UPDATE 1-Mack-Cali posts lower Q2 FFO

* Q2 FFO of $0.71/shr vs FFO $0.87/shr a year ago

* Consolidated in-service portfolio down

* Sees FY10 FFO $2.73/shr to $2.83/shr

July 29 (Reuters) - Commercial real estate investment trust Mack-Cali Realty Corp (CLI.N) reported lower quarterly funds from operations as the sector has been severely impacted by economic uncertainties which has slowed down an expected recovery.

"Market fundamentals remain under considerable pressure given the lack of meaningful job growth or corporate expansion," Chief Executive Mitchell Hersh said in a regulatory filing.

For the second quarter, the office landlord posted FFO of $66.1 million, or 71 cents a share, compared with FFO of $76.5 million, or 87 cents a share a year earlier.

Analysts on average were expecting the company to report FFO of 70 cents a share, according to Thomson Reuters I/B/E/S.

FFO, a performance metric, removes the profit-reducing effect of depreciation, a non-cash item.

Mack-Cali's consolidated in-service portfolio leased fell to 88.9 percent from 90.6 percent a year ago.

For 2010, the company forecast FFO of $2.73 to $2.83 a share. Analysts were expecting FFO of $2.80 a share.

Shares of the Edison, New Jersey-based company closed at $32.43 Wednesday on the New York Stock Exchange. (Reporting by Bijoy Koyitty in Bangalore; Editing by Don Sebastian)