leased by the Operating Partnership.
(g)   As this property was acquired or placed in service by the Operating
      Partnership during 2001, the amounts represented in 2001 base rent and
      2001 effective rent reflect only that portion of the year during which the
      Operating Partnership owned or placed the property in service.
      Accordingly, these amounts may not be indicative of the property's full
      year results. For comparison purposes, the amounts represented in 2001
      average base rent per sq. ft. and 2001 average effective rent per sq. ft.
      for this property have been calculated by taking 2001 base rent and 2001
      effective rent for such property and annualizing these partial-year
      results, dividing such annualized amounts by the net rentable square feet
      leased at December 31, 2001. These annualized per square foot amounts may
      not be indicative of the property's results had the Operating Partnership
      owned or placed such property in service for the entirety of 2001.
(h)   The property was sold by the Operating Partnership in 2001.
(i)   Calculation based on square feet in service as of December 31, 2001.
(j)   The Operating Partnership constructed an expansion to this building
      increasing its size by 31,000 square feet.
(k)   Property is excluded from weighted average percentage leased as it was an
      in-service development property as of December 31, 2001. Had these
      properties been included, weighted average percentage leased for total
      office, office/flex, and industrial/warehouse properties would be 94.1
      percent.


                                       36
<Page>

RETAIL PROPERTIES

The Operating Partnership owned two stand-alone retail properties as of December
31, 2001, as described below:

The Operating Partnership owns an 8,000 square foot restaurant, constructed in
1986, located at 2 Executive Plaza in the South Westchester Executive Park in
Yonkers, Westchester County, New York. The restaurant is 100 percent leased to
Benni's LLC for use as a Bennigan's restaurant under a 16-year lease. The lease
currently provides for fixed annual base rent of $175,000, with fully-reimbursed
real estate taxes, and operating expenses escalated based on the consumer price
index ("CPI") over a base year CPI. The lease, which commenced in December 2001
and expires in December 2017, includes scheduled rent increases in January 2003
to approximately $205,000 annually, in January 2006 to approximately $225,000
annually, in January 2010 to approximately $248,000 annually, and in January
2014 to approximately $273,000 annually. The lease also provides for additional
rent calculated as a percentage of sales over a specified sales amount, as well
as for two five-year renewal options. 2001 total base rent for the property,
calculated in accordance with GAAP, was approximately $13,497.

The Operating Partnership also owns a 9,300 square foot restaurant, constructed
in 1984, located at 230 White Plains Road, Tarrytown, Westchester County, New
York. The restaurant is 100 percent leased to TGI Friday's under a 10-year lease
which provides for fixed annual base rent of approximately $195,000, with
fully-reimbursed real estate taxes, and operating expenses escalated based on
CPI over a base year CPI. The lease, which expires in August 2004, also provides
for additional rent calculated as a percentage of sales over a specified sales
amount, as well as for four five-year renewal options. 2001 total base rent for
the property, calculated in accordance with GAAP, was approximately $195,000.

LAND LEASES

The Operating Partnership owned three land parcels, which were leased as of
December 31, 2001, as described below:

The Operating Partnership leases land to Star Enterprises, on which a 2,264
square-foot Texaco gas station was constructed, located at 1 Enterprise
Boulevard in Yonkers, Westchester County, New York. The 15-year, triple-net land
lease provides for annual rent of approximately $145,000 and expires in April
2005. The lease also provides for two five-year renewal options. 2001 total base
rent under this lease, calculated in accordance with GAAP, was approximately
$143,972.

The Operating Partnership also leases five acres of land to Rake Realty, on
which a 103,500 square-foot office building exists, located at 700 Executive
Boulevard, Elmsford, Westchester County, New York. The 22-year, triple-net land
lease provides for fixed annual rent plus a CPI adjustment every five years, and
expires in November 2018. 2001 total base rent under this lease, calculated in
accordance with GAAP, was approximately $114,276. The lease also provides for
several renewal options which could extend the lease term for an additional 30
years.

The Operating Partnership also leases 27.7 acres of land to Home Depot, on which
a 134,000 square-foot retail store was constructed, located at the Operating
Partnership's Horizon Center Business Park, Hamilton Township, Mercer County,
New Jersey. The net lease, which began on February 1, 1999, provides for annual
rent of approximately $298,000 through the fifth year of the lease and fixed
annual rent plus a CPI adjustment every five years for the years thereafter and
expires in January 2094. The lease also provides an option for Home Depot to
purchase the land in 2002. 2001 total base rent under this lease, calculated in
accordance with GAAP, was approximately $260,750.

MULTI-FAMILY RESIDENTIAL PROPERTY

The Operating Partnership owned a multi-family residential property as of
December 31, 2001, as well as sold a multi-family residential property in 2001,
as described below:

25 MARTINE AVENUE, WHITE PLAINS, WESTCHESTER COUNTY, NEW YORK: The Operating
Partnership's multi-family residential property, known as 25 Martine Avenue, was
built in 1987. The property contains 124 residential units, comprised of 18
studio units, 71 one-bedroom units and 35 two-bedroom units, with an average
size of approximately 722 square feet per unit. The property had an average
monthly rental rate of approximately $1,572 per unit during 2001 and was 97.0
percent leased as of December 31, 2001. The property also has retail space. The
property had 2001 total base rent of approximately $2.4 million, which
represented approximately 0.5 percent of the Operating Partnership's 2001 total
base rent. The average occupancy rate for the property in each of 2001, 2000 and
1999 was 97.0 percent, 96.5 percent and 96.8 percent, respectively. In January
2002, the Operating Partnership sold this property for net sales proceeds of
approximately $17.8 million.


                                       37
<Page>

TENBY CHASE APARTMENTS, DELRAN, BURLINGTON COUNTY, NEW JERSEY: During 2001, the
Operating Partnership owned the Tenby Chase Apartments, a 327-unit, multi-family
residential property located in Delran, Burlington County, New Jersey, which was
sold on June 21, 2001. During 2001, the Operating Partnership recognized
approximately $1.4 million in total base rent from the property.

OCCUPANCY

The table below sets forth the year-end percentages of rentable square feet
leased in the Operating Partnership's in-service Consolidated Properties for the
last five years:

<Table>
<Caption>
                                                    Percentage of
          Year ended December 31,          Square Feet Leased (%)
          --------------------------------------------------------
<S>                                                          <C>
          2001                                               94.6

          2000                                               96.8

          1999                                               96.5

          1998                                               96.6

          1997                                               95.8
</Table>


                                       38
<Page>

SIGNIFICANT TENANTS

The following table sets forth a schedule of the Operating Partnership's 20
largest tenants for the Consolidated Properties as of December 31, 2001, based
upon annualized base rents:

<Table>
<Caption>
                                                                        PERCENTAGE OF
                                                                            OPERATING                     PERCENTAGE
                                                        ANNUALIZED        PARTNERSHIP      SQUARE    TOTAL OPERATING       YEAR OF
                                      NUMBER OF        BASE RENTAL    ANNUALIZED BASE        FEET        PARTNERSHIP         LEASE
                                     PROPERTIES      REVENUE($)(a)  RENTAL REVENUE(%)      LEASED  LEASED SQ. FT.(%)    EXPIRATION
----------------------------------------------------------------------------------------------------------------------------------
<S>                                           <C>      <C>                       <C>    <C>                     <C>        <C>
AT&T Wireless Services                        2          9,819,454                2.0     395,955                1.6       2007(b)
Donaldson, Lufkin & Jenrette
  Securities Corp.                            1          8,317,176                1.7     271,953                1.1       2011
AT&T Corporation                              2          7,268,746                1.5     450,278                1.8       2009(c)
Keystone Mercy Health Plan                    2          7,017,899                1.4     303,149                1.2       2015
Prentice-Hall Inc.                            1          6,744,495                1.4     474,801                1.9       2014
IBM Corporation                               3          6,390,275                1.3     361,688                1.4       2007(d)
Nabisco Inc.                                  3          6,066,357                1.2     340,746                1.4       2006(e)
Toys 'R' Us - NJ, Inc.                        1          5,342,672                1.1     242,518                1.0       2012
Waterhouse Securities, Inc.                   1          5,314,805                1.1     184,222                0.7       2015
American Institute of Certified
  Public Accountants                          1          4,981,357                1.0     249,768                1.0       2012
CMP Media Inc.                                1          4,817,298                1.0     237,274                0.9       2014
Allstate Insurance Company                    9          4,798,224                1.0     224,321                0.9       2009(f)
Winston & Strawn                              1          4,472,348                0.9     108,100                0.4       2003
Dean Witter Trust Company                     1          4,319,508                0.9     221,019                0.9       2008
Morgan Stanley Dean Witter, Inc.              5          4,025,077                0.8     163,253                0.7       2010(g)
Move.com Operations, Inc.                     1          3,891,597                0.8      94,917                0.4       2006
Regus Business Centre Corp.                   3          3,671,129                0.8     107,608                0.4       2011(h)
Bank of Tokyo - Mitsubishi Ltd.               1          3,378,923                0.7     137,076                0.5       2009
KPMG, LLP                                     2          3,313,701                0.7     142,317                0.6       2012(i)
BT Harborside                                 1          3,272,500                0.7     385,000                1.5       2003
----------------------------------------------------------------------------------------------------------------------------------

Totals                                                 107,223,541               22.0   5,095,963               20.3
==================================================================================================================================
</Table>

(a)   Annualized base rental revenue is based on actual December 2001 billings
      times 12. For leases whose rent commences after January 1, 2002,
      annualized base rental revenue is based on the first full month's billing
      times 12. As annualized base rental revenue is not derived from historical
      GAAP results, historical results may differ from those set forth above.
(b)   12,150 square feet expire September 2004; 345,799 square feet expire March
      2007; 38,006 square feet expire June 2007.
(c)   63,278 square feet expire May 2004; 387,000 square feet expire January
      2009.
(d)   28,289 square feet expire January 2005; 85,000 square feet expire December
      2005; 248,399 square feet expire December 2007.
(e)   300,378 square feet expire December 2005; 40,368 square feet expire March
      2006.
(f)   18,882 square feet expire April 2003; 4,398 square feet expire January
      2004; 36,305 square feet expire January 2005; 23,024 square feet expire
      October 2005; 22,444 square feet expire July 2006; 6,108 square feet
      expire August 2006; 70,517 square feet expire June 2007; 31,143 square
      feet expire April 2008; 11,500 square feet expire April 2009.
(g)   7,500 square feet expire September 2003; 18,539 square feet expire April
      2005; 85,151 square feet expire February 2008; 19,500 square feet expire
      June 2008; 7,000 square feet expire October 2009; 25,563 square feet
      expire January 2010.
(h)   27,803 square feet expire January 2011; 38,930 square feet expire April
      2011; 40,875 square feet expire June 2011.
(i)   15,113 square feet expire September 2002; 57,204 square feet expire July
      2007; 70,000 square feet expire September 2012.


                                       39
<Page>

SCHEDULE OF LEASE EXPIRATIONS

The following table sets forth a schedule of lease expirations for the total of
the Operating Partnership's office, office/flex, industrial/warehouse and
stand-alone retail properties, included in the Consolidated Properties,
beginning January 1, 2002, assuming that none of the tenants exercise renewal
options:

<Table>
<Caption>
                                                                                                    AVERAGE ANNUAL
                                                               PERCENTAGE OF                          RENT PER NET
                                           NET RENTABLE         TOTAL LEASED         ANNUALIZED           RENTABLE     PERCENTAGE OF
                                           AREA SUBJECT          SQUARE FEET        BASE RENTAL        SQUARE FOOT       ANNUAL BASE
                            NUMBER OF       TO EXPIRING       REPRESENTED BY     REVENUE UNDER         REPRESENTED        RENT UNDER
YEAR OF                        LEASES            LEASES             EXPIRING           EXPIRING        BY EXPIRING          EXPIRING
EXPIRATION                EXPIRING(a)         (SQ. FT.)         LEASES(%)(b)       LEASES($)(c)         LEASES ($)        LEASES (%)
------------------------------------------------------------------------------------------------------------------------------------
<S>                            <C>          <C>                       <C>          <C>                      <C>               <C>
2002                              448         2,130,311                  8.5         36,854,419              17.30               7.6

2003                              487         3,951,403                 15.8         71,598,719              18.12              14.7

2004                              384         2,234,380                  8.9         42,473,250              19.01               8.7

2005                              373         3,179,979                 12.7         60,296,606              18.96              12.4

2006                              352         2,935,237                 11.7         60,353,314              20.56              12.4

2007                              168         2,314,745                  9.2         48,673,525              21.03              10.0

2008                              101         1,500,299                  6.0         26,600,000              17.73               5.5

2009                               55         1,369,891                  5.5         25,512,500              18.62               5.3

2010                               87         1,213,079                  4.9         23,653,243              19.50               4.9

2011                               61         1,436,628                  5.7         35,215,623              24.51               7.2

2012                               27           865,861                  3.5         19,035,316              21.98               3.9

2013 and thereafter                35         1,906,090                  7.6         35,766,979              18.76               7.4
------------------------------------------------------------------------------------------------------------------------------------
Totals/Weighted
Average                        2,578         25,037,903(d)             100.0        486,033,494              19.41             100.0
====================================================================================================================================
</Table>

(a)   Includes office, office/flex, industrial/warehouse and stand-alone retail
      property tenants only. Excludes leases for amenity, retail, parking and
      month-to-month tenants. Some tenants have multiple leases.
(b)   Excludes all unleased space as of December 31, 2001.
(c)   Annualized base rental revenue is based on actual December 2001 billings
      times 12. For leases whose rent commences after January 1, 2002,
      annualized base rental revenue is based on the first full month's billing
      times 12. As annualized base rental revenue is not derived from historical
      GAAP results, historical results may differ from those set forth above.
(d)   Reconciliation to Operating Partnership's total net rentable square
      footage is as follows:

<Table>
<Caption>
                                                                          Square Feet
                                                                          -----------
<S>                                                                        <C>
Square footage leased to commercial tenants                                25,037,903
Square footage used for corporate offices, management offices,
   building use, retail tenants, food services, other ancillary
   service tenants and occupancy adjustments                                  352,407
Square footage unleased                                                     1,592,830
                                                                           ----------
Total net rentable square footage (does not include
   residential, land lease, retail or not-in-service properties)           26,983,140
                                                                           ==========
</Table>


                                       40
<Page>

SCHEDULE OF LEASE EXPIRATIONS: OFFICE PROPERTIES

The following table sets forth a schedule of lease expirations for the office
properties beginning January 1, 2002, assuming that none of the tenants exercise
renewal options:

<Table>
<Caption>
                                                                                                    AVERAGE ANNUAL
                                                                 PERCENTAGE OF                        RENT PER NET
                                                NET RENTABLE      TOTAL LEASED         ANNUALIZED         RENTABLE   PERCENTAGE OF
                                                AREA SUBJECT       SQUARE FEET        BASE RENTAL      SQUARE FOOT     ANNUAL BASE
                                  NUMBER OF      TO EXPIRING    REPRESENTED BY     REVENUE UNDER       REPRESENTED      RENT UNDER
YEAR OF                              LEASES           LEASES          EXPIRING           EXPIRING      BY EXPIRING        EXPIRING
EXPIRATION                      EXPIRING(a)        (SQ. FT.)      LEASES(%)(b)       LEASES($)(c)        LEASES($)       LEASES(%)
----------------------------------------------------------------------------------------------------------------------------------
<S>                                   <C>         <C>                    <C>          <C>                    <C>             <C>
2002                                    350        1,443,177               7.2         29,947,927            20.75             7.0

2003                                    397        3,180,278              15.8         64,042,823            20.14            15.0

2004                                    312        1,572,593               7.8         34,967,523            22.24             8.2

2005                                    296        2,508,329              12.5         52,699,906            21.01            12.3

2006                                    287        2,319,244              11.6         52,198,688            22.51            12.2

2007                                    145        1,927,069               9.6         43,455,258            22.55            10.1

2008                                     83        1,182,186               5.9         23,582,800            19.95             5.5

2009                                     37        1,195,103               6.0         23,357,006            19.54             5.5

2010                                     56          822,428               4.1         17,584,655            21.38             4.1

2011                                     55        1,355,737               6.8         34,067,977            25.13             8.0

2012                                     23          798,999               4.0         18,214,549            22.80             4.2

2013 and thereafter                      30        1,739,655               8.7         33,761,607            19.41             7.9
----------------------------------------------------------------------------------------------------------------------------------
Totals/Weighted
 Average                              2,071       20,044,798             100.0        427,880,719            21.35           100.0
==================================================================================================================================
</Table>

(a)   Includes office tenants only. Excludes leases for amenity, retail, parking
      and month-to-month office tenants. Some tenants have multiple leases.
(b)   Excludes all unleased space as of December 31, 2001.
(c)   Annualized base rental revenue is based on actual December 2001 billings
      times 12. For leases whose rent commences after January 1, 2002,
      annualized base rental revenue is based on the first full month's billing
      times 12. As annualized base rental revenue is not derived from historical
      GAAP results, historical results may differ from those set forth above.


                                       41
<Page>

SCHEDULE OF LEASE EXPIRATIONS: OFFICE/FLEX PROPERTIES

The following table sets forth a schedule of lease expirations for the
office/flex properties beginning January 1, 2002, assuming that none of the
tenants exercise renewal options:

<Table>
<Caption>
                                                                                          AVERAGE ANNUAL
                                                       PERCENTAGE OF                        RENT PER NET
                                      NET RENTABLE      TOTAL LEASED        ANNUALIZED          RENTABLE      PERCENTAGE OF
                                      AREA SUBJECT       SQUARE FEET       BASE RENTAL       SQUARE FOOT        ANNUAL BASE
                       NUMBER OF       TO EXPIRING    REPRESENTED BY     REVENUE UNDER       REPRESENTED         RENT UNDER
YEAR OF                   LEASES            LEASES          EXPIRING          EXPIRING       BY EXPIRING           EXPIRING
EXPIRATION           EXPIRING(a)         (SQ. FT.)      LEASES(%)(b)      LEASES($)(c)         LEASES($)          LEASES(%)
---------------------------------------------------------------------------------------------------------------------------
<S>                          <C>         <C>                   <C>          <C>                    <C>                <C>
2002                          92           633,362              13.8         6,326,002              9.99               11.7

2003                          85           670,151              14.6         7,011,158             10.46               13.0

2004                          62           452,367               9.8         5,010,227             11.08                9.3

2005                          74           658,496              14.3         7,414,824             11.26               13.7

2006                          65           615,993              13.4         8,154,626             13.24               15.1

2007                          23           387,676               8.4         5,218,267             13.46                9.6

2008                          18           318,113               6.9         3,017,200              9.48                5.6

2009                          17           162,988               3.5         2,049,294             12.57                3.8

2010                          31           390,651               8.5         6,068,588             15.53               11.2

2011                           6            80,891               1.8         1,147,646             14.19                2.1

2012                           4            66,862               1.5           820,767             12.28                1.5

2013 and thereafter            4           158,435               3.5         1,830,372             11.55                3.4
---------------------------------------------------------------------------------------------------------------------------
Totals/Weighted
 Average                     481         4,595,985             100.0        54,068,971             11.76              100.0
===========================================================================================================================
</Table>

(a)   Includes office/flex tenants only. Excludes leases for amenity, retail,
      parking and month-to-month office/flex tenants. Some tenants have multiple
      leases.
(b)   Excludes all unleased space as of December 31, 2001.
(c)   Annualized base rental revenue is based on actual December 2001 billings
      times 12. For leases whose rent commences after January 1, 2002,
      annualized base rental revenue is based on the first full month's billing
      times 12. As annualized base rental revenue is not derived from historical
      GAAP results, historical results may differ from those set forth above.


                                       42
<Page>

SCHEDULE OF LEASE EXPIRATIONS: INDUSTRIAL/WAREHOUSE PROPERTIES

The following table sets forth a schedule of lease expirations for the
industrial/warehouse properties beginning January 1, 2002, assuming that none of
the tenants exercise renewal options:

<Table>
<Caption>
                                                                                              AVERAGE ANNUAL
                                                         PERCENTAGE OF                          RENT PER NET
                                       NET RENTABLE       TOTAL LEASED           ANNUALIZED         RENTABLE      PERCENTAGE OF
                                       AREA SUBJECT        SQUARE FEET          BASE RENTAL      SQUARE FOOT        ANNUAL BASE
                        NUMBER OF       TO EXPIRING     REPRESENTED BY        REVENUE UNDER      REPRESENTED         RENT UNDER
YEAR OF                    LEASES            LEASES           EXPIRING             EXPIRING      BY EXPIRING           EXPIRING
EXPIRATION            EXPIRING(a)         (SQ. FT.)       LEASES(%)(b)         LEASES($)(c)        LEASES($)          LEASES(%)
-------------------------------------------------------------------------------------------------------------------------------
<S>                            <C>          <C>                  <C>              <C>                   <C>               <C>
2002                            6            53,772               14.1              580,490            10.80               15.6

2003                            5           100,974               26.6              544,738             5.39               14.7

2004                            9           200,120               52.7            2,300,500            11.50               61.9

2005                            3            13,154                3.5              181,876            13.83                4.9

2009                            1            11,800                3.1              106,200             9.00                2.9
-------------------------------------------------------------------------------------------------------------------------------
Totals/Weighted
 Average                       24           379,820              100.0            3,713,804             9.78              100.0
===============================================================================================================================
</Table>

(a)   Includes industrial/warehouse tenants only. Excludes leases for amenity,
      retail, parking and month-to-month industrial/warehouse tenants. Some
      tenants have multiple leases.
(b)   Excludes all unleased space as of December 31, 2001.
(c)   Annualized base rental revenue is based on actual December 2001 billings
      times 12. For leases whose rent commences after January 1, 2002,
      annualized base rent revenue is based on the first full month's billing
      times 12. As annualized base rental revenue is not derived from historical
      GAAP results, the historical results may differ from those set forth
      above.

SCHEDULE OF LEASE EXPIRATIONS: STAND-ALONE RETAIL PROPERTIES

The following table sets forth a schedule of lease expirations for the
stand-alone retail properties beginning January 1, 2002, assuming that none of
the tenants exercise renewal options:

<Table>
<Caption>
                                                                                              AVERAGE ANNUAL
                                                         PERCENTAGE OF                          RENT PER NET
                                       NET RENTABLE       TOTAL LEASED           ANNUALIZED         RENTABLE      PERCENTAGE OF
                                       AREA SUBJECT        SQUARE FEET          BASE RENTAL      SQUARE FOOT        ANNUAL BASE
                        NUMBER OF       TO EXPIRING     REPRESENTED BY        REVENUE UNDER      REPRESENTED         RENT UNDER
YEAR OF                    LEASES            LEASES           EXPIRING             EXPIRING      BY EXPIRING           EXPIRING
EXPIRATION            EXPIRING(a)         (SQ. FT.)       LEASES(%)(b)         LEASES($)(c)        LEASES($)          LEASES(%)
-------------------------------------------------------------------------------------------------------------------------------
<S>                              <C>         <C>                 <C>                <C>                <C>                <C>
2004                             1            9,300               53.8              195,000            20.97               52.7

2013                             1            8,000               46.2              175,000            21.87               47.3
-------------------------------------------------------------------------------------------------------------------------------
Totals/Weighted
  Average                        2           17,300              100.0              370,000            21.39              100.0
===============================================================================================================================
</Table>

(a)   Includes stand-alone retail property tenants only.
(b)   Annualized base rental revenue is based on actual December 2001 billings
      times 12. For leases whose rent commences after January 1, 2002,
      annualized base rental revenue is based on the first full month's billing
      times 12. As annualized base rental revenue is not derived from historical
      GAAP results, historical results may differ from those set forth above.


                                       43
<Page>

INDUSTRY DIVERSIFICATION

The following table lists the Operating Partnership's 30 largest industry
classifications based on annualized contractual base rent of the Consolidated
Properties:

<Table>
<Caption>
                                                                                                                   PERCENTAGE OF
                                                           ANNUALIZED            PERCENTAGE OF                   TOTAL OPERATING
                                                          BASE RENTAL    OPERATING PARTNERSHIP          SQUARE       PARTNERSHIP
                                                              REVENUE          ANNUALIZED BASE            FEET            LEASED
INDUSTRY CLASSIFICATION(a)                                  ($)(b)(c)        RENTAL REVENUE(%)          LEASED        SQ. FT.(%)
--------------------------------------------------------------------------------------------------------------------------------
<S>                                                       <C>                            <C>        <C>                    <C>
Securities, Commodity Contracts & Other Financial          56,121,434                     11.5       2,344,132               9.4
Manufacturing                                              45,537,999                      9.4       2,627,823              10.5
Telecommunications                                         32,855,538                      6.8       1,748,089               7.0
Computer System Design Svcs.                               31,430,419                      6.5       1,615,175               6.4
Insurance Carriers & Related Activities                    30,872,702                      6.4       1,525,486               6.1
Legal Services                                             28,614,936                      5.9       1,225,323               4.9
Health Care & Social Assistance                            21,262,798                      4.4       1,105,824               4.4
Credit Intermediation & Related Activities                 20,629,510                      4.2       1,176,807               4.7
Wholesale Trade                                            18,834,448                      3.9       1,303,059               5.2
Accounting/Tax Prep.                                       18,432,329                      3.8         798,786               3.2
Other Professional                                         17,958,955                      3.7         942,452               3.8
Information Services                                       14,480,262                      3.0         653,239               2.6
Retail Trade                                               13,809,551                      2.8         800,648               3.2
Publishing Industries                                      12,863,723                      2.6         565,855               2.3
Scientific Research/Development                            12,121,662                      2.5         690,708               2.7
Arts, Entertainment & Recreation                           10,813,042                      2.2         718,073               2.9
Real Estate & Rental & Leasing                             10,093,912                      2.1         494,105               2.0
Architectural/Engineering                                   9,987,054                      2.1         470,093               1.9
Management of Companies & Finance                           9,481,822                      2.0         411,977               1.6
Other Services (except Public Administration)               9,326,018                      1.9         683,458               2.7
Advertising/Related Services                                8,806,638                      1.8         398,406               1.6
Transportation                                              7,435,691                      1.5         483,716               1.9
Management/Scientific                                       6,426,163                      1.3         296,185               1.2
Data Processing Services                                    5,292,121                      1.1         239,183               0.9
Construction                                                4,974,994                      1.0         270,573               1.1
Educational Services                                        4,205,381                      0.9         220,135               0.9
Utilities                                                   4,000,505                      0.8         185,257               0.7
Admin. & Support, Waste Mgt. & Remediation Svc.             3,645,038                      0.7         256,062               1.0
Public Administration                                       3,393,501                      0.7         170,696               0.7
Specialized Design Services                                 3,101,804                      0.6         145,959               0.6
Other                                                       9,223,544                      1.9         470,619               1.9
--------------------------------------------------------------------------------------------------------------------------------

Totals                                                    486,033,494                    100.0      25,037,903             100.0
================================================================================================================================
</Table>

(a)   The Operating Partnership's tenants are classified according to the U.S.
      Government's new North American Industrial Classification System (NAICS)
      which has replaced the Standard Industrial Code (SIC) system.
(b)   Annualized base rental revenue is based on actual December billings times
      12. For leases whose rent commences after January 1, 2002, annualized base
      rental revenue is based on the first full month's billing times 12. As
      annualized base rental revenue is not derived from historical GAAP
      results, historical results may differ from those set forth above.
(c)   Includes office, office/flex, industrial/warehouse and stand-alone retail
      tenants only. Excludes leases for amenity, retail, parking and
      month-to-month tenants. Some tenants have multiple leases.


                                       44
<Page>

MARKET DIVERSIFICATION

The following table lists the Operating Partnership's markets (MSAs), based on
annualized contractual base rent of the Consolidated Properties:

<Table>
<Caption>
                                                      ANNUALIZED            PERCENTAGE OF
                                                     BASE RENTAL    OPERATING PARTNERSHIP           TOTAL
                                                         REVENUE          ANNUALIZED BASE   PROPERTY SIZE      PERCENTAGE OF
MARKET (MSA)                                           ($)(a)(b)        RENTAL REVENUE(%)   RENTABLE AREA   RENTABLE AREA(%)
----------------------------------------------------------------------------------------------------------------------------
<S>                                                  <C>                            <C>        <C>                     <C>
Bergen-Passaic, NJ                                    85,795,008                     17.7       4,530,091               16.8
New York, NY (Westchester-Rockland Counties)          85,324,473                     17.6       4,864,355               18.0
Newark, NJ (Essex-Morris-Union Counties)              85,027,901                     17.5       4,116,859               15.3
Jersey City, NJ                                       43,470,865                      8.9       2,094,470                7.8
Philadelphia, PA-NJ                                   40,460,353                      8.3       2,991,796               11.1
Denver, CO                                            18,720,330                      3.8       1,193,185                4.4
Middlesex-Somerset-Hunterdon, NJ                      15,772,224                      3.2         791,051                2.9
Trenton, NJ (Mercer County)                           14,099,825                      2.9         672,365                2.5
Dallas, TX                                            13,460,321                      2.8         863,954                3.2
San Francisco, CA                                     12,885,972                      2.6         450,891                1.7
Washington, DC-MD-VA                                  12,721,507                      2.6         450,549                1.7
Stamford-Norwalk, CT                                   9,090,436                      1.9         527,250                2.0
Monmouth-Ocean, NJ                                     7,084,732                      1.5         577,423                2.1
Houston, TX                                            6,903,067                      1.4         516,796                1.9
Nassau-Suffolk, NY                                     6,373,398                      1.3         292,849                1.1
Phoenix-Mesa, AZ                                       5,646,402                      1.2         416,967                1.5
San Antonio, TX                                        4,425,870                      0.9         435,465                1.6
Tampa-St. Petersburg-Clearwater, FL                    3,933,426                      0.8         297,429                1.1
Boulder-Longmont, CO                                   3,655,875                      0.8         270,421                1.0
Bridgeport, CT                                         3,170,791                      0.7         145,487                0.5
Colorado Springs, CO                                   2,961,797                      0.6         209,987                0.8
Dutchess County, NY                                    2,103,516                      0.4         118,727                0.4
Atlantic-Cape May, NJ                                  1,790,343                      0.4          80,344                0.3
Fort Worth-Arlington, TX                               1,155,062                      0.2          74,429                0.3
----------------------------------------------------------------------------------------------------------------------------

Totals                                               486,033,494                    100.0      26,983,140              100.0
============================================================================================================================
</Table>

(a)   Annualized base rental revenue is based on actual December 2001 billings
      times 12. For leases whose rent commences after January 1, 2002,
      annualized base rental revenue is based on the first full month's billing
      times 12. As annualized base rental revenue is not derived from historical
      GAAP results, historical results may differ from those set forth above.
(b)   Includes office, office/flex, industrial/warehouse and stand-alone retail
      tenants only. Excludes leases for amenity, retail, parking and
      month-to-month tenants. Some tenants have multiple leases.


                                       45
<Page>

ITEM 3. LEGAL PROCEEDINGS

There are no material pending legal proceedings, other than ordinary routine
litigation incidental to its business, to which the Operating Partnership is a
party or to which any of the Properties is subject.

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

Not applicable.

                                     PART II

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

The Operating Partnership currently has no securities listed on any securities
exchange.

MARKET INFORMATION

Not applicable.

HOLDERS

On February 14, 2002, the Operating Partnership had 107 owners of limited
partnership units.

RECENT SALES OF UNREGISTERED SECURITIES

The Operating Partnership did not issue any unregistered securities in the year
ended December 31, 2001.

DIVIDENDS AND DISTRIBUTIONS

During the year ended December 31, 2001, the Corporation and Operating
Partnership declared four quarterly common stock dividends and common unit
distributions in the amounts of $0.61, $0.61, $0.62 and $0.62 per share and
common unit from the first to the fourth quarter, respectively.

During the year ended December 31, 2000, the Corporation and Operating
Partnership declared four quarterly common stock dividends and common unit
distributions in the amounts of $0.58, $0.58, $0.61 and $0.61 per share and
common unit from the first to the fourth quarter, respectively.

The declaration and payment of dividends and distributions will continue to be
determined by the Board of Directors of the Corporation in light of conditions
then existing, including the Operating Partnership's earnings, financial
condition, capital requirements, applicable legal restrictions and other
factors.


                                       46
<Page>

ITEM 6. SELECTED FINANCIAL DATA

The following table sets forth selected financial data on a consolidated basis
for the Operating Partnership. The consolidated selected operating, balance
sheet and cash flow data of the Operating Partnership as of December 31, 2001,
2000, 1999, 1998 and 1997, and for the years then ended have been derived from
financial statements audited by PricewaterhouseCoopers LLP, independent
accountants.

<Table>
<Caption>
OPERATING DATA                                                                         Year Ended December 31,
IN THOUSANDS, EXCEPT PER UNIT DATA                                  2001           2000           1999           1998          1997
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                                           <C>            <C>            <C>            <C>           <C>
Total revenues                                                $  584,348     $  576,153     $  551,484     $  493,699    $   23,135
Operating and other expenses                                  $  174,686     $  172,146     $  168,651     $  150,448    $    1,870
General and administrative                                    $   28,490     $   23,276     $   25,480     $   24,828    $   15,061
Depreciation and amortization                                 $   91,471     $   92,088     $   87,209     $   78,916    $      279
Interest expense                                              $  112,003     $  105,394     $  102,960     $   88,043    $    9,670
Non-recurring charges                                         $       --     $   37,139     $   16,458     $       --    $   46,519
Equity in net income of Majority-Owned Unconsolidated
 Property Partnerships                                        $       --     $       --     $       --     $       --    $   89,846
Realized gains (losses) and unrealized losses on
 disposition of rental property, net                          $  (11,864)    $   85,353     $    1,957     $       --    $       --
Income before minority interest and extraordinary item        $  165,834     $  231,463     $  152,683     $  151,464    $   39,582
Income before extraordinary item                              $  165,834     $  226,391     $  152,604     $  151,464    $   39,582
Net income                                                    $  165,834     $  226,391     $  152,604     $  148,794    $   32,382
Net income available to common unitholders                    $  150,190     $  210,950     $  137,128     $  132,481    $    2,133
Basic earnings per unit - before extraordinary item           $     2.33     $     3.18     $     2.05     $     2.13    $     0.22
Diluted earnings per unit - before extraordinary item         $     2.32     $     3.10     $     2.04     $     2.11    $     0.21
Distributions declared per common unit                        $     2.46     $     2.38     $     2.26     $     2.10    $     1.90
Basic weighted average units outstanding                          64,495         66,392         66,885         63,438        43,356
Diluted weighted average units outstanding                        64,775         73,070         67,133         63,893        44,409

<Caption>
BALANCE SHEET DATA                                                                          December 31,
IN THOUSANDS                                                        2001           2000           1999           1998          1997
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                                           <C>            <C>            <C>            <C>           <C>
Rental property, before accumulated depreciation
 and amortization                                             $3,378,071     $3,589,877     $3,654,845     $3,467,799    $   65,592
Investments in Unconsolidated Majority-Owned
 Property Partnerships                                        $       --     $       --     $       --     $       --    $1,821,614
Rental property held for sale, net                            $  384,626     $  107,458     $       --     $       --    $       --
Total assets                                                  $3,746,770     $3,676,977     $3,629,601     $3,452,194    $1,901,174
Total debt                                                    $1,700,150     $1,628,512     $1,490,175     $1,420,931    $  322,100
Total liabilities                                             $1,867,938     $1,774,239     $1,648,844     $1,526,974    $  364,489
Minority interest                                             $       --     $    1,925     $   83,600     $       --    $       --
Redeemable Partnership Units                                  $       --     $       --     $       --     $       --    $  522,812
Partners' capital                                             $1,878,832     $1,900,813     $1,897,157     $1,925,220    $1,013,873

<Caption>
OTHER DATA                                                                             Year Ended December 31,
IN THOUSANDS                                                        2001           2000           1999           1998          1997
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                                           <C>            <C>            <C>            <C>           <C>
Cash flows provided by operating activities                   $  265,883     $  180,529     $  243,638     $  208,761    $   66,661
Cash flows (used in) provided by investing activities         $ (145,586)    $    6,189     $ (195,178)    $ (749,067)   $ (975,574)
Cash flows (used in) provided by financing activities         $ (120,641)    $ (182,210)    $  (45,598)    $  543,411    $  706,368
Funds from operations (1), before distributions to
 preferred unitholders                                        $  260,497     $  262,071     $  244,240     $  216,949    $  111,752
Funds from operations (1), after distributions to
 preferred unitholders                                        $  244,853     $  246,630     $  228,764     $  200,636    $  110,864
</Table>

----------
(1)   The Operating Partnership considers funds from operations (after
      adjustment for straight-lining of rents and non-recurring charges) one
      measure of REIT performance. Funds from operations ("FFO") is defined as
      net income (loss) before distributions to preferred unitholders computed
      in accordance with generally accepted accounting principles ("GAAP"),
      excluding gains (or losses) from debt restructuring, other extraordinary
      items, and sales of depreciable rental property, plus real estate-related
      depreciation and amortization. FFO should not be considered as an
      alternative for net income as an indication of the Operating Partnership's
      performance or to cash flows as a measure of liquidity. FFO presented
      herein is not necessarily comparable to FFO 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 FFO is comparable to the
      FFO 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.
      Refer to "Management's Discussion and Analysis of Financial Condition and
      Results of Operations," contained elsewhere in this Report, for the
      calculation of FFO for the periods presented.


                                       47
<Page>

ITEM 7. 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 subsidiaries and the notes
thereto. Certain defined terms used herein have the meaning ascribed to them in
the Financial Statements.

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. 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, which is approximately 55 percent leased as of
February 14, 2002. The project is currently projected to cost approximately $260
million, of which $113.3 million has been incurred by the Operating Partnership
through December 31, 2001, 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 Operating Partnership holds a 50
percent interest in the joint venture. Among other things, the joint venture
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
project is currently projected to cost the Operating Partnership approximately
$145 million, of which $74.0 million has been incurred by the Operating
Partnership through December 31, 2001. The Project, which is 100 percent leased
to Charles Schwab & Co. Inc. ("Schwab") for a 15-year term, is anticipated to be
completed in late 2002. The lease agreement obligates the Operating Partnership,
among other things, to deliver space to the tenant by required timelines and
offers the tenant expansion options into 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 million. The Operating Partnership anticipates expending an
additional approximately $218.5 million for the completion of Plaza 5, Plaza 10
and other projects. The Operating Partnership expects to finance its funding
requirements primarily through drawing on its revolving credit facility.

On a periodic basis, management assesses whether there are any indicators that
the value of the Operating Partnership's 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. Except for
certain assets classified as held for sale, as discussed below, management does
not believe that the value of any of the Operating Partnership's 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.

As of December 31, 2001, the Operating Partnership identified 37 office
properties, aggregating approximately 4.3 million square feet, a multi-family
residential property and a land parcel as held for sale. These properties are
located in Texas, Colorado, Arizona, Florida and New York. Such properties
carried an aggregate book value of $384.6 million, net of accumulated
depreciation of $28.4 million and a valuation allowance of $40.5 million at
December 31, 2001. In January 2002, the Operating Partnership sold 25 Martine
Avenue, a 124-unit multi-family residential property located in White Plains,
Westchester County, New York, for net sales proceeds of approximately $17.8
million, which resulted in a gain of approximately $7.3 million. The Operating
Partnership is currently in various stages of contract negotiations for the sale
or sales of certain of the remainder of these properties. Substantially all of
the properties are unencumbered. The sale of one or more of these assets will
enhance the company's short-term liquidity although there is no assurance when
and if any sales will occur or, if they occur, how much proceeds the Operating
Partnership will realize.


                                       48
<Page>

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 of which are located in San Antonio and Houston, Texas.
Such properties carried an aggregate book value of $107.5 million, net of
accumulated depreciation, of $7.0 million. In 2001, the Operating Partnership
sold four of these properties for total net sales proceeds of approximately
$62.1 million.

The following comparisons for the year ended December 31, 2001 ("2001"), as
compared to the year ended December 31, 2000 ("2000"), and for 2000, as compared
to the year ended December 31, 1999 ("1999"), 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 December 31, 1999, excluding
Dispositions as defined below (for the 2001 versus 2000 comparison) and which
represents all in-service properties owned by the Operating Partnership at
December 31, 1998, excluding Dispositions as defined below (for the 2000 versus
1999 comparison), (ii) the effect of the "Acquired Properties," which represents
all properties acquired or placed in service by the Operating Partnership from
January 1, 2000 through December 31, 2001 (for the 2001 versus 2000 comparison)
and which represents all properties acquired or placed in service by the
Operating Partnership from January 1, 1999 through December 31, 2000 (for the
2000 versus 1999 comparison) and (iii) the effect of the "Dispositions", which
represents results for each period for those rental properties sold by the
Operating Partnership during the respective periods.

      YEAR ENDED DECEMBER 31, 2001 COMPARED TO YEAR ENDED DECEMBER 31, 2000

<Table>
<Caption>
                                                                                           Year Ended
                                                                                           December 31,            Dollar   Percent
(DOLLARS IN THOUSANDS)                                                                      2001         2000      Change    Change
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                    <C>          <C>          <C>         <C>
REVENUE FROM RENTAL OPERATIONS:
Base rents                                                                             $ 506,557    $ 491,193    $ 15,364      3.1%
Escalations and recoveries from tenants                                                   56,083       58,488      (2,405)    (4.1)
Parking and other                                                                         10,518       15,325      (4,807)   (31.4)
------------------------------------------------------------------------------------------------------------------------------------
   Sub-total                                                                             573,158      565,006       8,152      1.4

Equity in earnings of unconsolidated joint ventures                                        9,004        8,055         949     11.8
Interest income                                                                            2,186        3,092        (906)   (29.3)
------------------------------------------------------------------------------------------------------------------------------------
   Total revenues                                                                        584,348      576,153       8,195      1.4
------------------------------------------------------------------------------------------------------------------------------------

PROPERTY EXPENSES:
Real estate taxes                                                                         62,015       59,400       2,615      4.4
Utilities                                                                                 43,892       42,035       1,857      4.4
Operating services                                                                        68,779       70,711      (1,932)    (2.7)
------------------------------------------------------------------------------------------------------------------------------------
   Sub-total                                                                             174,686      172,146       2,540      1.5

General and administrative                                                                28,490       23,276       5,214     22.4
Depreciation and amortization                                                             91,471       92,088        (617)    (0.7)
Interest expense                                                                         112,003      105,394       6,609      6.3
Non-recurring charges                                                                         --       37,139     (37,139)  (100.0)
------------------------------------------------------------------------------------------------------------------------------------
   Total expenses                                                                        406,650      430,043     (23,393)    (5.4)
------------------------------------------------------------------------------------------------------------------------------------

Income before realized gains (losses) and unrealized
   losses on disposition of rental property and
   minority interest                                                                     177,698      146,110      31,588     21.6
Realized gains (losses) and unrealized losses on
   disposition of rental property, net                                                   (11,864)      85,353     (97,217)  (113.9)
------------------------------------------------------------------------------------------------------------------------------------

Income before minority interest                                                          165,834      231,463     (65,629)   (28.4)
Minority interest in consolidated
   partially-owned properties                                                                 --        5,072      (5,072)  (100.0)
------------------------------------------------------------------------------------------------------------------------------------

Net income                                                                               165,834      226,391     (60,557)   (26.7)
Preferred unit distributions                                                             (15,644)     (15,441)       (203)     1.3
------------------------------------------------------------------------------------------------------------------------------------

Net income available to common unitholders                                             $ 150,190    $ 210,950    $(60,750)   (28.8)%
====================================================================================================================================
</Table>


                                       49
<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                             $15,364      3.1%      $10,039      2.0%      $26,940       5.5%    $(21,615)   (4.4)%
Escalations and recoveries
  from tenants                          (2,405)    (4.1)       (1,804)    (3.1)        2,556       4.4       (3,157)   (5.4)
Parking and other                       (4,807)   (31.4)       (4,432)   (28.9)          399       2.6         (774)   (5.1)
-----------------------------------------------------------------------------------------------------------------------------
Total                                  $ 8,152      1.4%      $ 3,803      0.6%      $29,895       5.3%    $(25,546)   (4.5)%
=============================================================================================================================

PROPERTY EXPENSES:
Real estate taxes                      $ 2,615      4.4%      $   938      1.6%      $ 3,945       6.6%    $ (2,268)   (3.8)%
Utilities                                1,857      4.4         1,696      4.0         2,227       5.3       (2,066)   (4.9)
Operating services                      (1,932)    (2.7)       (1,279)    (1.8)        3,942       5.6       (4,595)   (6.5)
-----------------------------------------------------------------------------------------------------------------------------
Total                                  $ 2,540      1.5%      $ 1,355      0.8%      $10,114       5.9%    $ (8,929)   (5.2)%
=============================================================================================================================

OTHER DATA:
Number of Consolidated Properties          259                    240                     19                     15
Square feet (in thousands)              26,983                 24,602                  2,381                  2,971
</Table>

Base rents for the Same-Store Properties increased $10.0 million, or 2.0
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 3.1 percent, for 2001 over 2000, due to the recovery
of a decreased amount of total property expenses partially as a result of new
base years established from 2001 leasing activity. Parking and other income for
the Same-Store Properties decreased $4.4 million, or 28.9 percent, due primarily
to fewer lease termination fees in 2001.

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. Escalations and recoveries 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 17 to the Financial
Statements.

Real estate taxes on the Same-Store Properties increased $0.9 million, or 1.6
percent, for 2001 as compared to 2000, due primarily to property tax rate
increases in certain municipalities in 2001, partially offset by lower
assessments on certain properties in 2001. Utilities for the Same-Store
Properties increased $1.7 million, or 4.0 percent, for 2001 as compared to 2000,
due primarily to increased rates. Operating services for the Same-Store
Properties decreased $1.3 million, or 1.8 percent, due primarily to decreased
maintenance and snow removal costs in 2001.

Equity in earnings of unconsolidated joint ventures increased $0.9 million, or
11.8 percent, for 2001 as compared to 2000. This is due primarily to properties
developed by joint ventures being placed in service in 2001 and higher
occupancies at certain properties, partially offset by the sale of joint venture
office properties in 2001 (see Note 4 to the Financial Statements).


                                       50
<Page>

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 to the
Financial Statements.

Interest income decreased $0.9 million, or 29.3 percent, for 2001 as compared to
2000. This decrease was due primarily to additional interest income in 2000 on
investment of proceeds from the 2000 Dispositions in cash and cash equivalents
for longer periods of time.

General and administrative increased by $5.2 million, or 22.4 percent, for 2001
as compared to 2000. This increase is due primarily to increased bad debt
expense of approximately $2.5 million in 2001, related to a lease termination
fee receivable due from a former tenant deemed uncollectible, increased
professional fees, mostly on account of costs for transactions not consummated,
and increased payroll and payroll-related costs in 2001.

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 Corporation provide leasing services to the Properties and receive
compensation based on space leased. The portion of such compensation, which is
capitalized and amortized, approximated $4.0 million and $3.7 million for the
years ended December 31, 2001 and 2000, respectively.

Depreciation and amortization decreased by $0.6 million, or 0.7 percent, for
2001 over 2000. Of this decrease, $2.1 million, or 2.2 percent, is attributable
to the Same-Store Properties, and $3.3 million, or 3.7 percent, is due to the
Dispositions, partially offset by an increase of $4.8 million, or 5.2 percent,
due to the Acquired Properties.

Interest expense increased $6.6 million, or 6.3 percent, for 2001 as compared to
2000. This increase is due primarily to higher average outstanding debt balances
in 2001 versus 2000, primarily as a result of Common Stock repurchases in late
2000 and early 2001 and, to a lesser extent, the replacement in early 2001 of
short-term credit facility borrowings with long-term, higher fixed rate debt.

Costs directly related to the development of rental properties are capitalized.
Capitalized development costs include interest, property taxes, insurance and
other project costs incurred during the period of development. Interest
capitalized by the Operating Partnership for the years ended December 31, 2001
and 2000 was $16.7 million and $11.5 million, respectively.

Non-recurring charges of $37.1 million were incurred in 2000 as a result of
costs associated with the termination of the Prentiss merger agreement in
September 2000 (see Note 3 to the Financial Statements) and costs associated
with the resignations of certain officers of the Corporation in June 2000 (see
Note 16 to the Financial Statements).

Income before realized gains (losses) and unrealized losses on disposition of
rental property and minority interest increased to $177.7 million in 2001 from
$146.1 million in 2000. The increase of approximately $31.6 million is due to
the factors discussed above.

Net income available to common unitholders decreased by $60.8 million, from
$211.0 million in 2000 to $150.2 million in 2001. This decrease was a result of
realized gains on disposition of rental property of $85.4 million in 2000,
realized gains (losses) and unrealized losses on disposition of rental property,
net, of $11.9 million in 2001 and an increase in preferred unit distributions of
$0.2 million. This was partially offset by an increase in 2001 in income before
realized gains (losses) and unrealized losses on dispositions of rental property
and minority interest of $31.6 million and a decrease in minority interest in
consolidated partially-owned properties of $5.1 million in 2001.


                                       51
<Page>

      YEAR ENDED DECEMBER 31, 2000 COMPARED TO YEAR ENDED DECEMBER 31, 1999

<Table>
<Caption>
                                                                                       Year Ended
                                                                                       December 31,             Dollar      Percent
(DOLLARS IN THOUSANDS)                                                                 2000          1999       Change       Change
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                               <C>           <C>           <C>              <C>
REVENUE FROM RENTAL OPERATIONS:
Base rents                                                                        $ 491,193     $ 469,853     $ 21,340         4.5%
Escalations and recoveries from tenants                                              58,488        62,182       (3,694)       (5.9)
Parking and other                                                                    15,325        15,915         (590)       (3.7)
------------------------------------------------------------------------------------------------------------------------------------
   Sub-total                                                                        565,006       547,950       17,056         3.1

Equity in earnings of unconsolidated joint ventures                                   8,055         2,593        5,462       210.6
Interest income                                                                       3,092           941        2,151       228.6
------------------------------------------------------------------------------------------------------------------------------------
   Total revenues                                                                   576,153       551,484       24,669         4.5
------------------------------------------------------------------------------------------------------------------------------------

PROPERTY EXPENSES:
Real estate taxes                                                                    59,400        57,382        2,018         3.5
Utilities                                                                            42,035        41,580          455         1.1
Operating services                                                                   70,711        69,689        1,022         1.5
------------------------------------------------------------------------------------------------------------------------------------
   Sub-total                                                                        172,146       168,651        3,495         2.1

General and administrative                                                           23,276        25,480       (2,204)       (8.6)
Depreciation and amortization                                                        92,088        87,209        4,879         5.6
Interest expense                                                                    105,394       102,960        2,434         2.4
Non-recurring charges                                                                37,139        16,458       20,681       125.7
------------------------------------------------------------------------------------------------------------------------------------
   Total expenses                                                                   430,043       400,758       29,285         7.3
------------------------------------------------------------------------------------------------------------------------------------

Income before realized gains (losses) and unrealized
   losses on disposition of rental property and
   minority interest                                                                146,110       150,726       (4,616)       (3.1)
Realized gains (losses) and unrealized losses on
   disposition of rental property, net                                               85,353         1,957       83,396     4,261.4
------------------------------------------------------------------------------------------------------------------------------------

Income before minority interest                                                     231,463       152,683       78,780        51.6
Minority interest in consolidated
   partially-owned properties                                                         5,072            79        4,993     6,320.3
------------------------------------------------------------------------------------------------------------------------------------

Net income                                                                          226,391       152,604       73,787        48.4
Preferred unit distributions                                                        (15,441)      (15,476)          35         0.2
------------------------------------------------------------------------------------------------------------------------------------

Net income available to common unitholders                                        $ 210,950     $ 137,128     $ 73,822        53.8%
====================================================================================================================================
</Table>


                                       52
<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                             $21,340        4.5%      $16,615      3.5%       $21,429       4.6%     $(16,704)      (3.6)%
Escalations and recoveries
 from tenants                           (3,694)      (5.9)         (577)    (0.9)         1,602       2.6        (4,719)      (7.6)
Parking and other                         (590)      (3.7)         (111)    (0.7)           150       0.9          (629)      (3.9)
------------------------------------------------------------------------------------------------------------------------------------
Total                                  $17,056        3.1%      $15,927      2.9%       $23,181       4.2%     $(22,052)      (4.0)%
====================================================================================================================================

PROPERTY EXPENSES:
Real estate taxes                      $ 2,018        3.5%      $ 1,267      2.2%       $ 2,287       4.0%     $ (1,536)      (2.7)%
Utilities                                  455        1.1           752      1.8          1,501       3.6        (1,798)      (4.3)
Operating services                       1,022        1.5           664      1.0          3,359       4.8        (3,001)      (4.3)
------------------------------------------------------------------------------------------------------------------------------------
Total                                  $ 3,495        2.1%      $ 2,683      1.6%       $ 7,147       4.2%     $ (6,335)      (3.7)%
====================================================================================================================================

OTHER DATA:
Number of Consolidated Properties          255                      237                      18                       7
Square feet (in thousands)              26,667                   24,886                   1,781                   1,949
</Table>

Base rents for the Same-Store Properties increased $16.6 million, or 3.5
percent, for 2000 as compared to 1999, due primarily to rental rate increases in
2000. Escalations and recoveries from tenants for the Same-Store Properties
decreased $0.6 million, or 0.9 percent, for 2000 over 1999, due to the recovery
of a decreased amount of total property expenses. Parking and other income for
the Same-Store Properties decreased $0.1 million, or 0.7 percent, due primarily
to fewer lease termination fees in 2000.

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. Escalations and recoveries 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 17 to the Financial
Statements.

Real estate taxes on the Same-Store Properties increased $1.3 million, or 2.2
percent, for 2000 as compared to 1999, due primarily to property tax rate
increases in certain municipalities in 2000. Utilities for the Same-Store
Properties increased $0.8 million, or 1.8 percent, for 2000 as compared to 1999,
due primarily to increased rates. Operating services for the Same-Store
Properties increased $0.7 million, or 1.0 percent, due primarily to an increase
in maintenance costs in 2000.

Equity in earnings of unconsolidated joint ventures increased $5.5 million, or
210.6 percent, for 2000 as compared to 1999. This is due primarily to properties
developed by joint ventures being placed in service in 2000 and higher
occupancies (see Note 4 to the Financial Statements).

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 to the
Financial Statements.


                                       53
<Page>

Interest income increased $2.2 million, or 228.6 percent, for 2000 as compared
to 1999. This increase was due primarily to the effect of net proceeds from
certain property sales being invested in cash and cash equivalents for the
period of time prior to which such proceeds were reinvested, as well as income
from mortgages receivable in 2000.

General and administrative decreased by $2.2 million, or 8.6 percent, for 2000
as compared to 1999. This decrease is due primarily to decreased payroll and
payroll-related costs in 2000.

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 Corporation provide leasing services to the Properties and receive
compensation based on space leased. The portion of such compensation, which is
capitalized and amortized, approximated $3.7 million and $3.7 million for the
years ended December 31, 2000 and 1999, respectively.

Depreciation and amortization increased by $4.9 million, or 5.6 percent, for
2000 over 1999. Of this increase, $5.4 million, or 6.2 percent, is attributable
to the Same-Store Properties, and $3.8 million, or 4.4 percent, is due to the
Acquired Properties, partially offset by a decrease of $4.3 million, or 5.0
percent, due to the Dispositions.

Interest expense increased $2.4 million, or 2.4 percent, for 2000 as compared to
1999. This increase is due primarily to the replacement in March 1999 of
short-term credit facility borrowings with long-term fixed rate unsecured notes
and increase in LIBOR in 2000 over 1999.

Costs directly related to the development of rental properties are capitalized.
Capitalized development costs include interest, property taxes, insurance and
other project costs incurred during the period of development. Interest
capitalized by the Operating Partnership for the years ended December 31, 2000
and 1999 was $11.5 million and $6.8 million, respectively.

Non-recurring charges of $37.1 million were incurred in 2000 as a result of
costs associated with the termination of the Prentiss merger agreement in
September 2000 (see Note 3 to the Financial Statements) and costs associated
with the resignations of certain officers of the Corporation in June 2000 (see
Note 16 to the Financial Statements). Non-recurring charges of $16.5 million
were incurred in 1999 as a result of the resignation of an officer of the
Corporation (see Note 16 to the Financial Statements).

Income before realized gains (losses) and unrealized losses on disposition of
rental property and minority interest decreased to $146.1 million in 2000 from
$150.7 million in 1999. The decrease of approximately $4.6 million is due to the
factors discussed above.

Net income available to common unitholders increased by $73.8 million, from
$137.1 million in 1999 to $210.9 million in 2000. This increase was a result of
a realized gain on disposition of rental property of $85.4 million in 2000. This
was partially offset by a decrease in income before realized gains (losses) and
unrealized losses on disposition of rental property and minority interest of
$4.6 million in 2000 as compared to 1999, a realized gain on disposition of
rental property of $2.0 million in 1999, and an increase in minority interest in
consolidated partially-owned properties of $5.0 million in 2000.

LIQUIDITY AND CAPITAL RESOURCES

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 facility 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 frequently
examines 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


                                       54
<Page>

property sales, long-term or short-term borrowings (including draws on the
Operating Partnership's revolving credit facility) and the issuance of
additional debt or equity securities.

As of December 31, 2001, the Operating Partnership's total indebtedness of $1.7
billion (weighted average interest rate of 7.17 percent) was comprised of $91.7
million of revolving credit facility borrowings and other variable rate mortgage
debt (weighted average rate of 3.38 percent) and fixed rate debt of $1.6 billion
(weighted average rate of 7.38 percent).

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 Operating Partnership. Moody's
Investors Service ("Moody's") 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 Operating Partnership.

As of December 31, 2001, the Operating Partnership had outstanding borrowings
of $59.5 million under its 2000 Unsecured Facility, as defined in Note 9 to
the Financial Statements (with aggregate borrowing capacity of $800.0
million). The interest rate on outstanding borrowings under the 2000
Unsecured Facility is currently LIBOR (1.87 percent at December 31, 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 currently
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 adjusted in accordance with the
following table:

<Table>
<Caption>
OPERATING PARTNERSHIP'S                                   INTEREST RATE -
UNSECURED DEBT RATINGS:                           APPLICABLE BASIS POINTS            FACILITY FEE
S&P/MOODY'S/FITCH(a)                                          ABOVE LIBOR            BASIS POINTS
-------------------------------------------------------------------------------------------------
<S>                                                                 <C>                      <C>
No rating or less than BBB-/Baa3/BBB-                               120.0                    30.0
BBB-/Baa3/BBB-                                                       95.0                    20.0
BBB/Baa2/BBB (current)                                               80.0                    20.0
BBB+/Baa1/BBB+                                                       72.5                    17.5
A-/A3/A- or higher                                                   65.0                    15.0
</Table>

(a)   If the Operating Partnership has debt ratings from two rating agencies one
      of which is S&P or Moody's, the rates per the above table shall be based
      on the lower of such ratings. If the Operating Partnership has debt
      ratings from three rating agencies, one of which is S&P or Moody's, the
      rates per the above table shall be based on the lower of the two highest
      ratings. If the Operating Partnership has debt ratings from only one
      agency, it will be considered to have no rating or less than
      BBB-/Baa3/BBB- per the above table.

Subject to certain conditions, the Operating Partnership has the ability through
June 22, 2002 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


                                       55
<Page>

selling commissions and discount) of approximately $296.3 million were used to
pay down outstanding borrowings under the 2000 Unsecured Facility. The senior
unsecured notes were issued at a discount of approximately $1.7 million.

The terms of the Operating Partnership's Senior Unsecured Notes, as defined in
Note 8 to the Financial Statements (which totaled approximately $1.1 billion as
of December 31, 2001), 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.

On May 18, 2001, the Operating Partnership obtained $70.0 million in additional
mortgage financing secured by Harborside Financial Center Plazas 2 and 3 from
the existing lenders. 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 2 and 3 of $162.0 million at
December 31, 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 December 31, 2001, the Operating Partnership had 235 unencumbered
properties, totaling 20.8 million square feet, representing 77.2 percent of the
Operating Partnership's total portfolio on a square footage basis.

The debt of the Operating Partnership's joint ventures aggregating $455.7
million are non-recourse to the Operating Partnership except for (i) customary
exceptions pertaining to such matters as misuse of funds, environmental
conditions and material misrepresentations and (ii) approximately $11.1 million
of debt on the Harborside Financial Center South Pier joint venture with Hyatt
Corporation ("Hyatt"). Additionally, the Operating Partnership has posted an
$8.0 million letter of credit in support of another loan to that joint venture,
$4.0 million of which is indemnified by Hyatt. In addition, the Operating
Partnership and Hyatt have guaranteed completion of the hotel project to the
joint venture's construction lender. If the joint venture fails to complete the
hotel project as required under the construction loan documents and the
construction loan proceeds remaining to be advanced together with the capital
contributed by the partners to such date are insufficient to complete the hotel
project, the Operating Partnership and/or Hyatt may be required to provide
additional funds sufficient to complete the hotel project.

The following table outlines the timing of payment requirements related to the
Operating Partnership's debt and ground lease agreements (IN THOUSANDS):

<Table>
<Caption>
                                                                                   PAYMENTS DUE BY PERIOD
                                                -----------------------------------------------------------------------------------
                                                                LESS THAN 1        1 - 3         4 - 5       6 - 10       AFTER 10
                                                     TOTAL             YEAR        YEARS         YEARS        YEARS          YEARS
------------------------------------------------------------------------------------------------------- ---------------------------
<S>                                             <C>                  <C>        <C>           <C>          <C>             <C>
Senior unsecured notes                          $1,100,196           $   --     $485,267      $     --     $614,929        $    --
Revolving credit facility                           59,500               --       59,500            --           --             --
Mortgages and loans payable                        543,807            3,435       23,552       475,228       41,592             --
Payments in
 lieu of taxes (PILOT)                              27,969            4,723       10,581         1,911        4,204          6,551
Ground lease payments                               24,127              487        1,109         1,068        2,070         19,393
</Table>

As of December 31, 2001, the Operating Partnership's total debt had a weighted
average term to maturity of approximately 4.8 years. The Operating Partnership
does not intend to reserve funds to retire the Operating Partnership's Senior
Unsecured Notes 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 2002. 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.


                                       56
<Page>

The Operating Partnership has an effective shelf registration statement with the
SEC for an aggregate amount of $2.0 billion in equity securities of the
Operating Partnership. The Corporation and Operating Partnership 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 senior unsecured notes.

On September 13, 2000, the Board of Directors authorized an increase to the
Corporation's repurchase program under which the Corporation is permitted to
purchase up to an additional $150.0 million of the Corporation's outstanding
common stock ("Repurchase Program"). From that date through February 14, 2002,
the Corporation purchased for constructive retirement under the Repurchase
Program 3.3 million shares of its outstanding common stock for an aggregate cost
of approximately $91.1 million of which 1.3 million shares were repurchased in
2001 for a total cost of approximately $35.4 million. As a result, the
Corporation has a remaining authorization to repurchase up to an additional
$58.9 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.

The Operating Partnership may not dispose of or distribute certain of its
properties, currently comprising 141 properties with an aggregate net book value
of approximately $1.9 billion, which were originally contributed by members of
either the Mack Group (which includes William L. Mack, Chairman of the
Corporation's Board of Directors; Earle I. Mack, director; and Mitchell E.
Hersh, chief executive officer and director), the Robert Martin Group (which
includes Robert F. Weinberg, director; Martin W. Berger, a former director;
Timothy M. Jones, president; and Michael A. Grossman, executive vice president)
or the Cali Group (which includes John J. Cali, director and John R. Cali,
director) without the express written consent of a representative of the Mack
Group, the Robert Martin Group or the Cali Group, as applicable, except in a
manner which does not result in recognition of any built-in-gain (which may
result in an income tax liability) or which reimburses the appropriate Mack
Group, Robert Martin Group or Cali Group members for the tax consequences of the
recognition of such built-in-gains (collectively, the "Property Lock-Ups"). The
aforementioned restrictions do not apply in the event that the Operating
Partnership sells all of its properties or in connection with a sale transaction
which the Corporation's Board of Directors determines is reasonably necessary to
satisfy a material monetary default on any unsecured debt, judgment or liability
of the Operating Partnership or to cure any material monetary default on any
mortgage secured by a property. The Property Lock-Ups expire periodically
through 2008. Upon the expiration of the Property Lock-Ups, the Operating
Partnership is required to use commercially reasonable efforts to prevent any
sale, transfer or other disposition of the subject properties from resulting in
the recognition of built-in gain to the appropriate Mack Group, Robert Martin
Group or Cali Group members.

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 $141.2 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 the Operating
Partnership's debt.

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. FFO 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 sales of depreciable rental property, plus real
estate-related depreciation and amortization. FFO 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. FFO presented herein is
not necessarily comparable to FFO 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 FFO is comparable to the FFO 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.


                                       57
<Page>

FFO for the years ended December 31, 2001, 2000 and 1999, 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>
                                                                                                      Year Ended December 31,
                                                                                                  2001          2000        1999
--------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                          <C>           <C>         <C>
Income before realized gains (losses) and unrealized losses on
      disposition of rental property,
      minority interest and extraordinary item                                               $ 177,698     $ 146,110   $ 150,726
Add: Real estate-related depreciation and amortization (1)                                      94,198        94,250      89,731
Gain on sale of land                                                                                --         2,248          --
Non-recurring charges                                                                               --        37,139      16,458
Deduct: Rental income adjustment for straight-lining of rents (2)                              (11,399)      (12,604)    (12,596)
        Minority interest: partially-owned properties                                               --        (5,072)        (79)
--------------------------------------------------------------------------------------------------------------------------------
Funds from operations, after adjustment for straight-lining
      of rents and non-recurring charges                                                     $ 260,497     $ 262,071   $ 244,240
Deduct: Distributions to preferred unitholders                                                 (15,644)      (15,441)    (15,476)
--------------------------------------------------------------------------------------------------------------------------------
Funds from operations, after adjustment for straight-lining
      of rents and non-recurring charges, after distributions
      To preferred unitholders                                                               $ 244,853     $ 246,630   $ 228,764
================================================================================================================================
Cash flows provided by operating activities                                                  $ 265,883     $ 180,529   $ 243,638
Cash flows(used in) provided by investing activities                                         $(145,586)    $   6,189   $(195,178)
Cash flows used in financing activities                                                      $(120,641)    $(182,210)  $ (45,598)
--------------------------------------------------------------------------------------------------------------------------------
Basic weighted averages units outstanding (3)                                                   64,495        66,392      66,885
--------------------------------------------------------------------------------------------------------------------------------
Diluted weighted average units outstanding (3)                                                  71,134        73,070      73,769
--------------------------------------------------------------------------------------------------------------------------------
</Table>

(1)   Includes the Operating Partnership's share from unconsolidated joint
      ventures of $3,567, $2,928 and $3,166 for the years ended December 31,
      2001, 2000 and 1999.
(2)   Includes the Operating Partnership's share from unconsolidated joint
      ventures of $83, $24 and $158 for the years ended December 31, 2001, 2000
      and 1999.
(3)   See calculations for the amounts presented in the following
      reconciliation.

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

<Table>
<Caption>
                                                                                                      Year Ended December 31,
                                                                                                  2001          2000        1999
---------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                             <C>           <C>         <C>
Basic weighted average units:                                                                   64,495        66,392      66,885
Add: Weighted average preferred units
        (after conversion to common units)                                                       6,359         6,485       6,636
        Stock options                                                                              270           188         241
        Restricted Stock Awards                                                                     10             5           7
---------------------------------------------------------------------------------------------------------------------------------

Diluted weighted average units:                                                                 71,134        73,070      73,769
=================================================================================================================================
</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.


                                       58
<Page>

ITEM 7A. 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, its
ability to make distributions or payments to its 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
December 31, 2001 ranged from LIBOR plus 65 basis points to LIBOR plus 80 basis
points.

DECEMBER 31, 2001

<Table>
<Caption>
DEBT,
INCLUDING CURRENT PORTION         2002       2003       2004      2005       2006  THEREAFTER       TOTAL   FAIR VALUE
-------------------------         ----       ----       ----      ----       ----  ----------       -----   ----------
<S>                             <C>      <C>        <C>       <C>        <C>         <C>       <C>          <C>
Fixed Rate                      $3,259   $195,501   $312,110  $254,598   $219,814    $623,190  $1,608,472   $1,645,314
Average Interest Rate            7.72%      7.30%      7.34%     7.13%      7.06%       7.70%       7.38%

Variable Rate                            $ 59,500                                    $ 32,178    $ 91,678   $   91,678
</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 could adversely affect its operating results and liquidity.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The response to this item is submitted as a separate section of this Form 10-K.
See Item 14.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
        FINANCIAL DISCLOSURE

None.


                                       59
<Page>

                                    PART III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

The information required by Item 10 is incorporated by reference from the
Corporation's definitive proxy statement for its annual meeting of shareholders
to be held on May 14, 2002.

ITEM 11. EXECUTIVE COMPENSATION

The information required by Item 11 is incorporated by reference from the
Corporation's definitive proxy statement for its annual meeting of shareholders
to be held on May 14, 2002.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The information required by Item 12 is incorporated by reference from the
Corporation's definitive proxy statement for its annual meeting of shareholders
to be held on May 14, 2002.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

The information required by Item 13 is incorporated by reference from the
Corporation's definitive proxy statement for its annual meeting of shareholders
to be held on May 14, 2002.

                                     PART IV

ITEM 14. EXHIBITS, FINANCIAL STATEMENTS, SCHEDULES AND REPORTS ON FORM 8-K

(a) 1. Financial Statements and Report of PricewaterhouseCoopers LLP,
       Independent Accountants

       Consolidated Balance Sheets as of December 31, 2001 and 2000

       Consolidated Statements of Operations for the Years Ended December 31,
       2001, 2000 and 1999

       Consolidated Statements of Changes in Partners' Capital for the Years
       Ended December 31, 2001, 2000 and 1999

       Consolidated Statements of Cash Flows for the Years Ended December 31,
       2001, 2000 and 1999

       Notes to Consolidated Financial Statements

(a) 2. FINANCIAL STATEMENT SCHEDULES

       Schedule III - Real Estate Investments and Accumulated Depreciation as of
       December 31, 2001

       All other schedules are omitted because they are not required or the
       required information is shown in the financial statements or notes
       thereto.


                                       60
<Page>

(a) 3. 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 (filed as Exhibit 3.1 to the Operating Partnership's
                  Form 10-Q dated June 30, 2001 and incorporated herein by
                  reference).

      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 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 and incorporated herein by reference).

      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).

      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).


                                       61
<Page>

      EXHIBIT
      NUMBER      EXHIBIT TITLE
      ------      -------------

      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).

      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).


                                       62
<Page>

      EXHIBIT
      NUMBER      EXHIBIT TITLE
      ------      -------------

      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 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).

      *21         Subsidiaries of the Operating Partnership.

      *23         Consent of PricewaterhouseCoopers LLP, independent
                  accountants.

(b)   Reports on Form 8-K

      During the fourth quarter of 2001, the Operating Partnership did not file
      any reports on Form 8-K.

----------
*FILED HEREWITH


                                       63
<Page>

                        REPORT OF INDEPENDENT ACCOUNTANTS

To the Partners of
Mack-Cali Realty, L.P.:

In our opinion, the consolidated financial statements listed in the index
appearing under Item 14(a)(1) on page 60 present fairly, in all material
respects, the financial position of Mack-Cali Realty, L.P. and its subsidiaries
at December 31, 2001 and 2000, and the results of their operations and their
cash flows for each of the three years in the period ended December 31, 2001 in
conformity with accounting principles generally accepted in the United States of
America. In addition, in our opinion, the financial statement schedule listed in
the index appearing under Item 14(a)(2) on page 60 presents fairly, in all
material respects, the information set forth therein when read in conjunction
with the related consolidated financial statements. These financial statements
and financial statement schedule are the responsibility of the Operating
Partnership's management; our responsibility is to express an opinion on these
financial statements and financial statement schedule based on our audits. We
conducted our audits of these statements in accordance with auditing standards
generally accepted in the United States of America, which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.


/s/ PricewaterhouseCoopers LLP
------------------------------
PricewaterhouseCoopers LLP
New York, New York
February 19, 2002


                                       64
<Page>

MACK-CALI REALTY, L.P. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT PER UNIT AMOUNTS)
================================================================================

<Table>
<Caption>
                                                                                 December 31,
ASSETS                                                                        2001            2000
--------------------------------------------------------------------------------------------------
<S>                                                                    <C>             <C>
Rental property
   Land and leasehold interests                                        $   479,358     $   542,841
   Buildings and improvements                                            2,751,453       2,934,383
   Tenant improvements                                                     140,071         106,208
   Furniture, fixtures and equipment                                         7,189           6,445
--------------------------------------------------------------------------------------------------
                                                                         3,378,071       3,589,877
   Less - accumulated depreciation and amortization                       (350,705)       (302,932)
--------------------------------------------------------------------------------------------------
                                                                         3,027,366       3,286,945
   Rental property held for sale, net                                      384,626         107,458
--------------------------------------------------------------------------------------------------
      Net investment in rental property                                  3,411,992       3,394,403
Cash and cash equivalents                                                   12,835          13,179
Investments in unconsolidated joint ventures                               146,540         101,438
Unbilled rents receivable, net                                              60,829          50,499
Deferred charges and other assets, net                                     101,499         102,655
Restricted cash                                                              7,914           6,557
Accounts receivable, net of allowance for doubtful accounts
      of $752 and $552                                                       5,161           8,246
--------------------------------------------------------------------------------------------------

Total assets                                                           $ 3,746,770     $ 3,676,977
==================================================================================================

LIABILITIES AND PARTNERS' CAPITAL
--------------------------------------------------------------------------------------------------
Senior unsecured notes                                                 $ 1,096,843     $   798,099
Revolving credit facilities                                                 59,500         348,840
Mortgages and loans payable                                                543,807         481,573
Dividends and distributions payable                                         44,069          43,496
Accounts payable and accrued expenses                                       64,620          53,608
Rents received in advance and security deposits                             33,512          31,146
Accrued interest payable                                                    25,587          17,477
--------------------------------------------------------------------------------------------------
      Total liabilities                                                  1,867,938       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, 56,712,270 and 56,980,893 common units outstanding      1,432,588       1,453,290
Limited partners, 7,954,775 and 7,963,725 common units outstanding         211,715         212,994
Unit warrants, 2,000,000 and 2,000,000 outstanding                           8,524           8,524
--------------------------------------------------------------------------------------------------
      Total partners' capital                                            1,878,832       1,900,813
--------------------------------------------------------------------------------------------------

Total liabilities and partners' capital                                $ 3,746,770     $ 3,676,977
==================================================================================================
</Table>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL
STATEMENTS.


                                       65
<Page>

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

<Caption>
                                                                       Year Ended December 31,
REVENUES                                                             2001          2000          1999
-----------------------------------------------------------------------------------------------------
<S>                                                             <C>           <C>           <C>
Base rents                                                      $ 506,557     $ 491,193     $ 469,853
Escalations and recoveries from tenants                            56,083        58,488        62,182
Parking and other                                                  10,518        15,325        15,915
Equity in earnings of unconsolidated joint ventures                 9,004         8,055         2,593
Interest income                                                     2,186         3,092           941
-----------------------------------------------------------------------------------------------------
      Total revenues                                              584,348       576,153       551,484
-----------------------------------------------------------------------------------------------------

EXPENSES
-----------------------------------------------------------------------------------------------------
Real estate taxes                                                  62,015        59,400        57,382
Utilities                                                          43,892        42,035        41,580
Operating services                                                 68,779        70,711        69,689
General and administrative                                         28,490        23,276        25,480
Depreciation and amortization                                      91,471        92,088        87,209
Interest expense                                                  112,003       105,394       102,960
Non-recurring charges                                                  --        37,139        16,458
-----------------------------------------------------------------------------------------------------
      Total expenses                                              406,650       430,043       400,758
-----------------------------------------------------------------------------------------------------
Income before realized gains (losses) and unrealized losses
   on disposition of rental property                              177,698       146,110       150,726
Realized gains (losses) and unrealized losses on
   disposition of rental property, net                            (11,864)       85,353         1,957
-----------------------------------------------------------------------------------------------------
Income before minority interest                                   165,834       231,463       152,683
Minority interest in consolidated partially-owned properties           --         5,072            79
-----------------------------------------------------------------------------------------------------
Net income                                                        165,834       226,391       152,604
Preferred unit distributions                                      (15,644)      (15,441)      (15,476)
-----------------------------------------------------------------------------------------------------

Net income available to common unitholders                      $ 150,190     $ 210,950     $ 137,128
=====================================================================================================

BASIC EARNINGS PER UNIT:
Net income                                                      $    2.33     $    3.18     $    2.05

DILUTED EARNINGS PER UNIT:
Net income                                                      $    2.32     $    3.10     $    2.04

Distributions declared per common unit                          $    2.46     $    2.38     $    2.26
-----------------------------------------------------------------------------------------------------

Basic weighted average units outstanding                           64,495        66,392        66,885
-----------------------------------------------------------------------------------------------------

Diluted weighted average units outstanding                         64,775        73,070        67,133
-----------------------------------------------------------------------------------------------------
</Table>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL
STATEMENTS.


                                       66
<Page>

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

<Table>
<Caption>
                                                           General   Limited
                                            Preferred      Partner   Partner     Preferred
                                                Units       Units      Units   Unitholders
--------------------------------------------------------------------------------------------
<S>                                               <C>      <C>         <C>       <C>
Balance at January 1, 1999                        250      57,266      9,087     $ 223,330
Net income                                         --          --         --        15,476
Distributions                                      --          --         --       (15,476)
Conversion of preferred units
 to limited partner units                         (21)         --        605       (21,491)
Redemption of limited partner units
 for shares of common stock                        --       1,935     (1,935)           --
Issuance of limited partner units                  --          --        397            --
Contributions - proceeds from
 stock options exercised                           --          48         --            --
Deferred compensation plan for directors           --          --         --            --
Contributions - proceeds from dividend
 reinvestment and stock purchase plan              --           1         --            --
Issuance of Restricted Stock Awards                --         212         --            --
Amortization of stock compensation                 --          --         --            --
Allocation of net equity                           --          --         --        33,361
Repurchase of general partner units                --      (1,015)        --            --
--------------------------------------------------------------------------------------------
Balance at December 31, 1999                      229      58,447      8,154       235,200
Net income                                         --          --         --        15,441
Distributions                                      --          --         --       (15,441)
Conversion of preferred units
 to limited partner units                          (9)         --        258        (9,195)
Redemption of limited partner units
 for shares of common stock                        --         448       (448)           --
Contributions - proceeds from
 stock options exercised                           --         117         --            --
Deferred compensation plan for directors           --          --         --            --
Amortization of stock compensation                 --          --         --            --
Adjustment to fair value of restricted stock       --          --         --            --
Cancellation of Restricted Stock Awards            --          (5)        --            --
Repurchase of general partner units                --      (2,026)        --            --
Stock option charge                                --          --         --            --
--------------------------------------------------------------------------------------------
Balance at December 31, 2000                      220      56,981      7,964       226,005
Net income                                         --          --         --        15,644
Distributions                                      --          --         --       (15,644)
Redemption of limited partner units
 for shares of common stock                        --           9         (9)           --
Contributions - proceeds from
 stock options exercised                           --         904         --            --
Deferred compensation plan for
 directors                                         --          --         --            --
Issuance of Restricted Stock Awards                --          95         --            --
Amortization of stock compensation                 --          --         --            --
Cancellation of Restricted Stock Awards            --          (7)        --            --
Repurchase of general partner units                --      (1,270)        --            --
--------------------------------------------------------------------------------------------
Balance at December 31, 2001                      220      56,712      7,955     $ 226,005
============================================================================================

<Caption>

                                                  General    Limited      Unit
                                                  Partner   Partners  Warrants        Total
-------------------------------------------------------------------------------------------
<S>                                           <C>          <C>         <C>      <C>
Balance at January 1, 1999                    $ 1,387,674  $ 305,692   $8,524   $ 1,925,220
Net income                                        119,739     17,389       --       152,604
Distributions                                    (132,327)   (18,865)      --      (166,668)
Conversion of preferred units
 to limited partner units                              --     21,491       --            --
Redemption of limited partner units
 for shares of common stock                        56,065    (56,065)      --            --
Issuance of limited partner units                      --     11,503       --        11,503
Contributions - proceeds from
 stock options exercised                            1,049         --       --         1,049
Deferred compensation plan for directors               90         --       --            90
Contributions - proceeds from dividend
 reinvestment and stock purchase plan                  32         --       --            32
Issuance of Restricted Stock Awards                    --         --       --            --
Amortization of stock compensation                    827         --       --           827
Allocation of net equity                           36,233    (69,594)      --            --
Repurchase of general partner units               (27,500)        --       --       (27,500)
-------------------------------------------------------------------------------------------
Balance at December 31, 1999                    1,441,882    211,551    8,524     1,897,157
Net income                                        185,338     25,612       --       226,391
Distributions                                    (138,585)   (19,125)      --      (173,151)
Conversion of preferred units
 to limited partner units                              --      9,195       --            --
Redemption of limited partner units
 for shares of common stock                        14,239    (14,239)      --            --
Contributions - proceeds from
 stock options exercised                            2,500         --       --         2,500
Deferred compensation plan for directors              111         --       --           111
Amortization of stock compensation                  1,672         --       --         1,672
Adjustment to fair value of restricted stock           97         --       --            97
Cancellation of Restricted Stock Awards                --         --       --            --
Repurchase of general partner units               (55,514)        --       --       (55,514)
Stock option charge                                 1,550         --       --         1,550
-------------------------------------------------------------------------------------------
Balance at December 31, 2000                    1,453,290    212,994    8,524     1,900,813
Net income                                        131,659     18,531       --       165,834
Distributions                                    (139,416)   (19,571)      --      (174,631)
Redemption of limited partner units
 for shares of common stock                           239       (239)      --            --
Contributions - proceeds from
 stock options exercised                           20,675         --       --        20,675
Deferred compensation plan for
 directors                                            156         --       --           156
Issuance of Restricted Stock Awards                    41         --       --            41
Amortization of stock compensation                  1,356         --       --         1,356
Cancellation of Restricted Stock Awards                --         --       --            --
Repurchase of general partner units               (35,412)        --       --       (35,412)
-------------------------------------------------------------------------------------------
Balance at December 31, 2001                  $ 1,432,588  $ 211,715   $8,524   $ 1,878,832
===========================================================================================
</Table>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL
STATEMENTS


                                       67
<Page>

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

<Table>
<Caption>
                                                                                            Year Ended December 31,
CASH FLOWS FROM OPERATING ACTIVITIES                                                    2001          2000          1999
------------------------------------------------------------------------------------------------------------------------
<S>                                                                                <C>           <C>           <C>
Net income                                                                         $ 165,834     $ 226,391     $ 152,604
Adjustments to reconcile net income to net cash
      provided by operating activities:
         Depreciation and amortization                                                91,471        92,088        87,209
         Amortization of stock compensation                                            1,356         1,769           827
         Amortization of deferred financing costs and debt discount                    5,113         4,257         3,570
         Stock options charge                                                             --         1,550            --
         Equity in earnings of unconsolidated joint ventures                          (9,004)       (8,055)       (2,593)
         Realized gains (losses) and unrealized losses on disposition
          of rental property, net                                                     11,864       (85,353)       (1,957)
         Minority interest in consolidated partially-owned properties                     --         5,072            79
Changes in operating assets and liabilities:
         Increase in unbilled rents receivable                                       (11,318)      (12,591)      (12,412)
         Increase in deferred charges and other assets, net                          (14,006)      (31,332)      (28,893)
         Decrease (increase) in accounts receivable, net                               3,085        (1,436)       (2,882)
         Increase (decrease) in accounts payable and accrued expenses                 11,012        (9,786)       27,536
         Increase (decrease) in rents received in advance and security deposits        2,366        (2,896)        6,170
         Increase in accrued interest payable                                          8,110           851        14,380
------------------------------------------------------------------------------------------------------------------------

            Net cash provided by operating activities                              $ 265,883     $ 180,529     $ 243,638
========================================================================================================================

CASH FLOWS FROM INVESTING ACTIVITIES
------------------------------------------------------------------------------------------------------------------------
Additions to rental property                                                       $(279,686)    $(268,243)    $(191,507)
Issuance of mortgage note receivable                                                      --       (14,733)           --
Repayment of mortgage note receivable                                                  5,983            --            --
Investments in unconsolidated joint ventures                                         (71,272)      (17,587)      (40,567)
Distributions from unconsolidated joint ventures                                      38,689        13,338        20,551
Proceeds from sales of rental property                                               162,057       292,890        17,400
Increase (decrease) in restricted cash                                                (1,357)          524        (1,055)
------------------------------------------------------------------------------------------------------------------------

      Net cash (used in) provided by investing activities                          $(145,586)    $   6,189     $(195,178)
========================================================================================================================

CASH FLOWS FROM FINANCING ACTIVITIES
------------------------------------------------------------------------------------------------------------------------
Proceeds from senior unsecured notes                                               $ 298,269     $  15,000     $ 782,535
Proceeds from revolving credit facilities                                            412,240       708,004       372,248
Proceeds from mortgages and loans payable                                             70,000            --        45,500
Repayments of revolving credit facilities                                           (701,581)     (536,164)     (866,848)
Repayments of mortgages and loans payable                                             (7,290)      (48,817)     (264,431)
Proceeds from minority interest of consolidated partially-owned properties                --            --        83,600
Distributions to minority interest in partially-owned properties                          --       (88,672)           --
Repurchase of general partner units                                                  (35,412)      (55,514)      (27,500)
Payment of financing costs                                                            (3,484)       (6,394)       (7,048)
Proceeds from stock options exercised                                                 20,675         2,500         1,049
Proceeds from dividend reinvestment and stock purchase plan                               --            --            32
Payment of distributions                                                            (174,058)     (172,153)     (164,735)
------------------------------------------------------------------------------------------------------------------------

      Net cash used in financing activities                                        $(120,641)    $(182,210)    $ (45,598)
========================================================================================================================

Net (decrease) increase in cash and cash equivalents                               $    (344)    $   4,508     $   2,862
Cash and cash equivalents, beginning of period                                     $  13,179     $   8,671     $   5,809
------------------------------------------------------------------------------------------------------------------------

Cash and cash equivalents, end of period                                           $  12,835     $  13,179     $   8,671
========================================================================================================================
</Table>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL
STATEMENTS.


                                       68
<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

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, excluding
certain Properties which are wholly-owned by the Operating Partnership. Prior to
January 1, 1998 the Property Partnerships were owned 99 percent by the Operating
Partnership as a non-controlling limited partner, and one percent by the General
Partner, as a controlling general partner. During 1998, the Operating
Partnership obtained control of the Property Partnerships pursuant to agreements
with the General Partner.

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 87.7 percent and 87.7
percent common unit interest in the Operating Partnership as of December 31,
2001 and 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 December 31, 2001, the Operating Partnership owned or had interests in 267
properties plus developable land (collectively, the "Properties"). The
Properties aggregate approximately 28.4 million square feet, and are comprised
of 160 office buildings and 95 office/flex buildings totaling approximately 28.0
million square feet (which includes seven office buildings and one office/flex
buildings aggregating 1.4 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 10 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, its majority-owned and/or controlled subsidiaries, which
consist principally of Mack-Cali Realty, L.P. ("Operating Partnership"). 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.


                                       69
<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 $210,463 and $188,077 as of
                        December 31, 2001 and 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>
                        <S>                                <C>
                        Leasehold interests                            Remaining lease term
                        -------------------------------------------------------------------
                        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 the Operating
                        Partnership's 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.

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


                                       70
<Page>

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 $4,638,
                        $3,943 $3,320 for the years ended December 31, 2001,
                        2000 and 1999, 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 $4,013, $3,704 and $3,704 for
                        the years ended December 31, 2001, 2000 and 1999,
                        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 17.

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.

                        As of December 31, 2001, the net basis of the rental
                        property for Federal income tax purposes was lower than
                        the net assets as reported in the Operating
                        Partnership's financial statements by approximately
                        $1,031,965. The Operating Partnership's taxable income
                        for the years ended December 31, 2001, 2000 and 1999 was
                        approximately $179,067, $163,084 and $174,214,
                        respectively. The differences between book income and
                        taxable income primarily result from differences in
                        depreciation expense, the recording of rental income,
                        the nondeductibility of certain expenses for tax
                        purposes, differences in revenue recognition and the
                        rules for tax purposes of a property exchange and
                        issuance of preferred convertible partnership units.

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 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, where such exercise or
                        conversion would result in a lower EPU amount.


                                       71
<Page>

DIVIDENDS AND
DISTRIBUTIONS
PAYABLE                 The distributions payable at December 31, 2001
                        represents distributions payable to common unitholders
                        of record as of January 4, 2002 (64,667,045 common
                        units) and preferred distributions payable to preferred
                        unitholders (220,340 preferred units) for the fourth
                        quarter 2001. The fourth quarter 2001 common unit
                        distribution of $0.62 per common unit, as well as the
                        fourth quarter preferred unit distribution of $17.8932
                        per preferred unit, were approved by the Board of
                        Directors of the General Partner on December 18, 2001
                        and paid on January 22, 2002.

                        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. The Operating
                        Partnership provides additional pro forma disclosures as
                        required under Statement of Financial Accounting
                        Standards No. 123, "Accounting for Stock Based
                        Compensation" ("FASB No. 123"). See Note 11.

NON-RECURRING
CHARGES                 The Operating Partnership considers non-recurring
                        charges as costs incurred specific to significant
                        non-recurring events that impact the comparative
                        measurement of the Operating Partnership's performance.

RECLASSIFICATIONS       Certain reclassifications have been made to prior period
                        amounts in order to conform with current period
                        presentation.


                                       72
<Page>

3. ACQUISITIONS, PROPERTY SALES AND OTHER TRANSACTIONS

2001 TRANSACTIONS

OPERATING PROPERTY ACQUISITIONS

The Operating Partnership acquired the following operating properties during the
year ended December 31, 2001:

<Table>
<Caption>
----------------------------------------------------------------------------------------------------------------------------------
                                                                                                                    Investment by
Acquisition                                                                                  # of       Rentable        Operating
Date                 Property/Portfolio Name       Location                                Bldgs.    Square Feet    Partnership (a)
----------------------------------------------------------------------------------------------------------------------------------
<S>                  <C>                           <C>                                         <C>       <C>              <C>
OFFICE:
4/6/01               4 & 6 Campus Drive            Parsippany, Morris County, NJ                2        295,766          $48,404
11/6/01              9 Campus Drive (b)            Parsippany, Morris County, NJ                1        156,495           15,073
----------------------------------------------------------------------------------------------------------------------------------

Total Office Property Acquisitions:                                                             3        452,261          $63,477
----------------------------------------------------------------------------------------------------------------------------------

OFFICE/FLEX:
2/14/01               31 & 41 Twosome Drive        Moorestown, Burlington County, NJ            2        127,250           $7,155
4/27/01               1245 & 1247 N. Church St,
                       2 Twosome Drive             Moorestown, Burlington County, NJ            3        154,200           11,083
8/3/01                5 & 6 Skyline Drive (c)      Hawthorne, Westchester County, NY            2        168,177           14,846
--------------------- ------------------------------------------------------------------------------------------------------------

Total Office/Flex Property Acquisitions:                                                        7        449,627          $33,084
----------------------------------------------------------------------------------------------------------------------------------

TOTAL OPERATING PROPERTY ACQUISITIONS:                                                         10        901,888          $96,561
==================================================================================================================================
</Table>

(a)   Transactions were funded primarily through borrowings on the Operating
      Partnership's revolving credit facility, from net proceeds received in the
      sale or sales of rental property, and/or from the Operating Partnership's
      cash reserves.

(b)   The Operating Partnership acquired the remaining 50 percent interest in
      this property from an unconsolidated joint venture. Investment by
      Operating Partnership represents the net cost of acquiring the remaining
      interest.

(c)   The property was acquired from an entity whose principals include Timothy
      M. Jones, Robert F. Weinberg and Martin S. Berger, each of whom are
      affiliated with the Operating Partnership as the President of the
      Corporation, a current member of the Board of Directors and a former
      member of the Board of Directors of the Corporation, respectively. See
      Note 19.

PROPERTIES PLACED IN SERVICE

The Operating Partnership placed in service the following properties during the
year ended December 31, 2001:

<Table>
<Caption>
--------------------------------------------------------------------------------------------------------------------------------
                                                                                                                   Investment by
Date Placed                                                                                  # of      Rentable        Operating
in Service          Property/Portfolio Name              Location                          Bldgs.   Square Feet   Partnership (a)
--------------------------------------------------------------------------------------------------------------------------------
<S>                 <C>                                  <C>                                    <C>     <C>              <C>
OFFICE:
1/15/01             105 Eisenhower Parkway               Roseland, Essex County, NJ             1       220,000          $47,328
3/1/01              8181 East Tufts Avenue               Denver, Denver County, CO              1       185,254           34,993
--------------------------------------------------------------------------------------------------------------------------------

TOTAL PROPERTIES PLACED IN SERVICE:                                                             2       405,254          $82,321
================================================================================================================================
</Table>

(a)   Development costs were funded primarily through draws on the Operating
      Partnership's revolving credit facilities.

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 currently held for sale (see
Note 7).


                                       73
<Page>

On September 13, 2001, the Operating Partnership acquired approximately 5.0
acres of developable land located in Elmsford, Westchester County, New York. The
land was acquired for approximately $1,000 from an entity whose principals
include Timothy M. Jones, Robert F. Weinberg and Martin S. Berger, each of whom
are affiliated with the Operating Partnership as the President of the Operating
Partnership, a current member of the Board of Directors and a former member of
the Board of Directors of the Operating Partnership, respectively. The Operating
Partnership has commenced construction of a fully pre-leased 33,000 square-foot
office/flex building on the acquired land.

PROPERTY SALES

The Operating Partnership sold the following properties during the year ended
December 31, 2001:

<Table>
<Caption>
--------------------------------------------------------------------------------------------------------------------------------
Sale                                                                         # of     Rentable  Net Sales  Net Book    Realized
Date          Property Name              Location                          Bldgs.  Square Feet   Proceeds     Value  Gain (Loss)
--------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                        <C>                                    <C>  <C>         <C>       <C>          <C>
OFFICE:
6/1/01        1777 N.E. Loop 410         San Antonio, Bexar County, TX          1      256,137   $ 21,313  $ 16,703     $ 4,610
6/15/01       14511 Falling Creek        Houston, Harris County, TX             1       70,999      2,982     2,458         524
7/17/01       8214 Westchester           Dallas, Dallas County, TX              1       95,509      8,966     8,465         501
8/1/01        2600 Westown Parkway       West Des Moines, Polk County, IA       1       72,265      5,165     5,570        (405)
9/26/01       1709 New York Ave, NW      Washington, DC                         1      166,000     65,151    50,640      14,511
11/14/01      200 Concord Plaza Drive    San Antonio, Bexar County, TX          1      248,700     30,927    32,609      (1,682)
12/21/01      5225 Katy Freeway          Houston, Harris County, TX             1      112,213      6,887     7,393        (506)

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

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

TOTAL PROPERTY SALES:                                                           8    1,021,823   $164,084  $129,155     $34,929
================================================================================================================================
</Table>

(a)   Net sales proceeds consisted of $1,330 in cash and $2,027 of a note
      receivable due in 2002.

In January 2002, the Operating Partnership sold 25 Martine Avenue, a 124-unit
multi-family residential property located in White Plains, Westchester County,
New York, for net sales proceeds of approximately $17.8 million, which resulted
in a gain of approximately $7.3 million.

2000 TRANSACTIONS

OPERATING PROPERTY ACQUISITIONS

The Operating Partnership acquired the following operating properties during the
year ended December 31, 2000:

<Table>
<Caption>
--------------------------------------------------------------------------------------------------------------------------------
                                                                                                                   Investment by
Acquisition                                                                        # of          Rentable              Operating
Date               Property/Portfolio Name     Location                          Bldgs.       Square Feet        Partnership (a)
--------------------------------------------------------------------------------------------------------------------------------
<S>                <C>                         <C>                                    <C>         <C>                    <C>
OFFICE:
5/23/00            555 & 565 Taxter Road       Elmsford, Westchester County, NY       2           341,108                $42,980
6/14/00            Four Gatehall Drive         Parsippany, Morris County, NJ          1           248,480                 42,381
--------------------------------------------------------------------------------------------------------------------------------
TOTAL OFFICE PROPERTY ACQUISITIONS:                                                   3           589,588                $85,361
--------------------------------------------------------------------------------------------------------------------------------

OFFICE/FLEX:
3/24/00            Two Executive Drive (b)     Moorestown, Burlington County, NJ      1            60,800                $ 4,007
7/14/00            915 North Lenola Road (b)   Moorestown, Burlington County, NJ      1            52,488                  2,542
--------------------------------------------------------------------------------------------------------------------------------
TOTAL OFFICE/FLEX PROPERTY ACQUISITIONS:                                              2           113,288                $ 6,549
--------------------------------------------------------------------------------------------------------------------------------

TOTAL OPERATING PROPERTY ACQUISITIONS:                                                5           702,876                $91,910
================================================================================================================================
</Table>

(a)   Transactions were funded primarily from net proceeds received in the sale
      or sales of rental property.
(b)   The properties were acquired through the exercise of a purchase option
      obtained in the initial acquisition of the McGarvey portfolio in January
      1998.


                                       74
<Page>

PROPERTIES PLACED IN SERVICE

The Operating Partnership placed in service the following properties through the
completion of development during the year ended December 31, 2000:

<Table>
<Caption>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                       Investment by
Date Placed                                                                            # of          Rentable              Operating
in Service   Property Name                 Location                                  Bldgs.       Square Feet        Partnership (a)
------------------------------------------------------------------------------------------------------------------------------------
<S>          <C>                           <C>                                            <C>         <C>                    <C>
OFFICE:
9/01/00      Harborside Plaza 4-A (b)      Jersey City, Hudson County, NJ                 1           207,670                $61,459
9/15/00      Liberty Corner Corp. Center   Bernards Township, Somerset County, NJ         1           132,010                 17,430
------------------------------------------------------------------------------------------------------------------------------------

TOTAL PROPERTIES PLACED IN SERVICE:                                                       2           339,680                $78,889
====================================================================================================================================
</Table>

(a)   Transactions were funded primarily through draws on the Operating
      Partnership's revolving credit facilities.
(b)   Project includes seven-story, 1,100-car parking garage.

LAND ACQUISITIONS

On January 13, 2000, the Operating Partnership acquired approximately 12.7 acres
of developable land located at the Operating Partnership's Airport Business
Center, Lester, Delaware County, Pennsylvania. The land was acquired for
approximately $2,069.

On August 24, 2000, the Operating Partnership entered into a joint venture with
SJP Properties Operating Partnership ("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. The Operating Partnership accounts
for the joint venture on a consolidated basis.

PROPERTY SALES

The Operating Partnership sold the following properties during the year ended
December 31, 2000:

<Table>
<Caption>
----------------------------------------------------------------------------------------------------------------------------------
                                                                                                                         Realized
Sale                                                                            # of     Rentable   Net Sales  Net Book     Gain/
Date       Property Name                Location                              Bldgs.  Square Feet    Proceeds     Value    (Loss)
----------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                          <C>                                       <C>  <C>           <C>       <C>        <C>
LAND:
02/25/00   Horizon Center Land          Hamilton Township, Mercer County, NJ      --   39.1 acres    $  4,180  $  1,932   $ 2,248

OFFICE:
04/17/00   95 Christopher Columbus Dr.  Jersey City, Hudson County, NJ             1      621,900     148,222    80,583    67,639
04/20/00   6900 IH-40 West              Amarillo, Potter County, TX                1       71,771       1,467     1,727      (260)
06/09/00   412 Mt. Kemble Avenue        Morris Twp., Morris County, NJ             1      475,100      81,981    75,439     6,542
09/21/00   Cielo Center                 Austin, Travis County, TX                  1      270,703      45,785    35,749    10,036
11/15/00   210 South 16th Street (a)    Omaha, Douglas County, NE                  1      319,535      11,976    12,828      (852)
----------------------------------------------------------------------------------------------------------------------------------

TOTAL PROPERTY SALES:                                                              5    1,759,009    $293,611  $208,258   $85,353
==================================================================================================================================
</Table>

(a)   In connection with the sale of the Omaha, Nebraska property, the Operating
      Partnership provided to the purchaser an $8,750 mortgage loan bearing
      interest payable monthly at an annual rate of 9.50 percent. The loan is
      secured by the Omaha, Nebraska property and will mature on November 14,
      2003.

OTHER EVENTS

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 year ended December 31, 2000.


                                       75
<Page>

On September 21, 2000, the Corporation and Prentiss Properties Trust, a Maryland
REIT ("Prentiss"), mutually agreed to terminate the agreement and plan of merger
("Merger Agreement") dated as of June 27, 2000, among the Corporation, the
Operating Partnership, Prentiss and Prentiss Properties Acquisition Partners,
L.P., a Delaware limited partnership of which Prentiss (through a wholly-owned
direct subsidiary) is the sole general partner ("Prentiss Partnership"). In
connection with such termination, the Operating Partnership deposited $25,000
into escrow for the benefit of Prentiss and Prentiss Partnership. This cost and
approximately $2,911 of other costs associated with the termination of the
Merger Agreement are included in non-recurring charges for the year ended
December 31, 2000. Simultaneous with the termination, the Operating Partnership
sold to Prentiss its 270,703 square-foot Cielo Center property located in
Austin, Travis County, Texas, and recognized a gain of approximately $10,036.

4. INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES

The debt of the Operating Partnership's joint ventures aggregating $455,671 are
non-recourse to the Operating Partnership, except for customary exceptions
pertaining to such matters as misuse of funds, environmental conditions and
material misrepresentations and except as otherwise indicated below.

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 performed management and leasing services for the property owned by
the joint venture and recognized $146, $140 and $149 in fees for such services
in the years ended December 31, 2001, 2000 and 1999, respectively. On November
5, 2001, the Operating Partnership acquired the remaining interest in the
property for approximately $15,073.

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.


                                       76
<Page>

      PACIFIC PLAZA I & II

      Pacific Plaza I & II is a two-phase development joint venture project,
      located in the city of Daly City, San Mateo County, California between
      HPMC Development Partners II, L.P. and a third-party entity. Phase I of
      the project, which was placed in service in August 2001, consists of a
      nine-story office building, aggregating 369,682 square feet. Phase II,
      which is currently under construction, will comprise a three-story retail
      and theater complex.

      STADIUM GATEWAY

      Stadium Gateway is a development joint venture project located in Anaheim,
      Orange County, California between HPMC Development Partners II, L.P. and a
      third-party entity. The venture has commenced construction of a six-story
      261,554 square-foot office building, which is expected to be placed in
      service in early 2002.

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
$235, $231 and $225 in fees for such services in the years ended December 31,
2001, 2000 and 1999, 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, a portion of which is currently licensed to a
parking operator. 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 on certain of the land owned by the venture. Plaza 10 is 100
percent pre-leased to Charles Schwab & Co. Inc. ("Schwab") 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 $15,000. The
project under construction, which is anticipated to be completed in late 2002,
is currently projected to cost the Operating Partnership approximately $145,000,
of which $74,034 has been incurred by the Operating Partnership through December
31, 2001.

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 $108, $198
and $628 in fees for such services in the years ended December 31, 2001, 2000
and 1999, 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


                                       77
<Page>

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. The Operating Partnership performs management and leasing
services for the properties owned by the joint venture and recognized $170, $172
and $117 in fees for such services in the years ended December 31, 2001, 2000
and 1999, respectively. Under certain circumstances, Prudential has the right to
convert its interest in the venture into common stock of the Operating
Partnership, based on the underlying fair value of Prudential's interest in
venture at the time of conversion.

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 Corporation, is a principal of the
managing member of the venture. At December 31, 2001, the venture held
approximately $595,937 of assets, comprised principally of subordinated CMBS
recorded at market value.

MC-SJP MORRIS V REALTY, LLC AND MC-SJP MORRIS VI REALTY, LLC

The Operating Partnership has an agreement with SJP Properties, which provides
for a cooperative effort in seeking approvals to develop up to approximately 1.8
million square feet of office development on certain vacant land owned by the
Operating Partnership and SJP Properties, in Hanover and Parsippany, Morris
County, New Jersey. The agreement provides that the parties shall share equally
in the costs associated with seeking such requisite approvals. Upon mutual
consent, the Operating Partnership and SJP Properties may enter into one or more
joint ventures to construct on the vacant land, or seek to dispose of their
respective vacant land parcels subject to the agreement. Pursuant to the
agreement with SJP Properties, on August 24, 2000, the Operating Partnership
entered into a joint venture with SJP Properties to form MC-SJP Morris V Realty,
LLC and MC-SJP Morris VI Realty, LLC, which acquired developable land able to
accommodate approximately 650,000 square feet of office space located in
Parsippany, Morris County, New Jersey. The land was acquired for approximately
$16,193. The venture entered into an agreement pertaining to the acquired land
and two other land parcels in Parsippany with an insurance company to provide
for a guarantee on the funding of the development of four office properties,
aggregating 850,000 square feet. Such agreement provides, if the venture elects
to develop, that the insurance company will be admitted to the joint venture and
provide all the equity required to fund the development, subject to certain
conditions. In addition, the venture obtained a loan on the acquired land from a
bank, which is guaranteed by the insurance company.

SOUTH PIER AT HARBORSIDE - HOTEL DEVELOPMENT

On November 17, 1999, the Operating Partnership entered into an agreement with
Hyatt Corporation ("Hyatt") 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, which is expected to be completed by late 2002. The total cost of
the construction project is estimated to be approximately $103,000. The venture
has obtained a construction loan of $63,700, of which each partner has severally
guaranteed repayment of approximately $11,148. Additionally, the Operating
Partnership has posted an $8,000 letter of credit in support of another loan to
the joint venture, $4,000 of which is indemnified by Hyatt. In addition, the
Operating Partnership and Hyatt have guaranteed completion of the hotel project
to the joint venture's construction lender. If the joint venture fails to
complete the hotel project as required under the construction loan documents and
the construction loan proceeds remaining to be advanced together with the
capital contributed by the partners to such date are insufficient to complete
the hotel project, the Operating Partnership and/or Hyatt may be required to
provide additional funds sufficient to complete the hotel project.


                                       78
<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
December 31, 2001 and 2000:

<Table>
<Caption>
                                                                      December 31, 2001
                                   -----------------------------------------------------------------------------------
                                                                                  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               $    --       $ 19,556       $  9,598        $81,070       $18,119       $37,358
   Other assets                           732         20,267          2,178            120         4,822           829
----------------------------------------------------------------------------------------------------------------------
   Total assets                       $   732       $ 39,823       $ 11,776        $81,190       $22,941       $38,187
======================================================================================================================
LIABILITIES AND PARTNERS'/
MEMBERS' CAPITAL:
   Mortgages and loans payable        $    --       $ 13,976       $ 50,000        $    --       $15,974       $    --
   Other liabilities                       --            897          1,175          9,667            83           830
   Partners'/members' capital             732         24,950        (39,399)        71,523         6,884        37,357
----------------------------------------------------------------------------------------------------------------------
   Total liabilities and
   partners'/members' capital         $   732       $ 39,823       $ 11,776        $81,190       $22,941       $38,187
======================================================================================================================
Operating Partnership's net
   investment in unconsolidated
   joint ventures                     $   350       $ 24,545       $  2,795        $74,651       $ 3,014       $ 7,809
----------------------------------------------------------------------------------------------------------------------

<Caption>
                                                     December 31, 2001
                                   -----------------------------------------------------
                                                    MC-SJP
                                                    Morris     Harborside       Combined
                                      ARCap         Realty     South Pier          Total
----------------------------------------------------------------------------------------
<S>                                <C>            <C>             <C>           <C>
ASSETS:
   Rental property, net            $     --       $ 16,607        $63,236       $245,544
   Other assets                     595,937            107            100        625,092
----------------------------------------------------------------------------------------
   Total assets                    $595,937       $ 16,714        $63,336       $870,636
========================================================================================
LIABILITIES AND PARTNERS'/
MEMBERS' CAPITAL:
   Mortgages and loans payable     $324,819       $ 16,795        $34,107       $455,671
   Other liabilities                  3,736            103          2,927         19,418
   Partners'/members' capital       267,382           (184)        26,302        395,547
----------------------------------------------------------------------------------------
   Total liabilities and
   partners'/members' capital      $595,937       $ 16,714        $63,336       $870,636
========================================================================================
Operating Partnership's net
   investment in unconsolidated
   joint ventures                  $ 17,897       $    183        $15,296       $146,540
----------------------------------------------------------------------------------------

<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>           <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>


                                       79
<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 years ended December 31, 2001, 2000 and 1999:

<Table>
<Caption>
                                                                     Year Ended December 31, 2001
                                       ---------------------------------------------------------------------------------------
                                                                                        American
                                                                              G&G      Financial        Ramland        Ashford
                                       Pru-Beta 3            HPMC          Martco       Exchange         Realty           Loop
------------------------------------------------------------------------------------------------------------------------------
<S>                                     <C>             <C>             <C>             <C>            <C>            <C>
Total revenues                          $ 11,337        $ 22,826        $ 12,515        $   543        $ 3,718        $ 5,685
Operating and other expenses              (1,322)         (2,839)         (3,558)           (63)        (1,191)        (2,594)
Depreciation and amortization               (992)         (3,530)         (1,557)           (39)        (1,031)          (957)
Interest expense                              --          (2,995)         (3,095)            --         (1,126)            --
------------------------------------------------------------------------------------------------------------------------------

Net income                              $  9,023        $ 13,462        $  4,305        $   441        $   370        $ 2,134
==============================================================================================================================
Operating Partnership's equity in
   earnings (loss) of
   unconsolidated joint ventures        $    785        $  6,064        $  1,582        $  (322)       $   232        $   388
------------------------------------------------------------------------------------------------------------------------------

<Caption>
                                                  Year Ended December 31, 2001
                                       -----------------------------------------------------
                                                      MC-SJP
                                                      Morris     Harborside         Combined
                                           ARCap      Realty     South Pier            Total
--------------------------------------------------------------------------------------------
<S>                                    <C>             <C>            <C>         <C>
Total revenues                         $ 64,791        $  --          $  --       $ 121,415
Operating and other expenses            (32,200)          --             --         (43,767)
Depreciation and amortization                --           --             --          (8,106)
Interest expense                        (19,231)          --             --         (26,447)
--------------------------------------------------------------------------------------------

Net income                             $ 13,360        $  --          $  --       $  43,095
============================================================================================
Operating Partnership's equity in
   earnings (loss) of
   unconsolidated joint ventures       $    275        $  --          $  --       $   9,004
--------------------------------------------------------------------------------------------

<Caption>
                                                                      Year Ended December 31, 2000
                                       ---------------------------------------------------------------------------------------
                                                                                        American
                                                                              G&G      Financial        Ramland        Ashford
                                       Pru-Beta 3            HPMC          Martco       Exchange         Realty           Loop
------------------------------------------------------------------------------------------------------------------------------
<S>                                     <C>             <C>             <C>             <C>            <C>            <C>
Total revenues                          $  5,075        $  9,254        $ 10,785        $ 1,009        $ 4,011        $ 5,776
Operating and other expenses              (1,619)         (2,628)         (3,312)          (155)        (1,030)        (2,773)
Depreciation and amortization             (1,226)         (5,908)         (1,532)          (825)          (975)          (839)
Interest expense                              --          (4,535)         (4,060)            --         (1,547)            --
------------------------------------------------------------------------------------------------------------------------------

Net income (loss)                       $  2,230        $ (3,817)       $  1,881        $    29        $   459        $ 2,164
==============================================================================================================================
Operating Partnership's equity in
   earnings (loss) of
   unconsolidated joint ventures        $    935        $  3,248        $    483        $   735        $   180        $   474
------------------------------------------------------------------------------------------------------------------------------

<Caption>
                                                   Year Ended December 31, 2000
                                       -----------------------------------------------------
                                                      MC-SJP
                                                      Morris     Harborside         Combined
                                           ARCap      Realty     South Pier            Total
--------------------------------------------------------------------------------------------
<S>                                    <C>             <C>            <C>         <C>
Total revenues                         $ 19,931        $  --          $  --       $  55,841
Operating and other expenses             (3,060)          --             --         (14,577)
Depreciation and amortization                --           --             --         (11,305)
Interest expense                         (5,045)          --             --         (15,187)
--------------------------------------------------------------------------------------------

Net income (loss)                      $ 11,826        $  --          $  --       $  14,772
============================================================================================
Operating Partnership's equity in
   earnings (loss) of
   unconsolidated joint ventures       $  2,000        $  --          $  --       $   8,055
--------------------------------------------------------------------------------------------
</Table>


                                       80
<Page>

<Table>
<Caption>
                                                                Year Ended December 31, 1999
                                      ---------------------------------------------------------------------------------
                                                                                 American
                                                                         G&G    Financial        Ramland        Ashford
                                      Pru-Beta 3         HPMC         Martco     Exchange         Realty           Loop
-----------------------------------------------------------------------------------------------------------------------
<S>                                     <C>            <C>          <C>            <C>          <C>            <C>
Total revenues                          $ 4,938        $ 459        $ 9,011        $ 917        $ 1,426        $ 4,162
Operating and other expenses             (1,505)        (104)        (3,238)        (287)          (352)        (2,327)
Depreciation and amortization            (1,234)        (100)        (1,422)         (96)          (439)          (551)
Interest expense                             --         (119)        (3,116)          --            (45)            --
-----------------------------------------------------------------------------------------------------------------------

Net income                              $ 2,199        $ 136        $ 1,235        $ 534        $   590        $ 1,284
=======================================================================================================================
Operating Partnership's equity in
   earnings (loss) of
   unconsolidated joint ventures        $   827        $  --        $  (366)       $ 541        $   298        $   233
-----------------------------------------------------------------------------------------------------------------------

<Caption>
                                                 Year Ended December 31, 1999
                                     -----------------------------------------------------
                                                    MC-SJP
                                                    Morris      Harborside        Combined
                                         ARCap      Realty      South Pier           Total
------------------------------------------------------------------------------------------
<S>                                  <C>             <C>             <C>         <C>
Total revenues                       $ 10,093        $  --           $  --       $ 31,006
Operating and other expenses           (3,774)          --              --        (11,587)
Depreciation and amortization              --           --              --         (3,842)
Interest expense                       (2,185)          --              --         (5,465)
------------------------------------------------------------------------------------------

Net income                           $  4,134        $  --           $  --       $ 10,112
==========================================================================================
Operating Partnership's equity in
   earnings (loss) of
   unconsolidated joint ventures     $  1,060        $  --           $  --       $  2,593
------------------------------------------------------------------------------------------
</Table>


                                       81
<Page>

5. DEFERRED CHARGES AND OTHER ASSETS

<Table>
<Caption>
                                                             December 31,
                                                           2001            2000
--------------------------------------------------------------------------------
<S>                                                   <C>             <C>
Deferred leasing costs                                $  93,677       $  80,667
Deferred financing costs                                 26,569          23,085
--------------------------------------------------------------------------------
                                                        120,246         103,752
Accumulated amortization                                (36,746)        (26,303)
--------------------------------------------------------------------------------
Deferred charges, net                                    83,500          77,449
Prepaid expenses and other assets                        17,999          25,206
--------------------------------------------------------------------------------

Total deferred charges and other assets, net          $ 101,499       $ 102,655
================================================================================
</Table>

6. RESTRICTED CASH

Restricted cash includes security deposits for the Operating Partnership's
residential property 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>
                                                               December 31,
                                                           2001             2000
--------------------------------------------------------------------------------
<S>                                                      <C>              <C>
Security deposits                                        $7,839           $6,477
Escrow and other reserve funds                               75               80
--------------------------------------------------------------------------------

Total restricted cash                                    $7,914           $6,557
================================================================================
</Table>

7. RENTAL PROPERTY HELD FOR SALE

As of December 31, 2001, the Operating Partnership has identified 37 office
properties, aggregating approximately 4.3 million square feet, a multi-family
residential property and a land parcel as held for sale. These properties are
located in Texas, Colorado, Arizona, Florida and New York. Such properties
carried an aggregate book value of $384,626, net of accumulated depreciation of
$28,379 and a valuation allowance of $40,464 at December 31, 2001.

In January 2002, the Operating Partnership sold 25 Martine Avenue, a 124-unit
multi-family residential property located in White Plains, Westchester County,
New York, for net sales proceeds of approximately $17,800, which resulted in a
gain of approximately $7,300.

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 of which are located in San Antonio and Houston, Texas.
Such properties carried an aggregate book value of $107,458, net of accumulated
depreciation, of $7,019.

In 2001, the Operating Partnership sold four of these properties for total net
sales proceeds of approximately $62,109.

The following is a summary of the condensed results of operations of the rental
properties held for sale at December 31, 2001 for the years ended December 31,
2001, 2000 and 1999:

<Table>
<Caption>
                                                 Year Ended December 31,
                                             2001           2000           1999
<S>                                      <C>            <C>            <C>
--------------------------------------------------------------------------------
Total revenues                           $ 73,839       $ 72,500       $ 68,857
Operating and other expenses              (30,364)       (28,419)       (27,804)
Depreciation and amortization              (2,634)       (10,020)        (9,377)
--------------------------------------------------------------------------------

Net income                               $ 40,841       $ 34,061       $ 31,676
================================================================================
</Table>


                                       82
<Page>

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

During the year ended December 31, 2001, the Operating Partnership determined
that the carrying amounts of certain properties identified as held for sale were
not expected to be recovered from estimated net sale proceeds from these
property sales and, accordingly, recognized a valuation allowance of $46,793.

The following table summarizes realized gains (losses) and unrealized losses on
disposition of rental property, net:

<Table>
<Caption>
                                                                           Year Ended December 31,
                                                                         2001         2000       1999
<S>                                                                  <C>           <C>         <C>
-----------------------------------------------------------------------------------------------------
Realized gains (losses) on sale of rental property and land, net     $ 34,929      $85,353     $1,957
Valuation allowance on rental property held for sale                  (46,793)          --         --
-----------------------------------------------------------------------------------------------------

Realized gains (losses) and unrealized losses, net                   $(11,864)     $85,353     $1,957
=====================================================================================================
</Table>

8. SENIOR UNSECURED NOTES

On January 29, 2001, the Operating Partnership issued $300,000 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 $296,300 were used 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 will be amortized over the term as an adjustment to interest expense.

On December 21, 2000, the Operating Partnership issued $15,000 of senior
unsecured notes with interest payable semi-annually in arrears. The total
proceeds from the issuance (net of selling commissions) of approximately $14,907
were used primarily to pay down outstanding borrowings under the Prudential
Facility, as defined in Note 9.

The Operating Partnership's senior unsecured notes (collectively, "Senior
Unsecured Notes") are redeemable at any time at the option of the Operating
Partnership, subject to certain conditions including yield maintenance.

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.

A summary of the terms of the Senior Unsecured Notes outstanding as of December
31, 2001 and 2000 is as follows:

<Table>
<Caption>
                                                                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           299,824      299,744        7.27%
7.250% Senior Unsecured Notes, due March 15, 2009           298,307      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        298,429           --        7.93%
---------------------------------------------------------------------------------------------

Total Senior Unsecured Notes                             $1,096,843     $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.


                                       83
<Page>

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")
(1.87 percent at December 31, 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. Subject to certain conditions,
the Operating Partnership has the ability through June 22, 2002 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.

In the event of a change in the Operating Partnership's unsecured debt rating,
the interest rate and facility fee will be adjusted in accordance with the
following table:

<Table>
<Caption>
OPERATING PARTNERSHIP'S                          INTEREST RATE -
UNSECURED DEBT RATINGS:                  APPLICABLE BASIS POINTS            FACILITY FEE
S&P/MOODY'S/FITCH (a)                                ABOVE LIBOR            BASIS POINTS
----------------------------------------------------------------------------------------
<S>                                                        <C>                      <C>
No rating or less than BBB-/Baa3/BBB-                      120.0                    30.0
BBB-/Baa3/BBB-                                              95.0                    20.0
BBB/Baa2/BBB                                                80.0                    20.0
BBB+/Baa1/BBB+                                              72.5                    17.5
A-/A3/A- or higher                                          65.0                    15.0
</Table>

(a)   If the Operating Partnership has debt ratings from two rating agencies one
      of which is S&P or Moody's, the rates per the above table shall be based
      on the lower of such ratings. If the Operating Partnership has debt
      ratings from three rating agencies, one of which is Standard & Poor's
      Rating Services ("S&P") or Moody's Investors Service ("Moody's"), the
      rates per the above table shall be based on the lower of the two highest
      ratings. If the Operating Partnership has debt ratings from only one
      agency, it will be considered to have no rating or less than
      BBB-/Baa3/BBB- per the above table.

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.

The lending group for the 2000 Unsecured Facility consists of: Chase Manhattan
Bank, as administrative agent; Fleet National Bank, as syndication agent; Bank
of America, N.A., as documentation agent; Bank One, NA, Commerzbank
Aktiengesellschaft and First Union National Bank, as senior managing agents; PNC
Bank, N.A., as managing agent; Bayerische Hypo-und Vereinsbank AG, Dresdner Bank
AG, Societe Generale and Wells Fargo Bank, N.A., as co-agents; and Bayerische
Landesbank Girozentrale; Citizens Bank of Massachusetts; European American Bank;
Chevy Chase Bank; Citicorp Real Estate, Inc.; DG Bank Deutsche
Genossenschaftsbank, AG; Erste Bank; KBC Bank N.V.; SunTrust Bank; Bank Leumi
USA and Israel Discount Bank of New York.

In conjunction with obtaining the 2000 Unsecured Facility, the Operating
Partnership drew funds on the new facility to repay in full and terminate the
Unsecured Facility, as defined below.


                                       84
<Page>

UNSECURED FACILITY

The Operating Partnership had an unsecured revolving credit facility ("Unsecured
Facility") with a borrowing capacity of $1,000,000 from a group of 28 lenders.
The interest rate was based on the Operating Partnership's achievement of
investment grade unsecured debt ratings and, at the Operating Partnership's
election, bore interest at either 90 basis points over LIBOR or the higher of
the lender's prime rate or the Federal Funds rate plus 50 basis points. In
conjunction with obtaining the 2000 Unsecured Facility, the Operating
Partnership repaid in full and terminated the Unsecured Facility on June 22,
2000.

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 was repaid in
full and terminated at maturity on June 29, 2001.

SUMMARY

As of December 31, 2001 and 2000, the Operating Partnership had outstanding
borrowings of $59,500 and $348,840, respectively, under its revolving credit
facilities (with aggregate borrowing capacity of $800,000 and $900,000,
respectively). The total outstanding borrowings were from the 2000 Unsecured
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
December 31, 2001 and 2000 is as follows:

<Table>
<Caption>
                                                                    EFFECTIVE     PRINCIPAL BALANCE AT
                                                                     INTEREST         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%           --        2,169        12/31/01
Mack-Cali Willowbrook           CIGNA                                   8.67%        8,598        9,460        10/01/03
400 Chestnut Ridge              Prudential Insurance Co.                9.44%       12,646       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%       25,218       25,911        10/01/05
500 West Putnam Avenue          New York Life Ins. Co.                  6.52%        9,273       10,069        10/10/05
Harborside - Plaza 1            U.S. West Pension Trust                 5.61%       57,978       54,370        01/01/06
Harborside - Plazas 2 and 3     Northwestern/Principal                  7.36%      162,022       95,630        01/01/06
Mack-Cali Airport               Allstate Life Insurance Co.             7.05%       10,394       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                                                          $543,807     $481,573
========================================================================================================================
</Table>

(a)   The Operating Partnership has the option to convert the mortgage loan,
      which is secured by 12 properties, to unsecured debt, subject to, amongst
      other things, the Operating Partnership having an investment grade ratings
      from two rating agencies (at least one of which must be from S&P or
      Moody's) at the time of conversion.


                                       85
<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 December
31, 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>
2002                                  $  3,996    $       --   $     3,996                  7.72%
2003                                     4,145       251,594       255,739                  6.31%
2004                                     2,922       309,863       312,785                  7.34%
2005                                     2,066       253,178       255,244                  7.13%
2006                                       222       220,000       220,222                  7.06%
Thereafter                                  58       656,542       656,600                  7.41%
-------------------------------------------------------------------------------------------------
Sub-total                               13,409     1,691,177     1,704,586                  7.17%
Adjustment for unamortized debt
  discount/premium, net, as of
  December 31, 2001                     (4,436)           --        (4,436)                   --
-------------------------------------------------------------------------------------------------

Totals/Weighted Average               $  8,973    $1,691,177   $ 1,700,150                  7.17%
=================================================================================================
</Table>

(a)   Actual weighted average LIBOR contract rates relating to the Operating
      Partnership's outstanding debt as of December 31, 2001 of 2.64 percent was
      used 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 years ended December 31, 2001, 2000 and 1999 was
$115,772, $112,157 and $91,883, respectively. Interest capitalized by the
Operating Partnership for the years ended December 31, 2001, 2000 and 1999 was
$16,722, $11,524 and $6,840, respectively.

SUMMARY OF INDEBTEDNESS

As of December 31, 2001, the Operating Partnership's total indebtedness of
$1,700,150 (weighted average interest rate of 7.17 percent) was comprised of
$91,678 of revolving credit facility borrowings and other variable rate mortgage
debt (weighted average rate of 3.38 percent) and fixed rate debt of $1,608,472
(weighted average rate of 7.38 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

Partner's capital in the accompanying consolidated financial statements relates
to common units held by the Corporation in the Operating Partnership, common
units help 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.


                                       86
<Page>

REPURCHASE OF GENERAL PARTNER UNITS

On August 6, 1998, the Board of Directors of the Corporation authorized a share
repurchase program ("Repurchase Program") under which the Corporation was
permitted to purchase up to $100,000 of the Corporation's outstanding common
stock. Purchases could be made from time to time in open market transactions at
prevailing prices or through privately negotiated transactions. 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 $52,562 from August 1998 through December 1999. Concurrent with
these purchases, the Corporation sold to the Operating Partnership 1,869,200
common units for approximately $52,562.

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 $150,000 of the Corporation's outstanding common stock above the
$52,562 that had previously been purchased. The Corporation purchased for
constructive retirement 3,295,800 shares of its outstanding common stock for an
aggregate cost of approximately $90,925 from September 13, 2000 through December
31, 2001. Concurrent with these purchases, the Corporation sold to the Operating
Partnership 3,295,800 common units for approximately $90,925.

DIVIDEND REINVESTMENT AND STOCK PURCHASE PLAN

The Corporation filed a registration statement with the SEC for the
Corporation's dividend reinvestment and stock purchase plan ("Plan") which was
declared effective in February 1999. The Plan commenced on March 1, 1999.

During the year ended December 31, 1999, 1,082 shares were issued and proceeds
of approximately $32 were received from stock purchases and/or dividend
reinvestments under the Plan. The proceeds of the shares issued were contributed
by the Corporation to the Operating Partnership in exchange for common units.
The Corporation did not issue any shares under the Plan during the year ended
December 31, 2001.

SHAREHOLDER RIGHTS PLAN

On June 10, 1999, the Board of Directors of the Corporation authorized a
dividend distribution of one preferred share purchase right ("Right") for each
outstanding share of common stock which were distributed to all holders of
record of the common stock on July 6, 1999. Each Right entitles the registered
holder to purchase from the Corporation one one-thousandth of a share of Series
A junior participating preferred stock, par value $0.01 per share ("Preferred
Shares"), at a price of $100.00 per one one-thousandth of a Preferred Share
("Purchase Price"), subject to adjustment as provided in the rights agreement.
The Rights expire on July 6, 2009, unless the expiration date is extended or the
Right is redeemed or exchanged earlier by the Corporation.

The Rights are attached to each share of common stock. The Rights are generally
exercisable only if a person or group becomes the beneficial owner of 15 percent
or more of the outstanding common stock or announces a tender offer for 15
percent or more of the outstanding common stock ("Acquiring Person"). In the
event that a person or group becomes an Acquiring Person, each holder of a Right
will have the right to receive, upon exercise, common stock having a market
value equal to two times the Purchase Price of the Right.

On June 27, 2000, the Corporation amended its shareholder rights plan to prevent
the triggering of such plan as a result of the Merger Agreement.

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 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 subsequent to 1995 become
exercisable over a five-year period. All stock options granted under both the
2000 Director Plan and Director Plan become exercisable in


                                       87
<Page>

one year. All options were granted at the fair market value at the dates of
grant and have terms of ten years. As of December 31, 2001 and 2000, the stock
options outstanding had a weighted average remaining contractual life of
approximately 7.5 and 7.5 years, respectively.

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, 1999                            3,938,752       $32.23
Granted                                                     426,400       $25.23
Exercised                                                   (47,583)      $22.31
Lapsed or canceled                                         (590,418)      $36.94
--------------------------------------------------------------------------------
Outstanding at December 31, 1999                          3,727,151       $31.86
Granted                                                   1,523,900       $26.75
Exercised                                                  (117,053)      $21.45
Lapsed or canceled                                         (500,679)      $34.64
--------------------------------------------------------------------------------
Outstanding at December 31, 2000                          4,633,319       $30.14
Granted                                                   1,045,300       $28.85
Exercised                                                  (904,401)      $22.87
Lapsed or canceled                                         (262,332)      $30.47
--------------------------------------------------------------------------------
Outstanding at December 31, 2001                          4,511,886       $31.28
================================================================================
Options exercisable at December 31, 2000                  2,049,041       $31.02
Options Exercisable at December 31, 2001                  1,842,951       $34.63
--------------------------------------------------------------------------------
Available for grant at December 31, 2000                  2,344,757
Available for grant at December 31, 2001                  1,474,263
--------------------------------------------------------------------------------
</Table>

The weighted average fair value of options granted during 2001, 2000 and 1999
were $2.53, $3.40, and $2.74 per option, respectively. The fair value of each
significant option grant is estimated on the date of grant using the
Black-Scholes model. The following weighted average assumptions are included in
the Corporation's fair value calculations of stock options:

<Table>
<Caption>
                                                 2001         2000         1999
--------------------------------------------------------------------------------
<S>                                             <C>          <C>          <C>
Expected life (in years)                            6            6            6
Risk-free interest rate                          4.99%        5.67%        6.12%
Volatility                                      17.26%       22.66%       24.72%
Dividend yield                                   8.46%        8.82%        9.15%
--------------------------------------------------------------------------------
</Table>

FASB NO. 123

Under the above models, the value of stock options granted during 2001, 2000 and
1999 totaled approximately $2,645, $5,181, and $1,167, respectively, which would
be amortized ratably on a pro forma basis over the appropriate vesting period.
Had the Operating Partnership determined compensation cost for these granted
securities in accordance with FASB No. 123, the Operating Partnership's pro
forma net income, basic earnings per share and diluted earnings per share would
have been $143,955, $2.23 and $2.22 in 2001, and $204,743, $3.08 and $3.01 in
2000 and $131,243, $1.96 and $1.95 in 1999, respectively.

STOCK WARRANTS

The Corporation has 360,000 warrants outstanding which enable the holders to
purchase an equal number of shares of common stock of the Corporation ("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.


                                       88
<Page>

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 December 31, 2001 and 2000, there were a total of 749,976 and 749,976
Stock Warrants outstanding, respectively. As of December 31, 2001 and 2000,
there were 749,976 and 613,985 Stock Warrants exercisable, respectively. For the
years ended December 31, 2001 and 2000, zero and 165,000 Stock Warrants were
canceled, respectively. No Stock Warrants have been exercised through December
31, 2001.

STOCK COMPENSATION

The Corporation has granted stock awards to officers and certain other employees
of the Corporation (collectively, "Restricted Stock Awards"), which allows the
employees to each receive a certain amount of shares of the Corporation's common
stock generally over a five-year vesting period. Certain Restricted Stock Awards
are contingent upon the Corporation meeting certain performance and/or stock
price appreciation objectives. All Restricted Stock Awards provided to the
officers and certain other employees were granted under the 2000 Employee Plan
and Employee Plan.

Information regarding the Restricted Stock Awards is summarized below:

<Table>
<Caption>
                                                                         Shares
--------------------------------------------------------------------------------
<S>                                                                     <C>
Outstanding at January 1, 1999                                               --
Granted                                                                 211,593
Vested                                                                       --
Canceled                                                                     --
--------------------------------------------------------------------------------
Outstanding at December 31, 1999                                        211,593
Granted                                                                      --
Vested                                                                  (70,386)
Canceled                                                                 (5,100)
--------------------------------------------------------------------------------
Outstanding at December 31, 2000                                        136,107
Granted                                                                  94,934
Vested                                                                  (25,354)
Canceled                                                                 (7,408)
--------------------------------------------------------------------------------
Outstanding at December 31, 2001                                        198,279
================================================================================
</Table>

DEFERRED STOCK COMPENSATION PLAN FOR DIRECTORS

The Deferred Compensation Plan for Directors ("Deferred Compensation Plan"),
which commenced January 1, 1999, allows non-employee directors of the
Corporation to elect to defer up to 100 percent of their annual retainer fee
into deferred stock units. The deferred stock units are convertible into an
equal number of shares of common stock upon the directors' termination of
service from the Board of Directors or a change in control of the Corporation,
as defined in the plan. Deferred stock units are credited to each director
quarterly using the closing price of the Corporation's common stock on the
applicable dividend record date for the respective quarter. Each participating
director's account is also credited for an equivalent amount of deferred stock
units based on the dividend rate for each quarter.

During the years ended December 31, 2001 and 2000, 5,446 and 4,227 deferred
stock units were earned, respectively.

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.


                                       89
<Page>

The following information presents the Operating Partnership's results for the
years ended December 31, 2001, 2000 and 1999 in accordance with FASB No. 128:

<Table>
<Caption>
                                                                       Year Ended December 31,
                                                  2001                           2000                           1999
                                      -----------------------------------------------------------------------------------------
                                      Basic EPU     Diluted EPU       Basic EPU     Diluted EPU       Basic EPU     Diluted EPU
-------------------------------------------------------------------------------------------------------------------------------
<S>                                    <C>             <C>             <C>             <C>             <C>             <C>
Net income available to
     common unitholders                $150,190        $150,190        $210,950        $210,950        $137,128        $137,128
Add: Net income attributable to
     Operating Partnership -
       preferred units                       --              --              --          15,441              --              --
-------------------------------------------------------------------------------------------------------------------------------
Adjusted net income                    $150,190        $150,190        $210,950        $226,391        $137,128        $137,128
===============================================================================================================================

Weighted average units                   64,495          64,775          66,392          73,070          66,885          67,133
-------------------------------------------------------------------------------------------------------------------------------
Per Unit:                              $   2.33        $   2.32        $   3.18        $   3.10        $   2.05        $   2.04
===============================================================================================================================
</Table>

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

<Table>
<Caption>
                                                      Year Ended December 31,
                                                      2001       2000       1999
--------------------------------------------------------------------------------
<S>                                                 <C>        <C>        <C>
Basic EPU Units:                                    64,495     66,392     66,885
Add: Operating Partnership - preferred units
       (after conversion to common units)               --      6,485         --
       Stock options                                   270        188        241
       Restricted Stock Awards                          10          5          7
       Stock Warrants                                   --         --         --
--------------------------------------------------------------------------------
Diluted EPU Units:                                  64,775     73,070     67,133
================================================================================
</Table>

Preferred Units outstanding in 2001 and 1999 were not included in the 2001 and
1999 computations of diluted EPU as such units were anti-dilutive during the
periods.

Through December 31, 2001, under the Repurchase Program, the Corporation
purchased for constructive retirement, a total of 5,165,000 shares of its
outstanding common stock for an aggregate cost of approximately $143,487.
Concurrent with these purchases, the Corporation sold an equal number of common
units to the Operating Partnership.

12. REDEEMABLE PARTNERSHIP UNITS

PREFERRED UNITS

At January 1, 2000, the Operating Partnership had 6,180 Series A Preferred Units
and 223,124 Series B Preferred Units outstanding.

The Preferred Units have a stated value of $1,000 per unit and are preferred as
to assets over any class of common units or other class of preferred units of
the Operating Partnership, based on circumstances per the applicable unit
certificates. The quarterly distribution on each Preferred Unit is an amount
equal to the greater of (i) $16.875 (representing 6.75 percent of the Preferred
Unit stated value of an annualized basis) or (ii) the quarterly distribution
attributable to a Preferred Unit determined as if such unit had been converted
into common units, subject to adjustment for customary anti-dilution rights.
Each of the Preferred Units may be converted at any time into common units at a
conversion price of $34.65 per unit. Common units received pursuant to such
conversion may be redeemed for an equal number of shares of common stock.


                                       90
<Page>

During the year ended December 31, 2000, 6,180 Series A Preferred Units and
2,784 Series B Preferred Units were converted into 258,702 common units.

As of December 31, 2001, there were 220,340 Series B Preferred Units outstanding
(convertible into 6,359,019 common units). There were no Series A Preferred
Units outstanding as of December 31, 2001.

COMMON UNITS

At January 1, 2000, the Operating Partnership had 8,153,710 common units
outstanding.

Certain individuals and entities own common units in the Operating Partnership.
A common unit and a share of common stock of the General Partner have
substantially the same economic characteristics in as much as they effectively
share equally in the net income or loss of the Operating Partnership. Common
units are redeemable by the common unitholders at their option, subject to
certain restrictions, on the basis of one common unit for either one share of
common stock or cash equal to the fair market value of a share at the time of
the redemption. The General Partner has the option to deliver shares of common
stock in exchange for all or any portion of the cash requested. When a
unitholder redeems a common unit for common stock of the Corporation, limited
partners' capital is reduced and the General Partners' capital is increased.
Effective August 21, 1998, the partnership agreement was amended to vest this
right in the Operating Partnership, rather than in the General Partnership (see
Note 2). Common units held by the General Partner are not redeemable.

During the year ended December 31, 2000, the Operating Partnership issued
258,702 common units in connection with the conversion of 8,964 Preferred Units,
and an aggregate of 448,688 common units were redeemed for an equivalent number
of shares of common stock in the Corporation.

As of December 31, 2000, there were 7,963,725 common units outstanding.

During the year ended December 31, 2001, 8,950 common units were redeemed for an
equivalent number of shares of common stock in the Corporation.

As of December 31, 2001, there were 7,954,775 common units outstanding.

CONTINGENT COMMON AND PREFERRED UNITS

In connection with the Mack transaction in December 1997, 2,006,432 contingent
common units, 11,895 Series A contingent Preferred Units and 7,799 Series B
contingent Preferred Units were issued as contingent non-participating units
("Contingent Units"). Redemption of such Contingent Units occurred upon the
achievement of certain performance goals relating to certain of the Mack
properties ("Mack Properties"), specifically the achievement of certain leasing
activity. When Contingent Units were redeemed for common and Preferred Units, an
adjustment to the purchase price of certain of the Mack Properties was recorded,
based on the value of the units issued.

On account of certain of the performance goals at the Mack Properties having
been achieved during the year ended December 31, 1999, the Operating Partnership
redeemed 275,046 contingent common units and issued an equivalent number of
common units, as indicated above. There were no Contingent Units outstanding as
of December 31, 1999.

UNIT WARRANTS

The Operating Partnership has 2,000,000 Unit Warrants outstanding which enable
the holders to purchase an equal number of common units at $37.80 per unit. The
Unit Warrants are all currently exercisable and expire on December 11, 2002.


                                       91
<Page>

13. MINORITY INTEREST IN CONSOLIDATED PARTIALLY-OWNED PROPERTIES

On December 28, 1999, the Operating Partnership sold an interest in six office
properties located in Parsippany, Morris County, New Jersey for $83,600. Amongst
other things, the operating agreements provided for a preferred return to the
joint venture members. On June 29, 2000 the Operating Partnership acquired a 100
percent interest in these properties and the Operating Partnership paid an
additional $836 to the minority interest member in excess of its investment.

On August 24, 2000, MC-SJP Morris V Realty, LLC and MC-SJP Morris VI Realty, LLC
acquired land in which SJP Properties has a minority interest amounting to
$1,925.

The Operating Partnership controlled these operations 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 interest partially-owned
properties in the consolidated financial statements of the Operating
Partnership.

14. 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 in 2001. Total expense recognized by the Operating
Partnership for the years ended December 31, 2001, 2000 and 1999 was $400, $0
and $400, respectively.

15. DISCLOSURE OF FAIR VALUE OF FINANCIAL INSTRUMENTS

The following disclosure of estimated fair value was determined by management
using available market information and appropriate valuation methodologies.
However, considerable judgement is necessary to interpret market data and
develop estimated fair value. Accordingly, the estimates presented herein are
not necessarily indicative of the amounts the Operating Partnership and Property
Partnerships could realize on disposition of the financial instruments at
December 31, 2001 and 2000. The use of different market assumptions and/or
estimation methodologies may have a material effect on the estimated fair value
amounts.

Cash equivalents, receivables, accounts payable, and accrued expenses and other
liabilities are carried at amounts which reasonably approximate their fair
values as of December 31, 2001 and 2000. The estimated fair value (excluding
prepayment penalties) of the Senior Unsecured Notes and mortgages and loans
payable as of December 31, 2001 approximated the carrying values of $1,126,759
and $518,555, respectively, and as of December 31, 2000 approximated the
carrying values of $798,099 and $481,573, respectively, based upon then current
interest rates for debt with similar terms and remaining maturities. Revolving
credit facility borrowings as of December 31, 2001 and 2000 approximated the
carrying values of $59,500 and $348,840, respectively.

Disclosure about fair value of financial instruments is based on pertinent
information available to management as of December 31, 2001 and 2000. Although
management is not aware of any factors that would significantly affect the fair
value amounts, such amounts have not been comprehensively revalued for purposes
of these financial statements since December 31, 2001 and current estimates of
fair value may differ significantly from the amounts presented herein.


                                       92
<Page>

16. COMMITMENTS AND CONTINGENCIES

TAX ABATEMENT AGREEMENTS

HARBORSIDE FINANCIAL CENTER

Pursuant to an agreement with the City of Jersey City, New Jersey, the Operating
Partnership is required to make payments in lieu of property taxes ("PILOT") on
its Harborside Plaza 2 and 3 properties. The agreement, which commenced in 1990,
is for a term of 15 years. Such PILOT is equal to two percent of Total Project
Costs, as defined, in year one and increases by $75 per annum through year 15.
Total Project Costs, as defined, are $145,644. The PILOT totaled $2,752, $2,677
and $2,620 for the years ended December 31, 2001, 2000 and 1999, respectively.

The Operating Partnership has entered into a similar agreement with the City of
Jersey City, New Jersey on its Harborside Plaza 4-A property. The agreement,
which commenced in 2000, is for a term of 20 years. The PILOT is equal to two
percent of Total Project costs, as defined, and increase by 10% in years 7, 10
and 13 and by 50% in year 16. Total Project costs, as defined, are $45,497. The
PILOT totaled $891, $25 and $0 for the years ended December 31, 2001, 2000 and
1999, respectively.

Additionally, the Operating Partnership has entered into a similar agreement
with the City of Jersey City, New Jersey on its Harborside Plaza 5 property. The
agreement, which will commence upon substantial completion of the property, as
defined, is for a term of 20 years. The PILOT is equal to two percent of Total
Project Costs, as defined, and increases by 10 percent in years 7, 10 and 13,
and by 50 percent in year 16. Total Project Costs, as defined, are $132,294. The
Operating Partnership incurred no costs pursuant to the PILOT for the years
ended December 31, 2001, 2000 and 1999.

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 December 31,
2001, are as follows:

<Table>
<Caption>
Year                                                                      Amount
--------------------------------------------------------------------------------
<S>                                                                      <C>
2002                                                                     $   531
2003                                                                         531
2004                                                                         534
2005                                                                         534
2006                                                                         534
2007 through 2080                                                         21,463
--------------------------------------------------------------------------------

Total                                                                    $24,127
================================================================================
</Table>

Ground lease expense incurred during the years ended December 31, 2001, 2000 and
1999 amounted to $569, $570 and $561, respectively.

OTHER

The Operating Partnership may not dispose of or distribute certain of its
properties, currently comprising 141 properties with an aggregate net book value
of approximately $1,869,821, which were originally contributed by members of
either the Mack Group (which includes William L. Mack, Chairman of the
Corporation's Board of Directors; Earle I. Mack, director; and Mitchell E.
Hersh, chief executive officer and director), the Robert Martin Group (which
includes Robert F. Weinberg, director; Martin W. Berger, a former director;
Timothy M. Jones, president; and Michael A. Grossman, executive vice president)
or the Cali Group (which includes John J. Cali, director and John R. Cali,
director) without the express written consent of a representative of the Mack
Group, the Robert Martin Group or the Cali Group, as applicable, except in a
manner which does not result in recognition of any built-in-gain (which may
result in an income tax liability) or which reimburses the appropriate Mack
Group, Robert Martin Group or Cali Group members for the tax consequences of the
recognition of such built-in-gains (collectively, the "Property Lock-Ups"). The
aforementioned restrictions do not apply in the event that the Operating
Partnership sells all of its properties or in connection with a sale transaction
which the Corporation's Board of Directors determines is reasonably necessary to
satisfy a material monetary default on any unsecured debt, judgment or liability
of the Operating Partnership or to cure any material monetary default on any
mortgage secured by a property. The Property Lock-Ups expire periodically
through 2008. Upon the expiration of the Property Lock-Ups, the Operating
Partnership is required to use commercially reasonable efforts to prevent any
sale, transfer or other disposition of the subject properties from resulting in
the recognition of built-in gain to the appropriate


                                       93
<Page>

Mack Group, Robert Martin Group or Cali Group members.

On April 19, 1999, the Corporation announced the following changes in the
membership of its Board of Directors and the identities, titles and
responsibilities of its executive officers: (i) Thomas A. Rizk resigned from the
Board of Directors, the Executive Committee of the Board of Directors, his
position as Chief Executive Officer and as an employee of the Corporation; (ii)
Mitchell E. Hersh was appointed Chief Executive Officer of the Corporation
simultaneous with his resignation from his positions as President and Chief
Operating Officer of the Corporation; (iii) Timothy M. Jones was appointed
President of the Corporation simultaneous with his resignation from his
positions as Executive Vice President and Chief Investment Officer of the
Corporation; and (iv) Brant Cali was appointed to the Board of Directors of the
Corporation to fill the remainder of Thomas A. Rizk's term as a Class III
Director and was appointed Chief Operating Officer of the Corporation, also
remaining as an Executive Vice President and Assistant Secretary of the
Corporation.

Pursuant to the terms of Mr. Rizk's employment agreement entered into with the
Corporation in December 1997 and an agreement entered into simultaneous with his
resigning from the Corporation, Mr. Rizk received payments of approximately
$14,490 in April 1999, $500 in April 2000, $500 in April 2001, and will receive
$500 in April 2002. All costs associated with Mr. Rizk's resignation are
included in non-recurring charges for the year ended December 31, 1999.

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 year ended December 31, 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.

17. TENANT LEASES

The Properties are leased to tenants under operating leases with various
expiration dates through 2017. 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.

Future minimum rentals to be received under non-cancelable operating leases at
December 31, 2001 are as follows:

<Table>
<Caption>
Year                                                                      Amount
--------------------------------------------------------------------------------
<S>                                                                   <C>
2002                                                                  $  486,053
2003                                                                     438,526
2004                                                                     385,587
2005                                                                     342,501
2006                                                                     280,787
Thereafter                                                               955,715
--------------------------------------------------------------------------------

Total                                                                 $2,889,169
================================================================================
</Table>


                                       94
<Page>

18. 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.

Selected results of operations for the years ended December 31, 2001, 2000 and
1999 and selected asset information as of December 31, 2001 and 2000 regarding
the Operating Partnership's operating segment are as follows:

<Table>
<Caption>
                                                 Total Segment    Corporate & Other (e)  Total Operating
                                                                                             Partnership
--------------------------------------------------------------------------------------------------------------
<S>                                                 <C>                       <C>             <C>
TOTAL CONTRACT REVENUES (a)
       2001                                         $  567,608                $   5,340       $  572,948(f)
       2000                                            557,926                    5,623          563,549(g)
       1999                                            534,985                    3,903          538,888(h)

TOTAL OPERATING AND INTEREST EXPENSES (b):
       2001                                         $  179,209                $ 135,969       $  315,178(i)
       2000                                            174,116                  126,700          300,816(j)
       1999                                            168,166                  128,925          297,091(k)

NET OPERATING INCOME (c):
       2001                                         $  388,399                $(130,629)      $  257,770(f)(i)
       2000                                            383,810                 (121,077)         262,733(g)(j)
       1999                                            366,819                 (125,022)         241,797(h)(k)

TOTAL ASSETS:
       2001                                         $3,710,411                $  36,359       $3,746,770
       2000                                          3,623,107                   53,870        3,676,977

TOTAL LONG-LIVED ASSETS (d):
       2001                                         $3,595,012                $  24,348       $3,619,360
       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 & 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 &
      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 $11,316 of adjustments for straight-lining of rents and $83 for
      the Operating Partnership's share of straight-line rent adjustments from
      unconsolidated joint ventures.
(g)   Excludes $12,580 of adjustments for straight-lining of rents and $24 for
      the Operating Partnership's share of straight-line rent adjustments from
      unconsolidated joint ventures.
(h)   Excludes $12,438 of adjustments for straight-lining of rents and $158 for
      the Operating Partnership's share of straight-line rent adjustments from
      unconsolidated joint ventures.
(i)   Excludes $91,471 of depreciation and amortization.
(j)   Excludes $92,088 of depreciation and amortization and non-recurring
      charges of $37,139.
(k)   Excludes $87,209 of depreciation and amortization, and non-recurring
      charges of $16,458.


                                       95
<Page>

19. RELATED PARTY TRANSACTIONS

William L. Mack, Chairman of the Board of Directors of the Corporation ("W.
Mack"), is a principal in the Apollo real estate funds, which owns approximately
a 7.5 percent interest in Insignia/ESG, Inc. ("Insignia"), a publicly-traded
commercial leasing and real estate services company. The Operating Partnership
has paid Insignia commissions on numerous leasing transactions, as well as for
the sale of one of its properties. The Operating Partnership paid commissions to
Insignia amounting to approximately $2,758, $4,801 and $1,658 for the years
ended December 31, 2001, 2000 and 1999, respectively. In addition, American
Financial Exchange, an unconsolidated joint venture in which the Operating
Partnership has a 50 percent interest, has paid Insignia approximately $1,305,
$3,027 and $0 in commissions for the years ended December 31, 2001, 2000 and
1999, respectively. The Operating Partnership currently has engaged Insignia as
its exclusive leasing agent at Harborside Financial Center, as well as has been
engaged as the Operating Partnership's broker for the sales of certain of its
properties. Additionally, an affiliate of Insignia leases 40,404 square feet at
one of the Operating Partnership's office properties, which is scheduled to
expire in June 2003. The Operating Partnership recognized $836, $880 and $824,
respectively, in revenue under this lease for the years ended December 31, 2001,
2000 and 1999, and had accounts receivable of $0, and $4, respectively, as of
December 31, 2001 and 2000.

W. Mack and Earle I. Mack, a director of the Corporation ("E. Mack"), are the
executive officers, directors and stockholders of a corporation that entered
into a lease in 2000 at one of the Operating Partnership's office properties for
approximately 7,801 square feet, which is scheduled to expire in November 2005.
The Operating Partnership has recognized $217, $29 and $0 in revenue under this
lease for the years ended December 31, 2001, 2000 and 1999, respectively, and
had no accounts receivable due from the corporation as of December 31, 2001 and
2000.

In connection with the Mack transaction in December 1997, the Operating
Partnership agreed to provide certain services through December 2000 to an
entity, whose principals include W. Mack and E. Mack. The Operating Partnership
recognized revenue of $0, $958 and $1,000 for the years ended December 31, 2001,
2000 and 1999, respectively, under this agreement.

The Operating Partnership has conducted business with certain entities ("RMC
Entity" or "RMC Entities"), whose principals include Timothy M. Jones, Robert F.
Weinberg and Martin S. Berger, each of whom are affiliated with the Operating
Partnership as the president of the Corporation, a current member of the Board
of Directors and a former director of the Board of Directors of the Corporation,
as follows:

      (1)   The Operating Partnership has engaged RMC Entities to perform
            management, leasing and construction-related services for certain of
            the Operating Partnership's properties. The Operating Partnership
            paid these RMC Entities $77, $87 and $57 for such services for the
            years ended December 31, 2001, 2000 and 1999, respectively.
      (2)   In two separate transactions, the Operating Partnership acquired
            properties from RMC Entities, as follows:

            (a)   On August 3, 2001, the Operating Partnership acquired two
                  office/flex properties aggregating 168,177 square feet located
                  in Hawthorne, Westchester County, New York, for a total cost
                  of approximately $14,846; and
            (b)   On September 13, 2001, the Operating Partnership acquired
                  approximately five acres of developable land located in
                  Elmsford, Westchester County, New York for approximately
                  $1,000. The Operating Partnership has commenced construction
                  of a fully pre-leased 33,000 square-foot office/flex building
                  on the acquired land.

      (3)   The Operating Partnership has a loan payable of $500 to an RMC
            Entity in connection with the Operating Partnership's acquisition in
            May 1999 of 2.5 acres of land, which the Operating Partnership
            acquired for a total cost of approximately $2,200, of which $1,500
            was paid in cash. The loan requires quarterly payments of interest
            only at an annual interest rate of 10.5 percent. Payment of the
            principal is contingent upon the tenant's status in 2002. The
            Operating Partnership incurred $53, $57 and $23 in interest expense
            for the years ended December 2001, 2000 and 1999, respectively, in
            connection with this loan.
      (4)   The Operating Partnership provides management, leasing and related
            services to properties in which RMC Entities have an ownership
            interest. The Operating Partnership recognized approximately $2,072,
            $1,579, and $1,318 in revenues from RMC Entities for the years ended
            December 31, 2001, 2000 and 1999, respectively. As of December 31,
            2001 and 2000, respectively, the Operating Partnership had no
            accounts receivable from RMC Entities.
      (5)   An RMC Entity leases space at one of the Operating Partnership's
            office properties for approximately 3,330 square feet, which is
            scheduled to expire in August 2002. The Operating Partnership has
            recognized $89, $92


                                       96
<Page>

            and $89, respectively, in revenue under this lease for the years
            ended December 31, 2001, 2000 and 1999, and had no accounts
            receivable due from the RMC Entity, as of December 31, 2001 and
            2000.

Vincent Tese, a director of the Corporation, is also currently a director of
Cablevision, Inc. who, through its affiliates, leases an aggregate of 58,885
square feet of office space, as well as has several telecom licensing agreements
at the Operating Partnership's properties. The Operating Partnership recognized
approximately $1,101, $596 and $457 in total revenue from affiliates of
Cablevision for the years ended December 31, 2001, 2000 and 1999, respectively,
and had accounts receivable of $7 and $1, respectively, as of December 31, 2001
and 2000.

W. Mack and Vincent Tese are both currently members of the Board of Directors of
Bear, Stearns & Co. Inc. Roy Zuckerberg, a director of the Corporation, is also
currently on the Board of Directors of Goldman Sachs & Co. Bear Stearns and
Goldman Sachs have both acted as underwriters on several of the Operating
Partnership's previously-completed public debt offerings.

The son of a former director of the Corporation, who was also a former officer
of the Corporation, served as an officer and continues to have a financial
interest in a company which provides cleaning and other related services to
certain of the Operating Partnership's properties. The Operating Partnership has
incurred costs from this company of approximately $4,674, $3,164 and $2,524 for
the years ended December 31, 2001, 2000 and 1999, respectively. As of December
31, 2001 and 2000, respectively, the Operating Partnership had accounts payable
of approximately $4 and $108 to this company.

20. IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS

Statement of Financial Accounting Standards ("SFAS") No. 133, Accounting for
Derivative Instruments and Hedging Activities ("FASB No. 133"), is effective
commencing January 1, 2001. FASB No. 133 requires that all derivative
instruments be recorded on the balance sheet at their fair value. Changes in the
fair value of derivatives are recorded each period in current earnings or other
comprehensive income, depending on whether a derivative is appropriately
designated as part of a hedge transaction. Due to its limited use of derivative
instruments, (none outstanding at December 31, 2000 and none transacted during
2001), the adoption of FASB No. 133 did not have a significant effect on the
Operating Partnership's financial position and results of operations for the
year ended December 31, 2001, nor is it expected to materially impact future
results of operations.

In July 2001, the Financial Accounting Standards Board ("FASB") issued SFAS No.
141, Business Combinations which, addresses financial accounting and reporting
for business combinations. Effective July 1, 2001, all business combinations
must be accounted for using the purchase method of accounting, which requires an
allocation of the purchase price paid to the assets acquired and liabilities
assumed. Additionally, this statement requires that an intangible asset be
recognized as an asset apart from goodwill if it arises from contractual or
legal rights. The impact of adopting this statement is not expected to be
material to the Operating Partnership's financial statements.

In July 2001, the FASB issued SFAS No. 142, Goodwill and Other Intangible
Assets. This statement addresses financial accounting and reporting for
intangible assets acquired, goodwill and other intangible assets after their
acquisition. This statement requires that goodwill be allocated on a reporting
unit level. A reporting unit is an operating segment, as defined in SFAS No.
131, Disclosures about Segments of an Enterprise and Related Information, or one
level below an operating segment. Additionally, goodwill and intangible assets
that have indefinite useful lives will not be amortized but rather will be
tested at least annually for impairment at the reporting unit level. In
addition, this statement requires disclosures about the carrying amount of and
changes in goodwill from period to period. Goodwill and intangible assets
acquired after June 30, 2001 will be subject immediately to the provisions of
this statement. The provisions are effective for fiscal years beginning after
December 15, 2001. The impact of adopting this statement is not expected to be
material to the Operating Partnership's financial statements.


                                       97
<Page>

In August 2001, the FASB issued SFAS No. 144, Accounting for the Impairment or
Disposal of Long-Lived Assets, which supercedes SFAS No. 121. SFAS No. 144
requires that long-lived assets that are to be disposed of by sale be measured
at the lower of book value or fair value less cost to sell. SFAS No. 144 retains
the requirements of SFAS No. 121 regarding impairment loss recognition and
measurement. In addition, it requires that one accounting model be used for
long-lived assets to be disposed of by sale and broadens the presentation of
discontinued operations to include more disposal transactions. SFAS No. 144 is
effective for fiscal years beginning after December 15, 2001. The impact of
adopting this statement is not expected to be material to the Operating
Partnership's financial statements.

21. CONDENSED QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

The following summarizes the condensed quarterly financial information for the
Operating Partnership:

<Table>
<Caption>
QUARTER ENDED 2001:                                             December 31     September 30          June 30         March 31
-------------------------------------------------------------------------------------------------------------------------------
<S>                                                               <C>              <C>              <C>              <C>
Total revenues                                                    $ 143,512        $ 145,912        $ 148,418        $ 146,506
Operating and other expenses                                         41,804           43,865           43,895           45,122
General and administrative                                            6,857            8,767            6,856            6,010
Depreciation and amortization                                        23,507           22,529           21,951           23,484
Interest expense                                                     27,311           27,772           28,555           28,365
Non-recurring charges                                                    --               --               --               --
-------------------------------------------------------------------------------------------------------------------------------
Income before realized gains (losses) and unrealized losses
   on disposition of rental property                                 44,033           42,979           47,161           43,525
Realized gains (losses) and unrealized losses on
   disposition of rental property, net                               (2,187)         (11,624)          22,510          (20,563)
-------------------------------------------------------------------------------------------------------------------------------
Net income                                                           41,846           31,355           69,671           22,962
Preferred unit distributions                                         (3,943)          (3,943)          (3,879)          (3,879)
-------------------------------------------------------------------------------------------------------------------------------
Net income available to common unitholders                        $  37,903        $  27,412        $  65,792        $  19,083
===============================================================================================================================

BASIC EARNING PER UNIT:
Net income                                                        $    0.59        $    0.43        $    1.02        $    0.29

DILUTED EARNINGS PER UNIT:
Net income                                                        $    0.58        $    0.43        $    0.98        $    0.29

Distributions declared per common unit                            $    0.62        $    0.62        $    0.61        $    0.61
-------------------------------------------------------------------------------------------------------------------------------
</Table>


                                       98
<Page>

<Table>
<Caption>
QUARTER ENDED 2000:                                              December 31     September 30          June 30         March 31
--------------------------------------------------------------------------------------------------------------------------------
<S>                                                                <C>              <C>              <C>              <C>
Total revenues                                                     $ 143,903        $ 143,382        $ 145,889        $ 142,979
Operating and other expenses                                          43,561           44,191           41,569           42,825
General and administrative                                             6,543            5,461            5,159            6,113
Depreciation and amortization                                         23,641           23,320           22,945           22,182
Interest expense                                                      26,271           25,862           26,835           26,426
Non-recurring charges                                                     --           27,911            9,228               --
--------------------------------------------------------------------------------------------------------------------------------
Income before realized gains (losses) and unrealized losses
   on disposition of rental property and minority interest            43,887           16,637           40,153           45,433
Realized gains (losses) and unrealized losses on
   disposition of rental property, net                                  (852)          10,036           73,921            2,248
--------------------------------------------------------------------------------------------------------------------------------
Income before minority interest                                       43,035           26,673          114,074           47,681
Minority interest in consolidated partially-owned properties              --               --            2,982            2,090
--------------------------------------------------------------------------------------------------------------------------------
Net income                                                            43,035           26,673          111,092           45,591
Preferred unit distributions                                          (3,879)          (3,928)          (3,765)          (3,869)
--------------------------------------------------------------------------------------------------------------------------------
Net income available to common unitholders                         $  39,156        $  22,745        $ 107,327        $  41,722
================================================================================================================================

BASIC EARNING PER UNIT:
Net income                                                         $    0.60        $    0.34        $    1.61        $    0.63

DILUTED EARNINGS PER UNIT:
Net income                                                         $    0.59        $    0.34        $    1.52        $    0.62

Distributions declared per common unit                             $    0.61        $    0.61        $    0.58        $    0.58
--------------------------------------------------------------------------------------------------------------------------------
</Table>


                                       99
<Page>

                             MACK-CALI REALTY, L.P.
              REAL ESTATE INVESTMENTS AND ACCUMULATED DEPRECIATION
                                DECEMBER 31, 2001
                             (DOLLARS IN THOUSANDS)

                                                                    SCHEDULE III

<Table>
<Caption>


                                                                                          INITIAL COSTS             COSTS
                                                                                      ---------------------      CAPITALIZED
                                                        YEAR           RELATED                 BUILDING AND       SUBSEQUENT
PROPERTY LOCATION (2)                              BUILT  ACQUIRED   ENCUMBRANCES     LAND     IMPROVEMENTS     TO ACQUISITION
---------------------                              -----  --------   ------------     ----     ------------     --------------
<S>                                                 <C>      <C>       <C>          <C>          <C>               <C>
ATLANTIC COUNTY, NEW JERSEY
EGG HARBOR
100 Decadon Drive (O) ..........................    1987     1995      $    --      $    300     $  3,282          $    321
200 Decadon Drive (O) ..........................    1991     1995           --           369        3,241               173

BERGEN COUNTY, NEW JERSEY
FAIR LAWN
17-17 Rte 208 North (O) ........................    1987     1995           --         3,067       19,415             1,771
FORT LEE
One Bridge Plaza (O) ...........................    1981     1996           --         2,439       24,462             1,868
2115 Linwood Avenue (O) ........................    1981     1998           --           474        4,419             4,913
LITTLE FERRY
200 Riser Road (O) .............................    1974     1997       10,394         3,888       15,551               246
MONTVALE
95 Chestnut Ridge Road (O) .....................    1975     1997        2,135         1,227        4,907               523
135 Chestnut Ridge Road (O) ....................    1981     1997           --         2,587       10,350             2,285
PARAMUS
15 East Midland Avenue (O) .....................    1988     1997       24,790        10,375       41,497                70
461 From Road (O) ..............................    1988     1997       35,000        13,194       52,778               243
650 From Road (O) ..............................    1978     1997       23,316        10,487       41,949             3,821
140 Ridgewood Avenue (O) .......................    1981     1997       15,392         7,932       31,463               808
61 South Paramus Avenue (O) ....................    1985     1997       15,776         9,005       36,018             4,307
ROCHELLE PARK
120 Passaic Street (O) .........................    1972     1997           --         1,354        5,415               129
365 West Passaic Street (O) ....................    1976     1997        7,468         4,148       16,592             1,682
SADDLE RIVER
1 Lake Street (O) ..............................    1994     1997       35,789        13,952       55,812                 8
UPPER SADDLE RIVER
10 Mountainview Road (O) .......................    1986     1998           --         4,240       20,485               374
WOODCLIFF LAKE
400 Chestnut Ridge Road (O) ....................    1982     1997       12,646         4,201       16,802                21
470 Chestnut Ridge Road (O) ....................    1987     1997        4,087         2,346        9,385                 2
530 Chestnut Ridge Road (O) ....................    1986     1997        4,032         1,860        7,441                 3
300 Tice Boulevard (O) .........................    1991     1996           --         5,424       29,688             1,184
50 Tice Boulevard (O) ..........................    1984     1994           --         4,500           --            27,546

BURLINGTON COUNTY, NEW JERSEY
BURLINGTON
3 Terri Lane (F) ...............................    1991     1998           --           652        3,433               909
5 Terri Lane (F) ...............................    1992     1998           --           564        3,792             1,693
MOORESTOWN
2 Commerce Drive (F) ...........................    1986     1999           --           723        2,893                59
101 Commerce Drive (F) .........................    1988     1998           --           422        3,528               253
102 Commerce Drive (F) .........................    1987     1999           --           389        1,554                44
201 Commerce Drive (F) .........................    1986     1998           --           254        1,694                91
202 Commerce Drive (F) .........................    1988     1999           --           490        1,963                27
1 Executive Drive (F) ..........................    1989     1998           --           226        1,453               209
2 Executive Drive (F) ..........................    1988     2000           --           801        3,206                87
101 Executive Drive (F) ........................    1990     1998           --           241        2,262               283
102 Executive Drive (F) ........................    1990     1998           --           353        3,607               254
225 Executive Drive (F) ........................    1990     1998           --           323        2,477               110
97 Foster Road (F) .............................    1982     1998           --           208        1,382                54
1507 Lancer Drive (F) ..........................    1995     1998           --           119        1,106                44
1510 Lancer Drive (F) ..........................    1998     1998           --           732        2,928                41

<Caption>
                                                          GROSS AMOUNT AT WHICH
                                                           CARRIED AT CLOSE OF
                                                                PERIOD (1)
                                                     -------------------------------
                                                              BUILDING AND               ACCUMULATED
PROPERTY LOCATION (2)                                LAND     IMPROVEMENTS     TOTAL    DEPRECIATION
---------------------                                ----     ------------     -----    ------------
<S>                                                <C>          <C>          <C>          <C>
ATLANTIC COUNTY, NEW JERSEY
EGG HARBOR
100 Decadon Drive (O) ..........................   $    300     $  3,603     $  3,903     $   545
200 Decadon Drive (O) ..........................        369        3,414        3,783         585

BERGEN COUNTY, NEW JERSEY
FAIR LAWN
17-17 Rte 208 North (O) ........................      3,067       21,186       24,253       3,516
FORT LEE
One Bridge Plaza (O) ...........................      2,439       26,330       28,769       3,689
2115 Linwood Avenue (O) ........................        474        9,332        9,806         827
LITTLE FERRY
200 Riser Road (O) .............................      3,888       15,797       19,685       1,592
MONTVALE
95 Chestnut Ridge Road (O) .....................      1,227        5,430        6,657         500
135 Chestnut Ridge Road (O) ....................      2,588       12,634       15,222       1,201
PARAMUS
15 East Midland Avenue (O) .....................     10,374       41,568       51,942       4,200
461 From Road (O) ..............................     13,194       53,021       66,215       5,343
650 From Road (O) ..............................     10,487       45,770       56,257       4,342
140 Ridgewood Avenue (O) .......................      7,932       32,271       40,203       2,939
61 South Paramus Avenue (O) ....................      9,005       40,325       49,330       4,424
ROCHELLE PARK
120 Passaic Street (O) .........................      1,357        5,541        6,898         549
365 West Passaic Street (O) ....................      4,148       18,274       22,422       2,009
SADDLE RIVER
1 Lake Street (O) ..............................     13,953       55,819       69,772       5,643
UPPER SADDLE RIVER
10 Mountainview Road (O) .......................      4,240       20,859       25,099       2,350
WOODCLIFF LAKE
400 Chestnut Ridge Road (O) ....................      4,201       16,823       21,024       1,696
470 Chestnut Ridge Road (O) ....................      2,346        9,387       11,733         949
530 Chestnut Ridge Road (O) ....................      1,860        7,444        9,304         753
300 Tice Boulevard (O) .........................      5,424       30,872       36,296       3,927
50 Tice Boulevard (O) ..........................      4,500       27,546       32,046      13,196

BURLINGTON COUNTY, NEW JERSEY
BURLINGTON
3 Terri Lane (F) ...............................        658        4,336        4,994         489
5 Terri Lane (F) ...............................        569        5,480        6,049         578
MOORESTOWN
2 Commerce Drive (F) ...........................        723        2,952        3,675         147
101 Commerce Drive (F) .........................        426        3,777        4,203         509
102 Commerce Drive (F) .........................        389        1,598        1,987          79
201 Commerce Drive (F) .........................        258        1,781        2,039         205
202 Commerce Drive (F) .........................        490        1,990        2,480          99
1 Executive Drive (F) ..........................        228        1,660        1,888         235
2 Executive Drive (F) ..........................        801        3,293        4,094         143
101 Executive Drive (F) ........................        244        2,542        2,786         313
102 Executive Drive (F) ........................        357        3,857        4,214         475
225 Executive Drive (F) ........................        326        2,584        2,910         313
97 Foster Road (F) .............................        211        1,433        1,644         154
1507 Lancer Drive (F) ..........................        120        1,149        1,269         123
1510 Lancer Drive (F) ..........................        735        2,966        3,701         259
</Table>


                                      100
<Page>


                             MACK-CALI REALTY, L.P.
              REAL ESTATE INVESTMENTS AND ACCUMULATED DEPRECIATION
                                DECEMBER 31, 2001
                             (DOLLARS IN THOUSANDS)

                                                                    SCHEDULE III

<Table>
<Caption>


                                                                                           INITIAL COSTS            COSTS
                                                                                       --------------------      CAPITALIZED
                                                        YEAR           RELATED                 BUILDING AND       SUBSEQUENT
PROPERTY LOCATION (2)                              BUILT  ACQUIRED   ENCUMBRANCES      LAND    IMPROVEMENTS     TO ACQUISITION
---------------------                              -----  --------   ------------      ----    ------------     --------------
<S>                                                 <C>      <C>        <C>           <C>          <C>               <C>
840 North Lenola Road (F) ......................    1995     1998           --           329        2,366               135
844 North Lenola Road (F) ......................    1995     1998           --           239        1,714                38
915 North Lenola Road (F) ......................    1998     2000           --           508        2,034                23
1245 North Church Street (F) ...................    1998     2001           --           691        2,810                17
1247 North Church Street (F) ...................    1998     2001           --           805        3,269                18
1256 North Church Street (F) ...................    1984     1998           --           354        3,098               365
224 Strawbridge Drive (O) ......................    1984     1997           --           766        4,335             3,165
228 Strawbridge Drive (O) ......................    1984     1997           --           766        4,334             2,901
2 Twosome Drive (F) ............................    2000     2001           --           701        2,807                18
30 Twosome Drive (F) ...........................    1997     1998           --           234        1,954                48
31 Twosome Drive (F) ...........................    1998     2001           --           815        3,276               102
40 Twosome Drive (F) ...........................    1996     1998           --           297        2,393                64
41 Twosome Drive (F) ...........................    1998     2001           --           605        2,459                 5
50 Twosome Drive (F) ...........................    1997     1998           --           301        2,330                67
WEST DEPTFORD
1451 Metropolitan Drive (F) ....................    1996     1998           --           203        1,189                30

ESSEX COUNTY, NEW JERSEY
MILLBURN
150 J.F. Kennedy Parkway (O) ...................    1980     1997       25,218        12,606       50,425             1,874
ROSELAND
101 Eisenhower Parkway (O) .....................    1980     1994           --           228           --            15,847
103 Eisenhower Parkway (O) .....................    1985     1994           --            --           --            13,459
105 Eisenhower Parkway (O) .....................    2001     2001           --         4,430       42,898             1,918

HUDSON COUNTY, NEW JERSEY
JERSEY CITY
Harborside Financial Center Plaza 1 (O) ........    1983     1996       57,978         3,923       51,013                --
Harborside Financial Center Plaza 2 (O) ........    1990     1996       81,011        17,655      101,546             4,178
Harborside Financial Center Plaza 3 (O) ........    1990     1996       81,011        17,655      101,878             3,847
Harborside Financial Center Plaza 4A (O) .......    2000     2000           --         1,244       56,144             6,329

MERCER COUNTY, NEW JERSEY
HAMILTON TOWNSHIP
100 Horizon Drive (F) ..........................    1989     1995           --           205        1,676                45
200 Horizon Drive (F) ..........................    1991     1995           --           205        3,027               212
300 Horizon Drive (F) ..........................    1989     1995           --           379        4,355               827
500 Horizon Drive (F) ..........................    1990     1995           --           379        3,395               337
Zero Horizon Drive (L) .........................     n/a     1999           --           498           --             1,794
PRINCETON
103 Carnegie Center (O) ........................    1984     1996           --         2,566        7,868               737
100 Overlook Center (O) ........................    1988     1997           --         2,378       21,754             1,096
5 Vaughn Drive (O) .............................    1987     1995           --           657        9,800               520

MIDDLESEX COUNTY, NEW JERSEY
EAST BRUNSWICK
377 Summerhill Road (O) ........................    1977     1997           --           649        2,594               252
PLAINSBORO
500 College Road East (O) ......................    1984     1998           --           614       20,626               399
SOUTH BRUNSWICK
3 Independence Way (O) .........................    1983     1997           --         1,997       11,391               351
WOODBRIDGE
581 Main Street (O) ............................    1991     1997       17,500         3,237       12,949            19,582

MONMOUTH COUNTY, NEW JERSEY
NEPTUNE
3600 Route 66 (O) ..............................    1989     1995           --         1,098       18,146                45

<Caption>
                                                        GROSS AMOUNT AT WHICH
                                                         CARRIED AT CLOSE OF
                                                              PERIOD (1)
                                                    ------------------------------
                                                             BUILDING AND               ACCUMULATED
PROPERTY LOCATION (2)                               LAND     IMPROVEMENTS    TOTAL     DEPRECIATION
---------------------                               ----     ------------    -----     ------------
<S>                                                <C>          <C>          <C>         <C>
840 North Lenola Road (F) ......................      333        2,497        2,830         286
844 North Lenola Road (F) ......................      241        1,750        1,991         200
915 North Lenola Road (F) ......................      508        2,057        2,565          76
1245 North Church Street (F) ...................      691        2,827        3,518          46
1247 North Church Street (F) ...................      805        3,287        4,092          54
1256 North Church Street (F) ...................      357        3,460        3,817         426
224 Strawbridge Drive (O) ......................      766        7,500        8,266       1,255
228 Strawbridge Drive (O) ......................      766        7,235        8,001       1,395
2 Twosome Drive (F) ............................      701        2,825        3,526          47
30 Twosome Drive (F) ...........................      236        2,000        2,236         239
31 Twosome Drive (F) ...........................      815        3,378        4,193          75
40 Twosome Drive (F) ...........................      301        2,453        2,754         272
41 Twosome Drive (F) ...........................      605        2,464        3,069          56
50 Twosome Drive (F) ...........................      304        2,394        2,698         277
WEST DEPTFORD
1451 Metropolitan Drive (F) ....................      206        1,216        1,422         142

ESSEX COUNTY, NEW JERSEY
MILLBURN
150 J.F. Kennedy Parkway (O) ...................   12,606       52,299       64,905       5,242
ROSELAND
101 Eisenhower Parkway (O) .....................      228       15,847       16,075       8,987
103 Eisenhower Parkway (O) .....................    2,300       11,159       13,459       4,820
105 Eisenhower Parkway (O) .....................    4,430       44,816       49,246         720

HUDSON COUNTY, NEW JERSEY
JERSEY CITY
Harborside Financial Center Plaza 1 (O)1983 ....    3,923       51,013       54,936       6,589
Harborside Financial Center Plaza 2 (O)1990 ....   15,463      107,916      123,379      13,838
Harborside Financial Center Plaza 3 (O)1990 ....   15,463      107,917      123,380      13,839
Harborside Financial Center Plaza 4A (O)2000 ...    1,244       62,473       63,717       1,792

MERCER COUNTY, NEW JERSEY
HAMILTON TOWNSHIP
100 Horizon Drive (F) ..........................      205        1,721        1,926         269
200 Horizon Drive (F) ..........................      205        3,239        3,444         467
300 Horizon Drive (F) ..........................      379        5,182        5,561         688
500 Horizon Drive (F) ..........................      379        3,732        4,111         614
Zero Horizon Drive (L) .........................      498        1,794        2,292          45
PRINCETON
103 Carnegie Center (O) ........................    2,566        8,605       11,171       1,490
100 Overlook Center (O) ........................    2,378       22,850       25,228       2,305
5 Vaughn Drive (O) .............................      657       10,320       10,977       1,813

MIDDLESEX COUNTY, NEW JERSEY
EAST BRUNSWICK
377 Summerhill Road (O) ........................      649        2,846        3,495         285
PLAINSBORO
500 College Road East (O) ......................      614       21,025       21,639       1,999
SOUTH BRUNSWICK
3 Independence Way (O) .........................    1,997       11,742       13,739       1,318
WOODBRIDGE
581 Main Street (O) ............................    8,115       27,653       35,768       2,475

MONMOUTH COUNTY, NEW JERSEY
NEPTUNE
3600 Route 66 (O) ..............................    1,098       18,191       19,289       2,812
</Table>


                                      101
<Page>

                             MACK-CALI REALTY, L.P.
              REAL ESTATE INVESTMENTS AND ACCUMULATED DEPRECIATION
                                DECEMBER 31, 2001
                             (DOLLARS IN THOUSANDS)

                                                                    SCHEDULE III

<Table>
<Caption>


                                                                                           INITIAL COSTS            COSTS
                                                                                       --------------------      CAPITALIZED
                                                        YEAR           RELATED                 BUILDING AND       SUBSEQUENT
PROPERTY LOCATION (2)                              BUILT  ACQUIRED   ENCUMBRANCES      LAND    IMPROVEMENTS     TO ACQUISITION
---------------------                              -----  --------   ------------      ----    ------------     --------------
<S>                                                 <C>      <C>        <C>           <C>          <C>               <C>
WALL TOWNSHIP
1305 Campus Parkway (O) ........................    1988     1995           --           335        2,560               156
1325 Campus Parkway (F) ........................    1988     1995           --           270        2,928               584
1340 Campus Parkway (F) ........................    1992     1995           --           489        4,621               414
1345 Campus Parkway (F) ........................    1995     1997           --         1,023        5,703                71
1350 Campus Parkway (O) ........................    1990     1995           --           454        7,134               700
1433 Highway 34 (F) ............................    1985     1995           --           889        4,321               681
1320 Wyckoff Avenue (F) ........................    1986     1995           --           255        1,285                 6
1324 Wyckoff Avenue (F) ........................    1987     1995           --           230        1,439               216

MORRIS COUNTY, NEW JERSEY
FLORHAM PARK
325 Columbia Parkway (O) .......................    1987     1994           --         1,564           --            16,116
MORRIS PLAINS
250 Johnson Road (O) ...........................    1977     1997           --         2,004        8,016               576
201 Littleton Road (O) .........................    1979     1997           --         2,407        9,627               269
MORRIS TOWNSHIP
340 Mt. Kemble Avenue (O) ......................    1985     1997       32,178        13,624       54,496                40
PARSIPPANY
4 Campus Drive (O) .............................    1983     2001           --         5,213       20,984               170
6 Campus Drive (O) .............................    1983     2001           --         4,411       17,796               107
7 Campus Drive (O) .............................    1982     1998           --         1,932       27,788               107
8 Campus Drive (O) .............................    1987     1998           --         1,865       35,456               922
9 Campus Drive (O) .............................    1983     2001           --         3,277       11,796            14,367
2 Dryden Way (O) ...............................    1990     1998           --           778          420                13
4 Gatehall Drive (O) ...........................    1988     2000           --         8,452       33,929               180
2 Hilton Court (O) .............................    1991     1998           --         1,971       32,007               360
600 Parsippany Road (O) ........................    1978     1994           --         1,257        5,594             1,060
1 Sylvan Way (O) ...............................    1989     1998           --         1,689       24,699             2,224
5 Sylvan Way (O) ...............................    1989     1998           --         1,160       25,214               579
7 Sylvan Way (O) ...............................    1987     1998           --         2,084       26,083                35

PASSAIC COUNTY, NEW JERSEY
CLIFTON
777 Passaic Avenue (O) .........................    1983     1994           --            --           --             7,649
TOTOWA
1 Center Court (F) .............................    1999     1999           --           270        1,824               713
2 Center Court (F) .............................    1998     1998           --           191           --             2,592
11 Commerce Way (F) ............................    1989     1995           --           586        2,986               230
20 Commerce Way (F) ............................    1992     1995           --           516        3,108                57
29 Commerce Way (F) ............................    1990     1995           --           586        3,092               260
40 Commerce Way (F) ............................    1987     1995           --           516        3,260               431
45 Commerce Way (F) ............................    1992     1995           --           536        3,379               172
60 Commerce Way (F) ............................    1988     1995           --           526        3,257               276
80 Commerce Way (F) ............................    1996     1996           --           227           --             1,657
100 Commerce Way (F) ...........................    1996     1996           --           226           --             1,657
120 Commerce Way (F) ...........................    1994     1995           --           228           --             1,218
140 Commerce Way (F) ...........................    1994     1995           --           229           --             1,219
999 Riverview Drive (O) ........................    1988     1995           --           476        6,024               602
WAYNE
201 Willowbrook Boulevard (O) ..................    1970     1997        8,598         3,103       12,410             3,391

SOMERSET COUNTY, NEW JERSEY
BASKING RIDGE
106 Allen Road (O) .............................    2000     2000           --         3,853       14,465               404
222 Mt. Airy Road (O) ..........................    1986     1996        3,386           775        3,636                17
233 Mt. Airy Road (O) ..........................    1987     1996           --         1,034        5,033             1,621
BRIDGEWATER
721 Route 202/206 (O) ..........................    1989     1997       23,000         6,730       26,919               540

<Caption>
                                                        GROSS AMOUNT AT WHICH
                                                         CARRIED AT CLOSE OF
                                                              PERIOD (1)
                                                    ------------------------------
                                                             BUILDING AND               ACCUMULATED
PROPERTY LOCATION (2)                               LAND     IMPROVEMENTS    TOTAL     DEPRECIATION
---------------------                               ----     ------------    -----     ------------
<S>                                                 <C>         <C>          <C>          <C>
WALL TOWNSHIP
1305 Campus Parkway (O) ........................      335        2,716        3,051         466
1325 Campus Parkway (F) ........................      270        3,512        3,782         481
1340 Campus Parkway (F) ........................      489        5,035        5,524         943
1345 Campus Parkway (F) ........................    1,024        5,773        6,797         710
1350 Campus Parkway (O) ........................      454        7,834        8,288       1,366
1433 Highway 34 (F) ............................      889        5,002        5,891       1,018
1320 Wyckoff Avenue (F) ........................      255        1,291        1,546         198
1324 Wyckoff Avenue (F) ........................      230        1,655        1,885         339

MORRIS COUNTY, NEW JERSEY
FLORHAM PARK
325 Columbia Parkway (O) .......................    1,564       16,116       17,680       7,278
MORRIS PLAINS
250 Johnson Road (O) ...........................    2,004        8,592       10,596         902
201 Littleton Road (O) .........................    2,407        9,896       12,303         984
MORRIS TOWNSHIP
340 Mt. Kemble Avenue (O) ......................   13,624       54,536       68,160       5,513
PARSIPPANY
4 Campus Drive (O) .............................    5,213       21,154       26,367         395
6 Campus Drive (O) .............................    4,411       17,903       22,314         334
7 Campus Drive (O) .............................    1,932       27,895       29,827       2,709
8 Campus Drive (O) .............................    1,865       36,378       38,243       3,758
9 Campus Drive (O) .............................    5,842       23,598       29,440          95
2 Dryden Way (O) ...............................      778          433        1,211          51
4 Gatehall Drive (O) ...........................    8,452       34,109       42,561       1,353
2 Hilton Court (O) .............................    1,971       32,367       34,338       3,169
600 Parsippany Road (O) ........................    1,257        6,654        7,911       1,323
1 Sylvan Way (O) ...............................    1,689       26,923       28,612       3,136
5 Sylvan Way (O) ...............................    1,161       25,792       26,953       2,538
7 Sylvan Way (O) ...............................    2,084       26,118       28,202       2,575

PASSAIC COUNTY, NEW JERSEY
CLIFTON
777 Passaic Avenue (O) .........................    1,100        6,549        7,649       3,062
TOTOWA
1 Center Court (F) .............................      270        2,537        2,807         227
2 Center Court (F) .............................      191        2,592        2,783         448
11 Commerce Way (F) ............................      586        3,216        3,802         547
20 Commerce Way (F) ............................      516        3,165        3,681         489
29 Commerce Way (F) ............................      586        3,352        3,938         658
40 Commerce Way (F) ............................      516        3,691        4,207         814
45 Commerce Way (F) ............................      536        3,551        4,087         645
60 Commerce Way (F) ............................      526        3,533        4,059         720
80 Commerce Way (F) ............................      227        1,657        1,884         560
100 Commerce Way (F) ...........................      226        1,657        1,883         559
120 Commerce Way (F) ...........................      228        1,218        1,446         193
140 Commerce Way (F) ...........................      229        1,219        1,448         193
999 Riverview Drive (O) ........................      476        6,626        7,102       1,132
WAYNE
201 Willowbrook Boulevard (O) ..................    3,103       15,801       18,904       1,330

SOMERSET COUNTY, NEW JERSEY
BASKING RIDGE
106 Allen Road (O) .............................    3,457       15,265       18,722         746
222 Mt. Airy Road (O) ..........................      775        3,653        4,428         494
233 Mt. Airy Road (O) ..........................    1,034        6,654        7,688         686
BRIDGEWATER
721 Route 202/206 (O) ..........................    6,730       27,459       34,189       2,800
</Table>


                                      102
<Page>

                             MACK-CALI REALTY, L.P.
              REAL ESTATE INVESTMENTS AND ACCUMULATED DEPRECIATION
                                DECEMBER 31, 2001
                             (DOLLARS IN THOUSANDS)

                                                                    SCHEDULE III

<Table>
<Caption>


                                                                                           INITIAL COSTS            COSTS
                                                                                       --------------------      CAPITALIZED
                                                        YEAR           RELATED                 BUILDING AND       SUBSEQUENT
PROPERTY LOCATION (2)                              BUILT  ACQUIRED   ENCUMBRANCES      LAND    IMPROVEMENTS     TO ACQUISITION
---------------------                              -----  --------   ------------      ----    ------------     --------------
<S>                                                 <C>      <C>           <C>        <C>          <C>               <C>
UNION COUNTY, NEW JERSEY
CLARK
100 Walnut Avenue (O) ..........................    1985     1994           --            --           --            18,393
CRANFORD
6 Commerce Drive (O) ...........................    1973     1994           --           250           --             2,896
11 Commerce Drive (O) ..........................    1981     1994           --           470           --             6,306
12 Commerce Drive (O) ..........................    1967     1997           --           887        3,549             1,032
20 Commerce Drive (O) ..........................    1990     1994           --         2,346           --            22,621
65 Jackson Drive (O) ...........................    1984     1994           --           541           --             7,480
NEW PROVIDENCE
890 Mountain Road (O) ..........................    1977     1997           --         2,796       11,185             4,322

DUTCHESS COUNTY, NEW YORK
FISHKILL
300 South Lake Drive (O) .......................    1987     1997           --         2,258        9,031               244

NASSAU COUNTY, NEW YORK
NORTH HEMPSTEAD
600 Community Drive (O) ........................    1983     1997           --        11,018       44,070               540
111 East Shore Road (O) ........................    1980     1997           --         2,093        8,370               363

ROCKLAND COUNTY, NEW YORK
SUFFERN
400 Rella Boulevard (O) ........................    1988     1995           --         1,090       13,412             2,072

WESTCHESTER COUNTY, NEW YORK
ELMSFORD
11 Clearbrook Road (F) .........................    1974     1997           --           149        2,159                38
75 Clearbrook Road (F) .........................    1990     1997           --         2,314        4,716                 5
100 Clearbrook Road (O) ........................    1975     1997           --           220        5,366               132
150 Clearbrook Road (F) ........................    1975     1997           --           497        7,030               461
175 Clearbrook Road (F) ........................    1973     1997           --           655        7,473               654
200 Clearbrook Road (F) ........................    1974     1997           --           579        6,620               522
250 Clearbrook Road (F) ........................    1973     1997           --           867        8,647               664
50 Executive Boulevard (F) .....................    1969     1997           --           237        2,617                56
77 Executive Boulevard (F) .....................    1977     1997           --            34        1,104                64
85 Executive Boulevard (F) .....................    1968     1997           --           155        2,507                38
101 Executive Boulevard (O) ....................    1971     1997           --           267        5,838               455
300 Executive Boulevard (F) ....................    1970     1997           --           460        3,609                36
350 Executive Boulevard (F) ....................    1970     1997           --           100        1,793               126
399 Executive Boulevard (F) ....................    1962     1997           --           531        7,191               127
400 Executive Boulevard (F) ....................    1970     1997           --         2,202        1,846               279
500 Executive Boulevard (F) ....................    1970     1997           --           258        4,183               555
525 Executive Boulevard (F) ....................    1972     1997           --           345        5,499               163
700 Executive Boulevard (L) ....................     n/a     1997           --           970           --                --
5 Skyline Drive (F) ............................    1980     2001           --         2,219        8,916                (9)
6 Skyline Drive (F) ............................    1980     2001           --           740        2,971                 4
555 Taxter Road (O) ............................    1986     2000           --         4,285       17,205               388
565 Taxter Road (O) ............................    1988     2000           --         4,285       17,205               236
570 Taxter Road (O) ............................    1972     1997           --           438        6,078               671
1 Warehouse Lane (I) ...........................    1957     1997           --             3          268               204
2 Warehouse Lane (I) ...........................    1957     1997           --             4          672                50
3 Warehouse Lane (I) ...........................    1957     1997           --            21        1,948               448
4 Warehouse Lane (I) ...........................    1957     1997           --            84       13,393               249
5 Warehouse Lane (I) ...........................    1957     1997           --            19        4,804               246
6 Warehouse Lane (I) ...........................    1982     1997           --            10        4,419               125
1 Westchester Plaza (F) ........................    1967     1997           --           199        2,023                52

<Caption>
                                                         GROSS AMOUNT AT WHICH
                                                          CARRIED AT CLOSE OF
                                                               PERIOD (1)
                                                     ------------------------------
                                                              BUILDING AND               ACCUMULATED
PROPERTY LOCATION (2)                                LAND     IMPROVEMENTS    TOTAL     DEPRECIATION
---------------------                                ----     ------------    -----     ------------
<S>                                                 <C>          <C>          <C>          <C>
UNION COUNTY, NEW JERSEY
CLARK
100 Walnut Avenue (O) ..........................     1,822       16,571       18,393       8,334
CRANFORD
6 Commerce Drive (O) ...........................       250        2,896        3,146       1,796
11 Commerce Drive (O) ..........................       470        6,306        6,776       3,608
12 Commerce Drive (O) ..........................       887        4,581        5,468         369
20 Commerce Drive (O) ..........................     2,346       22,621       24,967       7,985
65 Jackson Drive (O) ...........................       541        7,480        8,021       4,118
NEW PROVIDENCE
890 Mountain Road (O) ..........................     3,765       14,538       18,303       1,456

DUTCHESS COUNTY, NEW YORK
FISHKILL
300 South Lake Drive (O) .......................     2,258        9,275       11,533         957

NASSAU COUNTY, NEW YORK
NORTH HEMPSTEAD
600 Community Drive (O) ........................    11,018       44,610       55,628       4,500
111 East Shore Road (O) ........................     2,093        8,733       10,826         873

ROCKLAND COUNTY, NEW YORK
SUFFERN
400 Rella Boulevard (O) ........................     1,090       15,484       16,574       2,724

WESTCHESTER COUNTY, NEW YORK
ELMSFORD
11 Clearbrook Road (F) .........................       149        2,197        2,346         271
75 Clearbrook Road (F) .........................     2,314        4,721        7,035         580
100 Clearbrook Road (O) ........................       220        5,498        5,718         841
150 Clearbrook Road (F) ........................       497        7,491        7,988         910
175 Clearbrook Road (F) ........................       655        8,127        8,782       1,027
200 Clearbrook Road (F) ........................       579        7,142        7,721         932
250 Clearbrook Road (F) ........................       867        9,311       10,178       1,147
50 Executive Boulevard (F) .....................       237        2,673        2,910         325
77 Executive Boulevard (F) .....................        34        1,168        1,202         142
85 Executive Boulevard (F) .....................       155        2,545        2,700         320
101 Executive Boulevard (O) ....................       267        6,293        6,560         784
300 Executive Boulevard (F) ....................       460        3,645        4,105         444
350 Executive Boulevard (F) ....................       100        1,919        2,019         220
399 Executive Boulevard (F) ....................       531        7,318        7,849         959
400 Executive Boulevard (F) ....................     2,201        2,126        4,327         353
500 Executive Boulevard (F) ....................       257        4,739        4,996         593
525 Executive Boulevard (F) ....................       345        5,662        6,007         702
700 Executive Boulevard (L) ....................       970           --          970          --
5 Skyline Drive (F) ............................     2,219        8,907       11,126          93
6 Skyline Drive (F) ............................       740        2,975        3,715          31
555 Taxter Road (O) ............................     4,285       17,593       21,878         688
565 Taxter Road (O) ............................     4,233       17,493       21,726         690
570 Taxter Road (O) ............................       438        6,749        7,187         872
1 Warehouse Lane (I) ...........................         3          472          475          47
2 Warehouse Lane (I) ...........................         4          722          726          99
3 Warehouse Lane (I) ...........................        21        2,396        2,417         296
4 Warehouse Lane (I) ...........................        85       13,641       13,726       1,720
5 Warehouse Lane (I) ...........................        19        5,050        5,069         707
6 Warehouse Lane (I) ...........................        10        4,544        4,554         546
1 Westchester Plaza (F) ........................       199        2,075        2,274         270
</Table>


                                      103
<Page>

                             MACK-CALI REALTY, L.P.
              REAL ESTATE INVESTMENTS AND ACCUMULATED DEPRECIATION
                                DECEMBER 31, 2001
                             (DOLLARS IN THOUSANDS)

                                                                    SCHEDULE III

<Table>
<Caption>


                                                                                           INITIAL COSTS            COSTS
                                                                                       --------------------      CAPITALIZED
                                                        YEAR           RELATED                 BUILDING AND       SUBSEQUENT
PROPERTY LOCATION (2)                              BUILT  ACQUIRED   ENCUMBRANCES      LAND    IMPROVEMENTS     TO ACQUISITION
---------------------                              -----  --------   ------------      ----    ------------     --------------
<S>                                                 <C>      <C>           <C>         <C>         <C>                <C>
2 Westchester Plaza (F) ........................    1968     1997           --           234        2,726                77
3 Westchester Plaza (F) ........................    1969     1997           --           655        7,936               148
4 Westchester Plaza (F) ........................    1969     1997           --           320        3,729               100
5 Westchester Plaza (F) ........................    1969     1997           --           118        1,949               156
6 Westchester Plaza (F) ........................    1968     1997           --           164        1,998               139
7 Westchester Plaza (F) ........................    1972     1997           --           286        4,321                46
8 Westchester Plaza (F) ........................    1971     1997           --           447        5,262               657
HAWTHORNE
200 Saw Mill River Road (F) ....................    1965     1997           --           353        3,353               156
1 Skyline Drive (O) ............................    1980     1997           --            66        1,711               100
2 Skyline Drive (O) ............................    1987     1997           --           109        3,128               283
4 Skyline Drive (F) ............................    1987     1997           --           363        7,513               641
7 Skyline Drive (O) ............................    1987     1998           --           330       13,013               107
8 Skyline Drive (F) ............................    1985     1997           --           212        4,410               837
10 Skyline Drive (F) ...........................    1985     1997           --           134        2,799                96
11 Skyline Drive (F) ...........................    1989     1997           --            --        4,788               391
12 Skyline Drive (F) ...........................    1999     1999           --         1,562        3,254             1,499
15 Skyline Drive (F) ...........................    1989     1997           --            --        7,449               594
17 Skyline Drive (O) ...........................    1989     1997           --            --        7,269               130
19 Skyline Drive (O) ...........................    1982     1997           --         2,355       34,254             4,327
TARRYTOWN
200 White Plains Road (O) ......................    1982     1997           --           378        8,367               770
220 White Plains Road (O) ......................    1984     1997           --           367        8,112               616
230 White Plains Road (R) ......................    1984     1997           --           124        1,845                --
WHITE PLAINS
1 Barker Avenue (O) ............................    1975     1997           --           208        9,629               586
3 Barker Avenue (O) ............................    1983     1997           --           122        7,864             1,413
50 Main Street (O) .............................    1985     1997           --           564       48,105             4,187
11 Martine Avenue (O) ..........................    1987     1997           --           127       26,833             3,606
25 Martine Avenue (M) ..........................    1987     1997           --           120       11,366               317
1 Water Street (O) .............................    1979     1997           --           211        5,382               271
YONKERS
100 Corporate Boulevard (F) ....................    1987     1997           --           602        9,910               556
200 Corporate Boulevard South (F) ..............    1990     1997           --           502        7,575               419
1 Enterprise Boulevard (L) .....................     n/a     1997           --         1,379           --                --
1 Executive Boulevard (O) ......................    1982     1997           --         1,104       11,904               659
2 Executive Plaza (R) ..........................    1986     1997           --            89        2,439                --
3 Executive Plaza (O) ..........................    1987     1997           --           385        6,256               994
4 Executive Plaza (F) ..........................    1986     1997           --           584        6,134             1,107
6 Executive Plaza (F) ..........................    1987     1997           --           546        7,246                45
1 Odell Plaza (F) ..............................    1980     1997           --         1,206        6,815               514
5 Odell Plaza (F) ..............................    1983     1997           --           331        2,988               129
7 Odell Plaza (F) ..............................    1984     1997           --           419        4,418               106

CHESTER COUNTY, PENNSYLVANIA
BERWYN
1000 Westlakes Drive (O) .......................    1989     1997           --           619        9,016               144
1055 Westlakes Drive (O) .......................    1990     1997           --         1,951       19,046             1,963
1205 Westlakes Drive (O) .......................    1988     1997           --         1,323       20,098               648
1235 Westlakes Drive (O) .......................    1986     1997           --         1,417       21,215               617

DELAWARE COUNTY, PENNSYLVANIA
LESTER
100 Stevens Drive (O) ..........................    1986     1996           --         1,349       10,018             2,558
200 Stevens Drive (O) ..........................    1987     1996           --         1,644       20,186             4,296
300 Stevens Drive (O) ..........................    1992     1996           --           491        9,490               758

<Caption>
                                                         GROSS AMOUNT AT WHICH
                                                          CARRIED AT CLOSE OF
                                                               PERIOD (1)
                                                     ------------------------------
                                                              BUILDING AND               ACCUMULATED
PROPERTY LOCATION (2)                                LAND     IMPROVEMENTS    TOTAL     DEPRECIATION
---------------------                                ----     ------------    -----     ------------
<S>                                                  <C>         <C>          <C>          <C>
2 Westchester Plaza (F) ........................       234        2,803        3,037         341
3 Westchester Plaza (F) ........................       655        8,084        8,739         994
4 Westchester Plaza (F) ........................       320        3,829        4,149         514
5 Westchester Plaza (F) ........................       118        2,105        2,223         240
6 Westchester Plaza (F) ........................       164        2,137        2,301         295
7 Westchester Plaza (F) ........................       286        4,367        4,653         545
8 Westchester Plaza (F) ........................       447        5,919        6,366         935
HAWTHORNE
200 Saw Mill River Road (F) ....................       353        3,509        3,862         464
1 Skyline Drive (O) ............................        66        1,811        1,877         220
2 Skyline Drive (O) ............................       109        3,411        3,520         477
4 Skyline Drive (F) ............................       363        8,154        8,517       1,300
7 Skyline Drive (O) ............................       330       13,120       13,450       1,098
8 Skyline Drive (F) ............................       212        5,247        5,459         836
10 Skyline Drive (F) ...........................       134        2,895        3,029         389
11 Skyline Drive (F) ...........................        --        5,179        5,179         684
12 Skyline Drive (F) ...........................     1,320        4,995        6,315         455
15 Skyline Drive (F) ...........................        --        8,043        8,043       1,201
17 Skyline Drive (O) ...........................        --        7,399        7,399         906
19 Skyline Drive (O) ...........................     2,356       38,580       40,936       6,571
TARRYTOWN
200 White Plains Road (O) ......................       378        9,137        9,515       1,428
220 White Plains Road (O) ......................       367        8,728        9,095       1,108
230 White Plains Road (R) ......................       124        1,845        1,969         227
WHITE PLAINS
1 Barker Avenue (O) ............................       207       10,216       10,423       1,294
3 Barker Avenue (O) ............................       122        9,277        9,399       1,121
50 Main Street (O) .............................       564       52,292       52,856       7,039
11 Martine Avenue (O) ..........................       127       30,439       30,566       4,001
25 Martine Avenue (M) ..........................       120       11,683       11,803       1,361
1 Water Street (O) .............................       211        5,653        5,864         723
YONKERS
100 Corporate Boulevard (F) ....................       602       10,466       11,068       1,329
200 Corporate Boulevard South (F) ..............       502        7,994        8,496         910
1 Enterprise Boulevard (L) .....................     1,379           --        1,379          --
1 Executive Boulevard (O) ......................     1,105       12,562       13,667       1,764
2 Executive Plaza (R) ..........................        89        2,439        2,528         300
3 Executive Plaza (O) ..........................       385        7,250        7,635         914
4 Executive Plaza (F) ..........................       584        7,241        7,825         896
6 Executive Plaza (F) ..........................       546        7,291        7,837         909
1 Odell Plaza (F) ..............................     1,206        7,329        8,535         923
5 Odell Plaza (F) ..............................       331        3,117        3,448         372
7 Odell Plaza (F) ..............................       419        4,524        4,943         605

CHESTER COUNTY, PENNSYLVANIA
BERWYN
1000 Westlakes Drive (O) .......................       618        9,161        9,779       1,124
1055 Westlakes Drive (O) .......................     1,951       21,009       22,960       2,348
1205 Westlakes Drive (O) .......................     1,323       20,746       22,069       2,585
1235 Westlakes Drive (O) .......................     1,418       21,831       23,249       2,742

DELAWARE COUNTY, PENNSYLVANIA
LESTER
100 Stevens Drive (O) ..........................     1,349       12,576       13,925       1,522
200 Stevens Drive (O) ..........................     1,644       24,482       26,126       2,809
300 Stevens Drive (O) ..........................       491       10,248       10,739       1,232
</Table>


                                      104
<Page>

                             MACK-CALI REALTY, L.P.
              REAL ESTATE INVESTMENTS AND ACCUMULATED DEPRECIATION
                                DECEMBER 31, 2001
                             (DOLLARS IN THOUSANDS)

                                                                    SCHEDULE III

<Table>
<Caption>


                                                                                           INITIAL COSTS            COSTS
                                                                                       --------------------      CAPITALIZED
                                                        YEAR           RELATED                 BUILDING AND       SUBSEQUENT
PROPERTY LOCATION (2)                              BUILT  ACQUIRED   ENCUMBRANCES      LAND    IMPROVEMENTS     TO ACQUISITION
---------------------                              -----  --------   ------------      ----    ------------     --------------
<S>                                                 <C>      <C>         <C>          <C>          <C>               <C>
MEDIA
1400 Providence Rd - Center I (O) ..............    1986     1996           --         1,042        9,054             1,186
1400 Providence Rd. - Center II(O) .............    1990     1996           --         1,543       16,464             1,359

MONTGOMERY COUNTY, PENNSYLVANIA
LOWER PROVIDENCE
1000 Madison Avenue (O) ........................    1990     1997           --         1,713       12,559               524
PLYMOUTH MEETING
1150 Plymouth Meeting Mall (O) .................    1970     1997           --           125          499            21,326
Five Sentry Parkway East (O) ...................    1984     1996           --           642        7,992               480
Five Sentry Parkway West (O) ...................    1984     1996           --           268        3,334                54

FAIRFIELD COUNTY, CONNECTICUT
GREENWICH
500 West Putnam Avenue (O) .....................    1973     1998        9,273         3,300       16,734               989
NORWALK
40 Richards Avenue (O) .........................    1985     1998           --         1,087       18,399             1,810
SHELTON
1000 Bridgeport Avenue (O) .....................    1986     1997           --           773       14,934               478
STAMFORD
419 West Avenue (F) ............................    1986     1997           --         4,538        9,246                49
500 West Avenue (F) ............................    1988     1997           --           415        1,679               185
550 West Avenue (F) ............................    1990     1997           --         1,975        3,856               334
600 West Avenue (F) ............................    1999     1999           --         2,305        2,863               833
650 West Avenue (F) ............................    1998     1998           --         1,328           --             3,905

WASHINGTON, D.C.
1201 Connecticut Avenue, NW (O) ................    1940     1999           --        14,228       18,571             1,143
1400 L Street, NW (O) ..........................    1987     1998           --        13,054       27,423               914

PRINCE GEORGE"S COUNTY, MARYLAND
LANHAM
4200 Parliament Place (O) ......................    1989     1998           --         2,114       13,546               583

BEXAR COUNTY, TEXAS
SAN ANTONIO
84 N.E. Loop 410 (O) ...........................    1971     1997           --         2,295       10,382               685
111 Soledad (O) ................................    1918     1997           --         2,004        8,017               805

COLLIN COUNTY, TEXAS
PLANO
555 Republic Place (O) .........................    1986     1997           --           942        3,767               648

DALLAS COUNTY, TEXAS
DALLAS
3030 LBJ Freeway (O) ...........................    1984     1997           --         6,098       24,366             1,411
3100 Monticello (O) ............................    1984     1997           --         1,940        7,762             4,887
IRVING
2300 Valley View (O) ...........................    1985     1997           --         1,913        7,651             1,386
RICHARDSON
1122 Alma Road (O) .............................    1977     1997           --           754        3,015               169

HARRIS COUNTY, TEXAS
HOUSTON
10497 Town & Country Way (O) ...................    1981     1997           --         1,619        6,476             1,082

<Caption>
                                                         GROSS AMOUNT AT WHICH
                                                          CARRIED AT CLOSE OF
                                                               PERIOD (1)
                                                     ------------------------------
                                                              BUILDING AND               ACCUMULATED
PROPERTY LOCATION (2)                                LAND     IMPROVEMENTS    TOTAL     DEPRECIATION
---------------------                                ----     ------------    -----     ------------
<S>                                                 <C>          <C>          <C>          <C>
MEDIA
1400 Providence Rd - Center I (O) ..............     1,042       10,240       11,282       1,536
1400 Providence Rd. - Center II(O) .............     1,544       17,822       19,366       2,796

MONTGOMERY COUNTY, PENNSYLVANIA
LOWER PROVIDENCE
1000 Madison Avenue (O) ........................     1,714       13,082       14,796       1,397
PLYMOUTH MEETING
1150 Plymouth Meeting Mall (O) .................       125       21,825       21,950       2,055
Five Sentry Parkway East (O) ...................       642        8,472        9,114       1,093
Five Sentry Parkway West (O) ...................       268        3,388        3,656         439

FAIRFIELD COUNTY, CONNECTICUT
GREENWICH
500 West Putnam Avenue (O) .....................     3,300       17,723       21,023       1,904
NORWALK
40 Richards Avenue (O) .........................     1,087       20,209       21,296       1,837
SHELTON
1000 Bridgeport Avenue (O) .....................       744       15,441       16,185       1,827
STAMFORD
419 West Avenue (F) ............................     4,538        9,295       13,833       1,168
500 West Avenue (F) ............................       415        1,864        2,279         280
550 West Avenue (F) ............................     1,975        4,190        6,165         749
600 West Avenue (F) ............................     2,305        3,696        6,001         178
650 West Avenue (F) ............................     1,328        3,905        5,233         577

WASHINGTON, D.C.
1201 Connecticut Avenue, NW (O) ................    14,228       19,714       33,942       1,254
1400 L Street, NW (O) ..........................    13,054       28,337       41,391       2,659

PRINCE GEORGE"S COUNTY, MARYLAND
LANHAM
4200 Parliament Place (O) ......................     1,393       14,850       16,243       1,369

BEXAR COUNTY, TEXAS
SAN ANTONIO
84 N.E. Loop 410 (O) ...........................     2,295       11,067       13,362         750
111 Soledad (O) ................................     2,004        8,822       10,826         633

COLLIN COUNTY, TEXAS
PLANO
555 Republic Place (O) .........................       942        4,415        5,357         371

DALLAS COUNTY, TEXAS
DALLAS
3030 LBJ Freeway (O) ...........................     6,098       25,777       31,875       2,321
3100 Monticello (O) ............................     2,511       12,078       14,589         985
IRVING
2300 Valley View (O) ...........................     1,913        9,037       10,950         759
RICHARDSON
1122 Alma Road (O) .............................       754        3,184        3,938         262

HARRIS COUNTY, TEXAS
HOUSTON
10497 Town & Country Way (O) ...................     1,619        7,558        9,177         549
</Table>


                                      105
<Page>

                             MACK-CALI REALTY, L.P.
              REAL ESTATE INVESTMENTS AND ACCUMULATED DEPRECIATION
                                DECEMBER 31, 2001
                             (DOLLARS IN THOUSANDS)

                                                                    SCHEDULE III

<Table>
<Caption>


                                                                                           INITIAL COSTS            COSTS
                                                                                       --------------------      CAPITALIZED
                                                        YEAR           RELATED                 BUILDING AND       SUBSEQUENT
PROPERTY LOCATION (2)                              BUILT  ACQUIRED   ENCUMBRANCES      LAND    IMPROVEMENTS     TO ACQUISITION
---------------------                              -----  --------   ------------      ----    ------------     --------------
<S>                                                 <C>      <C>         <C>           <C>         <C>                <C>
5300 Memorial Drive (O) ........................    1982     1997           --         1,283        7,269               588
1717 St. James Place (O) .......................    1975     1997           --           909        3,636               450
1770 St. James Place (O) .......................    1973     1997           --           730        2,920               631

TARRANT COUNTY, TEXAS
EULESS
150 West Park Way (O) ..........................    1984     1997           --           852        3,410               173

MARICOPA COUNTY, ARIZONA
GLENDALE
5551 West Talavi Boulevard (O) .................    1991     1997        6,717         2,732       10,927             5,744
PHOENIX
19640 North 31st Street (O) ....................    1990     1997        7,112         3,437       13,747                 4
SCOTTSDALE
9060 E. Via Linda Boulevard (O) ................    1984     1997           --         3,720       14,879                37

ARAPAHOE COUNTY, COLORADO
AURORA
750 South Richfield Street (O) .................    1997     1998           --         2,680       23,125                27
DENVER
400 South Colorado Boulevard (O) ...............    1983     1998           --         1,461       10,620               568
ENGLEWOOD
9359 East Nichols Avenue (O) ...................    1997     1998           --         1,155        8,171              (409)
5350 South Roslyn Street (O) ...................    1982     1998           --           862        6,831               (14)

BOULDER COUNTY, COLORADO
BROOMFIELD
105 South Technology Court (O) .................    1997     1998           --           653        4,936                28
303 South Technology Court-A (O) ...............    1997     1998           --           623        3,892                35
303 South Technology Court-B (O) ...............    1997     1998           --           623        3,892                36
LOUISVILLE
1172 Century Drive (O) .........................    1996     1998           --           707        4,647               218
248 Centennial Parkway (O) .....................    1996     1998           --           708        4,647               217
285 Century Place (O) ..........................    1997     1998           --           889       10,133                26

DENVER COUNTY, COLORADO
DENVER
8181 East Tufts Avenue (O) .....................    2001     2001           --         2,342       32,029               703
3600 South Yosemite (O) ........................    1974     1998           --           556       12,980                27

DOUGLAS COUNTY, COLORADO
ENGLEWOOD
67 Inverness Drive East (O) ....................    1996     1998           --         1,034        5,516                25
384 Inverness Drive South (O) ..................    1985     1998           --           703        5,653               245
400 Inverness Drive (O) ........................    1997     1998           --         1,584       19,878              (583)
5975 South Quebec Street (O) ...................    1996     1998           --           855       11,551               324
PARKER
9777 Pyramid Court (O) .........................    1995     1998           --         1,304       13,189                26

<Caption>
                                                         GROSS AMOUNT AT WHICH
                                                          CARRIED AT CLOSE OF
                                                               PERIOD (1)
                                                     ------------------------------
                                                              BUILDING AND               ACCUMULATED
PROPERTY LOCATION (2)                                LAND     IMPROVEMENTS    TOTAL     DEPRECIATION
---------------------                                ----     ------------    -----     ------------
<S>                                                  <C>         <C>          <C>          <C>
5300 Memorial Drive (O) ........................     1,710        7,430        9,140         494
1717 St. James Place (O) .......................       909        4,086        4,995         319
1770 St. James Place (O) .......................       730        3,551        4,281         276

TARRANT COUNTY, TEXAS
EULESS
150 West Park Way (O) ..........................       852        3,583        4,435         325

MARICOPA COUNTY, ARIZONA
GLENDALE
5551 West Talavi Boulevard (O) .................     3,593       15,810       19,403       1,225
PHOENIX
19640 North 31st Street (O) ....................     3,437       13,751       17,188       1,132
SCOTTSDALE
9060 E. Via Linda Boulevard (O) ................     3,720       14,916       18,636       1,225

ARAPAHOE COUNTY, COLORADO
AURORA
750 South Richfield Street (O) .................     2,682       23,150       25,832       1,746
DENVER
400 South Colorado Boulevard (O) ...............     1,461       11,188       12,649         842
ENGLEWOOD
9359 East Nichols Avenue (O) ...................     1,155        7,762        8,917         600
5350 South Roslyn Street (O) ...................       862        6,817        7,679         580

BOULDER COUNTY, COLORADO
BROOMFIELD
105 South Technology Court (O) .................       653        4,964        5,617         380
303 South Technology Court-A (O) ...............       623        3,927        4,550         317
303 South Technology Court-B (O) ...............       623        3,928        4,551         318
LOUISVILLE
1172 Century Drive (O) .........................       707        4,865        5,572         385
248 Centennial Parkway (O) .....................       708        4,864        5,572         385
285 Century Place (O) ..........................       891       10,157       11,048         747

DENVER COUNTY, COLORADO
DENVER
8181 East Tufts Avenue (O) .....................     2,342       32,732       35,074          81
3600 South Yosemite (O) ........................       556       13,007       13,563         957

DOUGLAS COUNTY, COLORADO
ENGLEWOOD
67 Inverness Drive East (O) ....................     1,035        5,540        6,575         450
384 Inverness Drive South (O) ..................       703        5,898        6,601         466
400 Inverness Drive (O) ........................     1,584       19,295       20,879       1,442
5975 South Quebec Street (O) ...................       857       11,873       12,730         932
PARKER
9777 Pyramid Court (O) .........................     1,306       13,213       14,519       1,063
</Table>


                                      106
<Page>

                             MACK-CALI REALTY, L.P.
              REAL ESTATE INVESTMENTS AND ACCUMULATED DEPRECIATION
                                DECEMBER 31, 2001
                             (DOLLARS IN THOUSANDS)

                                                                    SCHEDULE III

<Table>
<Caption>


                                                                                     INITIAL COSTS          COSTS
                                                                                 ---------------------    CAPITALIZED
                                                   YEAR           RELATED                 BUILDING AND     SUBSEQUENT
PROPERTY LOCATION (2)                         BUILT  ACQUIRED   ENCUMBRANCES     LAND     IMPROVEMENTS   TO ACQUISITION
---------------------                         -----  --------   ------------     ----     ------------   --------------
<S>                                           <C>      <C>        <C>          <C>         <C>              <C>
EL PASO COUNTY, COLORADO
COLORADO SPRINGS
8415 Explorer (O) ..................          1998     1999             --          347         2,507          3,023
1975 Research Parkway (O) ..........          1997     1998             --        1,397        13,221          2,891
2375 Telstar Drive (O) .............          1998     1999             --          348         2,507          3,021

JEFFERSON COUNTY, COLORADO
LAKEWOOD
141 Union Boulevard (O) ............          1985     1998             --          774         6,891            612

SAN FRANCISCO COUNTY, CALIFORNIA
SAN FRANCISCO
795 Folsom Street (O) ..............          1977     1999             --        9,348        24,934          6,814
760 Market Street (O) ..............          1908     1997             --        5,588        22,352         38,995

HILLSBOROUGH COUNTY, FLORIDA
TAMPA
501 Kennedy Boulevard (O) ..........          1982     1997             --        3,959        15,837          1,604

PROJECTS UNDER DEVELOPMENT .........                                    --       56,020            --        125,396

FURNITURE, FIXTURES & EQUIPMENT ....                                    --           --            --          7,189
-----------------------------------------------------------------------------------------------------------------------
TOTALS .............................                              $543,807     $523,288    $2,749,524       $558,727
=======================================================================================================================

<Caption>
                                                  GROSS AMOUNT AT WHICH
                                                    CARRIED AT CLOSE OF
                                                         PERIOD (1)
                                               --------------------------------
                                                        BUILDING AND                ACCUMULATED
PROPERTY LOCATION (2)                          LAND     IMPROVEMENTS      TOTAL     DEPRECIATION
---------------------                          ----     ------------      -----     ------------
<S>                                          <C>         <C>           <C>            <C>
EL PASO COUNTY, COLORADO
COLORADO SPRINGS
8415 Explorer (O) ..................              348         5,529         5,877          228
1975 Research Parkway (O) ..........            1,611        15,898        17,509        1,166
2375 Telstar Drive (O) .............              348         5,528         5,876          229

JEFFERSON COUNTY, COLORADO
LAKEWOOD
141 Union Boulevard (O) ............              775         7,502         8,277          646

SAN FRANCISCO COUNTY, CALIFORNIA
SAN FRANCISCO
795 Folsom Street (O) ..............            9,350        31,746        41,096        2,790
760 Market Street (O) ..............           13,499        53,436        66,935        5,199

HILLSBOROUGH COUNTY, FLORIDA
TAMPA
501 Kennedy Boulevard (O) ..........            3,959        17,441        21,400        1,432

PROJECTS UNDER DEVELOPMENT .........           56,020       125,396       181,416           --

FURNITURE, FIXTURES & EQUIPMENT ....               --         7,189         7,189        3,493
------------------------------------------------------------------------------------------------
TOTALS .............................         $541,162    $3,290,377    $3,831,539     $379,084
================================================================================================
</Table>

(1)   The aggregate cost for federal income tax purposes at December 31, 2001
      was approximately $2.84 billion.

(2)   LEGEND OF PROPERTY CODES:

      (O)=Office Property
      (F)=Office/Flex Property
      (I)=Industrial/Warehouse Property
      (M)=Multi-family Residential Property
      (R)=Stand-alone Retail Property
      (L)=Land Lease


                                      107
<Page>

                             MACK-CALI REALTY, L.P.
                              NOTE TO SCHEDULE III

Changes in rental properties and accumulated depreciation for the periods ended
December 31, 2001, 2000 and 1999, are as follow (IN THOUSANDS):

<Table>
<Caption>
                                               2001             2000             1999
                                               ----             ----             ----
<S>                                     <C>              <C>              <C>
RENTAL PROPERTIES
Balance at beginning of year            $ 3,589,877      $ 3,654,845      $ 3,467,799
  Additions                                 382,382          268,900          204,565
  Rental property held for sale -
    before accumulated depreciation        (453,469)        (114,477)              --
  Properties sold                          (140,719)        (219,391)         (15,903)
  Retirements/disposals                          --               --           (1,616)
                                        -----------      -----------      -----------
Balance at end of year                  $ 3,378,071      $ 3,589,877      $ 3,654,845
                                        ===========      ===========      ===========

ACCUMULATED DEPRECIATION
Balance at beginning of year            $   302,932      $   256,629      $   177,934
  Depreciation expense                       87,716           82,574           81,730
  Rental property held for sale             (28,379)          (7,019)              --
  Properties sold                           (11,564)         (29,252)          (1,419)
  Retirements/disposals                          --               --           (1,616)
                                        -----------      -----------      -----------
Balance at end of year                  $   350,705      $   302,932      $   256,629
                                        ===========      ===========      ===========
</Table>


                                      108
<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: March 7, 2002                     By: /s/ BARRY LEFKOWITZ
                                            ------------------------------------
                                            Barry Lefkowitz
                                            Executive Vice President &
                                            Chief Financial Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the Registrant and
in the capacities and on the dates indicated:

<Table>
<Caption>
               NAME                              TITLE                       DATE
               ----                              -----                       ----


<S>                                   <C>                               <C>
        /s/ WILLIAM L. MACK           Chairman of the Board             March 7, 2002
-----------------------------------
          William L. Mack


       /s/ MITCHELL E. HERSH          Chief Executive Officer           March 7, 2002
-----------------------------------     and Director
         Mitchell E. Hersh


        /s/ BARRY LEFKOWITZ           Executive Vice President and      March 7, 2002
-----------------------------------     Chief Financial Officer
          Barry Lefkowitz


         /s/ JOHN J. CALI             Director                          March 7, 2002
-----------------------------------
           John J. Cali


       /s/ BRENDAN T. BYRNE           Director                          March 7, 2002
-----------------------------------
         Brendan T. Byrne


         /s/ JOHN R. CALI             Director                          March 7, 2002
-----------------------------------
           John R. Cali


        /s/ NATHAN GANTCHER           Director                          March 7, 2002
-----------------------------------
          Nathan Gantcher
</Table>


                                      109
<Page>

<Table>
<Caption>
               NAME                              TITLE                       DATE
               ----                              -----                       ----


<S>                                   <C>                               <C>
        /s/ MARTIN D. GRUSS           Director                          March 7, 2002
-----------------------------------
          Martin D. Gruss


         /s/ EARLE I. MACK            Director                          March 7, 2002
-----------------------------------
           Earle I. Mack


      /s/ ALAN G. PHILIBOSIAN         Director                          March 7, 2002
-----------------------------------
        Alan G. Philibosian


         /s/ IRVIN D. REID            Director                          March 7, 2002
-----------------------------------
           Irvin D. Reid


         /s/ VINCENT TESE             Director                          March 7, 2002
-----------------------------------
           Vincent Tese


      /s/ ROBERT F. WEINBERG          Director                          March 7, 2002
-----------------------------------
        Robert F. Weinberg


       /s/ ROY J. ZUCKERBERG          Director                          March 7, 2002
-----------------------------------
         Roy J. Zuckerberg
</Table>


                                      110
<Page>

                             MACK-CALI REALTY, L.P.

                                  EXHIBIT INDEX

EXHIBIT
NUMBER      EXHIBIT TITLE
-------     -------------

3.1         Restated Charter of Mack-Cali Realty Corporation dated June 11, 2001
            (filed as Exhibit 3.1 to the Operating Partnership's Form 10-Q dated
            June 30, 2001 and incorporated herein by reference).

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 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 and
            incorporated herein by reference).

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).

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).


                                      111
<Page>

EXHIBIT
NUMBER      EXHIBIT TITLE
-------     -------------

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).

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).


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<Page>

EXHIBIT
NUMBER      EXHIBIT TITLE
-------     -------------

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 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).

*21         Subsidiaries of the Operating Partnership.

*23         Consent of PricewaterhouseCoopers LLP, independent accountants.

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*FILED HEREWITH