SEC Filing | SL Green Realty Corp.

View:

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT ------------- Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report: November 3, 2000 RECKSON ASSOCIATES REALTY CORP. AND RECKSON OPERATING PARTNERSHIP, L.P. (Exact name of each Registrant as specified in its Charter) Reckson Associates Realty Corp. - Maryland Reckson Associates Realty Corp. - Reckson Operating Partnership, L.P. - Delaware 11-3233650 (State or other jurisdiction of incorporation or organization) Reckson Operating Partnership, L.P. - 11-3233647 (IRS Employer ID Number) 225 Broadhollow Road 11747 Melville, New York (Zip Code) (Address of principal executive offices) 1-13762 (Commission File Number) (631) 694-6900 (Registrant's telephone number, including area code)

ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits 99 Supplemental Operating and Financial Data for the Quarter Ended September 30, 2000 ITEM 9. REGULATION FD DISCLOSURE For the quarter ended September 30, 2000, Registrants intend to make available supplemental data regarding their operations that is too voluminous for a press release. Registrants are attaching the supplemental data as Exhibit 99 to this Current Report on Form 8-K. Note: the information in this report (including the exhibit) is furnished pursuant to Item 9 and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section. This report will not be deemed an admission as to the materiality of any information in the report that is required to be disclosed solely by Regulation FD. 2

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. RECKSON ASSOCIATES REALTY CORP. By: /s/ Michael Maturo --------------------------------- Michael Maturo Executive Vice President and Chief Financial Officer RECKSON OPERATING PARTNERSHIP, L.P. By: Reckson Associates Realty Corp., its General Partner By: /s/ Michael Maturo ---------------------------------- Michael Maturo Executive Vice President and Chief Financial Officer Date: November 3, 2000 3

EXHIBIT 99 RECKSON ASSOCIATES REALTY CORP. SUPPLEMENTAL OPERATING AND FINANCIAL DATA FOR THE QUARTER ENDING SEPTEMBER 30, 2000 Reporting Period Highlights o Reported Basic FFO of $.69 ($.65 diluted) per share for the third quarter of 2000 as compared to $.60 ($.58 diluted) per share for the comparable 1999 period, representing an increase of 15.0% (12.1% diluted). o Reported FFO for the nine months ended September 30, 2000 of $2.04 ($1.92 diluted) per share, as compared to FFO of $1.78 ($1.72 diluted) per share for the nine months ended September 30, 1999, representing a per share increase of 14.6% (11.6% diluted). o Generated a 7.4% increase (cash) and a 9.1% increase (GAAP) in same property NOI for the third quarter of 2000. o Generated same space rent growth of 22% (GAAP) and 10% (cash) for Office and 18% (GAAP) and 9.8% (cash) for Industrial/R&D for the third quarter of 2000. o Completed the sale of a 49% ownership interest in eight suburban, Class A, office properties to Teachers Insurance and Annuity Association ("TIAA"), for approximately $136 million. Used proceeds from TIAA sale to reduce outstanding borrowings under line of credit. o Closed a three year, $575 million, unsecured revolving credit facility on September 7, 2000, refinancing the Company's prior credit facility and term loan. o Obtained title to 919 Third Avenue upon the completion of the consensual bankruptcy and secured a $250 million first mortgage commitment.

RECKSON ASSOCIATES REALTY CORP. SUPPLEMENTAL OPERATING AND FINANCIAL DATA FOR THE QUARTER ENDING SEPTEMBER 30, 2000 TABLE OF CONTENTS ----------------- PAGE ------ o Company Background............................................................................ 1 o Summary Statement of Operating Data........................................................... 5 o Selected Financial Information................................................................ 6 o Funds from Operations Analysis................................................................ 7 o Cash Available for Distribution Analysis...................................................... 8 o Balance Sheet................................................................................. 9 o Ratios Computed for Industry Comparisons...................................................... 10 o Core Operating Results o Occupancy Analysis................................................................. 12 o Executed Lease and Renewal Analysis................................................ 17 o Lease Expiration Analysis.......................................................... 27 o Portfolio Snapshot................................................................. 29 o Capital Expenditure Analysis....................................................... 31 o Market Statistics o Market Overview Analysis........................................................... 32 o Long Island Sub-market Analysis.................................................... 35 o Westchester Sub-market Analysis.................................................... 37 o New Jersey Sub-market Analysis..................................................... 39 o New York City Sub-market Analysis.................................................. 41 o Value Creation Pipeline Statistics............................................................ 42

This information contains forward-looking information that is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office and industrial properties in the New York Tri-State area; interest rate levels; continued strength of rental rate levels in the company's markets; the availability of financing; and other risks associated with the development and acquisition of properties, including risks that development may not be completed on schedule, that the tenants will not take occupancy or pay rent, or that development or operating costs may be greater than anticipated. For further information on factors that could impact Reckson, reference is made to Reckson's filings with the Securities and Exchange Commission. Reckson is subject to the reporting requirements of the Securities and Exchange Commission and undertakes no responsibility to update information contained in this Supplemental Operating and Financial Data Package. # # #

CORE IDEOLOGY VISION Reckson will be the "Landlord of Choice" in the New York Tri-State area. MISSION We are in the business of improving the quality of life in the workplace through innovation, design excellence and providing premier service. VALUES o Tenant satisfaction comes first o Do what is right by acting honestly, fairly and maintaining integrity o Act as a team, share knowledge, foster a challenging and rewarding work experience for all employees o Strive for continued improvement individually and continued progress as a company o Be responsible to the communities in which we operate o Treat our shareholders as we would treat our partners By acting in this manner, we will maximize the value of our company. [GRAPHIC OMITTED]

COMPANY BACKGROUND Reckson Associates Realty Corp. ("Reckson") is a self-administered and self-managed real estate investment trust ("REIT") that is one of the largest publicly traded owners, developers and managers of Class A office and industrial properties in the New York Tri-State area. Reckson is structured as an UPREIT, therefore its property operations are primarily conducted through Reckson Operating Partnership, a limited partnership in which the Company is the sole general partner. On June 2, 1995, Reckson successfully completed its initial public offering. During 1996, the Company expanded from its Long Island base and established operating divisions in Westchester, Connecticut, New Jersey and most recently in New York City. Each division was opened by acquiring a critical mass of assets and a local management team which had significant experience, local market expertise and relationships in their respective markets. Through a predecessor entity, Reckson commenced operations in 1958 and grew steadily through the 1960s, 1970s and 1980s by developing and redeveloping Class A office and industrial properties throughout Long Island. Today, Reckson owns or is under contract to acquire 186 properties comprised of approximately 20.8 million square feet located throughout the New York Tri-State area's markets. These properties are comprised of 14.2 million square feet of office space and 6.6 million square feet of industrial space. Reckson also owns or is under contract to acquire approximately 346 acres of unencumbered land which is either located contiguous to one of the Company's existing properties or on major thoroughfares. Since completing its initial public offering in June 1995, Reckson has acquired, contracted to acquire or developed approximately 16.3 million square feet of office and industrial real estate assets for approximately $2.1 billion and has generated a total return to its initial Class A Common shareholders of approximately 192% for the period June 2, 1995 through September 30, 2000. Reckson's management currently owns approximately 9% of the equity of the Company. Reckson is a fully integrated real estate company, having in-house expertise in leasing, design and development, construction, property and asset management, architectural services and financial controls, reporting and planning. 1

INVESTOR INFORMATION RECKSON ASSOCIATES 225 Broadhollow Road Melville, New York 11747 (631) 694-6900 (Phone) (631) 622-6790 (Facsimile) Donald Rechler Co-Chief Executive Officer Chairman of the Board Scott Rechler Co-Chief Executive Officer President Michael Maturo Executive Vice President Chief Financial Officer RESEARCH COVERAGE CIBC World Markets Anthony Paolone 212/667-8116 Credit Suisse First Boston Lawrence Raiman 212/538-2380 Goldman Sachs David Kostin 212/902-6781 Greenstreet Advisors John Lutzius 949/640-8780 Legg Mason David Fick/Ken Weinberg 410/454-5081 Lehman Brothers David Shulman/Stuart Axelrod 212/526-3413 McDonald & Company Anatole Pevnev 216/443-2300 Merrill Lynch Eric Hemel/Steve Sakwa 212/449-0335 Prudential Securities Louis Taylor 212/778-4424 Salomon Smith Barney Jonathan Litt/Gary Boston 212/816-0231 TIMING Quarterly results will be announced according to the following anticipated schedule: First Quarter Early May Second Quarter Early August Third Quarter Early November Fourth Quarter and Year-End Late February 2

STOCK DATA Reckson Associates' class A common stock is traded primarily on the New York Stock Exchange under the symbol: RA. The following summarizes recent activity of Reckson's class A common stock: - ------------------------------------------------------------------------------------------------------------------------ 2nd 3rd Oct. 1, 2000 to Quarter Quarter Oct 30, 2000 2000 2000 - ------------------------------------------------------------------------------------------------------------------------ High Price* $ 24.06 $26.81 $ 24.88 - ------------------------------------------------------------------------------------------------------------------------ Low Price* $ 18.75 $23.63 $ 22.38 - ------------------------------------------------------------------------------------------------------------------------ Closing Price* $ 23.77 $25.50 $ 22.38 - ------------------------------------------------------------------------------------------------------------------------ Average daily tradiing volume* 196,768 183,787 265,000 - ------------------------------------------------------------------------------------------------------------------------ Indicated dividend per share** $1.544 $1.544 $1.544 - ------------------------------------------------------------------------------------------------------------------------ Closing dividend yield 6.50% 6.05% 6.90% - ------------------------------------------------------------------------------------------------------------------------ Closing shares and units outstanding (thousands) 52,741 52,986 53,021 - ------------------------------------------------------------------------------------------------------------------------ Closing market value of shares and units outstanding (thousands) $1,253,700 $1,351,100 $1,186,700 - ------------------------------------------------------------------------------------------------------------------------ * New York Stock Exchange trades only ** On an annual basis COMPARATIVE MARKET PERFORMANCE MONTHLY INDEXED CLASS A COMMON STOCK PRICE HISTORY OFFICE INDUSTRIAL COMPOSITE: SPIEKER PROPERTIES SL GREEN REALTY ARDEN REALTY PRENTISS PROPERTIES [GRAPHIC OMITTED] KILROY REALTY HIGHWOODS LIBERTY PROPERTY MACK CALI EQUITY OFFICE CARRAMERICA Daily from 10/27/1999 to 10/27/2000 Reckson Associates Office Industrial Composite Wilshire REIT Index S&P 500 Source: Muller 3

STOCK DATA CONTINUED... Reckson Associates' class B common stock is traded primarily on the New York Stock Exchange under the symbol: RA.B. The following summarizes recent activity of Reckson's class B common stock: - ------------------------------------------------------------------------------------------------------------------------ 2nd 3rd Oct. 1, 2000 to Quarter Quarter Oct 30, 2000 2000 2000 - ------------------------------------------------------------------------------------------------------------------------ High Price* $ 25.44 $27.56 $ 25.94 - ------------------------------------------------------------------------------------------------------------------------ Low Price* $ 19.94 $24.63 $ 22.88 - ------------------------------------------------------------------------------------------------------------------------ Closing Price* $ 25.44 $26.75 $ 22.88 - ------------------------------------------------------------------------------------------------------------------------ Average daily tradiing volume* 46,921 49,998 71,405 - ------------------------------------------------------------------------------------------------------------------------ Indicated dividend per share** $2.40 $2.40 $ 2.40 - ------------------------------------------------------------------------------------------------------------------------ Closing dividend yield 9.43 8.97% 10.49% - ------------------------------------------------------------------------------------------------------------------------ Closing shares outstanding (thousands) 10,284 10,284 10,284 - ------------------------------------------------------------------------------------------------------------------------ Closing market value of shares outstanding (thousands) $ 261,600 $ 275,100 $ 235,300 - ------------------------------------------------------------------------------------------------------------------------ * New York Stock Exchange trades only ** On an annual basis Reckson Associates' series A preferred stock is traded primarily on the New York Stock Exchange under the symbol: RA.A (pfd). The following summarizes recent activity of Reckson's series A preferred stock: - ------------------------------------------------------------------------------------------------------------------------ 2nd 3rd Oct. 1, 2000 to Quarter Quarter Oct 30, 2000 2000 2000 - ------------------------------------------------------------------------------------------------------------------------ High Price* $ 22.25 $24.31 $ 23.00 - ------------------------------------------------------------------------------------------------------------------------ Low Price* $ 18.88 $21.88 $ 20.75 - ------------------------------------------------------------------------------------------------------------------------ Closing Price* $ 22.19 $23.38 $ 21.13 - ------------------------------------------------------------------------------------------------------------------------ Average daily tradiing volume* 62,765 23,270 83,510 - ------------------------------------------------------------------------------------------------------------------------ Indicated dividend per share** $1.9064 $1.9064 $ 1.9064 - ------------------------------------------------------------------------------------------------------------------------ Closing dividend yield 8.59% 8.15% 9.02% - ------------------------------------------------------------------------------------------------------------------------ Closing shares outstanding (thousands) 9,192 9,192 9,192 - ------------------------------------------------------------------------------------------------------------------------ Closing market value of shares outstanding (thousands) $ 204,000 $ 214,900 $ 194,200 - ------------------------------------------------------------------------------------------------------------------------ * New York Stock Exchange trades only ** On an annual basis 4

RECKSON ASSOCIATES REALTY CORP. SUMMARY STATEMENT OF OPERATING DATA SEPTEMBER 30, 2000 ( IN THOUSANDS ) THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ------------------------- --------------------------- 2000 1999 2000 1999 ---------- --------- ---------- ----------- REVENUES: Base rents $100,854 $95,474 $291,353 $234,759 Tenant escalation and reimbursements 14,900 15,395 40,730 32,524 -------- ------- -------- -------- 115,754 110,869 332,083 267,283 -------- ------- -------- -------- OPERATING EXPENSES: Operating expenses 24,751 24,268 67,051 52,602 Real estate taxes 16,504 16,411 48,727 38,523 -------- ------- -------- -------- Total operating expenses 41,255 40,679 115,778 91,125 -------- ------- -------- -------- NET OPERATING INCOME 74,499 70,190 216,305 176,158 GROSS MARGIN % 64.36% 63.31% 65.14% 65.91% OTHER INCOME: Equity in earnings of service companies and real estate joint ventures 706 483 3,893 1,372 Interest income on mortgage notes and notes receivable 1,901 520 6,377 5,627 Gain on sales of real estate 15,206 10,052 21,868 10,052 Other 6,735 3,421 19,194 8,359 -------- ------- -------- -------- 24,548 14,476 51,332 25,410 -------- ------- -------- -------- OTHER EXPENSES: Interest expense 24,651 20,774 72,667 53,620 Marketing, general and administrative 6,930 6,804 20,151 16,241 Depreciation and amortization 24,083 21,868 67,520 56,086 -------- ------- -------- -------- 55,664 49,446 160,338 125,947 -------- ------- -------- -------- Distributions to preferred unitholders 660 660 1,981 1,981 Minority partners' interests in consolidated partnerships 1,874 2,150 5,773 4,933 Limited partners' minority interest in the operating partnership 4,050 3,014 9,411 7,082 -------- ------- -------- -------- 6,584 5,824 17,165 13,996 -------- ------- -------- -------- INCOME BEFORE DIVIDENDS TO PREFERRED SHAREHOLDERS AND EXTRAORDINARY LOSS 36,799 29,396 90,134 61,625 Dividends to preferred shareholders 5,425 7,325 19,946 17,035 Extraordinary loss on extinguishment or debt 1,396 555 1,396 555 -------- ------- -------- -------- NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $29,978 $21,516 $68,792 $44,035 ======== ======= ======== ======== 5

RECKSON ASSOCIATES REALTY CORP. SEPTEMBER 30, 2000 ( IN THOUSANDS EXCEPT PER SHARE DATA ) SELECTED FINANCIAL INFORMATION: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ------------------------ ------------------------------- 2000 1999 2000 1999 --------- --------- ---------- ------------ OPERATING DATA: Revenues: Operating revenues $125,096 $115,293 $361,547 $282,641 Gain on sales of real estate 15,206 10,052 21,868 10,052 -------- -------- -------- -------- Total revenues: $140,302 $125,345 $383,415 $292,693 ======== ======== ======== ======== Income before extraordinary loss, limited partners' minority interest in the operating partnership, distributions to preferred unitholders and dividends to preferred stockholders $41,509 $33,070 $101,526 $70,688 Less: Extraordinary loss on extinguishment of debt 1,396 555 1,396 555 Limited partners' minority interest in the operating partnership 4,050 3,014 9,411 7,082 Distributions to preferred unitholders 660 660 1,981 1,981 Dividends to preferred shareholders 5,425 7,325 19,946 17,035 -------- -------- -------- -------- Net Income available to common shareholders $29,978 $21,516 $68,792 $44,035 ======== ======== ======== ======== Funds From Operations: Basic $43,477 $35,888 $122,924 $94,928 ======== ======== ======== ======== Diluted $51,156 $45,467 $149,632 $116,211 ======== ======== ======== ======== Cash Available for Distribution: Basic $26,010 $31,351 $85,178 $82,343 ======== ======== ======== ======== Diluted $26,010 $40,930 $90,775 $103,626 ======== ======== ======== ======== Interest expense $24,651 $20,774 $72,667 $53,620 ======== ======== ======== ======== Capitalized interest expense $3,274 $2,881 $8,447 $7,281 ======== ======== ======== ======== Non-incremental capitalized improvements $1,075 $833 $3,773 $2,312 ======== ======== ======== ======== Non-incremental capitalized tenant improvements and leasing commissions $4,239 $1,618 $8,982 $3,673 ======== ======== ======== ======== Marketing, general and administrative expenses $6,930 $6,804 $20,151 $16,241 ======== ======== ======== ======== BALANCE SHEET DATA: SEPTEMBER 30, 2000 SEPTEMBER 30, 1999 ------------------ ------------------ Commercial real estate investments before depreciation $2,434,633 $2,169,594 ========== ========== Investment in mortgage notes and notes receivable $352,809 $349,690 ========== ========== Investment in real estate joint ventures $40,236 $27,774 ========== ========== Total assets $2,944,120 $2,685,864 ========== ========== Total debt $1,342,786 $1,238,621 ========== ========== Total debt (Including joint venture debt and net of minority partners' interests) $1,328,629 $1,224,405 ========== ========== Book equity (Total Assets less Total Debt) $1,601,334 $1,447,243 ========== ========== MARKET CAPITALIZATION DATA: Common shares and units $1,626,224 $1,239,217 ========== ========== Preferred shares, units and interest $407,318 $507,318 ========== ========== Total market capitalization $3,362,171 $2,970,940 ========== ========== 6

RECKSON ASSOCIATES REALTY CORP. FUNDS FROM OPERATIONS SEPTEMBER 30, 2000 (IN THOUSANDS EXCEPT PER SHARE/UNIT DATA) THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ------------------- -------------------- 2000 1999 2000 1999 ---- ---- ---- ---- NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $29,978 $21,516 $68,792 $44,035 Add back: Real estate depreciation and amortization 23,632 21,312 66,184 54,406 Minority partners' interests in consolidated partnerships 1,874 2,150 5,773 4,933 Limited partners' minority 4,050 3,014 9,411 7,082 interest in the operating partnership Extraordinary loss on extinguishment of debt 1,396 555 1,396 555 Less : Gain on sales of real estate 15,206 10,052 21,868 10,052 Amounts distributable to minority partners in consolidated partnerships 2,247 2,607 6,764 6,031 ------ ------ ------ ------ BASIC FUNDS FROM OPERATIONS ("FFO") 43,477 35,888 122,924 94,928 Add: Dividends and distributions on dilutive shares and units 7,679 9,579 26,708 21,283 ----- ----- ------ ------ DILUTED FFO $51,156 $45,467 $149,632 $116,211 ======= ======= ======== ======== BASIC FFO CALCULATIONS: Weighted average common 55,462 51,824 52,595 45,724 shares outstanding Weighted average units of limited partnership interest outstanding 7,695 7,702 7,697 7,706 ----- ----- ----- ----- Basic weighted average common shares and units outstanding 63,157 59,526 60,292 53,430 ====== ====== ====== ====== Basic FFO per weighted average common share or unit $0.69 $0.60 $2.04 $1.78 ----- ----- ----- ----- Basic weighted average dividends or distributions per share or unit $0.42 $0.41 $1.25 $1.14 ===== ===== ===== ===== Basic FFO payout ratio 61.2% 67.6% 61.2% 64.3% ==== ==== ==== ==== DILUTED FFO CALCULATIONS: Basic weighted average common shares and units outstanding 63,157 59,526 60,292 53,430 Adjustments for dilutive FFO weighted average shares and units outstanding: Add: Weighted average common stock equivalents 588 430 424 417 Weighted average shares of Series A Preferred Stock 8,060 8,060 8,060 8,060 Weighted average shares of Series B Preferred Stock 1,919 5,758 4,315 2,552 Weighted average shares of minority partners preferred interest 3,454 3,454 3,454 1,645 Weighted average units of preferred limited partnership interest 1,367 1,367 1,367 1,367 ----- ----- ----- ----- Dilutive FFO weighted average shares and units outstanding 78,545 78,595 77,912 67,471 ====== ====== ====== ====== Diluted FFO per weighted average share or unit $0.65 $0.58 $1.92 $1.72 ===== ===== ===== ===== Diluted weighted average dividends or distributions per share or unit $0.41 $0.40 $1.22 $1.13 ===== ===== ===== ===== Diluted FFO payout ratio 63.7% 68.9% 63.7% 65.5% ==== ==== ==== ===== 7

RECKSON ASSOCIATES REALTY CORP. CASH AVAILABLE FOR DISTRIBUTION SEPTEMBER 30, 2000 (IN THOUSANDS EXCEPT PER SHARE/UNIT DATA) THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ------------------- -------------------- 2000 1999 2000 1999 ---- ---- ---- ---- BASIC FUNDS FROM OPERATIONS $43,477 $35,888 $122,924 $94,928 Less : straight line rents (Note a) 12,153 2,086 24,991 6,600 Non-incremental capitalized tenant improvements and leasing commissions 4,239 1,618 8,982 3,673 Non-incremental capitalized improvements 1,075 833 3,773 2,312 ----- --- ----- ----- Basic Cash Available for Distribution ("CAD") 26,010 31,351 85,178 82,343 ====== ====== ====== ====== Add: Dividends and distributions on dilutive shares and units -- 9,579 5,597 21,283 Diluted CAD $26,010 $40,930 $90,775 $103,626 BASIC CAD CALCULATIONS: Weighted average common shares outstanding 55,462 51,824 52,595 45,724 Weighted average units of limited partnership interest outstanding 7,695 7,702 7,697 7,706 ----- ----- ----- ----- Basic weighted average common shares and units outstanding 63,157 59,526 60,292 53,430 ====== ====== ====== ====== Basic CAD per weighted average common share or unit $0.41 $0.53 $1.41 $1.54 ===== ===== ===== ===== Basic weighted average dividends or distributions per share or unit $0.42 $0.41 $1.25 $1.14 ===== ===== ===== ===== Basic CAD payout ratio 102.4% 77.4% 88.3% 74.1% ===== ==== ==== ==== DILUTED CAD CALCULATIONS: Basic weighted average common shares and units outstanding 63,157 59,526 60,292 53,430 Adjustments for dilutive CAD weighted average shares and units outstanding: Add: Weighted average common stock equivalents 588 430 424 417 Weighted average shares of Series A Preferred Stock -- 8,060 -- 8,060 Weighted average shares of Series B Preferred Stock -- 5,758 -- 2,552 Weighted average shares of minority partners preferred interest -- 3,454 3,454 1,645 Weighted average units of units of Preferred Limited partnership interest -- 1,367 598 1,367 Dilutive CAD weighted average shares and units outstanding 63,745 78,595 64,768 67,471 ====== ====== ====== ====== Diluted CAD per weighted average share or unit $0.41 $0.52 $1.40 $1.54 ===== ===== ===== ===== Diluted weighted average dividends or distributions per share or unit $0.42 $0.40 $1.24 $1.13 ===== ===== ===== ===== Diluted CAD payout ratio 103.2% 76.6% 88.5% 73.5% ===== ==== ==== ==== - -------------- Notes: (a) Includes straight line rental income attributable to the property located at 919 Third Avenue, New York, N.Y of $8.175, $834, $13.560 and $995 respectively. 8

RECKSON ASSOCIATES REALTY CORP. CONSOLIDATED BALANCE SHEETS DRAFT (DOLLARS IN THOUSANDS, EXCEPT FOR SHARE AMOUNTS) SEPTEMBER 30, DECEMBER 31, 2000 1999 ----------------- --------------- (Unaudited) ASSETS: Commercial real estate properties, at cost: Land........................................................................ $ 290,873 $ 276,204 Building and improvements................................................... 1,986,104 1,802,611 Developments in progress: Land........................................................................ 61,022 60,894 Development costs........................................................... 96,634 68,690 Furniture, fixtures and equipment............................................... 7,109 6,473 --------------- ------------- 2,441,742 2,214,872 Less accumulated depreciation................................................... (266,788) (218,385) --------------- ------------- 2,174,954 1,996,487 Investment in real estate joint ventures........................................ 40,236 31,531 Investment in mortgage notes and notes receivable............................... 352,809 352,466 Cash and cash equivalents....................................................... 32,954 21,368 Tenants receivables............................................................. 4,679 5,117 Investments in and advances to affiliates....................................... 169,021 178,695 Deferred rents receivable....................................................... 53,910 32,132 Prepaid expenses and other assets............................................... 57,530 66,977 Contract and land deposits and pre-acquisition costs............................ 7,794 9,585 Deferred leasing and loan costs................................................. 50,233 39,520 --------------- ------------- TOTAL ASSETS.................................................................... $ 2,944,120 $ 2,733,878 =============== ============= LIABILITIES: Mortgage notes payable.......................................................... $ 530,819 $ 459,174 Unsecured credit facility....................................................... 362,600 297,600 Unsecured term loan............................................................. -- 75,000 Senior unsecured notes.......................................................... 449,367 449,313 Accrued expenses and other liabilities.......................................... 85,433 82,079 Dividends and distributions payable............................................. 28,498 27,166 --------------- ------------- TOTAL LIABILITIES............................................................... 1,456,717 1,390,332 --------------- ------------- Commitments and other comments.................................................. -- -- Minority partners' interests in consolidated partnerships....................... 228,742 93,086 Preferred unit interest in the operating partnership............................ 42,518 42,518 Limited partners' minority interest in the operating partnership................ 98,079 90,986 --------------- ------------- 369,339 226,590 --------------- ------------- STOCKHOLDERS' EQUITY: Preferred Stock, $.01 par value, 25,000,000 shares authorized Series A preferred stock, 9,192,000 shares issued and outstanding.......... 92 92 Series B preferred stock, 2,000,000 and 6,000,000 shares issued and outstanding, respectively................................................. 20 60 Common Stock, $01 par value, 100,000,000 shares authorized Class A Common Stock, 45,290,722 and 40,375,506 shares issued and outstanding, respectively................................................. 453 401 Class B Common Stock, 10,283,513 and 10,283,763 shares issued and outstanding,respectively.................................................. 103 103 Additional paid in capital...................................................... 1,117,396 1,116,300 --------------- ------------- Total Stockholders' Equity...................................................... 1,118,064 1,116,956 --------------- ------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY...................................... $ 2,944,120 $ 2,733,878 =============== ============= 9

RECKSON ASSOCIATES REALTY CORP. SEPTEMBER 30, 2000 RATIOS COMPUTED FOR INDUSTRY COMPARISONS: THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ---------------------- --------------------- 2000 1999 2000 1999 ------ ------ ------ ------ Debt Service Coverage Ratio 3.06 3.21 3.05 3.23 ( Basic Funds from Operations + Interest ======= ====== ====== ====== expense + preferred dividends and distributions / Interest expense + Principal ) Fixed Charge Coverage Ratio 2.45 2.30 2.33 2.37 ( Basic Funds from Operations + ======= ====== ====== ====== Interest expense + preferred dividends and distributions / Interest expense + preferred dividends and distributions + Principal ) Total Debt to Market Capitalization ratio as a percent 39.5% 41.2% 39.5% 41.2% ======= ====== ====== ====== Marketing, general and administrative expenses to total revenues as a percent 4.94% 5.43% 5.26% 5.55% ======= ====== ====== ====== Non - Incremental Capital Expenditures to Net Operating Income as a percent 7.13% 3.49% 5.90% 3.40% ======= ====== ====== ====== Fully diluted FFO Payout Ratio - (note 1) 63.70% 68.90% 63.70% 65.50% ( Dividends to fully diluted FFO as a ======= ====== ====== ====== percent ) Fully diluted CAD Payout Ratio - (note 2) 103.20% 76.60% 88.50% 73.50% ( Dividends to fully diluted CAD as a ======= ====== ====== ====== percent ) Note: (1) Based on weighted average per share / unit dividends and distributions of $.4146, $.3988, $1.2239 and $1.1288, respectively. (2) Based on weighted average per share / unit dividends and distributions of $.4212, $.3988, $1.2402 and $1.1288, respectively 10

CORE OPERATING RESULTS ---------------------- 11

RECKSON ASSOCIATES REALTY CORP. SEPTEMBER 30, 2000 OCCUPANCY ANALYSIS SEPTEMBER 30, 2000 JUNE 30, 2000 (EXCLUDING DEVELOPMENT & ACQUISITIONS) NUMBER OF RENTABLE PERCENT OF PERCENT NUMBER OF RENTABLE PERCENT OF PROPERTY BUILDINGS SQUARE FEET PROPERTY TYPE LEASED BUILDINGS SQUARE FEET PROPERTY TYPE - -------- --------- ----------- ------------- ------ --------- ----------- ------------- OFFICE PROPERTIES LONG ISLAND OFFICE PROPERTIES Huntington Melville Corporate Center Melville, NY . . . . . . 6 777,279 5.7% 98.8% 6 777,279 5.6% Nassau West Corporate Corporate Center (1) Mitchell Field, NY . . . 6 1,518,154 11.1% 98.5% 6 1,527,263 10.9% North Shore Atrium Syosset, NY . . . . . . . 2 310,064 2.3% 89.5% 2 310,064 2.2% Stand-alone Long Island Office Properties (2). 10 1,142,528 8.4% 96.1% 11 1,307,528 9.4% -- --------- ---- -- --------- ---- SUBTOTAL - LONG ISLAND OFFICE 24 3,748,025 27.4% 96.4% 25 3,922,134 28.0% WESTCHESTER OFFICE PROPERTIES Tarrytown Corporate Center Tarrytown, NY . . . . . . 6 875,726 6.4% 92.6% 6 875,726 6.3% Reckson Executive Park Rye Brook, NY . . . . . . 6 541,884 4.0% 99.8% 6 541,884 3.9% Summit at Valhalla Valhalla, NY . . . . . . 3 699,045 5.1% 92.4% 3 699,045 5.0% Mt. Pleasant Corporate Center Valhalla, NY . . . . . . 2 162,004 1.2% 98.1% 2 162,004 1.2% Stand-alone Westchester (3) Office Properties . . . 7 1,012,714 7.4% 94.9% 7 1,012,714 7.2% - --------- ---- - --------- ---- SUBTOTAL - WESTCHESTER OFFICE 24 3,291,373 24.1% 94.7% 24 3,291,373 23.5% CONNECTICUT OFFICE PROPERTIES Landmark Square Stamford, CT . . . . . . 6 798,321 5.8% 91.4% 6 798,321 5.7% Stamford Towers Stamford, CT . . . . . . 2 324,867 2.4% 99.5% 2 324,867 2.3% - ------- ---- - ------- ---- SUBTOTAL - CONNECTICUT OFFICE 8 1,123,188 8.2% 93.7% 8 1,123,188 8.0% 12

SEPTEMBER 30, 2000 (INCLUDING DEVELOPMENT & ACQUISITIONS) PERCENT NUMBER OF RENTABLE PERCENT OF PERCENT PROPERTY LEASED BUILDINGS SQUARE FEET PROPERTY TYPE LEASED -------- ------ --------- ----------- ------------- ------ OFFICE PROPERTIES LONG ISLAND OFFICE PROPERTIES Huntington Melville Corporate Center Melville, NY . . . . . . 98.7% 6 777,279 5.5% 98.7% Nassau West Corporate Corporate Center (1) Mitchell Field, NY . . . 97.6% 6 1,527,263 10.8% 97.6% North Shore Atrium Syosset, NY . . . . . . 96.6% 2 310,064 2.2% 96.6% Stand-alone Long Island Office Properties (2). . 95.6% 12 1,487,867 10.5% 95.6% SUBTOTAL - LONG ISLAND OFFICE 97.8% 26 4,102,473 29.0% 97.9% WESTCHESTER OFFICE PROPERTIES Tarrytown Corporate Center Tarrytown, NY . . . . . . 93.5% 6 875,726 6.2% 93.5% . . . . . Reckson Executive Park Rye Brook, NY . . . . . . 99.0% 6 541,884 3.8% 99.0% Summit at Valhalla Valhalla, NY . . . . . . 94.2% 3 699,045 4.9% 94.2% Mt. Pleasant Corporate Center Valhalla, NY . . . . . . 98.1% 2 162,004 1.1% 98.1% Stand-alone Westchester (3) Office Properties . . . . 97.9% 7 1,012,714 7.2% 97.9% ---- - --------- --- ---- SUBTOTAL - WESTCHESTER OFFICE 95.9% 24 3,291,373 23.2% 95.9% CONNECTICUT OFFICE PROPERTIES Landmark Square Stamford, CT . . . . . . 94.0% 6 798,321 5.6% 94% Stamford Towers Stamford, CT . . . . . . 98.8% 2 324,867 2.3% 98.8% SUBTOTAL - CONNECTICUT 95.4% 8 1,123,188 7.9% 95.4% OFFICE (1) Does not include 27,013 square feet leased to the health club at Omni. (2) During the quarter ended September 30, 2000 a former 165,000 sf industrial building completed its repositioning into a Class A office building. This building is currently vacant. (3) Rentable square feet includes a 382,000 square foot building under redevelopment which is currently 82% leased; percent leased excludes this property. 13

OFFICE PROPERTIES (continued) NEW JERSEY OFFICE PROPERTIES Executive Hill Office Park West Orange, NJ . . . . . . . . 4 391,382 2.9% 98.3% 4 391,382 2.8% University Square Princeton, NJ . . . . . . . . . 3 131,105 1.0% 90.6% 3 131,105 0.9% Short Hills Office Center Short Hills, NJ . . . . . . . . 3 557,036 4.1% 100.0% 3 557,036 4.0% Stand-alone New Jersey Office Properties (1). . . . . 7 924,175 6.8% 94.6% 8 1,058,059 7.6% - ------- ---- - --------- ---- SUBTOTAL - NEW JERSEY OFFICE 17 2,003,698 14.7% 96.6% 18 2,137,582 15.3% NEW YORK CITY OFFICE PROPERTIES 120 W. 45th Street . . . . . . . . . 1 443,109 3.2% 100.0% 1 443,109 3.2% 100 Wall Street . . . . . . . . . . 1 458,626 3.4% 91.7% 1 458,626 3.3% 810 Seventh Avenue . . . . . 1 692,060 5.1% 99.6% 1 692,060 4.9% 919 Third Avenue . . . . . . . 1 1,374,966 10.1% 94.5% 1 1,374,966 9.8% 1350 Ave. of the Americas . . . . 1 540,000 3.9% 94.4% 1 540,000 3.9% - ------- ------- SUBTOTAL - NEW YORK CITY OFFICE 5 3,508,761 25.7% 95.8% 5 3,508,761 25.1% Subtotal- Office Properties (2) 78 13,675,045 100.0% 95.7% 80 13,983,038 100.0% As a Percent of Total 68.8% Portfolio . . . . . . . . . . . 66.3% OFFICE PROPERTIES (CONTINUED) NEW JERSEY OFFICE PROPERTIES Executive Hill Office Park West Orange, NJ . . . . . . . . 100.0% 4 391,382 2.8% 100.0% University Square Princeton, NJ . . . . . . . . . 100.0% 3 131,105 0.9% 100.0% Short Hills Office Center Short Hills, NJ . . . . . . . . 99.7% 3 557,036 3.9% 99.7% Stand-alone New Jersey Office Properties (1). . . . . 95.0% 8 1,058,059 7.5% 95.0% - --------- ---- SUBTOTAL - NEW JERSEY OFFICE 97.5% 18 2,137,582 15.1% 97.5% NEW YORK CITY OFFICE PROPERTIES 120 W. 45th Street . . . . . . . . . 100.0% 1 443,109 3.1% 100.0% 100 Wall Street . . . . . . . . . . 99.3% 1 458,626 3.2% 99.3% 810 Seventh Avenue . . . . . 97.3% 1 692,060 4.9% 97.3% 919 Third Avenue . . . . . . . 96.6% 1 1,374,966 9.7% 96.6% 1350 Ave. of the Americas . . . . 95.0% 1 540,000 3.8% 95.0%

- ------- SUBTOTAL - NEW YORK CITY OFFICE 97.3% 5 3,508,761 24.8% 97.3% SUBTOTAL- OFFICE PROPERTIES (2) 96.9% 81 14,163,377 100.0% 97% As a Percent of Total Portfolio . . . . . . . . . . . 68.1% (1) During the quarter ended September 30, 2000 a former 130,009 sf vacant industrial building completed its repositioning into a Class A office building. This building is currently 100% occupied. (2) Percent leased excludes properties under development. 14

RECKSON ASSOCIATES REALTY CORP. SEPTEMBER 30, 2000 OCCUPANCY ANALYSIS JUNE 30, 2000 PERCENT NUMBER RENTABLE OF OF SQUARE PROPERTY PERCENT PROPERTY BUILDINGS FEET TYPE LEASED INDUSTRIAL PROPERTIES LONG ISLAND INDUSTRIAL PROPERTIES Vanderbilt Industrial Park (1) Hauppauge, NY . . . . . 47 2,379,895 28.8% 97.6% Airport International Plaza Bohemia, NY . . . . . . 20 1,082,510 13.1% 97.5% County Line Industrial Center Melville, NY . . . . . . 4 342,174 4.1% 100.0% Other Submarkets Farmingdale . . . . . . 3 520,615 6.3% 98.9% Melville (2) . . . . . . 5 411,169 5.0% 100.0% Islip/Islandia . . . . . 6 212,400 2.6% 100.0% Hauppauge . . . . . . . 2 195,942 2.4% 97.4% Other . . . . . . . . . 8 708,740 8.6% 100.0% - ------- ---- ------ SUBTOTAL - LONG ISLAND INDUSTRIAL 95 5,853,445 84.5% 98.2% Stand-alone Westchester (3) Industrial Properties . 3 163,000 2.4% 100.0% Stand-alone Connecticut Industrial Properties . 1 452,414 6.5% 100.0% Stand-alone New Jersey (4) Industrial Properties . 6 452,254 6.5% 82.4% SUBTOTAL- INDUSTRIAL PROPERTIES (5) 105 6,921,113 100.0% 97.6% --- ---------- ------ ------ As a Percent of Total Portfolio . . . . . . . 33.6% RETAIL PROPERTIES 2 20,000 100.0% 100.0% --- ---------- ------ ------ As a Percent of Total Portfolio . . . . . . . 0.1% TOTAL - ALL PROPERTIES (5) 185 20,616,158 100.0% 96.3% --- ---------- ------ ------ SEPTEMBER 30, 2000 (INCLUDING DEVELOPMENT & ACQUISITIONS) NUMBER OF RENTABLE PERCENT OF NUMBER OF RENTABLE PERCENT OF PERCENT PROPERTY BUILDINGS SQUARE FEET PROPERTY TYPE BUILDINGS SQUARE FEET PROPERTY TYPE LEASED INDUSTRIAL PROPERTIES LONG ISLAND INDUSTRIAL PROPERTIES Vanderbilt Industrial Park (1) Hauppauge, NY . . . . . 47 2,379,895 41.8% 98.6% 47 2,379,895 41.8% 98.6% Airport International Plaza Bohemia, NY . . . . . . 20 1,082,510 19.0% 98.2% 20 1,082,510 19.0% 98.2% County Line Industrial Center Melville, NY . . . . . . 4 342,174 6.0% 100.0% 4 342,174 6.0% 100.0% Other Submarkets Farmingdale . . . . . . 3 520,615 9.2% 98.9% 3 520,615 9.2% 98.9% Melville (2) . . . . . . 4 246,169 4.3% 100.0% 4 246,169 4.3% 100.0% Islip/Islandia . . . . . 6 212,400 3.7% 100.0% 6 212,400 3.7% 100.0% Hauppauge . . . . . . . 2 195,942 3.4% 97.4% 2 195,942 3.4% 97.4% Other . . . . . . . . . 8 708,740 12.5% 100.0% 8 708,740 12.5% 100.0% - ------- ------ - ------- ------ SUBTOTAL - LONG ISLAND INDUSTRIAL 94 5,688,445 85.8% 98.7% 94 5,688,445 85.8% 98.7% Stand-alone Westchester (3) Industrial Properties . 3 163,000 2.5% 100.0% 3 163,000 2.5% 100.0% Stand-alone Connecticut Industrial Properties . 1 452,414 6.8% 100.0% 1 452,414 6.8% 100.0% Stand-alone New Jersey (4) Industrial Properties . 5 324,254 4.9% 82.4% 5 324,254 4.9% 82.4% SUBTOTAL- INDUSTRIAL PROPERTIES (5) 103 6,628,113 100.0% 98.0% 103 6,628,113 100% 98.0% --- --------- ------ ------ --- ---------- ------ ------ As a Percent of Total Portfolio . . . . . . . 32.1% 31.8% RETAIL PROPERTIES 2 20,000 100.0% 100.0% 2 20,000 100.0% 1 00.0% --- --------- ------ ------ --- --------- ------ - ----- As a Percent of Total Portfolio . . . . . . . 0.1% 0.1% TOTAL - ALL PROPERTIES (5) 185 20,631,151 100.0% 97.3% 186 20,811,490 100.0% 97.3% --- ---------- ------ ------ --- ---------- ------ ------ (1) Rentable square feet includes a 56,875 square foot building under redevelopment; percent leased excludes this property. (2) During the quarter ended September 30, 2000 a former 165,000 sf industrial building completed its repositioning into a Class A office building. This building is currently vacant. (3) Rentable square feet includes a 45,000 square foot building under redevelopment; percent leased excludes this property. (4) During the quarter ended September 30, 2000 a former 130,009 sf vacant industrial building completed its repositioning into a Class A office building. This building is currently 100% occupied. (5) Percent leased excludes properties under development. 15

Reckson Associates Realty Corp. RECKSON PORTFOLIO HISTORICAL OCCUPANCY [GRAPHICS OMITTED] Note: Percent leased excludes properties under development PERCENT OCCUPIED ----------------------- OFFICE INDUSTRIAL ------ ---------- SEP SEP --- --- 1997 91.3% 95.8% 1998 92.0% 96.4% 1999 94.5% 96.0% 2000 97.0% 98.0% 16

RECKSON ASSOCIATES REALTY CORP. EXECUTED LEASES AND RENEWAL ANALYSIS TOTAL PORTFOLIO QUARTER ENDED SEPTEMBER 30, 2000 ---------------------------------- RESEARCH & OFFICE (1) INDUSTRIAL (2) DEVELOPMENT (3) TOTAL ------------ ---------------- ----------------- ------- EXECUTED LEASES (8) TOTAL PORTFOLIO NUMBER OF EXECUTED LEASES 67 7 74 SQUARE FOOTAGE 608,722 85,773 694,495 AVERAGE RENT $29.67 $9.67 AVERAGE EFFECTIVE RENT $26.91 $8.47 LONG ISLAND PORTFOLIO NUMBER OF EXECUTED LEASES 16 7 23 SQUARE FOOTAGE 245,239 85,773 331,012 AVERAGE RENT $27.65 $9.67 AVERAGE EFFECTIVE RENT $24.67 $8.47 WESTCHESTER PORTFOLIO NUMBER OF EXECUTED LEASES 21 21 SQUARE FOOTAGE 159,707 159,707 AVERAGE RENT $26.42 AVERAGE EFFECTIVE RENT $25.14 CONNECTICUT PORTFOLIO NUMBER OF EXECUTED LEASES 7 7 SQUARE FOOTAGE 30,638 30,638 AVERAGE RENT $32.24 AVERAGE EFFECTIVE RENT $30.41 NEW JERSEY PORTFOLIO NUMBER OF EXECUTED LEASES 14 14 SQUARE FOOTAGE 88,420 88,420 AVERAGE RENT $24.08 AVERAGE EFFECTIVE RENT $21.40 NEW YORK CITY PORTFOLIO NUMBER OF EXECUTED LEASES 9 9 SQUARE FOOTAGE 84,718 84,718 AVERAGE RENT $46.54 AVERAGE EFFECTIVE RENT $41.20 RENEWALS LEASES EXPIRING DURING PERIOD 32 8 1 41 SQUARE FOOTAGE EXPIRING DURING PERIOD 177,477 51,746 9,297 238,520 SQUARE FOOTAGE RENEWED DURING PERIOD 117,625 37,346 0 154,971 RENEWAL PERCENTAGE 66.3% 72.2% 0.0% 65.0% TOTAL PORTFOLIO 12 MONTHS ENDED SEPTEMBER 30, 2000 ------------------------------------ RESEARCH & OFFICE (4) INDUSTRIAL (5) DEVELOPMENT (6) TOTAL ------------ ---------------- ----------------- ------- EXECUTED LEASES (8) TOTAL PORTFOLIO NUMBER OF EXECUTED LEASE 252 40 8 300 SQUARE FOOTAGE 2,497,900 1,024,318 103,452 3,625,670 AVERAGE RENT $28.29 $6.94 $12.24 AVERAGE EFFECTIVE RENT $25.53 $6.54 $11.01 LONG ISLAND PORTFOLIO NUMBER OF EXECUTED LEASES 73 40 8 121 SQUARE FOOTAGE 678,587 1,024,318 103,452 1,806,357 AVERAGE RENT $27.93 $6.94 $12.24 AVERAGE EFFECTIVE RENT $25.24 $6.54 $11.01 WESTCHESTER PORTFOLIO NUMBER OF EXECUTED LEASES 75 75 SQUARE FOOTAGE 882,010 882,010 AVERAGE RENT $25.46 AVERAGE EFFECTIVE RENT $23.13 CONNECTICUT PORTFOLIO NUMBER OF EXECUTED LEASES 27 27 SQUARE FOOTAGE 141,361 141,361 AVERAGE RENT $27.67 AVERAGE EFFECTIVE RENT $25.27 NEW JERSEY PORTFOLIO NUMBER OF EXECUTED LEASES 52 52 SQUARE FOOTAGE 532,818 532,818 AVERAGE RENT $26.01 AVERAGE EFFECTIVE RENT $23.37 NEW YORK CITY PORTFOLIO NUMBER OF EXECUTED LEASES 25 25 SQUARE FOOTAGE 263,124 263,124 AVERAGE RENT $43.67 AVERAGE EFFECTIVE RENT $38.86 RENEWALS LEASES EXPIRING DURING PERIOD 163 44 9 216 SQUARE FOOTAGE EXPIRING DURING PERIOD 1,256,981 540,375 193,956 1,991,312 SQUARE FOOTAGE RENEWED DURING PERIOD 803,345 369,592 143,491 1,316,428 RENEWAL PERCENTAGE 63.9% 68.4% 74.0% 66.1% (1) Included in the total square footage is 453,445 square feet of non-incremental leases that, on average, at expiration, were paying a Base Rent of $23.61 / square foot and a straightline rent of $23.02 / square foot. These leases were renewed or released at an average starting Base Rent of $25.98 and at a straightline rent of $27.99 / square foot. (2) Included in the total square footage is 49,773 square feet of non-incremental leases that, on average, at expiration, were paying a Base Rent of $6.85 / square foot and a straightline rent of $6.78/ square foot. These leases were renewed or released at an average starting Base Rent of $7.53 and at a straightline rent of $7.97 / square foot. (3) Included in the total square footage is 0 square feet of non-incremental leases. (4) Included in the total square footage is 1,454,164 square feet of non-incremental leases that, on average, at expiration, were paying a Base Rent of $24.02 / square foot and a straightline rent of $23.51 / square foot. These leases were renewed or released at an average starting Base Rent of $25.89 and at a straightline rent of $27.53 / square foot. (5) Included in the total square footage is 507,852 square feet of non-incremental leases that, on average, at expiration, were (5) paying a Base Rent of $5.75 / square foot and a straightline rent of $5.40 / square foot. These leases were renewed or released at an average starting Base Rent of $6.07 and at a straightline rent of $6.47 / square foot. (6) Included in the total square footage is 88,511 square feet of non-incremental leases that, on average, at expiration, were paying a Base Rent of $10.02 / square foot and a straightline rent of $9.64 / square foot. These leases were renewed or released at an average starting Base Rent of $11.28 and at a straightline rent of $11.70 / square foot. (7) Base Rent is equal to annualized base rent plus non-recoverable operating expense pass-throughs. (8) Includes new and renewed leases during the period. 17

OFFICE PORTFOLIO NUMBER OF LEASES CUMULATIVE EXPIRING SQUARE FEET EXPIRING % SQUARE FEET EXPIRING SQUARE FEET EXPIRING -------- -------------------- ---------------------- -------------------- YEAR OF EXPIRATION 6/00 9/00 6/00 9/00 6/00 9/00 6/00 9/00 - ------------------ ---- ---- ---- ---- ---- ---- ---- ---- 2000 76 44 374,304 175,296 2.9% 1.3% 2.9% 1.3% 2001 149 144 1,012,425 977,999 7.8% 7.4% 10.7% 8.7% 2002 145 143 1,339,929 1,173,551 10.4% 8.9% 21.1% 17.6% 2003 139 139 1,199,306 1,182,580 9.3% 9.0% 30.3% 26.6% 2004 149 149 1,241,640 1,236,469 9.6% 9.4% 39.9% 36.0% 2005 161 213 1,780,234 1,973,850 13.8% 15.0% 53.7% 50.9% 2006 and thereafter 270 291 5,995,040 6,473,669 46.3% 49.1% 100.0% 100.0% --- --- --------- --------- ---- ---- Total 1,089 1,123 12,942,878 13,193,414 100.0% 100.0% ===== ===== ========== ========== ===== ===== INDUSTRIAL / R&D PORTFOLIO NUMBER OF LEASES CUMULATIVE EXPIRING SQUARE FEET EXPIRING % SQUARE FEET EXPIRING SQUARE FEET EXPIRING -------- -------------------- ---------------------- -------------------- YEAR OF EXPIRATION 6/00 9/00 6/00 9/00 6/00 9/00 6/00 9/00 - ------------------ ---- ---- ---- ---- ---- ---- ---- ---- 2000 21 12 299,055 226,654 4.8% 3.6% 4.8% 3.6% 2001 37 35 720,879 653,259 11.5% 10.5% 16.3% 14.1% 2002 29 29 358,964 358,964 5.7% 5.7% 22.1% 19.8% 2003 35 35 1,029,298 975,882 16.5% 15.6% 38.5% 35.5% 2004 44 44 763,303 763,303 12.2% 12.2% 50.8% 47.7% 2005 18 22 662,168 756,227 10.6% 12.1% 61.4% 59.8% 2006 and thereafter 57 62 2,414,817 2,510,368 38.6% 40.2% 100.0% 100.0% ----- ----- ---------- ---------- ----- ----- Total 241 239 6,248,484 6,244,657 100.0% 100.0% ===== ===== ========== ========== ===== ===== TOTAL PORTFOLIO NUMBER OF LEASES CUMULATIVE EXPIRING SQUARE FEET EXPIRING % SQUARE FEET EXPIRING SQUARE FEET EXPIRING -------- -------------------- ---------------------- -------------------- YEAR OF EXPIRATION 6/00 9/00 6/00 9/00 6/00 9/00 6/00 9/00 - ------------------ ---- ---- ---- ---- ---- ---- ---- ---- 2000 97 56 673,359 401,950 3.5% 2.1% 3.5% 2.1% 2001 186 179 1,733,304 1,631,258 9.0% 8.4% 12.5% 10.5% 2002 174 172 1,698,893 1,532,515 8.9% 7.9% 21.4% 18.3% 2003 174 174 2,228,604 2,158,462 11.6% 11.1% 33.0% 29.4% 2004 193 193 2,004,943 1,999,772 10.4% 10.3% 43.5% 39.7% 2005 179 235 2,442,402 2,730,077 12.7% 14.0% 56.2% 53.8% 2006 and thereafter 327 353 8,409,857 8,984,037 43.8% 46.2% 100.0% 100.0% ----- ----- ---------- ---------- ----- ----- Total 1,330 1,362 19,191,362 19,438,071 100.0% 100.0% ===== ===== ========== ========== ===== ===== 18

RECKSON ASSOCIATES REALTY CORP. LEASE EXPIRATION COMPARISON SEPTEMBER 30, 2000 LONG ISLAND OFFICE (EXCLUDING OMNI) NUMBER OF LEASES EXPIRING SQUARE FEET EXPIRING % SQUARE FEET EXPIRING ------------------ ----------------------- ------------------------ YEAR OF EXPIRATION 6/00 9/00 6/00 9/00 6/00 9/00 ------ ------- --------- --------- ------- ------- 2000 21 13 57,738 37,717 1.9% 1.2% 2001 42 40 193,716 179,285 6.3% 5.8% 2002 35 33 287,016 165,462 9.3% 5.3% 2003 50 49 310,620 291,296 10.1% 9.4% 2004 45 45 275,654 275,654 9.0% 8.9% 2005 56 67 557,431 603,218 18.1% 19.5% 2006 and thereafter 78 85 1,389,520 1,543,154 45.2% 49.8% --- --- --------- --------- ------ ------ Total/Weighted Average 327 332 3,071,695 3,095,786 100.0% 100.0% ==== ==== ========= ========= ====== ====== PER SQUARE FOOT S/L PER SQUARE FOOT RENT RENT (1) (2) --------------------- ---------------------- YEAR OF EXPIRATION 6/00 9/00 6/00 9/00 --------- ------- ------- ------- 2000 $20.43 $21.01 $22.65 $23.39 2001 $22.44 $22.94 $24.45 $24.62 2002 $21.86 $22.24 $24.21 $24.82 2003 $22.17 $22.12 $25.08 $25.09 2004 $23.04 $23.04 $25.73 $25.84 2005 $22.87 $22.17 $25.16 $24.66 2006 and thereafter -- -- -- -- (1) Per Square Foot Rent represents annualized straightline rent as of the lease expiration date. (2) Per Square Foot Rent represents annualized base rent as of the lease expiration date plus non-recoverable operating expense pass-throughs. 19

OMNI NUMBER OF LEASES EXPIRING SQUARE FEET EXPIRING % SQUARE FEET EXPIRING ------------------ ----------------------- ------------------------ YEAR OF EXPIRATION 6/00 9/00 6/00 9/00 6/00 9/00 ------ ------ ------ ------ ------ ------ 2000 -- -- -- -- -- -- 2001 4 4 32,680 32,680 5.8% 5.6% 2002 4 4 129,351 80,060 22.8% 13.8% 2003 6 6 81,809 81,809 14.4% 14.1% 2004 4 4 112,414 112,414 19.8% 19.4% 2005 6 7 59,115 59,166 10.4% 10.2% 2006 and thereafter 6 8 152,411 214,323 26.8% 36.9% -- -- ------- ------- ------ ------ Total / Weighted Average 30 33 567,780 580,452 100.0% 100.0% == == ======= ======= ====== ====== PER SQUARE FOOT S/L PER SQUARE FOOT RENT RENT (1) (2) --------------------- --------------------- YEAR OF EXPIRATION 6/00 9/00 6/00 9/00 ------ ------ ------ ------ 2000 -- -- -- -- 2001 $27.39 $27.39 $32.92 $34.02 2002 $30.00 $26.23 $38.62 $30.60 2003 $29.60 $29.60 $33.87 $34.59 2004 $26.05 $26.05 $33.44 $33.44 2005 $27.91 $27.99 $34.38 $34.47 2006 and thereafter -- -- -- -- (1) Per Square Foot Rent represents annualized straightline rent as of the lease expiration date. (2) Per Square Foot Rent represents annualized base rent as of the lease expiration date plus non-recoverable operating expense pass-throughs. 20

WESTCHESTER OFFICE NUMBER OF LEASES EXPIRING SQUARE FEET EXPIRING % SQUARE FEET EXPIRING ------------------ ---------------------- ---------------------- YEAR OF EXPIRATION 6/00 9/00 6/00 9/00 6/00 9/00 ------ ------ ------ ------ ------ 2000 22 12 118,125 39,684 3.9% 1.3% 2001 38 39 253,217 255,484 8.3% 8.2% 2002 48 47 459,216 459,105 15.1% 14.8% 2003 42 43 259,105 263,153 8.5% 8.5% 2004 26 26 164,609 158,602 5.4% 5.1% 2005 29 48 302,342 381,712 9.9% 12.3% 2006 and thereafter 40 46 1,483,874 1,539,039 48.8% 49.7% --- --- --------- --------- ------ ------ Total / Weighted Average 245 261 3,040,488 3,096,779 100.0% 100.0% === === ========= ========= ====== ====== PER SQUARE FOOT S/L PER SQUARE FOOT RENT RENT (1) (2) --------------------- --------------------- YEAR OF EXPIRATION 6/00 9/00 6/00 9/00 -------- -------- -------- ------- 2000 $20.53 $21.57 $21.07 $21.50 2001 $20.79 $20.73 $21.07 $21.12 2002 $20.12 $20.20 $20.37 $20.47 2003 $21.90 $21.94 $23.14 $23.26 2004 $21.27 $21.08 $22.01 $22.04 2005 $22.52 $24.97 $23.57 $25.17 2006 and thereafter -- -- -- -- (1) Per Square Foot Rent represents annualized straightline rent as of the lease expiration date. (2) Per Square Foot Rent represents annualized base rent as of the lease expiration date plus non-recoverable operating expense pass-throughs. 21

STAMFORD OFFICE NUMBER OF LEASES EXPIRING SQUARE FEET EXPIRING % SQUARE FEET EXPIRING -------- -------------------- ---------------------- YEAR OF EXPIRATION 6/00 9/00 6/00 9/00 6/00 9/00 - ------------------ ---- ---- ---- ---- ---- ---- 2000 18 10 83,909 30,373 8.0% 2.9% 2001 23 22 112,738 136,087 10.7% 12.9% 2002 19 20 100,029 100,199 9.5% 9.5% 2003 13 14 94,448 95,298 9.0% 9.1% 2004 21 20 224,424 221,929 21.3% 21.1% 2005 12 23 80,132 109,943 7.6% 10.4% 2006 and thereafter 19 20 357,199 359,099 33.9% 34.1% --- --- --------- --------- ------ ------ Total / Weighted Average 125 129 1,052,879 1,052,928 100.0% 100.0% ==== ==== ========= ========= ====== ====== PER SQUARE FOOT S/L PER SQUARE FOOT RENT RENT (1) (2) YEAR OF EXPIRATION 6/00 9/00 6/00 9/00 - ------------------ ---- ---- ---- ---- 2000 $21.52 $21.22 $22.39 $21.22 2001 $24.46 $22.58 $24.16 $25.11 2002 $27.15 $27.39 $28.31 $28.30 2003 $31.61 $31.50 $32.41 $32.26 2004 $22.85 $22.85 $23.71 $23.74 2005 $26.79 $28.28 $29.02 $30.27 2006 and thereafter -- -- -- -- (1) Per Square Foot Rent represents annualized straightline rent as of the lease expiration date. (2) Per Square Foot Rent represents annualized base rent as of the lease expiration date plus non-recoverable operating expense pass-throughs. 22

NEW JERSEY OFFICE NUMBER OF LEASES EXPIRING SQUARE FEET EXPIRING % SQUARE FEET EXPIRING -------- -------------------- ---------------------- YEAR OF EXPIRATION 6/00 9/00 6/00 9/00 6/00 9/00 - ------------------ ---- ---- ---- ---- ---- ---- 2000 7 4 29,478 12,054 1.5% 0.6% 2001 21 21 247,144 239,999 12.8% 12.3% 2002 21 21 180,187 184,595 9.4% 9.4% 2003 21 20 337,598 335,298 17.5% 17.2% 2004 35 34 248,891 244,184 12.9% 12.5% 2005 28 34 343,777 382,221 17.8% 19.6% 2006 and thereafter 17 18 539,228 555,154 28.0% 28.4% --- --- --------- --------- ------ ------ Total / Weighted Average 150 152 1,926,303 1,953,505 100.0% 100.0% ==== ==== ========= ========= ====== ====== PER SQUARE FOOT S/L PER SQUARE FOOT RENT RENT (1) (2) -------- --- YEAR OF EXPIRATION 6/00 9/00 6/00 9/00 ---- ---- ---- ---- 2000 $17.20 $20.54 $17.68 $21.49 2001 $17.68 $17.85 $17.95 $18.08 2002 $19.92 $19.80 $20.41 $20.43 2003 $20.02 $19.94 $20.21 $20.04 2004 $22.69 $22.44 $23.13 $22.98 2005 $22.47 $22.56 $23.12 $23.61 2006 and thereafter -- -- -- -- (1) Per Square Foot Rent represents annualized straightline rent as of the lease expiration date. (2) Per Square Foot Rent represents annualized base rent as of the lease expiration date plus non-recoverable operating expense pass-throughs. 23

NEW YORK CITY OFFICE NUMBER OF LEASES EXPIRING SQUARE FEET EXPIRING % SQUARE FEET EXPIRING -------- -------------------- ---------------------- YEAR OF EXPIRATION 6/00 9/00 6/00 9/00 6/00 9/00 - ------------------ ---- ---- ---- ---- ---- ---- 2000 8 5 85,054 55,468 2.6% 1.6% 2001 21 18 172,930 134,464 5.3% 3.9% 2002 18 18 184,130 184,130 5.6% 5.4% 2003 7 7 115,726 115,726 3.5% 3.4% 2004 18 20 215,648 223,686 6.6% 6.6% 2005 30 34 437,437 437,590 13.3% 12.8% 2006 and thereafter 110 114 2,072,808 2,262,900 63.1% 66.3% --- --- --------- --------- ------ ------ Total / Weighted Average 212 216 3,283,733 3,413,964 100.0% 100.0% ==== ==== ========= ========= ====== ====== PER SQUARE FOOT S/L PER SQUARE FOOT RENT RENT (1) (2) -------- --- YEAR OF EXPIRATION 6/00 9/00 6/00 9/00 ------------------ ---- ---- ---- ---- 2000 $30.12 $38.28 $31.68 $38.32 2001 $37.24 $33.07 $35.12 $30.43 2002 $31.98 $32.02 $32.83 $32.87 2003 $31.89 $31.89 $32.34 $32.34 2004 $35.83 $36.74 $36.97 $37.72 2005 $34.63 $35.58 $35.94 $36.89 2006 and thereafter -- -- -- -- (1) Per Square Foot Rent represents annualized straightline rent as of the lease expiration date. (2) Per Square Foot Rent represents annualized base rent as of the lease expiration date plus non-recoverable operating expense pass-throughs. 24

INDUSTRIAL NUMBER OF LEASES EXPIRING SQUARE FEET EXPIRING % SQUARE FEET EXPIRING ----------------- -------------------------- ------------------------ YEAR OF EXPIRATION 6/00 9/00 6/00 9/00 6/00 9/00 ------ ------ ------ ------ ----- ------ 2000 18 10 276,554 213,450 5.6% 4.3% 2001 30 28 624,759 557,139 12.6% 11.2% 2002 26 26 240,344 240,344 4.8% 4.8% 2003 29 30 728,234 731,234 14.7% 14.7% 2004 34 34 634,085 634,085 12.8% 12.8% 2005 15 18 368,464 396,810 7.4% 8.0% 2006 and thereafter 44 49 2,097,360 2,192,911 42.2% 44.2% --- --- --------- --------- ------ ------ Total / Weighted Average 196 195 4,969,800 4,965,973 100.0% 100.0% === === ========= ========= ====== ====== PER SQUARE FOOT S/L PER SQUARE FOOT RENT RENT (1) (2) -------------------- ---------------------- YEAR OF EXPIRATION 6/00 9/00 6/00 9/00 ------ ------ ------ ------ 2000 $5.43 $4.74 $6.10 $5.43 2001 $5.79 $5.42 $7.00 $6.77 2002 $6.43 $6.43 $7.19 $7.19 2003 $5.29 $5.30 $6.10 $6.11 2004 $6.40 $6.40 $7.07 $7.10 2005 $5.65 $5.81 $7.91 $7.96 2006 and thereafter -- -- -- -- (1) Per Square Foot Rent represents annualized straightline rent as of the lease expiration date. (2) Per Square Foot Rent represents annualized base rent as of the lease expiration date plus non-recoverable operating expense pass-throughs. 25

RESEARCH AND DEVELOPMENT NUMBER OF LEASES EXPIRING SQUARE FEET EXPIRING % SQUARE FEET EXPIRING ----------------- ------------------------- ------------------------ YEAR OF EXPIRATION 6/00 9/00 6/00 9/00 6/00 9/00 ------ ------ ------ ------ ----- ----- 2000 3 2 22,501 13,204 1.8% 1.0% 2001 7 7 96,120 96,120 7.5% 7.5% 2002 3 3 118,620 118,620 9.3% 9.3% 2003 6 5 301,064 244,648 23.5% 19.1% 2004 10 10 129,218 129,218 10.1% 10.1% 2005 3 4 293,704 359,417 23.0% 28.1% 2006 and thereafter 13 13 317,457 317,457 24.8% 24.8% -- -- --------- --------- ------ ------ Total / Weighted Average 45 44 1,278,684 1,278,684 100.0% 100.0% == == ========= ========= ====== ====== PER SQUARE FOOT S/L PER SQUARE FOOT RENT RENT (1) (2) -------------------- ---------------------- YEAR OF EXPIRATION 6/00 9/00 6/00 9/00 ------ ------ ------ ------ 2000 $12.49 $15.04 $11.06 $11.60 2001 $11.61 $11.61 $13.21 $13.21 2002 $10.19 $10.19 $11.80 $11.80 2003 $5.72 $5.01 $6.71 $5.88 2004 $11.98 $11.98 $13.43 $13.43 2005 $8.08 $8.33 $8.86 $9.27 2006 and thereafter -- -- -- -- (1) Per Square Foot Rent represents annualized straightline rent as of the lease expiration date. (2) Per Square Foot Rent represents annualized base rent as of the lease expiration date plus non-recoverable operating expense pass-throughs. 26

RECKSON ASSOCIATES REALTY CORP. LEASE EXPIRATION COMPARISON SEPTEMBER 30, 2000 EXPIRING RENT VS. MARKET RENT SUBURBAN OFFICE PORTFOLIO RECKSON ASSOCIATES REALTY CORP. LEASE EXPIRATION COMPARISON SEPTEMBER 30, 2000 EXPIRING RENT VS. MARKET RENT SUBURBAN OFFICE PORTFOLIO Long Island Westchester New Jersey ----------- ----------- ---------- Expiring Rent(1) $23.32 $21.87 $20.72 Market Rent(2) $28.88 $27.65 $29.69 ------ ------ ------ Increase 24% 26% 43% (1) Represents average rents for leases expiring over the next 6 years (2) Average asking rents as provided by Cushman & Wakefield Source: Cushman & Wakefield 27

RECKSON ASSOCIATES REALTY CORP. LEASE EXPIRATION COMPARISON SEPTEMBER 30, 2000 EXPIRING RENT VS. MARKET RENT CBD OFFICE PORTFOLIO RECKSON ASSOCIATES REALTY CORP. LEASE EXPIRATION COMPARISON SEPTEMBER 30, 2000 EXPIRING RENT VS. MARKET RENT CBD OFFICE PORTFOLIO Connecticut New York City ----------- ------------- Expiring Rent(1) $25.43 $34.42 Market Rent(2) $39.69 $57.64 ------ ------ Increase 56% 67% (1) Represents average rents for leases expiring over the next 6 years (2) Average asking rents as provided by Cushman & Wakefield Source: Cushman & Wakefield 28

RECKSON ASSOCIATES REALTY CORP. PORTFOLIO SNAPSHOT (BASED ON 3RD QUARTER 2000) [GRAPHICS OMITTED] SQUARE FEET - GEOGRAPHIC SQUARE FEET - NOI - GEOGRAPHIC DISTRIBUTION PROPERTY TYPE DISTRIBUTION NOI - PROPERTY TYPE Long Island 47% Office 68% Long Island 33% Office 85% New York City 17% Industrial 32% New York City 22% Industrial 15% Westchester 17% Westchester 20% Total Connecticut 7% Connecticut 10% New Jersey 12% New Jersey 15% REVENUE - GEOGRAPHIC REVENUE - PROPERTY FFO - GEOGRAPHIC DISTRIBUTION TYPE DISTRIBUTION FFO - PROPERTY TYPE Long Island 33% Office 88% Long Island 30% Office 86% New York City 27% Industrial 12% New York City 31% Industrial 14% Westchester 20% Total Westchester 18% Connecticut 8% Connecticut 8% New Jersey 12% New Jersey 13% 29

RECKSON ASSOCIATES REALTY CORP. PORTFOLIO SNAPSHOT - PRO FORMA FOR JOINT VENTURE TRANSACTION AND 919 3RD AVENUE FREE RENT ADDBACK [GRAPHIC OMITTED] [GRAPHIC OMITTED] [GRAPHIC OMITTED] [GRAPHIC OMITTED] [GRAPHIC OMITTED] [GRAPHIC OMITTED] [GRAPHIC OMITTED] [GRAPHIC OMITTED] SQUARE FEET DISTRIBUTION - REGIONAL Long Island 47% New York City 17% Westchester 17% Connecticut 7% New Jersey 12% REVENUE - GEOGRAPHIC DISTRIBUTION Long Island 30% New York City 33% Westchester 19% Connecticut 7% New Jersey 11% NOI - GEOGRAPHIC DISTRIBUTION Long Island 30% New York City 32% Westchester 18% Connecticut 7% New Jersey 13% FFO - GEOGRAPHIC DISTRIBUTION Long Island 30% New York City 32% Westchester 18% Connecticut 7% New Jersey 13% SQUARE FEET DISTRIBUTION - PROPERTY TYPE Office 67% Industrial 33% REVENUE - PROPERTY TYPE Office 88% Industrial 12% NOI - PROPERTY TYPE Office 86% Industrial 14% FFO - PROPERTY TYPE Office 86% Industrial 14% 30

NON-INCREMENTAL REVENUE GENERATING CAPITAL EXPENDITURES, TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS The following table summarizes the expenditures incurred for capital expenditures for the entire portfolio and tenant improvements and leasing commissions for space leased at the Company's office and industrial properties for the nine month period ended September 30, 2000 and the historical average of such capital expenditures, tenant improvements and leasing commissions for the years 1996 through 1999. NON-INCREMENTAL REVENUE GENERATING CAPITAL EXPENDITURES 1996-1999 1996 1997 1998 1999 average 2000 ---- ---- ---- ---- ------- ---- SUBURBAN OFFICE PROPERTIES Total $375,026 $1,108,675 $2,004,976 $2,298,899 $1,446,894 $2,376,738 Per Square Foot 0.13 0.22 0.23 0.23 0.20 0.24 CBD OFFICE PROPERTIES Total N/A N/A N/A N/A N/A $916,657 Per Square Foot N/A N/A N/A N/A N/A 0.43 INDUSTRIAL PROPERTIES Total $670,751 $733,233 $1,205,266 $1,048,688 $914,484 $658,848 Per Square Foot 0.18 0.15 0.12 0.11 0.14 0.09 NON-INCREMENTAL REVENUE GENERATING TENANT IMPROVEMENTS AND LEASING COMMISSIONS 1996-1999 1996 1997 1998 1999 average 2000 New Renewal ---- ---- ---- ---- ------- ---- --- ------- LONG ISLAND OFFICE PROPERTIES Tenant Improvements $523,574 $784,044 $1,140,251 $1,009,357 $864,307 $2,373,409 $1,086,105 $1,287,304 Per Square Foot Improved 4.28 7.00 3.98 4.73 5.00 6.37 5.83 6.91 Leasing Commissions $119,047 $415,822 $418,191 $551,762 $376,206 $1,995,078 $483,467 $1,511,611 Per Square Foot Leased 0.97 4.83 1.46 2.59 2.46 4.88 2.60 6.78 -------- -------- -------- -------- -------- ---------- -------- ---------- Total Per Square Foot $5.25 $11.83 $5.44 $7.32 $7.46 $11.25 $8.43 $13.69 ======== ======== ======== ======== ======== ========== ======== ========== WESTCHESTER OFFICE PROPERTIES Tenant Improvements $834,764 $1,211,665 $711,160 $1,316,611 $1,018,550 $992,895 $630,823 $362,072 Per Square Foot Improved 6.33 8.90 4.45 5.62 6.33 4.39 5.01 3.62 Leasing Commissions $264,388 $366,257 $286,150 $457,730 $343,631 $340,099 $311,353 $28,746 Per Square Foot Leased 2.00 2.69 1.79 1.96 2.11 3.00 2.47 0.29 -------- -------- -------- -------- -------- ---------- -------- ---------- Total Per Square Foot $8.33 $11.59 $6.24 $7.58 $8.44 $7.39 $7.48 $3.91 ======== ======== ======== ======== ======== ========== ======== ========== CONNECTICUT OFFICE PROPERTIES (A) Tenant Improvements $58,000 $1,022,421 $202,880 $179,043 $449,952 $342,973 $329,488 $13,485 Per Square Foot Improved 12.45 13.39 5.92 4.88 9.16 4.86 7.63 0.49 Leasing Commissions $0.00 $256,615 $151,063 $110,252 $159,363 $277,483 $227,602 $49,881 Per Square Foot Leased 0.00 3.36 4.41 3.00 2.69 3.93 5.27 1.82 -------- -------- -------- -------- -------- ---------- -------- ---------- Total Per Square Foot $12.45 $16.75 $10.33 $7.88 $11.85 $8.79 $12.90 $2.31 ======== ======== ======== ======== ======== ========== ======== ========== NEW JERSEY OFFICE PROPERTIES Tenant Improvements N/A N/A $654,877 $454,054 $554,465 $1,724,101 $858,207 $865,894 Per Square Foot Improved N/A N/A 3.78 2.29 3.03 8.11 6.52 10.71 Leasing Commissions N/A N/A $396,127 $787,065 $591,596 $1,205,706 $594,683 $611,023 Per Square Foot Leased N/A N/A 2.08 3.96 3.02 5.76 4.64 7.55 -------- -------- -------- -------- -------- ---------- -------- ---------- Total Per Square Foot N/A N/A $5.86 $6.25 $6.05 $13.87 $11.16 $18.26 ======== ======== ======== ======== ======== ========== ======== ========== NEW YORK CITY OFFICE PROPERTIES Tenant Improvements N/A N/A N/A N/A N/A $11,977 $11,977 $0 Per Square Foot Improved N/A N/A N/A N/A N/A $0.51 $3.19 0.00 Leasing Commissions N/A N/A N/A N/A N/A $212,673 $21,031 $191,642 Per Square Foot Leased N/A N/A N/A N/A N/A $9.01 $5.61 9.65 -------- -------- -------- -------- -------- ---------- -------- ---------- Total Per Square Foot N/A N/A N/A N/A N/A $9.52 $8.80 $9.65 ======== ======== ======== ======== ======== ========== ======== ========== INDUSTRIAL PROPERTIES Tenant Improvements $380,334 $230,466 $283,842 $375,646 $317,572 $360,691 $306,980 $53,711 Per Square Foot Improved 0.72 0.55 0.76 0.25 0.57 0.64 3.05 0.12 Leasing Commissions $436,213 $81,013 $200,154 $835,108 $388,122 $137,184 $44,353 $92,831 Per Square Foot Leased 0.82 0.19 0.44 0.56 0.50 0.24 0.44 0.20 -------- -------- -------- -------- -------- ---------- -------- ---------- Total Per Square Foot $1.54 $0.75 $1.20 $0.81 $1.07 $0.88 $3.49 $0.32 ======== ======== ======== ======== ======== ========== ======== ========== (A) 1996 - 1999 average weighted to reflect October 1996 acquisition date 31

MARKET STATISTICS ----------------- 32

RECKSON ASSOCIATES REALTY CORP. LONG ISLAND Class A Statistics DIRECT VACANCY AVERAGE ASKING RENTS -------------- -------------------- 1996 12.7% $23.83 1997 8.7% $26.14 1998 6.1% $27.23 (GRAPHIC OMITTED) 1999 5.6% $27.69 3Q00 4.4% $28.88 WESTCHESTER Class A Statistics DIRECT VACANCY AVERAGE ASKING RENTS -------------- -------------------- 1996 16.0% $23.67 1997 13.3% $25.14 1998 16.4% $26.67 (GRAPHIC OMITTED) 1999 15.0% $27.23 3Q00 13.9% $27.65 33

RECKSON ASSOCIATES REALTY CORP. SOUTHERN CONNECTICUT Class A Statistics DIRECT VACANCY AVERAGE ASKING RENTS -------------- -------------------- 1996 6.1% $26.19 1997 4.2% $28.96 1998 3.6% $32.22 (GRAPHIC OMITTED) 1999 4.0% $31.78 3Q00 2.7% $39.69 NORTHERN NEW JERSEY Class A Statistics DIRECT VACANCY AVERAGE ASKING RENTS -------------- -------------------- 1996 4.1% $24.55 1997 4.7% $25.38 1998 5.3% $27.42 (GRAPHIC OMITTED) 1999 4.6% $28.52 3Q00 4.8% $29.69 34

Reckson Associates Realty Corp. LONG ISLAND SUBMARKETS CLASS A OFFICE AVERAGE ASKING RENTS [GRAPHICS OMITTED] Source: Cushman & Wakefield Note: 46% of Long Island office revenue is derived from Central Nassau properties 28% of Long Island office revenue is derived from Western Suffolk properties 8% of Long Island office revenue is derived from Eastern Nassau properties 1996 1997 1998 1999 3000 Central Nassau County $25.76 $28.79 $29.10 $29.93 $30.90 Western Suffolk County $24.75 $26.55 $26.22 $27.34 $28.50 Eastern Nassau County $21.73 $25.22 $27.49 $26.23 $29.15 35

Reckson Associates Realty Corp. LONG ISLAND CLASS A OFFICE DIRECT VACANCY RATES [GRAPHIC OMITTED] Source: Cushman & Wakefield Note: 46% of Long Island office revenue is derived from Central Nassau properties. 28% of Long Island office revenue is derived from Western Suffolk properties. 8% of Long Island office revenue is derived from Eastern Nassau properties Note: The 9.0% vacany rate in Western Suffolk is primarily due to the availabilty of a formerly owner occupied 209,325 sf building which is currently in lease up. Excluding this building the vacancy rate is 6.2% CENTRAL NASSAU COUNTY 1996 1997 1998 1999 3Q00 WESTERN SUFFOLK COUNTY 11.0% 7.5% 5.1% 5.1% 3.6% EASTERN NASSAU COUNTY 8.2% 7.7% 7.7% 11.6% 9.0% 22.4% 6.4% 4.9% 0.9% 1.2% 36

Reckson Associates Realty Corp. WESTCHESTER SUBMARKETS CLASS A OFFICE AVERAGE ASKING RENTS [GRAPHIC OMITTED] Source: Cushman & Wakefield Note: 33% of Westchester office revenue is derived from Central properties 29% of Westchester office revenue is derived from Tarrytown / Western properties 20% of Westchester office revenue is derived from Eastern properties 9% of Westchester office revenue is derived from White Plains properties Tarrytown / Western Eastern Central White Plains CBD 1996 $23.50 $23.62 $22.30 $24.19 1997 $24.43 $26.53 $22.39 $25.09 1998 $24.66 $29.35 $22.91 $26.84 1999 $27.30 $27.70 $27.07 $27.44 3Q00 $26.86 $28.98 $28.07 $29.93 37

Reckson Associates Realty Corp. WESTCHESTER SUBMARKETS CLASS A OFFICE DIRECT VACANCY RATE [GRAPHIC OMITTED] Source: Cushman & Wakefield Note: 33% of Westchester office revenue is derived from Central properties 29% of Westchester office revenue is derived from Tarrytown / Western properties 20% of Westchester office revenue is derived from Eastern properties 9% of Westchester office revenue is derived from White Plains properties Note: The 13.5% vacancy in Central Westchester is impacted by IBM selling a 383,000 owner occupied building. The location of this building is not easily accessible to major thoroughfares and employee bedroom communities. Excluding this building the vacancy rate is 9.2% Tarrytown / Western Eastern Central White Plains CBD 1996 9.2% 11.5% 7.9% 21.2% 1997 7.9% 8.6% 5.7% 25.7% 1998 7.8% 12.2% 12.3% 22.7% 1999 8.0% 10.1% 13.5% 22.6% 3Q00 6.6% 8.3% 13.5% 16.0% 38

Reckson Associates Realty Corp. NEW JERSEY SUBMARKETS CLASS A OFFICE AVERAGE ASKING RENTS [GRAPHIC OMITTED] Source: Cushman & Wakefield Note: 57% of New Jersey office revenue is derived from Essex County office properties 13% of New Jersey office revenue is derived from Bergen County office 5% of New Jersey office revenue is derived from Mercer County office properties Essex County Bergen County Mercer County 1996 $23.84 $23.57 $22.11 1997 $26.47 $26.02 $23.01 1998 $27.74 $27.37 $24.49 1999 $28.78 $28.07 $27.46 3Q00 $28.23 $28.44 $29.07 39

Reckson Associates Realty Corp. NEW JERSEY SUBMARKETS CLASS A OFFICE DIRECT VACANCY RATE [GRAPHICS OMITTED] Source: Cushman & Wakefield Note: 57% of New Jersey office revenue is derived from Essex County office properties 13% of New Jersey office revenue is derived from Bergen County office properties 5% of New Jersey office revenue is derived from Mercer County office properties Mercer County Essex County Bergen County 1996 9.7% 9.0% 15.6% 1997 2.5% 4.7% 7.8% 1998 1.5% 3.3% 6.8% 1999 5.2% 6.0% 5.3% 3Q00 6.0% 4.6% 4.4% 40

Reckson Associates Realty Corp. NEW YORK CITY SUBMARKETS CLASS A OFFICE STATISTICS AVERAGE ASKING RENTS [GRAPHIC OMITTED] 1996 1997 1998 1999 3Q00 Midtown West Side $31.92 $33.10 $43.36 $48.28 $58.64 Financial East $30.80 $29.77 $40.21 $37.64 $48.16 Midtown East Side $36.27 $39.33 $47.85 $51.18 $60.38 6th Ave/Rockefeller $39.43 $43.62 $51.33 $53.12 $58.24 DIRECT VACANCY [GRAPHIC OMITTED] 1996 1997 1998 1999 3Q00 Midtown West Side 6.2% 3.7% 3.3% 4.6% 2.1% Financial East 16.0% 8.2% 6.6% 3.4% 1.4% Midtown East Side 7.6% 5.6% 6.0% 3.8% 2.2% 6th Ave/Rockefeller 4.8% 2.7% 2.2% 1.6% 0.4% Source: Cushman & Wakefield 50% of New York City office revenue is derived from Midtown West Side properties 21% of New York City office revenue is derived from 6th Ave./Rockefeller Center properties 15% of New York City office revenue is derived from Midtown East Side properties 14% of New York City office revenue is derived from Financial East properties 41

VALUE CREATION PIPELINE STATISTICS ----------------------------------- 42

RECKSON ASSOCIATES REALTY CORP. VALUE CREATION PIPELINE Anticipated Total Investment Acres / Initial Incremental Anticipated To Stage/Property Sq. Feet Investment Investment Investment Date - ------------------------------------------------------------------------------------------------------------------------------------ PROJECTS IN STABILIZATION PERIOD - -------------------------------- AIP 2002, Islip, NY 206,000 $1,026,000 $12,632,000 $13,658,000 $10,338,957 492 River Road, Nutley, NJ 130,009 $2,615,925 $10,287,385 $12,903,310 $8,968,693 390 Motor Parkway, Hauppauge, NY 181,155 $4,820,335 $1,781,269 $6,601,604 $5,233,529 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL PROJECTS IN STABILIZATION PERIOD 517,164 $8,462,260 $24,700,654 $33,162,914 $24,541,179 - ------------------------------------------------------------------------------------------------------------------------------------ PROJECTS UNDER DEVELOPMENT OR REPOSITIONING - ------------------------------------------- Melville Expressway Corporate Center, Melville, NY ( Phase I ) 277,500 $4,250,000 $39,196,000 $43,446,000 $26,250,200 100 Grasslands Road, Elmsford, NY 49,000 $563,000 $3,914,000 $4,477,000 $3,099,396 919 3rd Avenue, New York City, NY 1,374,966 $277,500,000 $92,455,000 $369,955,000 $288,000,129 50 Marcus Drive, Melville, NY 163,762 $2,930,000 $16,959,000 $19,889,000 $12,472,808 University Square , Princeton, NJ 315,000 $4,657,300 $45,739,700 $50,397,000 $7,520,938 AIP 2001, Islip, NY 71,000 $650,000 $5,042,000 $5,692,000 $1,503,554 400 Moreland Road, Commack, NY 56,875 $1,562,000 $1,405,000 $2,967,000 $2,740,014 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL PROJECTS UNDER DEVELOPMENT OR REPOSITIONING 2,308,103 $292,112,300 $204,710,700 $496,823,000 $341,587,039 - ------------------------------------------------------------------------------------------------------------------------------------ PROJECTS IN PLANNING - -------------------- Giralda Farms , Morris County, NJ (1) $5,000,000 $75,091,000 $80,091,000 $15,698,903 Reckson Executive Park, Rye Brook, NY 345,000 $8,000,000 $47,799,000 $55,799,000 $12,970,185 Landmark 7, Stamford, CT 61,000 $0 $13,208,000 $13,208,000 $18,167 Pilgrim State Facility, Commack, NY $4,100,000 $215,900,000 $220,000,000 $4,100,000 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL PROJECTS IN PLANNING 406,000 $17,100,000 $351,998,000 $369,098,000 $32,787,255 - ------------------------------------------------------------------------------------------------------------------------------------ LAND - ---- 155 White Plains Road, Tarrytown, NY 7.0 $700,000 $0 $700,000 $700,000 70 Andrews Road, Hicksville, NY 3.8 $487,500 $2,821,500 $3,309,000 $918,470 Melville Square Corporate Center II, Melville, NY 19.3 $5,732,621 $27,927,379 $33,660,000 $6,753,949 Old Willets Path, Hauppauge, NY 2.0 $595,000 $2,400,000 $2,995,000 $728,232 Melville Expressway Corporate Center, Melville, NY ( Phase II ) 16.5 $4,250,000 $45,040,000 $49,290,000 $7,289,045 Eagle Rock 3, East Hanover, NJ 15.0 $2,808,904 $14,816,096 $17,625,000 $3,688,253 AIP Recapture, Islip, NY 4.2 $0 $0 $0 $0 AIP, Islip NY 3.8 $0 $2,200,000 $2,200,000 $0 AIP, Islip NY 2.0 $0 $1,400,000 $1,400,000 $0 East Patchogue, East Patchogue, NY 23.0 $0 $0 $0 $0 40 Cragwood, South Plainfield, NJ 7.0 $0 $0 $0 $0 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL LAND 103.6 $14,574,025 $96,604,975 $111,179,000 $20,077,949 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL UNREALIZED PIPELINE $332,248,585 $678,014,329 $1,010,262,914 $418,993,422 - ------------------------------------------------------------------------------------------------------------------------------------ Anticipated Estimated Months Stabilized Current to Completion/ Stage/Property Return (2) Occupancy Business Plan Stabilization - ------------------------------------------------------------------------------------------------------------------------------------ PROJECTS IN STABILIZATION PERIOD - -------------------------------- Two leases executed for the entire building. Prepare AIP 2002, Islip, NY 13.1% 100.0% space for occupancy. 3-6 One lease executed for the entire building. Prepare 492 River Road, Nutley, NJ 16.4% 100.0% space for occupancy. 3-6 One lease executed for the entire building. Prepare 390 Motor Parkway, Hauppauge, NY 14.3% 100.0% space for occupancy. 3-6 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL PROJECTS IN STABILIZATION PERIOD 14.6% - ------------------------------------------------------------------------------------------------------------------------------------ PROJECTS UNDER DEVELOPMENT OR REPOSITIONING - ------------------------------------------- Commercial developement on Melville Expressway Corporate Phase I of commercial land Center, Melville, NY ( Phase I ) 12.0% 0.0% zoned for 550,000 SF 12-24 office development. Commenced repositioning of vacant building as an 100 Grasslands Road, Elmsford, office/warehouse/light NY 15.7% 21.6% assembly facility 9-15 Lease signed for 10,570 square feet. Obtain fee interest in 919 3rd Avenue, New York City, NY 11.5% 96.6% property. Complete 15 reposition of tenant space. Reposition vacant 50 Marcus Drive, Melville, NY 13.8% 0.0% industrial property into an 6-24 office building University Square , Commenced development on a Princeton, NJ 12.0% 0.0% 315,000 SF office building 36-48 Development of a 71,000 SF industrial building. This represents the last remaining AIP 2001, Islip, NY 12.2% 0.0% parcel in a development which 12-24 includes 3 fully leased industrial buildings encompassing 442,000 sf. Reposition vacant 400 Moreland Road, Commack, NY 13.1% 0.0% industrial property 12-18 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL PROJECTS UNDER DEVELOPMENT OR REPOSITIONING 11.7% - ------------------------------------------------------------------------------------------------------------------------------------

PROJECTS IN PLANNING - -------------------- Commercial land zoned for 430,000 SF office Giralda Farms , Morris County, development. Presently NJ (1) 11.0% marketing to 30-36 corporate users. Commercial land zoned for Reckson Executive Park, Rye 345,000 SF office Brook, NY 12.0% development. 18-36 Actively marketing to build to suits. Develop 61,000 sf building adjacent to existing Landmark Square office Landmark 7, Stamford, CT 12.3% complex. 18-24 1) Sell non-office and Pilgrim State Facility, non-industrial portion of Commack, NY 12.0% site 12-60 2) Development of 3 to 4 million SF of industrial / R&D space - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL PROJECTS IN PLANNING 11.8% - ------------------------------------------------------------------------------------------------------------------------------------ LAND - ---- 155 White Plains Road, Tarrytown, NY 40.0% Intended for sale 12 Development of 50,000 70 Andrews Road, Hicksville, NY 12.5% SF building 18 Melville Square Corporate Center Development of 255,000 SF II, Melville, NY 12.5% office building 24-30 Commercial land zoned for 30,000 SF industrial Old Willets Path, Hauppauge, NY 12.0% development. 18 Phase II of commercial land Melville Expressway Corporate zoned for 550,000 SF office Center, Melville, NY ( Phase II ) 13.0% development. 18-30 Development of 115,000 SF Eagle Rock 3, East Hanover, NJ 12.0% office building 24-36 AIP Recapture, Land lease to alternative Islip, NY 14.5% use ( hotel , retail ) 36 Development of 43,000 SF AIP, Islip NY 13.0% office/R&D use 36 Development of 30,000 SF AIP, Islip NY 12.5% office/R&D use 36 East Patchogue, East Patchogue, NY 12.0% Intended for sale 48 40 Cragwood, South Plainfield, NJ 12.0% Intended for sale 60 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL LAND 12.8% - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL UNREALIZED PIPELINE 12.0% - ------------------------------------------------------------------------------------------------------------------------------------ (1) Excludes $3.7 million of purchase price which is allocated to 113 acres on which an additional 650,000 SF of office space can be developed. (2) Forward looking statement based upon management's estimates. Actual results may differ materially. Anticipated Total Investment Acres / Initial Incremental Anticipated To Stage/Property Sq. Feet Investment Investment Investment Date - ------------------------------------------------------------------------------------------------------------------------------------ REALIZATION Investments that reached realization this quarter - ------------------------ 538 Broadhollow Rd. 180,339 sf 360 Hamilton Ave. 382,000 sf - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL REALIZATION 5,756,711 $353,287,273 (1) $524,826,657 $524,826,657 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL VALUE CREATION PIPELINE $685,535,858 $678,014,329 $1,535,089,571 $943,820,079 - ------------------------------------------------------------------------------------------------------------------------------------ Anticipated Estimated Months Stabilized Current to Completion/ Stage/Property Return (2) Occupancy Business Plan Stabilization - ------------------------------------------------------------------------------------------------------------------------------------ REALIZATION Investments that reached realization this quarter - ------------------------ 538 Broadhollow Rd. 180,339 sf 360 Hamilton Ave. 382,000 sf - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL REALIZATION 12.6% 94.7% - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL VALUE CREATION PIPELINE 12.2% - ------------------------------------------------------------------------------------------------------------------------------------ (1) Additional investment of $171,539,384 subsequent to acquisition. (2) Forward looking statement based upon management's estimates. Actual results may differ materially. 43