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## TO OUR SHAREHOLDERS, CONTINUED 

In Westchester County, New York, Mack-Cali has been designated the developer of the “North 60” bio-science research park, adjacent to Westchester Medical Center. While these projects are just in their preliminary stages, they have the potential to create immense value for our Company. 

## Maintaining Our Financial Strength 

On the financial front, we have consistently managed our portfolio under the conservative principles of strong coverage ratios, low leverage, and a high level of unencumbered assets. In 2002, we obtained financing at attractive rates and lengthened our debt maturity profile in a $90 million debt exchange with Teachers Insurance Annuity 

Association. Our balance sheet continues to be one of the strongest and most flex- ible in the industry, allowing us to capitalize on sizeable growth opportunities. 

We a re f o r t u n a t e t o h ave a d ive r s e a n d s t ro n g c re d i t - q u a l i t y t e n a n t b a s e t h a t provides a stable, high-quality earnings stream for our Company. While this year revenues declined 1 percent, from $575.3 million to $569.6 million, our funds from 

…we have consistently managed our portfolio under the conservative principles of strong coverage ratios, low leverage, and a high level of unencumbered assets. 

operations rose 4.5 percent, from $260.5 million to $272.3 million, and our net income increased 6.1 percent, from $131.7 million to $139.7 million. (See pages 62 and 63 of Form 10-K.) 

We ’re ve r y p ro u d t o re p o r t t h a t M a c k - C a l i i n c re a s e d i t s d iv i d e n d f o r t h e e i g h t h ye a r i n a row, f ro m $ 2 . 4 8 to $2.52 per share on an annualized basis.We also maintained our solid investment grade credit ratings and received a positive outlook from Moody’s. 

