Arden Realty Inc. reports earnings for period Oct. 9, 1996 through Dec. 31, 1996.

BEVERLY HILLS, Calif.--(BUSINESS WIRE)--Feb. 3, 1997--Arden Realty Inc. (NYSE:ARI), a fully integrated real estate investment trust which owns and operates a Southern California portfolio of suburban office properties, Monday reported funds from operations for the period from Oct. 9, 1996, the date of its initial public offering, through Dec. 31, 1996, of 47 cents per share.

Total revenues for the period from Oct. 9, 1996, through Dec. 31, 1996, were $19,572,000. Net income before extraordinary items was $7,433,000, or 34 cents per share, and net loss was $5,672,000, or 26 cents per share. Extraordinary losses of $13,105,000 were the result of prepayment penalties and additional interest related to debt repaid by the company with proceeds from its initial public offering.

Richard S. Ziman, chief executive officer, commented: "We are very pleased with our transition from a privately held company to a fully integrated public real estate investment trust. These operating results are reflective of Arden's active management and leasing efforts on both its existing portfolio and acquisition properties.

"Since the completion of our initial public offering, we have purchased nine suburban office properties with over 1.4 million square feet, all strategically located in strong submarkets in Southern California. We are excited about our recent acquisitions and the acquisition opportunities in 1997."

Arden Realty, with headquarters in Beverly Hills, now owns and manages a Southern California portfolio consisting of 33 suburban office properties composed of 49 buildings and 5,443,324 rentable square feet. -0-

                           ARDEN REALTY INC.
                         FINANCIAL HIGHLIGHTS
               (In thousands except per-share amounts)

                                     For the Period from
                               Oct. 9, 1996 through Dec. 31, 1996

Operating data:
 Revenues:
  Revenues from rental operations             $ 19,434
  Other income                                     138
                                                19,572

Expenses:
 Property operations                             6,005
 General and administrative                        753
 Interest                                        1,280
 Depreciation and amortization                   3,108
                                                11,146
Income before minority interest and
 extraordinary items                             8,426

Minority interest in operating partnership        (993)

Net income before extraordinary item             7,433

Extraordinary items, net of minority interest  (13,105)

Net loss                                       $(5,672)

Per share:
 Net income before extraordinary item         34 cents
 Net loss                                    (26 cents)
 Cash dividends declared for period           36 cents

Weighted average number of shares
 outstanding                                    21,680

Other data:
 Calculation of funds from operations:
  Net income before extraordinary items        $ 7,433
  Depreciation and amortization of real
   estate assets, net of minority interest       2,741
 Funds from operations                         $10,174

 Funds from operations per share               47 cents

Balance sheet data:
 Real estate assets, net                      $529,568
 Total assets                                  551,256
 Debt                                          155,000
 Stockholders' equity                          331,977

CONTACT: Arden Realty Inc., Beverly Hills

Diana M. Laing, 310/271-8600