Arden Realty Inc. Reports Fourth Quarter 2000 FFO Per Share Growth of 12.1%.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--Jan. 31, 2001

Arden Realty Inc. (NYSE:ARI), a Los Angeles-based office real estate investment trust, today reported Funds From Operations (FFO) for the fourth quarter of 2000 of $48.7 million or $.74 per share on a fully diluted basis and $185.1 million or $2.82 per share on a fully diluted basis for the year ended Dec. 31, 2000, compared with FFO of $43.2 million or $.66 per share on a fully diluted basis for the fourth quarter of 1999 and $170.4 million or $2.60 per share on a fully diluted basis for the year ended Dec. 31, 1999.

This represents a 12.1% increase in FFO per share for the fourth quarter of 2000 compared to the fourth quarter of 1999 and an 8.5% increase in FFO per share on a year-to-year basis.

Revenues for the fourth quarter of 2000 were $104.0 million and $388.1 million for the year ended Dec. 31, 2000, compared with $89.8 million for the fourth quarter of 1999 and $340.7 million for the year ended Dec. 31, 1999.

Net income for the fourth quarter of 2000 was $26.6 million, or $.42 per share on a fully diluted basis and $96.7 million or $1.52 per share on a fully diluted basis for the year ended Dec. 31, 2000, compared with $23.7 million or $.37 per share on a fully diluted basis for the fourth quarter of 1999 and $96.6 million or $1.53 per share on a fully diluted basis for the year ended Dec. 31, 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 fourth quarter of 2000 of $38.9 million or $.59 per share on a fully diluted basis and $146.6 million or $2.23 per share on a fully diluted basis for the year ended Dec. 31, 2000, compared with FAD of $34.4 million or $.53 per share on a fully diluted basis for the fourth quarter of 1999 and $135.5 million or $2.07 per share on a fully diluted basis for the year ended Dec. 31, 1999. A dividend of $.465 per share was declared for the fourth quarter of 2000.

Total debt was $1,177.8 million, representing approximately 40.9% of total market capitalization at Dec. 31, 2000.

Arden Realty Inc. will host a conference call to discuss fourth quarter 2000 operating results on Thursday, Feb. 1, 2001, at 1:00 p.m. Eastern time. A live Webcast (listen only mode) of the conference call will be available at this time. A hyperlink to the live Webcast will be available from the Investor Information section of the company's Web site at http://www.ardenrealty.com or at http://webcast.themeetingson.com/webcast.jsp?reservation=17556587.

A replay of the conference call may be heard by calling 800/633-8284 (U.S.) or 858/812-6440 (International), access code 17556587, from 3:00 p.m. Eastern time on Thursday, Feb. 1, 2001 through 3:00 p.m. Eastern time on Thursday, Feb. 15, 2001. During this period, an on-demand Webcast replay of the call will also be available from the Investor Information section of the company's Web site at http://www.ardenrealty.com or at http://webcast.themeetingson.com/webcast.jsp?reservation=17556587.

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

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 Dec. 31, 2000, the company's portfolio contained 142 properties and approximately 18.7 million rentable square feet and 3 properties with approximately 725,000 rentable square feet under development.

Statements in this news 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)

                                          Dec. 31,          Dec. 31,
                                           2000               1999
                                         (unaudited)
Assets
 Investment in real estate:
  Commercial properties               $   2,677,996     $   2,453,370
  Less: Accumulated depreciation
   and amortization                        (227,463)         (157,608)

             2,450,533               2,295,762
 Properties under development                93,384           183,349
 Properties held for disposition, net        59,649               --
      Net investment in real estate       2,603,566         2,479,111

 Cash and cash equivalents                    5,432             7,056
 Restricted cash                             19,367            18,513
 Rent and other receivables                  13,198            11,785
 Mortgage notes receivable, net
  of discount                                13,761            13,847
 Deferred rent                               31,588            23,932
 Prepaid financing costs, expenses
  and other assets, net                      18,685            16,214
      Total assets                    $   2,705,597     $   2,570,458

Liabilities and Stockholders' Equity
 Mortgage loans payable               $     576,055     $     740,806
 Unsecured lines of credit                  253,350           288,850
 Unsecured senior notes, net
  of discount                               348,364               --
 Accounts payable and accrued expenses       37,415            34,482
 Security deposits                           19,470            16,073
 Dividends payable                           29,596            28,195
      Total liabilities                   1,264,250         1,108,406

  ------------------       -----------------
 Minority interest                           86,176            86,294
 Stockholders' equity:
   Common stock                                 637               633
   Additional paid-in capital             1,363,407         1,377,292
   Deferred compensation                     (8,873)              --
   Notes and interest receivable from
    officers-shareholders                       --             (2,167)
      Total stockholders' equity          1,355,171         1,375,758
      Total liabilities and
       stockholders' equity           $   2,705,597     $   2,570,458


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

                             For the Three Months      For the Year
                                Ended Dec. 31,         Ended Dec. 31,
                               2000       1999       2000       1999
                           (unaudited)(unaudited) (unaudited)
Revenue:
Revenues from rental operations:
 Rent                       $  86,734  $  76,654 $ 328,460  $ 292,688
 Tenant reimbursements          4,158      2,973    16,371     13,863
 Parking, net of expenses       5,149      3,801    18,348     14,384
 Other rental operations        6,984      5,654    21,411     16,918
                              103,025     89,082   384,590    337,853
   Interest and other income      954        730     3,527      2,822
       Total revenue          103,979     89,812   388,117    340,675

Expenses:
Property expenses:
 Repairs and maintenance        9,425      8,722    35,390     32,902
 Utilities                      7,666      6,818    29,872     28,305
 Real estate taxes              7,359      5,986    26,808     23,167
 Insurance                      1,063      1,031     4,203      3,993
 Ground rent                      198        198     1,214        891
 Property administrative        3,622      3,831    13,430     12,026
   Total property expenses     29,333     26,586   110,917    101,284

 General and administrative     3,380      2,378     9,336      7,393
 Interest                      21,439     16,554    78,406     60,239
 Depreciation and amortization 23,315     18,639    87,267     69,837

Income before gain and
  minority interest            26,512     25,655   102,191    101,922
 Gain on disposition
  of property                   2,132        --      2,132        --
Income before minority
  interest                     28,644     25,655   104,323    101,922
 Minority interest             (1,995)    (1,994)   (7,613)    (5,296)
Net income                  $  26,649 $   23,661 $  96,710  $  96,626

Net income per share:
 Basic                      $    0.42 $     0.37 $    1.53  $    1.53
 Diluted                    $ 0.42(a) $     0.37 $  1.52(a) $    1.53

Weighted average common shares:
 Basic                         63,534     63,352    63,408     63,016
 Diluted                       63,827     63,358    63,598     63,072

Note a: Excluding a $2.1 million gain on disposition of property, Net
      Income Per Share -- Diluted would have been $0.38 and $1.49 for
      the three and 12 months ended Dec. 31, 2000, respectively.


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

                             For the Three Months      For the Year
                                Ended Dec. 31,         Ended Dec. 31,
                                2000       1999      2000       1999
Funds From Operations:
 Net income                 $  26,649  $  23,661 $  96,710  $  96,626
 Plus --
  Depreciation and amortization
   of real estate assets       23,315     18,639    87,267     69,837
  Minority interest             1,995      1,994     7,613      5,296
   Less --
  Gain on disposition of
   property                    (2,132)       --     (2,132)       --
  Income allocated to
   Preferred Operating
    Partnership Units          (1,078)    (1,078)   (4,312)    (1,354)
Funds From Operations       $  48,749  $  43,216 $ 185,146  $ 170,405

Funds Available for Distribution:
 Funds From Operations      $  48,749  $  43,216 $ 185,146  $ 170,405
 Less --
  Straight-line rent
   adjustment                  (2,406)    (1,981)   (8,078)    (7,680)
  Capital expenditure, tenant
   improvement and leasing
    commission reserve         (7,400)    (6,812)  (30,494)   (27,272)
Funds Available for
 Distribution               $  38,943  $  34,423 $ 146,574  $ 135,453

Per share:
 Funds From Operations --
   Diluted                  $    0.74  $    0.66 $    2.82  $    2.60
 Funds Available for
  Distribution -- Diluted   $    0.59  $    0.53 $    2.23  $    2.07
 Distributions declared     $   0.465  $   0.445 $    1.86  $    1.78

Weighted average shares and
 Operating Partnership Units
  outstanding -- Diluted       66,001     65,515    65,759     65,566

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.