Arden Realty, Inc. Reports Third Quarter 2000 Earnings.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--Oct. 24, 2000

Arden Realty, Inc. (NYSE:ARI), a Los Angeles-based office real estate investment trust, today reported Funds From Operations (FFO) for the third quarter of 2000 of $46.7 million or $.71 per share on a fully diluted basis, compared with FFO of $42.6 million or $.65 per share on a fully diluted basis for the third quarter of 1999.

Revenues for the third quarter of 2000 were $100.0 million, compared with $87.5 million for the third quarter of 1999. Net income for the third quarter of 2000 was $23.4 million, or $.37 per share on a fully diluted basis, compared with $23.9 million or $.38 per share on a fully diluted basis for the third quarter of 1999.

Adjusting FFO by excluding straight-line rent adjustments and providing a reserve for recurring capital expenditures, tenant improvements and leasing commissions resulted in Funds Available for Distribution (FAD) for the third quarter of 2000 of $36.8 million or $.56 per share on a fully diluted basis, compared with FAD of $33.8 million or $.52 per share on a fully diluted basis for the third quarter of 1999. A dividend of $.465 per share was declared for the third quarter of 2000.

Total debt was $1,155.5 million, representing approximately 39.0% of total market capitalization at September 30, 2000.

Financial schedules follow. A detailed analysis of the quarter's results can be obtained by viewing the Supplemental Information available in the Investor Information section (Annual and Financial Reports) of the Company's website at www.ardenrealty.com, or by calling the Company contacts listed.

Arden Realty, Inc. is a self-administered, self-managed REIT which owns, manages, leases, develops, renovates and acquires commercial office properties located in Southern California. As of September 30, 2000, the Company's portfolio contained 143 properties and approximately 18.7 million rentable square feet and two properties with approximately 442,000 rentable square feet under development.

Statements in this press release which are not historical may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company's expectations include the availability and cost of capital for future investments, competition within the industry, real estate and economic conditions, and other risks detailed from time to time in the Company's SEC filings.

                          ARDEN REALTY, INC.
                     CONSOLIDATED BALANCE SHEETS
                            (in thousands)

                                         September 30,   December 31,
                                               2000           1999
                                           (unaudited)
Assets
  Investment in real estate:
    Commercial properties                  $ 2,704,086    $ 2,453,370
    Less: Accumulated depreciation
     and amortization                         (221,551)      (157,608)
                                             2,482,535      2,295,762
    Properties under development               104,253        183,349
      Net investment in real estate          2,586,788      2,479,111

  Cash and cash equivalents                      1,499          7,056
  Restricted cash                               21,533         18,513
  Rent and other receivables                    11,047         11,785
  Mortgage notes receivable,
   net of discount                              13,786         13,847
  Deferred rent                                 29,604         23,932
  Prepaid financing costs, expenses
   and other assets, net                        19,629         16,214
      Total assets                         $ 2,683,886    $ 2,570,458

Liabilities and Stockholders' Equity
  Mortgage loans payable                   $   617,031    $   740,806
  Unsecured lines of credit                    289,350        288,850
  Unsecured senior notes, net of discount      249,150           --
  Accounts payable and accrued expenses         34,638         34,482
  Security deposits                             20,140         16,073
  Dividends payable                             29,531         28,195
      Total liabilities                      1,239,840      1,108,406
  Minority interest                             86,270         86,294
  Stockholders' equity:
    Common stock                                   636            633
    Additional paid-in capital               1,357,140      1,377,292
    Notes and interest receivable
     from officers-shareholders                   --           (2,167)
      Total stockholders' equity             1,357,776      1,375,758
      Total liabilities and
       stockholders' equity                $ 2,683,886    $ 2,570,458


                          ARDEN REALTY, INC.
                CONSOLIDATED STATEMENTS OF OPERATIONS
               (in thousands, except per share amounts)
                             (unaudited)

                            For the Three            For the Nine
                            Months Ended             Months Ended
                            September 30,            September 30,
                          2000        1999         2000        1999
Revenue:
  Revenues from
   rental operations:
    Rent               $  84,210   $  74,193    $ 241,726   $ 216,034
    Tenant
     reimbursements        4,403       4,554       12,213      10,890
    Parking, net of
     expenses              4,812       3,826       13,199      10,583
    Other rental
     operations            5,606       4,150       14,427      11,264
                          99,031      86,723      281,565     248,771
  Interest and
   other income              948         751        2,573       2,092
      Total revenue       99,979      87,474      284,138     250,863

Expenses:
  Property expenses:
    Repairs and
     maintenance           8,668       8,255       25,965      24,180
    Utilities              9,570       8,608       22,206      21,487
    Real estate taxes      6,857       5,765       19,449      17,181
    Insurance              1,056         992        3,140       2,962
    Ground rent              222         199        1,016         693
    Property
     administrative        3,143       2,925        9,808       8,195
      Total property
       expenses           29,516      26,744       81,584      74,698

  General and
   administrative          2,297       1,832        5,956       5,015
    Interest              20,345      16,047       56,967      43,685
    Depreciation and
     amortization         22,528      17,810       63,952      51,198

Income before minority
 interest                 25,293      25,041       75,679      76,267
   Minority interest      (1,921)     (1,120)      (5,618)     (3,302)
Net income             $  23,372   $  23,921    $  70,061   $  72,965

Net income per share:
  Basic                $    0.37   $    0.38    $    1.11   $    1.16
  Diluted              $    0.37   $    0.38    $    1.10   $    1.16

Weighted average
 common shares:
  Basic                   63,438      63,316       63,365      62,906
  Diluted                 63,798      63,417       63,547      63,022


                          ARDEN REALTY, INC.
                 CALCULATION OF FUNDS FROM OPERATIONS
                 AND FUNDS AVAILABLE FOR DISTRIBUTION
               (in thousands, except per share amounts)
                             (unaudited)

                             For the Three            For the Nine
                             Months Ended             Months Ended
                              September 30,           September 30,
                            2000        1999        2000       1999

Funds From Operations:
  Net income              $ 23,372    $ 23,921    $ 70,061   $ 72,965
  Plus -
    Depreciation
     and amortization
     of real estate
     assets                 22,528      17,810      63,952     51,198
    Minority interest        1,921       1,120       5,618      3,302
  Less -
    Income allocated
     to Preferred
     Operating
       Partnership
        Units               (1,078)       (276)     (3,234)      (276)
Funds From Operations     $ 46,743    $ 42,575    $136,397   $127,189

Funds Available for
 Distribution:
   Funds From
    Operations            $ 46,743    $ 42,575    $136,397   $127,189
   Less -
     Straight-line
      rent adjustment       (2,330)     (1,990)     (5,672)    (5,557)
     Capital
      expenditure,
      tenant improvement
       and leasing
       commission reserve   (7,600)     (6,765)    (23,094)   (20,460)
Funds Available
 for Distribution         $ 36,813    $ 33,820    $107,631   $101,172

Per share:
  Funds From
   Operations - Diluted   $   0.71    $   0.65    $   2.08   $   1.94
  Funds Available for
   Distribution - Diluted $   0.56    $   0.52    $   1.64   $   1.54
  Distributions declared  $  0.465    $  0.445    $  1.395   $  1.335

Weighted average shares
 and Operating
   Partnership Units
    outstanding - Diluted   65,966      65,610      65,703     65,625

The White Paper on Funds from Operations approved by the Board of Governors of NAREIT in October 1999 (the "White Paper") defines Funds from Operations as net income (loss) computed in accordance with GAAP, excluding extraordinary items, as defined by GAAP, and gains and losses from sales of depreciable operating property plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures.

Funds Available for Distribution is defined as FFO, excluding straight-line rent adjustments and less a reserve for capital expenditures, tenants improvements and leasing commissions.