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: August 9, 2001 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 Reckson Operating Partnership, L.P. - incorporation or organization) 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 99.1 Supplemental Operating and Financial Data for the Quarter Ended June 30, 2001 ITEM 9. REGULATION FD DISCLOSURE For the quarter ended June 30, 2001, 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 99.1 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.
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned hereunto 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: August 9, 2001
RECKSON ASSOCIATES REALTY CORP.
SUPPLEMENTAL OPERATING AND FINANCIAL DATA
FOR THE SECOND QUARTER ENDED JUNE 30, 2001
Reporting Period Highlights
- ---------------------------
o Reported diluted FFO of $.70 per share for the second quarter of 2001, as
compared to $.65 per share for the comparable 2000 period, representing an
increase of 7.7%. FFO for the second quarter 2001 includes a $3.5 million
or $.04 per share charge to reserve against interest income accrued for the
quarter on the Company's two loans to Frontline Capital Group.
o Reported FFO for the six months ended June 30, 2001 of $1.38 per share, as
compared to FFO of $1.27 per share for the six months ended June 30, 2000,
representing a per share increase of 8.7%.
o Reported second quarter diluted EPS of $.32 per Class A common share, as
compared to EPS of $.40 per Class A common share for the second quarter of
2000. The decrease is attributable to a $6.7 million gain on sale of real
estate assets in the second quarter 2000 with no asset sales in the second
quarter of 2001. Adjusting for the gain on sale of real estate assets,
diluted EPS for the second quarter 2000 was $.30 per Class A common share
as compared to $.32 per Class A common share for the second quarter 2001
representing an increase of 6.7%.
o Generated a 9.6% increase (GAAP) and 8.5% increase (cash) in same property
NOI for the second quarter of 2001.
o Generated same space rent growth of 23.2% (GAAP) and 13.7% (cash) for
Office and 19.9% (GAAP) and 7.0% (cash) for Industrial/R&D for the second
quarter of 2001.
o Completed a $250 million ten year mortgage financing on 919 Third Avenue
with an interest rate of 6.867% per annum.
o Completed a $75 million five year mortgage financing on 1350 Avenue of the
Americas with an interest rate of 6.52% per annum.
o Continued leasing momentum at Reckson Executive Park in Melville, the
Company's newly developed Class A office building, with leased space now
totaling 86,762 square feet, representing 31% of the total rentable space.
o Completed dispositions of three non-core office assets totaling
approximately $32 million and entered into contracts to sell three
additional non-core office assets totaling approximately $53 million as
part of the Company's capital recycling program.
o Entered into a letter of intent to sell a 49% interest in 919 Third Avenue
to a domestic institutional pension fund.
o Moody's Investor Service reaffirmed the investment grade rating of Baa3 on
the Company's senior unsecured debt and maintained a stable rating outlook
opinion.
o Increased the dividend on the Company's Class A common stock by 10% and
increased the dividend on the Company's Class B common stock by 8.2%.
RECKSON ASSOCIATES REALTY CORP.
SUPPLEMENTAL OPERATING AND FINANCIAL DATA
FOR THE QUARTER ENDING JUNE 30, 2001
TABLE OF CONTENTS
-----------------
PAGE
----
o Company Background............................................................................. 1
o Summary Statement of Operating Data............................................................ 6
o Selected Financial Information................................................................. 7
o Funds from Operations Analysis................................................................. 8
o Cash Available for Distribution Analysis....................................................... 9
o Balance Sheet.................................................................................. 10
o Ratios Computed for Industry Comparisons....................................................... 11
o Total Debt & Preferred Securities.............................................................. 12
o Core Operating Results
o Occupancy Analysis........................................................................... 14
o Executed Lease and Renewal Analysis.......................................................... 17
o Lease Expiration Analysis.................................................................... 18
o Portfolio Snapshot........................................................................... 25
o Capital Expenditure Analysis................................................................. 27
o Market Statistics
o Market Overview Analysis..................................................................... 29
o Long Island Sub-market Analysis.............................................................. 30
o Westchester Sub-market Analysis.............................................................. 32
o New Jersey Sub-market Analysis............................................................... 34
o New York City Sub-market Analysis............................................................ 36
o Value Creation Pipeline Statistics............................................................. 38
Estimates of future FFO per share and certain other matters discussed herein are
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Although we believe the expectations reflected in
such forward-looking statements are based on reasonable assumptions,
forward-looking statements are not guarantees of results and no assurance can be
given that the expected results will be delivered. Such forward-looking
statements are subject to certain risks, trends and uncertainties that could
cause actual results to differ materially from those expected. Among those
risks, trends and uncertainties are the general economic climate, including the
conditions affecting industries in which our principal tenants compete; changes
in the supply of and demand for office and industrial properties in the New York
Tri-State area; changes in interest rate levels; downturns in rental rate levels
in our markets and our ability to lease or release space in a timely manner at
current or anticipated rental rate levels; the availability of financing to us
or our tenants; changes in operating costs, including utility costs; repayment
of debt owed to the Company by third parties (including FrontLine Capital
Group); risks associated with joint ventures; 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 us, reference
is made to our filings with the Securities and Exchange Commission. We are
subject to the reporting requirements of the Securities and Exchange Commission
and undertake no responsibility to update or supplement information contained in
this Supplemental Operating and Financial Data Package that subsequently becomes
untrue.
###
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 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.
Subsequently, Reckson expanded from its Long Island base and established
operating divisions in Westchester, Connecticut, New Jersey and 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
well-established relationships in each of their respective markets.
Through a predecessor entity, Reckson commenced operations in 1958 and grew
steadily through the 1960s, 1970s, 1980s and 1990s by developing and
redeveloping Class A office and industrial properties throughout Long Island.
Today, Reckson owns 185 properties comprised of approximately 21 million square
feet located throughout the New York Tri-State area markets. These properties
are comprised of 14.1 million square feet of office space and 6.9 million square
feet of industrial space. Reckson also owns approximately 283 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 16.5 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 176% for the period June 2, 1995 through June 30, 2001. 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
Michael Maturo Chief Financial Officer
Executive Vice President
Research Coverage
- -----------------
CIBC World Markets Anthony Paolone 212/667-8116
Credit Suisse First Boston Lawrence Raiman 212/538-2380
Deutsche Banc Alex. Brown Louis Taylor 212/469-4912
Goldman Sachs David Kostin/James Kammert 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 Steve Sakwa/Rahul Bhattacharjee 212/449-0335
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
2
Second Quarter Early August
Third Quarter Early November
Fourth Quarter and Year-End Late February
3
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:
- ---------------------------------------------------------------------- --------------- --------------- ------------------
1st 2nd July 1, 2001
Quarter Quarter to
2001 2001 August 3, 2001
- ---------------------------------------------------------------------- --------------- --------------- ------------------
High Price* $25.88 $ 23. 90 $22.91
- ---------------------------------------------------------------------- --------------- --------------- ------------------
Low Price* $ 21.90 $ 21.14 $21.90
- ---------------------------------------------------------------------- --------------- --------------- ------------------
Closing Price* $ 22.30 $ 23.00 $22.36
- ---------------------------------------------------------------------- --------------- --------------- ------------------
Average daily trading volume* 195,310 265,162 273,308
- ---------------------------------------------------------------------- --------------- --------------- ------------------
Indicated dividend per share** $ 1.544 $ 1.6984 $ 1.6984
- ---------------------------------------------------------------------- --------------- --------------- ------------------
Closing dividend yield 6.92% 7.38% 7.60%
- ---------------------------------------------------------------------- --------------- --------------- ------------------
Closing shares and units outstanding (thousands) 53,505 57,264 57,264
- ---------------------------------------------------------------------- --------------- --------------- ------------------
Closing market value of shares and units outstanding (thousands) $1,193,200 1,317,100 1,280,400
- ---------------------------------------------------------------------- --------------- --------------- ------------------
* New York Stock Exchange trades only
** On an annual basis
COMPARATIVE MARKET PERFORMANCE
[GRAPHIC OMITTED]
MONTHLY INDEXED CLASS A COMMON STOCK PRICE HISTORY
Reckson Office
Associates Wilshire Reit Industrial
Realty Index S&P 500 Composite
5/26/1995 100.00 100.00 100.00 100.00
5/31/1995 100.00 100.00 101.86 101.51
6/30/1995 99.49 101.16 104.03 103.08
7/31/1995 105.13 102.09 107.34 105.27
8/31/1995 106.15 102.49 107.30 105.19
9/29/1995 108.72 103.64 111.60 107.82
10/31/1995 110.26 100.01 111.05 106.07
11/30/1995 114.36 100.54 115.61 107.39
12/29/1995 120.51 105.61 117.62 116.53
1/31/1996 125.64 106.56 121.46 120.82
2/29/1996 120.00 107.56 122.30 125.01
3/29/1996 125.64 106.59 123.27 125.58
4/30/1996 122.05 106.03 124.93 134.14
5/31/1996 128.21 107.96 127.78 129.63
6/28/1996 135.38 109.08 128.07 128.41
7/31/1996 138.97 108.83 122.21 127.64
8/30/1996 145.13 112.68 124.51 135.69
9/30/1996 152.31 114.50 131.25 139.12
10/31/1996 146.15 116.92 134.68 134.11
11/29/1996 155.38 121.43 144.57 144.86
12/31/1996 173.33 134.46 141.46 161.06
1/31/1997 182.56 134.96 150.13 165.48
2/28/1997 187.69 133.91 151.02 165.16
3/31/1997 189.23 133.93 144.59 163.58
4/30/1997 189.74 128.59 153.03 151.17
5/30/1997 184.62 131.76 161.99 153.22
6/30/1997 188.72 138.04 169.03 161.38
7/31/1997 204.10 140.94 182.24 168.31
8/29/1997 197.95 139.59 171.77 169.46
9/30/1997 218.46 151.92 180.90 184.70
10/31/1997 214.87 146.76 174.66 178.50
11/28/1997 217.95 149.17 182.45 179.74
12/31/1997 208.21 151.19 185.32 185.66
1/30/1998 211.79 149.12 187.20 180.31
2/27/1998 206.67 145.53 200.39 174.92
3/31/1998 216.41 147.85 210.40 177.27
4/30/1998 201.03 142.25 212.31 169.53
5/29/1998 204.10 140.65 208.31 166.45
6/30/1998 193.85 139.73 216.53 161.95
7/31/1998 186.15 129.28 214.01 150.77
8/31/1998 175.90 116.59 182.81 134.72
9/30/1998 192.82 122.73 194.22 143.74
10/30/1998 186.15 119.76 209.81 137.06
Reckson Office
Associates Wilshire Reit Industrial
Realty Index S&P 500 Composite
11/30/1998 189.23 121.27 222.22 142.62
12/31/1998 182.05 117.73 234.74 142.95
1/29/1999 180.51 114.51 244.37 136.71
2/26/1999 174.36 112.32 236.48 133.98
3/31/1999 168.72 111.09 245.65 130.86
4/30/1999 184.62 121.27 254.98 145.75
5/28/1999 212.31 123.96 248.61 151.61
6/30/1999 193.33 120.74 262.14 148.80
7/30/1999 183.08 116.20 253.74 141.02
8/31/1999 170.26 114.43 252.16 141.14
9/30/1999 170.77 108.45 244.96 133.73
10/29/1999 151.79 105.62 260.27 128.71
11/30/1999 165.64 103.40 265.24 125.60
12/31/1999 168.21 105.99 280.58 134.07
1/31/2000 162.05 106.35 266.30 131.90
2/29/2000 151.79 104.14 260.94 130.06
3/31/2000 153.85 107.12 286.18 134.95
4/28/2000 164.62 114.20 277.37 143.91
5/31/2000 180.00 115.08 271.29 144.78
6/30/2000 194.87 116.87 277.78 151.13
7/31/2000 215.38 127.38 273.24 165.17
8/31/2000 199.49 122.01 289.83 155.70
9/29/2000 209.23 125.55 274.33 163.07
10/31/2000 185.64 119.63 272.97 155.64
11/30/2000 192.31 121.49 251.11 156.73
12/29/2000 205.64 128.65 252.13 166.54
1/31/2001 197.74 128.27 260.86 160.64
2/28/2001 191.18 125.57 236.79 157.01
3/30/2001 182.97 125.23 221.59 156.94
4/30/2001 192.90 127.46 238.61 159.88
5/31/2001 178.05 129.89 239.82 158.72
6/29/2001 188.72 136.65 233.82 171.19
7/31/2001 181.74 133.22 231.31 166.24
8/1/2001 182.73 134.02 232.20 166.90
Office Industrial Composite:
Brandywine Realty, SL Green Realty, Arden Realty, Prentiss Properties, Kilroy
Realty, Highwoods, Liberty Property, CarrAmerica, Equity Office, Mack-Cali
4
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:
- -------------------------------------------------------- --------------- --------------- ------------------
1st 2nd July 1, 2001
Quarter Quarter to
2001 2001 August 3, 2001
- -------------------------------------------------------- --------------- --------------- ------------------
High Price* $ 27.50 $ 25.00 $ 24.47
- -------------------------------------------------------- --------------- --------------- ------------------
Low Price* $ 22.90 $ 22.40 $ 23.29
- -------------------------------------------------------- --------------- --------------- ------------------
Closing Price* $ 23.55 $ 24.61 $ 23.90
- -------------------------------------------------------- --------------- --------------- ------------------
Average daily trading volume* 47,844 74,622 41,246
- -------------------------------------------------------- --------------- --------------- ------------------
Indicated dividend per share** $ 2.40 $ 2.5968 $ 2.5968
- -------------------------------------------------------- --------------- --------------- ------------------
Closing dividend yield 10.19% 10.55% 10.87%
- -------------------------------------------------------- --------------- --------------- ------------------
Closing shares outstanding (thousands) 10,284 10,284 10,284
- -------------------------------------------------------- --------------- --------------- ------------------
Closing market value of shares outstanding (thousands) $242,200 253,100 245,800
- -------------------------------------------------------- --------------- --------------- ------------------
* 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:
- ---------------------------------------------------------------------- --------------- --------------- ------------------
1st 2nd July 1, 2001
Quarter Quarter to
2001 2001 August 3, 2001
- ---------------------------------------------------------------------- --------------- --------------- ------------------
High Price* $ 24.13 $ 23.15 $23.10
- ---------------------------------------------------------------------- --------------- --------------- ------------------
Low Price* $ 21.00 $20.80 $ 21.95
- ---------------------------------------------------------------------- --------------- --------------- ------------------
Closing Price* $ 21.50 $23.15 $22.30
- ---------------------------------------------------------------------- --------------- --------------- ------------------
Average daily trading volume* 34,474 37,638 81,192
- ---------------------------------------------------------------------- --------------- --------------- ------------------
Indicated dividend per share** $ 1.9064 $ 1.9064 $ 1.9064
- ---------------------------------------------------------------------- --------------- --------------- ------------------
Closing dividend yield 8.87% 8.23% 8.55%
- ---------------------------------------------------------------------- --------------- --------------- ------------------
Closing shares outstanding (thousands) 9,192 9,192 9,192
- ---------------------------------------------------------------------- --------------- --------------- ------------------
Closing market value of shares outstanding (thousands) $197,600 212,800 205,000
- ---------------------------------------------------------------------- --------------- --------------- ------------------
* New York Stock Exchange trades only
** On an annual basis
5
RECKSON ASSOCIATES REALTY CORP.
SUMMARY STATEMENT OF OPERATING DATA
JUNE 30, 2001
(IN THOUSANDS)
Three months ended Six months ended
June 30, June 30,
----------------------- ----------------------
2001 2000 2001 2000
-------- ------- ------- --------
REVENUES:
- ---------------------------------------
Base rents $111,184 $96,099 $218,678 $190,499
Tenant escalation and reimbursements 14,165 12,984 30,110 25,830
-------- ------- ------- --------
125,349 109,083 248,788 216,329
-------- ------- ------- --------
OPERATING EXPENSES:
- ---------------------------------------
Operating expenses 23,453 20,634 47,223 42,574
Real estate taxes 17,421 15,874 34,645 32,223
-------- ------- ------- --------
Total operating expenses 40,874 36,508 81,868 74,797
-------- ------- ------- --------
NET OPERATING INCOME 84,475 72,575 166,920 141,532
GROSS MARGIN % 67.39% 66.53% 67.09% 65.42%
OTHER INCOME:
- ---------------------------------------
Equity in earnings of service companies and real estate joint ventures 801 1,775 1,199 3,187
Interest income on mortgage notes and notes receivable 1,559 2,190 3,067 4,476
Gain on sales of real estate - 6,662 - 6,662
Other 4,678 5,745 10,219 12,459
-------- ------- ------- --------
7,038 16,372 14,485 26,784
-------- ------- ------- --------
OTHER EXPENSES:
- ---------------------------------------
Interest expense 23,562 24,176 47,193 48,016
Marketing, general and administrative 8,411 6,509 15,908 12,947
Depreciation and amortization 27,172 22,426 50,693 43,437
-------- ------- ------- --------
59,145 53,111 113,794 104,400
-------- ------- ------- --------
Distributions to preferred unitholders 461 660 1,121 1,321
Minority partners' interests in consolidated partnerships 4,065 1,925 9,820 3,899
Limited partners' minority interest in the operating partnership 2,616 3,083 5,331 5,361
-------- ------- ------- --------
7,142 5,668 16,272 10,581
-------- ------- ------- --------
INCOME BEFORE DIVIDENDS TO PREFERRED SHAREHOLDERS 25,226 30,168 51,339 53,335
Dividends to preferred shareholders 5,467 7,197 10,892 14,521
-------- ------- ------- --------
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $19,759 $22,971 $40,447 $38,814
======== ======= ======= ========
Net income available to:
Class A common shareholders $15,109 $16,655 $30,417 $28,101
Class B common shareholders 4,650 6,316 10,030 10,713
Total $19,759 $22,971 $40,447 $38,814
Basic net income per weighted average common share:
Class A common shareholders $0.32 $0.40 $0.66 $0.69
======== ======= ======= ========
Class B common shareholders $0.45 $0.61 $0.98 $1.04
======== ======= ======= ========
Basic weighted average common shares outstanding:
Class A common shareholders 47,221,917 41,343,118 46,357,533 40,862,650
Class B common shareholders 10,283,513 10,283,513 10,283,513 10,283,556
Diluted net income per weighted average common share:
Class A common shareholders $0.32 $0.40 $0.65 $0.68
======== ======= ======= ========
Class B common shareholders $0.34 $0.44 $0.71 $0.75
======== ======= ======= ========
Diluted weighted average common shares outstanding:
Class A common shareholders 47,600,390 41,700,478 46,779,905 41,204,762
Class B common shareholders 10,283,513 10,283,513 10,283,513 10,283,556
6
RECKSON ASSOCIATES REALTY CORP.
JUNE 30, 2001
(IN THOUSANDS EXCEPT PER SHARE DATA)
SELECTED FINANCIAL INFORMATION: Three months ended Six months ended
June 30, June 30,
----------------------- -----------------------
2001 2000 2001 2000
-------- -------- -------- --------
OPERATING DATA:
Total revenues: $132,387 $125,455 $263,273 $243,113
======== ======== ======== ========
Income before limited partners' minority interest
in the operating partnership, distributions to preferred
unitholders and dividends to preferred shareholders $28,303 $33,911 $57,791 $60,017
Less:
Limited partners' minority interest in the operating
partnerships 2,616 3,083 5,331 5,361
Distributions to preferred unitholders 461 660 1,121 1,321
Dividends to preferred shareholders 5,467 7,197 10,892 14,521
--------- --------- -------- ---------
Net Income available to common shareholders $19,759 $22,971 $40,447 $38,814
======== ======== ======== ========
Funds From Operations:
Basic $48,063 $41,118 $94,508 $79,447
======== ======== ======== ========
Diluted $55,021 $50,569 $109,145 $98,476
======== ======== ======== ========
Cash Available for Distribution:
Basic $31,482 $29,499 $63,487 $59,169
======== ======== ======== ========
Diluted $32,973 $38,950 $67,232 $78,198
======== ======== ======== ========
Interest expense $23,562 $24,176 $47,193 $48,016
======== ======== ======== ========
Capitalized interest expense $2,884 $2,811 $5,587 $5,173
======== ======== ======== ========
Non-incremental capitalized improvements $1,629 $1,446 $2,264 $2,697
======== ======== ======== ========
Non-incremental capitalized tenant improvements
and leasing commissions $4,098 $1,873 $6,744 $4,743
======== ======== ======== ========
Marketing, general and administrative expenses $8,411 $6,509 $15,908 $12,947
======== ======== ======== ========
BALANCE SHEET DATA: June 30,
--------------------------
2001 2000
---------- ------
Commercial real estate investments before depreciation $2,860,491 $2,362,269
========== ==========
Investment in mortgage notes and notes receivable $55,223 $356,642
========== ==========
Investment in real estate joint ventures $69,026 $37,548
========== ==========
Total assets $3,112,242 $2,884,667
========== ==========
Total debt $1,514,194 $1,425,414
========== ==========
Total debt (Including our share of joint venture
debt and net of minority partners' interests share
of joint venture debt) $1,500,081 $1,411,243
========== ==========
Book equity (Total assets less Total debt) $1,598,048 $1,459,253
========== ==========
MARKET CAPITALIZATION DATA:
Common shares and units $1,570,139 $1,515,002
========== ==========
Preferred shares, units and interest $314,533 $407,318
========== ==========
Total market capitalization $3,384,753 $3,333,563
========== ==========
7
RECKSON ASSOCIATES REALTY CORP.
FUNDS FROM OPERATIONS
JUNE 30, 2001
(IN THOUSANDS EXCEPT PER SHARE / UNIT DATA)
Three months ended
June 30
-----------------------------------------------
2001 2000
--------------------- ---------------------
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $19,759 $22,971
Add back:
Real estate depreciation and amortization 26,727 21,937
Minority partners' interests in consolidated partnerships 4,065 1,925
Limited partners' minority interest in the operating 2,616 3,083
partnership
Less :
Gain on sales of real estate --- 6,662
Amounts distributable to minority partners in consolidated 5,104 2,136
partnerships
--------------------- ---------------------
BASIC FUNDS FROM OPERATIONS ("FFO") 48,063 41,118
Add:
Dividends and distributions on dilutive shares and units 6,958 9,451
--------------------- ---------------------
DILUTED FFO $55,021 $50,569
===================== =====================
BASIC FFO CALCULATIONS:
- -----------------------
Weighted average common shares outstanding 57,505 51,627
Weighted average units of limited partnership interest 7,763 7,695
outstanding
--------------------- ---------------------
Basic weighted average common shares and units outstanding 65,268 59,322
===================== =====================
Basic FFO per weighted average common share or unit $0.74 $0.69
===================== =====================
Basic weighted average dividends or distributions per share $0.46 $0.42
or unit
===================== =====================
Basic FFO payout ratio 62.1% 60.8%
===================== =====================
DILUTED FFO CALCULATIONS:
- -------------------------
Basic weighted average common shares and units outstanding 65,268 59,322
Adjustments for dilutive FFO weighted average shares and
units outstanding:
Add:
Weighted average common stock equivalents 378 357
Weighted average shares of Series A Preferred Stock 8,060 8,060
Weighted average shares of Series B Preferred Stock 1,919 5,294
Weighted average shares of minority partners preferred 2,277 3,454
interest
Weighted average units of preferred limited 1,127 1,367
partnership interest
--------------------- ---------------------
Dilutive FFO weighted average shares and units outstanding 79,029 77,854
===================== =====================
Diluted FFO per weighted average share or unit $0.70 $0.65
===================== =====================
Diluted weighted average dividends or distributions per $0.45 $0.41
share or unit
===================== =====================
Diluted FFO payout ratio 64.9% 63.6%
===================== =====================
Six months ended
June 30
------------------------------------------------
2001 2000
---------------------- ---------------------
Net Income available to common shareholders $40,447 $38,814
Add back:
Real estate depreciation and amortization 49,715 42,552
Minority partners' interests in consolidated partnerships 9,820 3,899
Limited partners' minority interest in the operating 5,331 5,361
partnership
Less :
Gain on sales of real estate --- 6,662
Amounts distributable to minority partners in consolidated 10,805 4,517
partnerships
---------------------- ---------------------
Basic Funds From Operations ("FFO") 94,508 79,447
Add:
Dividends and distributions on dilutive shares and units 14,637 19,029
---------------------- ---------------------
Diluted FFO $109,145 $98,476
===================== =====================
Basic FFO calculations:
Weighted average common shares outstanding 56,641 51,146
Weighted average units of limited partnership interest 7,728 7,697
outstanding
---------------------- ---------------------
Basic weighted average common shares and units outstanding 64,369 58,843
===================== =====================
Basic FFO per weighted average common share or unit $1.47 $1.35
===================== =====================
Basic weighted average dividends or distributions per share $0.88 $0.83
or unit
===================== =====================
Basic FFO payout ratio 59.8% 61.2%
===================== =====================
Diluted FFO calculations:
Basic weighted average common shares and units outstanding 64,369 58,843
Adjustments for dilutive FFO weighted average shares and
units outstanding:
Add:
Weighted average common stock equivalents 422 342
Weighted average shares of Series A Preferred Stock 8,060 8,060
Weighted average shares of Series B Preferred Stock 1,919 5,526
Weighted average shares of minority partners preferred 2,862 3,454
interest
Weighted average units of preferred limited 1,246 1,367
partnership interest
---------------------- ---------------------
Dilutive FFO weighted average shares and units outstanding 78,878 77,592
===================== =====================
Diluted FFO per weighted average share or unit $1.38 $1.27
===================== =====================
Diluted weighted average dividends or distributions per $0.87 $0.81
share or unit
===================== =====================
Diluted FFO payout ratio 62.6% 63.8%
===================== =====================
8
RECKSON ASSOCIATES REALTY CORP.
CASH AVAILABLE FOR DISTRIBUTION
JUNE 30, 2001
(IN THOUSANDS EXCEPT PER SHARE / UNIT DATA)
Three months ended
June 30
-----------------------------------------------
2001 2000
--------------------- ---------------------
BASIC FUNDS FROM OPERATIONS $48,063 $41,118
Less :
Straight line rents (Note a) 10,854 8,300
Non-incremental capitalized tenant improvements and leasing
commissions 4,098 1,873
Non-incremental capitalized Improvements 1,629 1,446
--------------------- ---------------------
BASIC CASH AVAILABLE FOR DISTRIBUTION ("CAD") 31,482 29,499
Add:
Dividends and distributions on dilutive shares and units 1,491 9,451
--------------------- ---------------------
DILUTED CAD $32,973 $38,950
===================== =====================
BASIC CAD CALCULATIONS:
- -----------------------
Weighted average common shares outstanding 57,505 51,627
Weighted average units of limited partnership interest 7,763 7,695
outstanding
--------------------- ---------------------
Basic weighted average common shares and units outstanding 65,268 59,322
===================== =====================
Basic CAD per weighted average common share or unit $0.48 $0.50
===================== =====================
Basic weighted average dividends or distributions per share $0.46 $0.42
or unit
===================== =====================
Basic CAD payout ratio 94.8% 84.7%
===================== =====================
DILUTED CAD CALCULATIONS:
- -------------------------
Basic weighted average common shares and units outstanding 65,268 59,322
Adjustments for dilutive CAD weighted average shares and
units outstanding:
Add:
Weighted average common stock equivalents 378 357
Weighted average shares of Series A Preferred Stock -- 8,060
Weighted average shares of Series B Preferred Stock -- 5,294
Weighted average shares of minority partners preferred 2,277 3,454
interest
Weighted average units of preferred limited 1,127 1,367
partnership interest
--------------------- ---------------------
Dilutive CAD weighted average shares and units outstanding 69,050 77,854
===================== =====================
Diluted CAD per weighted average share or unit $0.48 $0.50
===================== =====================
Diluted weighted average dividends or distributions per $0.46 $0.41
share or unit
===================== =====================
Diluted CAD payout ratio 95.4% 82.5%
===================== =====================
Six months ended
June 30
------------------------------------------------
2001 2000
---------------------- ---------------------
BASIC FUNDS FROM OPERATIONS $94,508 $79,447
Less :
Straight line rents (Note a) 22,013 12,838
Non-incremental capitalized tenant improvements and leasing
commissions 6,744 4,743
Non-incremental capitalized Improvements 2,264 2,697
---------------------- ---------------------
Basic Cash Available for Distribution ("CAD") 63,487 59,169
Add:
Dividends and distributions on dilutive shares and units 3,745 19,029
---------------------- ---------------------
Diluted CAD $67,232 $78,198
===================== =====================
BASIC CAD CALCULATIONS:
- -----------------------
Weighted average common shares outstanding 56,641 51,146
Weighted average units of limited partnership interest 7,728 7,697
outstanding
---------------------- ---------------------
Basic weighted average common shares and units outstanding 64,369 58,843
===================== =====================
Basic CAD per weighted average common share or unit $0.99 $1.01
===================== =====================
Basic weighted average dividends or distributions per share $0.88 $0.83
or unit
===================== =====================
Basic CAD payout ratio 89.0% 82.1%
===================== =====================
DILUTED CAD CALCULATIONS:
- -------------------------
Basic weighted average common shares and units outstanding 64,369 58,843
Adjustments for dilutive CAD weighted average shares and
units outstanding:
Add:
Weighted average common stock equivalents 422 342
Weighted average shares of Series A Preferred Stock -- 8,060
Weighted average shares of Series B Preferred Stock -- 5,526
Weighted average shares of minority partners preferred 2,862 3,454
interest
Weighted average units of preferred limited 1,246 1,367
partnership interest
---------------------- ---------------------
Dilutive CAD weighted average shares and units outstanding 68,899 77,592
===================== =====================
Diluted CAD per weighted average share or unit $0.98 $1.01
===================== =====================
Diluted weighted average dividends or distributions per $0.87 $0.81
share or unit
===================== =====================
Diluted CAD payout ratio 89.5% 80.3%
===================== =====================
- -------------
Notes:
(a) Includes straight line rental income attributable to the property located
at 919 Third Avenue, New York, N.Y of $6,880, $4,309, $14,384 and $5,384,
respectively.
9
DRAFT
RECKSON ASSOCIATES REALTY CORP.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except for share amounts)
June 30, December 31,
2001 2000
--------- -----------
(Unaudited)
ASSETS:
Commercial real estate properties, at cost:
Land........................................................................ $ 396,103 $ 396,482
Building and improvements................................................... 2,308,001 2,219,448
Developments in progress:
Land........................................................................ 69,183 60,918
Development costs........................................................... 87,204 93,759
Furniture, fixtures and equipment............................................... 7,414 7,138
-------------- -----------
2,867,905 2,777,745
Less accumulated depreciation................................................... (332,649) (288,479)
-------------- -----------
2,535,256 2,489,266
Investment in real estate joint ventures........................................ 69,026 43,534
Investment in mortgage notes and notes receivable............................... 55,223 58,220
Cash and cash equivalents....................................................... 26,395 17,843
Tenant receivables.............................................................. 9,829 11,511
Investments in and advances to affiliates....................................... 180,759 177,474
Deferred rents receivable....................................................... 90,080 67,930
Prepaid expenses and other assets............................................... 77,378 68,895
Contract and land deposits and pre-acquisition costs............................ 3,026 1,676
Deferred leasing and loan costs................................................. 65,270 61,681
-------------- -----------
TOTAL ASSETS.................................................................... $ 3,112,242 $ 2,998,030
============== =============
LIABILITIES:
Mortgage notes payable.......................................................... $ 730,170 $ 728,971
Unsecured credit facility....................................................... 334,600 216,600
Senior unsecured notes.......................................................... 449,424 449,385
Accrued expenses and other liabilities.......................................... 91,788 95,393
Dividends and distributions payable............................................. 33,113 28,801
-------------- -----------
TOTAL LIABILITIES............................................................... 1,639,095 1,519,150
-------------- -----------
Minority partners' interests in consolidated partnerships....................... 140,442 226,350
Preferred unit interest in the operating partnership............................ 34,733 42,518
Limited partners' minority interest in the operating partnership................ 107,021 97,353
-------------- -----------
282,196 366,221
-------------- -----------
Commitments and other comments.................................................. -- --
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 shares issued and outstanding............ 20 20
Common Stock, $.01 par value, 100,000,000 shares authorized
Class A common stock, 49,619,419 and 45,352,286 shares issued and
outstanding, espectively.................................................... 496 454
Class B common stock, 10,283,513 shares issued and outstanding.............. 103 103
-- --
Additional paid in capital...................................................... 1,186,537 1,111,990
Other comprehensive income...................................................... 3,703 --
-------------- -------------
Total Stockholders' Equity...................................................... 1,190,951 1,112,659
-------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY...................................... $ 3,112,242 $ 2,998,030
============== =============
10
RECKSON ASSOCIATES REALTY
June 30, 2001
RATIOS COMPUTED FOR INDUSTRY COM Three months ended Six months ended
June 30, June 30,
--------------------- ----------------------
2001 2000 2001 2000
---- ---- ---- ----
Debt Service Coverage Ratio 3.35 3.08 3.32 3.04
===== ===== ===== =====
(Basic Funds from Operations + Interest expense +
preferred dividends and distributions / Interest expense
+ principal)
Fixed Charge Coverage Ratio 2.67 2.32 2.64 2.28
===== ===== ===== =====
(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 44.30% 42.30% 44.30% 42.30%
===== ===== ===== =====
Marketing, general and administrative expenses to total 6.35% 5.19% 6.04% 5.33%
revenues as a percent ===== ===== ===== =====
Non - Incremental Capital Expenditures to Net Operating 6.78% 4.57% 5.40% 5.26%
Income as a percent ===== ===== ===== =====
Fully diluted FFO Payout Ratio - (note 1) 64.90% 63.60% 62.60% 63.80%
===== ===== ===== =====
(Dividends to fully diluted FFO as a percent)
Fully diluted CAD Payout Ratio - (note 2) 95.40% 82.50% 89.50% 80.30%
===== ===== ===== =====
(Dividends to fully diluted CAD as a percent
Note: (1) Based on weighted average per share / unit dividends and distributions of $.4517, $.4129, $.8656 and $.8093,
respectively.
(2) Based on weighted average per share / unit dividends and distributions of $.4556, $.4129, $.8736 and $.8093,
respectively.
11
RECKSON ASSOCIATES REALTY CORP.
TOTAL DEBT & PREFERRED SECURITIES
MORTGAGE NOTES PAYABLE
The following table sets forth certain information regarding the mortgage
debt of the Company, by scheduled maturity date, as of June 30, 2001 (in
thousands):
Principal amount Interest Maturity Amortization
Property outstanding rate date schedule
- -------- ---------------- -------- -------- ------------
50 Charles Lindbergh Blvd., Mitchel Field, NY $ 15,479 7.500% 10-Jul-01 (3)(6)
200 Broad Hollow Road, Melville, NY 6,460 7.750% 02-Jun-02 30 year
310 East Shore Road, Great Neck, NY 2,322 8.000% 01-Jul-02 (3)
919 Third Avenue, NY, NY 200,000 LIBOR + 1.20% 31-Oct-03 (3)(7)
80 Orville Drive, Islip, NY 2,616 10.100% 01-Feb-04 (3)
395 North Service Road, Melville, NY 20,321 6.450% 26-Oct-05 (2)
200 Summit Lake Drive, Valhalla, NY 19,956 9.250% 01-Jan-06 25 year
1350 Avenue of the Americas, NY, NY 75,000 6.520% 01-Jun-06 (5)
Landmark Square, Stamford, CT 46,531 8.020% 07-Oct-06 25 year
100 Summit Lake Drive, Valhalla, NY 20,969 8.500% 01-Apr-07 15 year
333 Earl Ovington Blvd., Mitchel Field, NY 55,223 (1) 7.720% 14-Aug-07 25 year
810 Seventh Ave., NY, NY 84,953 7.730% 01-Aug-09 25 year
100 Wall Street, NY, NY 36,813 7.730% 01-Aug-09 25 year
6900 Jericho Turnpike, Syosset, NY 7,510 8.070% 01-Jul-10 25 year
6800 Jericho Turnpike, Syosset, NY 14,230 8.070% 01-Jul-10 25 year
580 White Plains Road, Tarrytown, NY 12,970 7.860% 01-Sep-10 25 year
110 Bi-County Blvd., Farmingdale, NY 3,948 9.125% 30-Nov-12 20 year
One Orlando Center, Orlando, FL 39,204 6.820%(4) 01-Nov-27 28 year
120 West 45th Street, NY, NY 65,665 6.820%(4) 01-Nov-27 28 year
------------
Total mortgage notes payable principal
outstanding $ 730,170
============
- -------------------
(1) The Company has a 60% general partnership interest in this property and its
proportionate share of the aggregate principal amount of the mortgage debt
is approximately $33.1 million.
(2) Principal payments of $34,000 per month.
(3) Interest only.
(4) Subject to interest rate adjustment on November 1, 2004.
(5) Interest only for the first year. 30 year thereafter.
(6) paid off at maturity
(7) Refinanced on July 18, 2001 to a $250 million fixed rate (6.867%), ten year
secured mortgage
SENIOR UNSECURED NOTES
The following table sets forth the Company's Senior Unsecured Notes and
other related disclosures, by scheduled maturity date, as of June 30, 2001 (in
thousands):
Face Coupon Maturity
Issuance amount rate date Term
- -------- ------ ---- ---- ----
March 26, 1999 $ 100,000 (1) 7.400% 15-Mar-04 5 years
August 27, 1997 150,000 7.200% 28-Aug-07 10 years
March 26, 1999 200,000 (1) 7.750% 15-Mar-09 10 years
----------
Total Senior Unsecured Notes principal
outstanding $ 450,000
=========
-------------------
(1) Notes issued on March 26, 1999 were issued at an aggregate discount of
$738,000 which is being amortized over the term of the Notes to which they
relate
UNSECURED CREDIT FACILITY
The following table sets forth certain information regarding the Company's
$575 million Unsecured Credit Facility, as of June 30, 2001 (in thousands):
Principal Weighted
amount average Maturity Amortization
outstanding interest rate date schedule
----------- ------------- ---- --------
$ 334,600 5.456% 07-Sep-03 Interest only
============
PREFERRED SECURITIES
The following table sets forth certain information regarding the Company's
preferred securities, as of June 30, 2001 (in thousands):
Liquidation Conversion price
Security preference value Current yield per share Issuance date
- -------- ---------------- ------------- --------- -------------
7 5/8% Series A Convertible Cumulative Preferred Stock $ 229,800 7.625% $ 28.51 April 1998
Series B Convertible Cumulative Preferred Stock 50,000 8.850% $ 26.05 June 1999
Series B Preferred Units of Limited Partnership Interest 18,151 6.337% $ 32.51 April 1998
Series C Preferred Units of Limited Partnership Interest 10,581 6.337% $ 29.39 April 1998
Series D Preferred Units of Limited Partnership Interest 6,000 6.337% $ 29.12 July 1998
-------------
$ 314,532
============
12
CORE OPERATING RESULTS
----------------------
13
RECKSON ASSOCIATES REALTY CORP.
OCCUPANCY ANALYSIS
June 30, 2001
March 31, 2001 June 30, 2001
------------------------------------------------------------------------------------------
Number of Rentable Percent of Percent Number of Rentable Percent of Percent
Property Buildings Square Feet Property Type Leased Buildings Square Feet Property Type Leased
- -------- --------- ----------- ------------- ------- --------- ----------- ------------- -------
OFFICE PROPERTIES
SUBURBAN OFFICE PARKS
- ---------------------
LONG ISLAND
Nassau West Corporate Center,
Mitchel Field, NY (1) 6 1,527,263 10.6% 98.3% 6 1,531,021 10.6% 97.9%
Huntington Melville Corporate Center,
Melville, NY (2) 7 1,054,779 7.3% 98.6% 7 1,054,779 7.3% 99.3%
North Shore Atrium, Syosset, NY 2 304,177 2.1% 96.8% 2 304,177 2.1% 96.8%
--------- ----------- ------------- --------- ----------- -----
SUBTOTAL - LONG ISLAND (3) 15 2,886,219 20.0% 98.2% 15 2,889,977 20.0% 98.2%
WESTCHESTER
Tarrytown Corporate Center,
Tarrytown, NY 6 875,726 6.1% 94.4% 6 875,726 6.1% 95.5%
Summit at Vallhalla, Vahalla, NY 3 699,045 4.8% 93.6% 3 699,045 4.8% 90.1%
Mt. Pleasant Corporate Center,
Valhalla, NY 2 162,004 1.1% 94.2% 2 162,004 1.1% 94.3%
Reckson Executive Park,
Rye Brook, NY 6 541,884 3.8% 98.3% 6 541,884 3.8% 98.3%
--------- ----------- ------------- --------- ----------- -----
SUBTOTAL - WESTCHESTER 17 2,278,659 15.8% 95.0% 17 2,278,659 15.8% 94.4%
NEW JERSEY
Short Hills Office Center,
Short Hills, NJ (4) 3 557,036 3.9% 100.0% 3 563,703 3.9% 98.9%
Executive Hill Office Park,
West Orange, NJ 4 391,382 2.7% 99.4% 4 391,382 2.7% 99.5%
University Square, Princeton, NJ 3 131,105 0.9% 100.0% 3 131,105 0.9% 100.0%
--------- ----------- ------------- --------- ----------- ----
SUBTOTAL - NEW JERSEY (3) 10 1,079,523 7.5% 100.0% 10 1,086,190 7.5% 100.0%
- --------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL - SUBURBAN OFFICE PARK (3) 42 6,244,401 43.2% 97.3% 42 6,254,826 43.3% 96.9%
- --------------------------------------------------------------------------------------------------------------------------------
SUBURBAN STAND ALONE
- --------------------
Long Island Office Properties 12 1,486,629 10.3% 97.3% 12 1,486,629 10.3% 97.0%
New Jersey Office Properties (5) 8 1,061,545 7.3% 97.8% 8 1,063,983 7.4% 97.4%
Westchester Office Properties (6) 3 343,798 2.4% 99.7% 3 343,798 2.4% 100.0%
--------- ----------- ------------- --------- ----------- -----
SUBTOTAL - SUBURBAN STANDALONE 23 2,891,972 20.0% 97.8% 23 2,894,410 20.0% 97.5%
- --------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL - SUBURBAN OFFICE (3) 65 9,136,373 63.3% 97.5% 65 9,149,236 63.4% 97.8%
- --------------------------------------------------------------------------------------------------------------------------------
CBD Office
- ----------
CONNECTICUT
Landmark Square, Stamford, CT 6 798,321 5.5% 94.0% 6 798,321 5.5% 94.4%
Stamford Towers, Stamford, CT 2 324,867 2.2% 100.0% 2 324,867 2.2% 100.0%
--------- ----------- ------------- --------- ----------- -----
SUBTOTAL - CONNECTICUT 8 1,123,188 7.8% 95.8% 8 1,123,188 7.8% 96.1%
WESTCHESTER
Standalone Office 4 668,916 4.6% 94.1% 4 668,916 4.6% 96.0%
--------- ----------- ------------- --------- ----------- -----
SUBTOTAL - WESTCHESTER OFFICE 4 668,916 4.6% 94.1% 4 668,916 4.6% 96.0%
NEW YORK CITY
919 Third Avenue 1 1,374,966 9.5% 97.9% 1 1,356,115 9.4% 97.4%
810 Seventh Avenue 1 692,060 4.8% 97.3% 1 692,060 4.8% 99.8%
100 Wall Street 1 466,226 3.2% 98.7% 1 466,226 3.2% 99.0%
120 W. 45th Street 1 443,109 3.1% 99.6% 1 443,109 3.1% 95.0%
1350 Ave. of the Americas 1 540,000 3.7% 92.2% 1 540,000 3.7% 93.5%
--------- ----------- ------------- --------- ----------- -----
SUBTOTAL - NEW YORK CITY 5 3,516,361 24.3% 97.2% 5 3,497,510 24.2% 97.2%
- --------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL - CBD OFFICE 17 5,308,465 36.7% 96.1% 17 5,289,614 36.6% 96.0%
- --------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL-
OFFICE PROPERTIES (3) 82 14,444,838 100.0% 97.1% 82 14,438,850 100.0% 97.0%
As a Percent of Total Portfolio 67.8% 67.8%
(1)Does not include 27,013 square feet leased to the health club at Omni.
(2)Rentable square feet includes a recently completed 277,500 sf Class A office
building which is currently 31% leased; percent leased excludes this property.
(3)Percent leased excludes properties under development.
(4)Rentable square feet includes a 129,508 sf building under redevelopment;
percent leased excludes this property.
(5)Subsequent to the June 30, 2001 reporting date two properties were sold
encompassing 189,009 sf.
(6)Subsequent to the June 30, 2001 reporting date one property was sold
encompassing 60,909 sf.
14
INDUSTRIAL PROPERTIES
March 31, 2001 June 30, 2001
------------------------------------------------------------------------------------------
Number of Rentable Percent of Percent Number of Rentable Percent of Percent
LONG ISLAND INDUSTRIAL PROPERTIES Buildings Square Feet Property Type Leased Buildings Square Feet Property Type Leased
- --------------------------------- --------- ----------- ------------- ------- --------- ----------- ------------- -------
Vanderbilt Industrial Park,
Hauppauge, NY (1) 47 2,379,895 40.4% 97.6% 47 2,379,895 34.8% 97.9%
Airport International Plaza,
Bohemia, NY 21 1,288,510 21.9% 98.3% 21 1,288,510 18.8% 97.3%
County Line Industrial Center,
Melville, NY 4 342,174 5.8% 100.0% 4 342,174 5.0% 100.0%
Other Submarkets
Farmingdale 3 520,615 8.8% 99.9% 3 520,615 7.6% 99.9%
Melville 4 246,169 4.2% 100.0% 4 246,169 3.6% 100.0%
Islip/Islandia 6 212,400 3.6% 100.0% 6 212,400 3.1% 100.0%
Hauppauge 2 195,942 3.3% 99.1% 2 195,942 2.9% 99.1%
Other 8 708,740 12.0% 98.7% 8 708,740 10.4% 100.0%
--------- ----------- ------------- --------- ----------- -------
SUBTOTAL - LONG ISLAND INDUSTRIAL (2) 95 5,894,445 86.3% 98.5% 95 5,894,445 86.2% 98.6%
Stand-alone Westchester
Industrial Properties 3 163,000 2.4% 100.0% 3 165,690 2.4% 100.0%
Stand-alone Connecticut
Industrial Properties 1 452,414 6.6% 100.0% 1 452,414 6.6% 100.0%
Stand-alone New Jersey
Industrial Properties 5 324,254 4.7% 82.4% 5 324,254 4.7% 82.4%
--------- ----------- ------------- ------ --------- ----------- ------ --------
SUBTOTAL-
INDUSTRIAL PROPERTIES (2) 104 6,834,113 100.0% 97.8% 104 6,836,803 100.0% 97.9%
--------- ----------- ------------- ------ --------- ----------- ------ --------
As a Percent of Total Portfolio 32.1% 32.1%
--------- ----------- ------------- ------ --------- ----------- ------ --------
RETAIL PROPERTIES 2 20,000 100.0% 46.0% 2 20,000 100.0% 46.0%
--------- ----------- ------------- ------ --------- ----------- ------ --------
As a Percent of Total Portfolio 0.1% 0.1%
--------- ----------- ------------- ------ --------- ----------- ------ --------
TOTAL - ALL PROPERTIES (2) 188 21,298,951 100.0% 97.3% 188 21,295,653 100.0% 97.2%
--------- ----------- ------------- ------ --------- ----------- ------ --------
(1)Rentable square feet includes a 56,875 square foot vacant building under
redevelopment; percent leased excludes this property.
(2)Percent leased excludes property under development.
15
RECKSON ASSOCIATES REALTY CORP.
OCCUPANCY ANALYSIS
June 30, 2001
Reckson Portfolio Historical Occupancy
[GRAPHIC OMITTED]
Industrial Office
June 1997 96.5% 90.7%
June 1998 96.1% 92.1%
June 1999 97.5% 93.9%
June 2000 97.6% 95.7%
June 2001 97.9% 97.0%
Note: Percent leased excludes properties under development
16
RECKSON ASSOCIATES REALTY CORP.
EXECUTED LEASES AND RENEWAL ANALYSIS
June 30, 2001
TOTAL PORTFOLIO
QUARTER ENDED JUNE 30, 2001 12 MONTHS ENDED JUNE 30, 2001
--------------------------------------------- ---------------------------------------------
RESEARCH & RESEARCH &
OFFICE(1) INDUSTRIAL(2) DEVELOPMENT(3) TOTAL OFFICE(4) INDUSTRIAL(5) DEVELOPMENT(6) TOTAL
--------- ------------- -------------- ----- --------- ------------- -------------- -----
EXECUTED LEASES (8)
- -------------------
Total Portfolio
Number of Executed Leases 61 8 3 72 229 35 9 273
Square Footage 402,659 87,976 18,995 509,630 1,984,618 563,456 92,230 2,640,304
Average Rent $ 28.95 $ 7.28 $ 12.14 $ 29.66 $ 7.49 $ 16.93
Average Effective Rent $ 26.41 $ 6.80 $ 10.18 $ 26.82 $ 7.02 $ 14.97
Long Island Portfolio
Number of Executed Leases 11 6 3 20 53 31 5 89
Square Footage 71,303 39,050 18,995 129,348 624,355 498,380 35,493 1,158,228
Average Rent $ 29.75 $ 7.31 $ 12.14 $ 28.05 $ 7.45 $ 14.58
Average Effective Rent $ 25.11 $ 7.12 $ 10.18 $ 24.63 $ 7.01 $ 13.06
Westchester Portfolio
Number of Executed Leases 26 26 82 4 86
Square Footage 174,625 174,625 583,202 56,737 639,939
Average Rent $ 24.59 $ 25.77 $ 18.40
Average Effective Rent $ 22.89 $ 23.88 $ 16.17
Connecticut Portfolio
Number of Executed Leases 8 8 29 29
Square Footage 24,830 24,830 138,877 138,877
Average Rent $ 31.82 $ 30.48
Average Effective Rent $ 30.73 $ 29.28
New Jersey Portfolio
Number of Executed Leases 13 2 15 42 4 46
Square Footage 114,488 48,926 163,411 437,796 65,076 502,872
Average Rent $ 27.01 $ 7.26 $ 23.87 $ 7.79
Average Effective Rent $ 24.69 $ 6.55 $ 21.07 $ 7.15
New York City Portfolio
Number of Executed Leases 3 3 23 23
Square Footage 17,413 17,816 200,388 200,388
Average Rent $ 78.12 (9) $ 58.09
Average Effective Rent $ 72.21 (9) $ 53.05
RENEWALS
Leases Expiring During Period 46 5 2 53 146 31 6 183
Square Footage Expiring
During Period 360,625 183,076 13,884 557,585 1,023,113 548,433 93,172 1,664,718
Square Footage Renewed
During Period 192,371 19,500 211,271 673,252 352,261 69,991 1,095,504
Renewal Percentage 53.3% 10.7% 0.0% 38.0% 65.8% 64.2% 75.1% 65.8%
(1) Included in the total square footage is 313,893 square feet of
non-incremental leases that, on average, at expiration, were paying a Base
Rent of $23.70 / square foot and a straightline rent of $23.32 / square
foot. These leases were renewed or released at an average starting Base
Rent of $26.95 and at a straightline rent of $28.73 / square foot.
(2) Included in the total square footage is 63,050 square feet of
non-incremental leases that, on average, at expiration, were paying a Base
Rent of $6.25 / square foot and a straightline rent of $5.95/ square foot.
These leases were renewed or released at an average starting Base Rent of
$7.08 and at a straightline rent of $7.46 / square foot.
(3) Included in the total square footage is 13,884 square feet of
non-incremental leases that, on average, at expiration, were paying a Base
Rent of $11.48 / square foot and a straightline rent of $10.26/ square
foot. These leases were renewed or released at an average starting Base
Rent of $10.45 and at a straightline rent of $10.73 / square foot.
(4) Included in the total square footage is 1,225,114 square feet of
non-incremental leases that, on average, at expiration, were paying a Base
Rent of $23.88 / square foot and a straightline rent of $23.27 / square
foot. These leases were renewed or released at an average starting Base
Rent of $26.77 and at a straightline rent of $28.55 / square foot.
(5) Included in the total square footage is 362,727 square feet of
non-incremental leases that, on average, at expiration, were paying a Base
Rent of $6.99 / square foot and a straightline rent of $6.72 / square foot.
These leases were renewed or released at an average starting Base Rent of
$7.93 and at a straightline rent of $8.19 / square foot.
(6) Included in the total square footage is 27,088 square feet of
non-incremental leases that, on average, at expiration, were paying a Base
Rent of $14.04 / square foot and a straightline rent of $12.90 / square
foot. These leases were renewed or released at an average starting Base
Rent of $13.40 and at a straightline rent of $14.16 / 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.
(9) Excluding a 9,400 sf ground floor retail space the average rent and net
effective rent are $63.14 and $56.88, respectively.
17
RECKSON ASSOCIATES REALTY CORP.
LEASE EXPIRATION COMPARISON
JUNE 30, 2001
OFFICE PORTFOLIO (1)
% Cumulative
Number of Leases Expiring Square Feet Expiring % Square Feet Expiring Square Feet Expiring
Year of Expiration Mar-01 Jun-01 Mar-01 Jun-01 Mar-01 Jun-01 Mar-01 Jun-01
- ------------------ ------ ------ ------ ------ ------ ------ ------ ------
2001 120 84 727,619 460,205 5.3% 3.4% 5.3% 3.4%
2002 144 143 1,079,094 1,056,799 7.9% 7.8% 13.3% 11.2%
2003 142 141 1,192,913 1,224,054 8.8% 9.1% 22.0% 20.3%
2004 153 153 1,245,452 1,244,982 9.2% 9.2% 31.2% 29.6%
2005 216 215 1,994,596 1,901,639 14.7% 14.1% 45.9% 43.7%
2006 116 132 1,519,796 1,576,818 11.2% 11.7% 57.0% 55.3%
2007 and thereafter 240 244 5,848,629 6,022,012 43.0% 44.7% 100.0% 100.0%
----- ----- --------- --------- ------ -----
Total 1,131 1,112 13,608,099 13,486,509 100.0% 100.0%
===== ===== ========== ========== ====== =====
INDUSTRIAL / R&D PORTFOLIO
% Cumulative
Number of Leases Expiring Square Feet Expiring % Square Feet Expiring Square Feet Expiring
Year of Expiration Mar-01 Jun-01 Mar-01 Jun-01 Mar-01 Jun-01 Mar-01 Jun-01
- ------------------ ------ ------ ------ ------ ------ ------ ------ ------
2001 28 21 653,215 594,205 10.5% 9.6% 10.5% 9.6%
2002 31 31 365,124 365,124 5.9% 5.9% 16.4% 15.4%
2003 33 32 773,872 771,372 12.5% 12.4% 28.8% 27.9%
2004 42 42 722,971 722,971 11.6% 11.6% 40.5% 39.5%
2005 27 26 795,550 785,434 12.8% 12.6% 53.3% 52.1%
2006 33 39 924,934 978,910 14.9% 15.8% 68.2% 67.9%
2007 and thereafter 50 52 1,979,357 1,994,857 31.8% 32.1% 100.0% 100.0%
----- ----- --------- --------- ------ -----
Total 244 243 6,215,023 6,212,873 100.0% 100.0%
===== ===== ========== ========== ====== =====
TOTAL PORTFOLIO (1)
% Cumulative
Number of Leases Expiring Square Feet Expiring % Square Feet Expiring Square Feet Expiring
Year of Expiration Mar-01 Jun-01 Mar-01 Jun-01 Mar-01 Jun-01 Mar-01 Jun-01
- ------------------ ------ ------ ------ ------ ------ ------ ------ ------
2001 148 105 1,380,834 1,054,410 7.0% 5.4% 7.0% 5.4%
2002 175 174 1,444,218 1,421,923 7.3% 7.2% 14.3% 12.6%
2003 175 173 1,966,785 1,995,426 9.9% 10.1% 24.2% 22.7%
2004 195 195 1,968,423 1,967,953 9.9% 10.0% 34.1% 32.7%
2005 243 241 2,790,146 2,687,073 14.1% 13.6% 48.2% 46.3%
2006 149 171 2,444,730 2,555,728 12.3% 13.0% 60.5% 59.3%
2007 and thereafter 290 296 7,827,986 8,016,869 39.5% 40.7% 100.0% 100.0%
----- ----- ---------- ---------- ----- -----
Total 1,375 1,355 19,823,122 19,699,382 100.0% 100.0%
===== ===== ========== ========== ====== =====
(1) Excludes square feet for properties sold subsequent to June 30, 2001.
18
RECKSON ASSOCIATES REALTY CORP.
LEASE EXPIRATION COMPARISON
JUNE 30, 2001
LONG ISLAND OFFICE (EXCLUDING OMNI)
Number of Leases Expiring Square Feet Expiring % Square Feet Expiring Per Square Foot S/L Rent(1)
Year of Expiration Mar-01 Jun-01 Mar-01 Jun-01 Mar-01 Jun-01 Mar-01 Jun-01
- ------------------ ------ ------ ------ ------ ------ ------ ------ ------
2001 36 28 168,126 131,751 5.1% 3.8% $22.25 $22.25
2002 33 34 165,326 165,933 5.1% 4.8% $21.98 $21.91
2003 48 52 297,892 375,400 9.1% 10.9% $22.32 $22.95
2004 46 49 274,809 286,257 8.4% 8.3% $23.21 $23.24
2005 65 70 599,698 604,700 18.3% 17.5% $23.42 $23.30
2006 15 19 76,583 106,482 2.3% 3.1% $26.38 $26.62
2007 and thereafter 81 88 1,688,317 1,787,057 51.6% 51.7% -- --
----- ----- --------- --------- ----- -----
Total / Weighted Average 324 340 3,270,751 3,457,580 100.0% 100.0%
===== ===== ========= ========= ===== =====
Per Square Foot Rent (2)
Year of Expiration Mar-01 Jun-01
- ------------------ ------ ------
2001 $24.36 $24.34
2002 $24.90 $24.68
2003 $25.03 $25.36
2004 $26.18 $26.15
2005 $26.73 $26.18
2006 $30.41 $30.38
2007and thereafter -- --
Total / Weighted Average
OMNI
Number of Leases Expiring Square Feet Expiring % Square Feet Expiring Per Square Foot S/L Rent(1)
Year of Expiration Mar-01 Jun-01 Mar-01 Jun-01 Mar-01 Jun-01 Mar-01 Jun-01
- ------------------ ------ ------ ------ ------ ------ ------ ------ ------
2001 3 2 22,931 8,663 3.9% 1.5% $29.09 $30.48
2002 4 4 53,127 53,127 9.0% 9.2% $34.55 $34.55
2003 4 4 58,018 58,018 9.8% 10.0% $30.22 $30.22
2004 4 4 112,414 112,414 19.0% 19.5% $26.12 $26.14
2005 7 7 59,166 59,166 10.0% 10.2% $27.99 $27.99
2006 1 1 9,749 9,749 1.6% 1.7% $35.21 $35.21
2007 and thereafter 10 10 276,259 276,259 46.7% 47.8% -- --
------ ------ ------- ------- ----- -----
Total / Weighted Average 33 32 591,664 577,396 100.0% 100.0%
====== ====== ======= ======= ===== =====
Per Square Foot Rent (2)
Year of Expiration Mar-01 Jun-01
- ------------------ ------ ------
2001 $35.06 $33.48
2002 $37.91 $37.91
2003 $34.97 $34.97
2004 $34.15 $34.15
2005 $35.26 $35.26
2006 $38.02 $38.02
2007 and thereafter -- --
Total / Weighted Average
(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
RECKSON ASSOCIATES REALTY CORP.
LEASE EXPIRATION COMPARISON
JUNE 30, 2001
INDUSTRIAL
Number of Leases Expiring Square Feet Expiring % Square Feet Expiring Per Square Foot S/L Rent(1)
Year of Expiration Mar-01 Jun-01 Mar-01 Jun-01 Mar-01 Jun-01 Mar-01 Jun-01
- ------------------ ------ ------ ------ ------ ------ ------ ------ ------
2001 21 15 376,385 307,259 7.7% 6.3% $6.28 $5.89
2002 28 28 246,504 246,504 5.0% 5.0% $6.47 $6.47
2003 29 28 735,934 733,434 15.0% 14.9% $5.35 $5.35
2004 33 33 623,753 623,753 12.7% 12.7% $6.25 $6.25
2005 22 22 427,994 427,994 8.7% 8.7% $5.93 $5.93
2006 27 33 834,717 888,693 17.0% 18.1% $6.29 $6.36
2007 and thereafter 36 38 1,664,940 1,680,440 33.9% 34.2% - -
------ ------ --------- --------- ---- ----
Total / Weighted Average 196 197 4,910,227 4,908,077 100.0% 100.0%
====== ====== ========= ========= ===== =====
Per Square Foot Rent (2)
Year of Expiration Mar-01 Jun-01
- ------------------ ------- ------
2001 $7.38 $7.36
2002 $7.32 $7.32
2003 $6.27 $6.26
2004 $7.12 $7.32
2005 $7.97 $7.97
2006 $7.81 $7.81
2007 and thereafter -- --
Total / Weighted Average
RESEARCH AND DEVELOPMENT
Number of Leases Expiring Square Feet Expiring % Square Feet Expiring Per Square Foot S/L Rent (1)
Year of Expiration Mar-01 Jun-01 Mar-01 Jun-01 Mar-01 Jun-01 Mar-01 Jun-01
- ------------------ ------ ------ ------ ------ ------ ------ ------ ------
2001 7 6 276,830 286,946 21.2% 22.0% $5.63 $5.53
2002 3 3 118,620 118,620 9.1% 9.1% $10.19 $10.19
2003 4 4 37,938 37,938 2.9% 2.9% $9.20 $9.20
2004 9 9 99,218 99,218 7.6% 7.6% $13.86 $13.86
2005 5 4 367,556 357,440 28.2% 27.4% $8.49 $8.24
2006 6 6 90,217 90,217 6.9% 6.9% $17.46 $17.36
2007 and thereafter 14 14 314,417 314,417 24.1% 24.1% -- --
------ ------ --------- --------- ----- -----
Total / Weighted Average 48 46 1,304,796 1,304,796 100.0% 100.0%
====== ======= ========= ========= ===== =====
Per Square Foot Rent (2)
Year of Expiration Mar-01 Jun-01
- ------------------ ------- -------
2001 $ 6.90 $ 6.94
2002 $11.82 $11.82
2003 $10.15 $10.15
2004 $15.02 $15.02
2005 $10.53 $10.76
2006 $20.07 $20.07
2007 and thereafter -- --
Total / Weighted Average
(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
RECKSON ASSOCIATES REALTY CORP.
LEASE EXPIRATION COMPARISON
JUNE 30, 2001
WESTCHESTER OFFICE
Number of Leases Expiring Square Feet Expiring % Square Feet Expiring Per Square Foot Rent S/L (1)
Year of Expiration Mar-01 Jun-01 Mar-01 Jun-01 Mar-01 Jun-01 Mar-01 Jun-01
- ------------------ ------ ------ ------ ------ ------ ------ ------ ------
2001 29 16 184,244 56,421 5.9% 1.8% $21.09 $21.55
2002 45 48 412,680 419,902 13.2% 13.7% $21.08 $21.18
2003 43 44 247,349 246,101 7.9% 8.0% $22.12 $21.76
2004 30 31 164,634 172,746 5.3% 5.6% $21.09 $21.12
2005 52 50 415,469 389,628 13.3% 12.7% $23.92 $24.98
2006 24 31 643,346 692,851 20.5% 22.6% $22.20 $22.76
2007 and thereafter 41 41 1,065,724 1,086,508 34.0% 35.5% -- --
------ ------ --------- --------- ----- -----
Total / Weighted Average 264 261 3,133,446 3,064,157 100.0% 100.0%
====== ====== ========= ========= ===== =====
Per Square Foot Rent (2)
Year of Expiration Mar-01 Jun-01
- ------------------ -------- --------
2001 $21.69 $24.01
2002 $21.10 $21.51
2003 $23.39 $22.80
2004 $22.03 $22.06
2005 $24.32 $25.29
2006 $24.07 $24.70
2007 and thereafter -- --
Total / Weighted Average
STAMFORD OFFICE
Number of Leases Expiring Square Feet Expiring % Square Feet Expiring Per Square Foot S/L Rent (1)
Year of Expiration Mar-01 Jun-01 Mar-01 Jun-01 Mar-01 Jun-01 Mar-01 Jun-01
- ------------------ ------ ------ ------ ------ ------ ------ ------ ------
2001 25 19 67,832 44,758 6.3% 4.2% $23.36 $19.99
2002 18 18 85,900 84,104 8.0% 8.0% $27.67 $27.53
2003 17 17 140,239 120,969 13.0% 11.4% $31.22 $31.07
2004 19 21 226,883 228,220 21.1% 21.6% $21.76 $22.01
2005 24 26 118,425 122,242 11.0% 11.6% $26.81 $26.66
2006 17 19 271,239 273,947 25.2% 25.9% $24.31 $25.53
2007 and thereafter 16 16 165,170 182,285 15.4% 17.3% -- --
------ ------ --------- --------- ------ ------
Total / Weighted Average 136 136 1,075,688 1,056,525 100.0% 100.0%
====== ====== ========= ========= ====== ======
Per Square Foot Rent (2)
Year of Expiration Mar-01 Jun-01
- ------------------ ------- ------
2001 $23.73 $22.03
2002 $29.02 $28.30
2003 $31.70 $31.75
2004 $22.74 $22.81
2005 $28.62 $28.62
2006 $25.08 $25.15
2007 and thereafter -- --
Total / Weighted Average
(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
RECKSON ASSOCIATES REALTY CORP.
LEASE EXPIRATION COMPARISON
JUNE 30, 2001
NEW JERSEY OFFICE
Number of Leases Expiring Square Feet Expiring % Square Feet Expiring Per Square Foot S/L Ren (1)
Year of Expiration Mar-01 Jun-01 Mar-01 Jun-01 Mar-01 Jun-01 Mar-01 Jun-01
- ------------------ ------ ------ ------ ------ ------ ------ ------ ------
2001 13 10 183,633 158,351 8.7% 8.2% $17.85 $17.36
2002 22 19 171,446 144,155 8.1% 7.4% $20.02 $20.20
2003 23 17 333,689 307,840 15.8% 15.8% $19.03 $18.86
2004 34 29 241,737 227,106 11.4% 11.7% $22.51 $22.59
2005 31 24 344,775 279,093 16.3% 14.4% $23.19 $23.09
2006 12 14 179,319 150,607 8.5% 7.8% $22.38 $24.52
2007 and thereafter 17 18 663,491 675,409 31.3% 34.8% -- --
----- ----- --------- ---------- ----- -----
Total / Weighted Average 152 131 2,118,090 1,942,561 100.0% 100.0%
===== ===== ========= ========== ===== =====
Per Square Foot Rent (2)
Year of Expiration Mar-01 Jun-01
- ------------------ ------- -------
2001 $18.18 $17.63
2002 $20.77 $20.99
2003 $19.16 $18.94
2004 $23.12 $23.44
2005 $23.76 $23.79
2006 $23.58 $25.75
2007 and thereafter -- --
Total / Weighted Average
NEW YORK CITY OFFICE
Number of Leases Expiring Square Feet Expiring % Square Feet Expiring Per Square Foot S/L Rent (1)
Year of Expiration Mar-01 Jun-01 Mar-01 Jun-01 Mar-01 Jun-01 Mar-01 Jun-01
- ------------------ ------ ------ ------ ------ ------ ------ ------ ------
2001 14 9 100,853 60,261 3.0% 1.8% $32.30 $32.00
2002 22 20 190,615 189,578 5.6% 5.6% $32.62 $32.57
2003 7 7 115,726 115,726 3.4% 3.4% $31.89 $31.89
2004 20 19 224,975 218,239 6.6% 6.4% $36.53 $36.46
2005 37 38 457,063 446,810 13.4% 13.2% $34.76 $36.04
2006 47 48 339,560 343,182 9.9% 10.1% $29.70 $30.00
2007 and thereafter 75 71 1,989,668 2,014,494 58.2% 59.5% -- --
------ ------ ---------- --------- ----- -----
Total / Weighted Average 222 212 3,418,460 3,388,290 100.0% 100.0%
====== ====== =========== ========= ====== =====
Per Square Foot Rent (2)
Year of Expiration Mar-01 Jun-01
- ------------------
2001 $33.26 $32.91
2002 $33.41 $33.52
2003 $32.33 $32.68
2004 $38.74 $39.35
2005 $36.35 $37.80
2006 $30.77 $31.17
2007 and thereafter -- --
Total / Weighted Average
(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
RECKSON ASSOCIATES REALTY CORP.
LEASE EXPIRATION COMPARISON
JUNE 30, 2001
EXPIRING RENT VS. MARKET RENT
Suburban Portfolio
[GRAPHIC OMITTED]
LONG ISLAND WESTCHESTER NEW JERSEY
----------- ----------- ----------
Expiring Rent (1) $23.94 $22.56 $21.10
Market Rent (2) $30.45 $29.13 $29.69
Increase 27% 29% 41%
Source: Cushman & Wakefield
(1) Represents average rents for leases expiring over the next 5.5 years
(2) Average asking rents as provided by Cushman & Wakefield. There can
be no assurance the Company's properties can achieve such average asking
rents.
23
RECKSON ASSOCIATES REALTY CORP.
LEASE EXPIRATION COMPARISON
JUNE 30, 2001
EXPIRING RENT VS. MARKET RENT
CBD OFFICE PORTFOLIO
[GRAPHIC OMITTED]
Connecticut New York City
----------- -------------
Expiring Rent (1) $25.44 $33.59
Market Rent (2) $42.74 $60.18
Increase 68% 79%
Source: Cushman & Wakefield
(1) Represents average rents for leases expiring over the next 5.5 years
(2) Average asking rents as provided by Cushman & Wakefield. There can be no
assurance the Company's properties can achieve such average asking rents.
24
RECKSON ASSOCIATES REALTY CORP.
PORTFOLIO SNAPSHOT (BASED ON 2nd QUARTER 2001)
[GRAPHICS OMITTED]
GEOGRAPHIC DISTRIBUTION PROPERTY TYPE CBD VS SUBURBAN (OFFICE SPACE ONLY)
- ----------------------- ------------- ----------------------------------
SQUARE FEET SQUARE FEET SQUARE FEET
Long Island 49% Office 68% CBD 37%
New York City 16% Industrial 32% Suburban 63%
Westchester 16%
Connecticut 7%
New Jersey 12%
TOTAL REVENUE TOTAL REVENUE TOTAL REVENUE
Long Island 34% Office 89% CBD 44%
New York City 28% Industrial 11% Suburban 56%
Westchester 18%
Connecticut 8%
New Jersey 12%
NET OPERATING INCOME NET OPERATING INCOME NET OPERATING INCOME
Long Island 33% Office 85% CBD 42%
New York City 25% Industrial 15% Suburban 58%
Westchester 19%
Connecticut 9%
New Jersey 14%
FUNDS FROM OPERATIONS FUNDS FROM OPERATIONS FUNDS FROM OPERATIONS
Long Island 33% Office 88% CBD 47%
New York City 31% Industrial 12% Suburban 53%
Westchester 17%
Connecticut 7%
New Jersey 12%
25
RECKSON ASSOCIATES REALTY CORP.
PORTFOLIO SNAPSHOT - ADJUSTED FOR MINORITY INTEREST IN TRI-STATE JOINT VENTURE
TRANSACTION AND 919 3RD AVENUE FREE RENT ADDBACK
[GRAPHICS OMITTED]
GEOGRAPHIC DISTRIBUTION PROPERTY TYPE CBD VS SUBURBAN (OFFICE SPACE ONLY)
- ----------------------- ------------- -----------------------------------
SQUARE FEET SQUARE FEET SQUARE FEET
Long Island 49% Office 67% CBD 37%
New York City 17% Industrial 33% Suburban 63%
Westchester 16%
Connecticut 7%
New Jersey 11%
TOTAL REVENUE TOTAL REVENUE TOTAL REVENUE
Long Island 31% Office 88% CBD 48%
New York City 32% Industrial 12% Suburban 52%
Westchester 17%
Connecticut 8%
New Jersey 12%
NET OPERATING INCOME NET OPERATING INCOME NET OPERATING INCOME
Long Island 31% Office 88% CBD 48%
New York City 32% Industrial 12% Suburban 52%
Westchester 18%
Connecticut 7%
New Jersey 12%
FUNDS FROM OPERATIONS FUNDS FROM OPERATIONS FUNDS FROM OPERATIONS
Long Island 31% Office 87% CBD 49%
New York City 34% Industrial 13% Suburban 51%
Westchester 17%
Connecticut 7%
New Jersey 11%
26
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 six month period ended June 30,
2001 and the historical average of such capital expenditures, tenant improvements and leasing commissions for the years 1997
through 2000.
NON-INCREMENTAL REVENUE GENERATING CAPITAL EXPENDITURES
1997-2000
1997 1998 1999 2000 average 2001
---------- ---------- ---------- ---------- ---------- ----------
Suburban Office Properties
Total $1,108,675 $2,004,976 $2,298,899 $3,289,116 $2,175,417 $1,443,882
Per Square Foot 0.22 0.23 0.23 0.33 0.25 0.14
CBD Office Properties
Total N/A N/A N/A $ 946,718 $ 946,718 $ 641,809
Per Square Foot N/A N/A N/A 0.38 0.38 0.18
Industrial Properties
Total $ 733,233 $1,205,266 $1,048,688 $ 813,431 $ 950,155 $ 309,398
Per Square Foot 0.15 0.12 0.11 0.11 0.12 $ 0.05
NON-INCREMENTAL REVENUE GENERATING TENANT IMPROVEMENTS AND LEASING COMMISSIONS
1997-2000
1997 1998 1999 2000 average 2001 New Renewal
---------- ---------- ---------- ---------- ---------- ---------- ---------- --------
Long Island Office Properties
Tenant Improvements $ 784,044 $1,140,251 $1,009,357 $2,853,706 $1,466,840 $ 702,596 $ 544,453 $158,143
Per Square Foot Improved 7.00 3.98 4.73 6.99 5.68 9.50 18.40 3.56
Leasing Commissions $415,822 $ 418,191 $ 551,762 $2,208,604 $ 898,595 $333,643 $ 138,377 $195,266
Per Square Foot Leased 4.83 1.46 2.59 4.96 3.46 4.51 4.68 4.40
---------- ---------- ---------- ---------- ---------- ---------- ---------- --------
Total Per Square Foot $11.83 $ 5.44 $ 7.32 $ 11.95 $ 9.14 $ 14.01 $ 23.08 $ 7.96
========== ========== ========== ========== ========== ========== ========== ========
Westchester Office Properties
Tenant Improvements $1,211,665 $ 711,160 $1,316,611 $1,860,027 $1,274,866 $1,358,938 $1,024,643 $334,295
Per Square Foot Improved 8.9 4.45 5.62 5.72 6.17 6.06 7.94 3.51
Leasing Commissions $366,257 $ 286,150 $ 457,730 $ 412,226 $ 380,591 $ 39,295 $ 39,295 $ 0
Per Square Foot Leased 2.69 1.79 1.96 3 2.36 0.17 0.30 --
---------- ---------- ---------- ---------- ---------- ---------- ---------- --------
Total Per Square Foot $11.59 $ 6.24 $ 7.58 $ 8.72 $ 8.53 $ 6.23 $ 8.24 $ 3.51
========== ========== ========== ========== ========== ========== ========== ========
Connecticut Office Properties
Tenant Improvements $1,022,421 $ 202,880 $ 179,043 $ 385,531 $ 447,469 $ 175,648 $ 133,543 $ 42,105
Per Square Foot Improved 13.39 5.92 4.88 4.19 7.10 2.14 5.63 0.72
Leasing Commissions $256,615 $ 151,063 $ 110,252 $ 453,435 $ 242,841 $ 182,516 $ 118,463 $ 64,053
Per Square Foot Leased 3.36 4.41 3.00 4.92 3.92 2.22 4.99 1.10
---------- ---------- ---------- ---------- ---------- ---------- ---------- --------
Total Per Square Foot $16.75 $ 10.33 $ 7.88 $9.11 $ 11.02 $ 4.36 $ 10.62 $ 1.81
========== ========== ========== ========== ========== ========== ========== ========
New Jersey Office Properties
Tenant Improvements N/A $ 654,877 $ 454,054 $1,580,323 $ 896,418 $ 737,260 $ 700,126 $ 37,134
Per Square Foot Improved N/A 3.78 2.29 6.71 4.26 5.30 7.97 0.73
Leasing Commissions N/A $ 396,127 $ 787,065 $1,031,950 $ 738,381 $ 904,348 $ 675,116 $229,232
Per Square Foot Leased N/A 2.08 3.96 4.44 3.49 6.51 7.69 4.48
---------- ---------- ---------- ---------- ---------- ---------- ---------- --------
Total Per Square Foot N/A $ 5.86 $ 6.25 $ 11.15 $ 7.75 $ 11.81 $ 15.66 $ 5.21
========== ========== ========== ========== ========== ========== ========== ========
New York City Office Properties
Tenant Improvements N/A N/A N/A $ 65,267 $ 65,267 $ 738,800 $ 738,800 $ 0
Per Square Foot Improved N/A N/A N/A 1.79 1.79 17.20 17.20 --
Leasing Commissions N/A N/A N/A $ 418,185 $ 418,185 $1,025,394 $1,025,394 $ 0
Per Square Foot Leased N/A N/A N/A 11.50 11.50 23.87 23.87 --
---------- ---------- ---------- ---------- ---------- ---------- ---------- --------
Total Per Square Foot N/A N/A N/A $ 13.29 N/A $ 41.07 $ 41.07 $ 0.00
========== ========== ========== ========== ========== ========== ========== ========
Industrial Properties
Tenant Improvements $ 230,466 $ 283,842 $ 375,646 $ 650,216 $ 385,043 $ 141,640 $ 34,650 $ 0
Per Square Foot Improved 0.55 0.76 0.25 0.95 0.63 0.70 0.26 --
Leasing Commissions $81,013 $ 200,154 $ 835,108 $ 436,506 $ 388,195 $ 183,533 $ 50,055 $ 0
Per Square Foot Leased 0.19 0.44 0.56 0.64 0.46 0.90 0.37 --
---------- ---------- ---------- ---------- ---------- ---------- ---------- --------
Total Per Square Foot $0.75 $ 1.20 $ 0.81 $ 1.59 $ 1.09 $ 1.59 $ 0.62 $ 0.00
========== ========== ========== ========== ========== ========== ========== ========
27
MARKET STATISTICS
-----------------
28
Reckson Associates Realty Corp.
[GRAPHICS OMITTED]
LONG ISLAND
CLASS A STATISTICS 1997 1998 1999 2000 2001
------------------ ---- ---- ---- ---- ----
Average Asking Rental Rates $26.14 $27.23 $27.69 $28.86 $30.45
Overall Vacancy 9.7% 6.7% 6.5% 8.4% 10.4%
Direct Vacancy 8.7% 6.1% 5.6% 6.3% 7.7%
WESTCHESTER
CLASS A STATISTICS 1997 1998 1999 2000 2001
------------------ ---- ---- ---- ---- ----
Average Asking Rental Rates $25.14 $26.67 $27.23 $29.62 $29.13
Overall Vacancy 15.6% 19.2% 16.3% 12.0% 13.7%
Direct Vacancy 13.3% 16.4% 15.0% 10.7% 11.6%
SOUTHERN CONNECTICUT
CLASS A STATISTICS 1997 1998 1999 2000 2001
------------------ ---- ---- ---- ---- ----
Average Asking Rental Rates $28.96 $32.22 $31.78 $44.41 $42.74
Overall Vacancy 5.7% 4.2% 4.7% 8.1% 12.4%
Direct Vacancy 4.2% 3.6% 4.0% 7.2% 9.4%
NORTHERN NEW JERSEY
CLASS A STATISTICS 1997 1998 1999 2000 2001
------------------ ---- ---- ---- ---- ----
Average Asking Rental Rates $25.38 $27.42 $28.52 $29.66 $29.69
Overall Vacancy 7.3% 7.5% 7.1% 9.9% 11.1%
Direct Vacancy 4.7% 5.3% 4.6% 6.5% 6.2%
Source: Cushman & Wakefield
29
Reckson Associates Realty Corp.
LONG ISLAND SUBMARKETS CLASS A OFFICE
AVERAGE ASKING RENTS
[GRAPHIC OMITTED]
1997 1998 1999 2000 2Q01
---- ---- ---- ---- ----
Central Nassau County $28.79 $29.10 $29.93 $31.15 $31.60
Western Suffolk County $26.55 $26.22 $27.34 $28.22 $30.90
Eastern Nassau County $25.22 $27.49 $26.23 $28.75 $27.46
Source: Cushman & Wakefield
Note: 45% of Long Island office revenue is derived from Central Nassau properties
32% of Long Island office revenue is derived from Western Suffolk properties
7% of Long Island office revenue is derived from Eastern Nassau properties
30
Reckson Associates Realty Corp.
LONG ISLAND SUBMARKETS CLASS A OFFICE
DIRECT VACANCY RENTS
[GRAPHIC OMITTED]
1997 1998 1999 2000 2Q01
---- ---- ---- ---- ----
Central Nassau County 7.5% 5.1% 5.1% 4.7% 5.7%
Western Suffolk County 7.7% 7.7% 11.6% 15.4% 17.7%
Eastern Nassau County 6.4% 4.9% 0.9% 1.4% 1.2%
Source: Cushman & Wakefield
Note: 45% of Long Island office revenue is derived from Central Nassau properties
32% of Long Island office revenue is derived from Western Suffolk properties
7% of Long Island office revenue is derived from Eastern Nassau properties
31
Reckson Associates Realty Corp.
WESTCHESTER SUBMARKETS CLASS A OFFICE
AVERAGE ASKING RENTS
[GRAPHICS OMITTED]
1997 1998 1999 2000 2Q01
---- ---- ---- ---- ----
Central $22.39 $22.91 $27.07 $28.49 $28.22
Tarrytown/Western $24.43 $24.66 $27.30 $27.03 $26.25
Eastern $26.53 $29.35 $27.70 $29.65 $29.72
White Plains CBD $25.09 $26.84 $27.44 $30.62 $29.76
Source: Cushman & Wakefield
Note: 29% of Westchester office revenue is derived from Tarrytown / Western properties
28% of Westchester office revenue is derived from Central properties
20% of Westchester office revenue is derived from White Plains properties
16% of Westchester office revenue is derived from Eastern properties
32
Reckson Associates Realty Corp.
WESTCHESTER SUBMARKETS CLASS A OFFICE
DIRECT VACANCY RENTS
[GRAPHICS OMITTED]
1997 1998 1999 2000 2Q01
---- ---- ---- ---- ----
Central 5.7% 12.3% 13.5% 12.0% 17.9%
Tarrytown / Western 7.9% 7.8% 8.0% 6.0% 9.0%
Eastern 8.6% 12.2% 10.1% 8.1% 6.5%
White Plains CBD 25.7% 22.7% 22.6% 11.5% 9.7%
Source: Cushman & Wakefield
Note: 29% of Westchester office revenue is derived from Tarrytown / Western properties
28% of Westchester office revenue is derived from Central properties
20% of Westchester office revenue is derived from White Plains properties
16% of Westchester office revenue is derived from Eastern properties
Note: The 17.9% 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 vacany
rate is 13.%
33
Reckson Associates Realty Corp.
NEW JERSEY SUBMARKETS CLASS A OFFICE
AVERAGE ASKING RENTS
[GRAPHIC OMITTED]
ESSEX COUNTY BERGEN COUNTY MERCER COUNTY
------------ ------------- -------------
1997 $26.47 $26.02 $23.01
1998 $27.74 $27.37 $24.49
1999 $28.78 $28.07 $27.46
2000 $28.90 $29.41 $30.32
2Q01 $29.53 $29.40 $29.86
Source: Cushman & Wakefield
Note: 52% of New Jersey office revenue is derived from Essex County office properties
14% of New Jersey office revenue is derived from Bergen County office properties
9% of New Jersey office revenue is derived from Mercer County office properties
34
Reckson Associates Realty Corp.
NEW JERSEY SUBMARKETS CLASS A OFFICE
DIRECT VACANCY RATES
[GRAPHIC OMITTED]
ESSEX COUNTY BERGEN COUNTY MERCER COUNTY
------------ ------------- -------------
1997 4.70% 7.80% 2.50%
1998 3.30% 6.80% 1.50%
1999 6.00% 5.30% 5.20%
2000 9.60% 5.10% 6.30%
2Q01 7.50% 7.70% 4.50%
Source: Cushman & Wakefield
Note: 52% of New Jersey office revenue is derived from Essex County office properties
14% of New Jersey office revenue is derived from Bergen County office properties
9% of New Jersey office revenue is derived from Mercer County office properties
35
Reckson Associates Realty Corp.
NEW YORK CITY SUBMARKETS CLASS A OFFICE
AVERAGE ASKING RENTS
[GRAPHIC OMITTED]
1997 1998 1999 2000 2Q01
---- ---- ---- ---- ----
Financial East $29.77 $40.21 $37.64 $52.90 $47.84
Midtown West Side $33.10 $43.36 $48.28 $60.89 $57.65
Midtown East Side $39.33 $47.85 $51.18 $61.46 $60.33
6th Ave./Rockefeller Center $43.62 $51.33 $53.12 $65.91 $71.32
Source: Cushman & Wakefield
Note: 40% of New York City office revenue is derived from Midtown West Side properties
30% of New York City office revenue is derived from Midtown East Side properties
17% of New York City office revenue is derived from 6th Ave./Rockefeller Center properties
13% of New York City office revenue is derived from Financial East properties
36
Reckson Associates Realty Corp.
NEW YORK CITY
CLASS A STATISTICS
[GRAPHICS OMITTED]
FINANCIAL EAST 1997 1998 1999 2000 2Q01
---- ---- ---- ---- ----
Overall Vacancy 8.9% 7.3% 4.1% 2.1% 6.6%
Direct Vacancy 8.2% 6.6% 3.4% 1.4% 3.4%
MIDTOWN WEST 1997 1998 1999 2000 2Q01
---- ---- ---- ---- ----
Overall Vacancy 6.9% 4.3% 6.0% 2.7% 4.4%
Direct Vacancy 3.7% 3.3% 4.6% 2.4% 2.7%
MIDTOWN EAST 1997 1998 1999 2000 2Q01
---- ---- ---- ---- ----
Overall Vacancy 7.2% 8.0% 5.0% 2.6% 4.5%
Direct Vacancy 5.6% 6.0% 3.8% 1.9% 2.5%
6TH AVE/ROCK CTR 1997 1998 1999 2000 2Q01
---- ---- ---- ---- ----
Overall Vacancy 4.7% 5.0% 2.6% 1.2% 3.3%
Direct Vacancy 2.7% 2.2% 1.6% 0.9% 1.5%
Source: Cushman & Wakefield
Note: 40% of New York City office revenue is derived from Midtown West Side properties
30% of New York City office revenue is derived from Midtown East Side properties
17% of New York City office revenue is derived from 6th Ave./Rockefeller Center properties
13% of New York City office revenue is derived from Financial East properties
37
VALUE CREATION PIPELINE STATISTICS
----------------------------------
38
RECKSON ASSOCIATES REALTY CORP.
VALUE CREATION PIPELINE
June 30, 2001
- ------------------------------------------------------------------------------------------------------------------------------------
ANTICIPATED TOTAL
ACRES / INITIAL INCREMENTAL ANTICIPATED
STAGE/PROPERTY SQ. FEET INVESTMENT INVESTMENT INVESTMENT
- ------------------------------------------------------------------------------------------------------------------------------------
PROJECTS IN STABILIZATION PERIOD
Melville Expressway Corporate Center, Melville NY ( Phase I ) 277,500 $4,250,000 $39,196,000 $43,446,000
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL PROJECTS IN STABILIZATION PERIOD 277,500 $4,250,000 $39,196,000 $43,446,000
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PROJECTS UNDER DEVELOPMENT OR REPOSITIONING
103 JFK Expressway, Short Hills, NJ 129,508 $21,025,000 $8,975,000 $30,000,000
400 Moreland Road, Commack, NY 56,875 $1,562,000 $1,405,000 $2,967,000
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL PROJECTS UNDER DEVELOPMENT OR REPOSITIONING 186,383 $22,587,000 $10,380,000 $32,967,000
- ------------------------------------------------------------------------------------------------------------------------------------
PROJECTS IN PLANNING
Melville Square Corporate Center II, Melville, NY 255,000 $5,732,621 $27,927,379 $33,660,000
University Square , Princeton, NJ 315,000 $4,657,300 $45,739,700 $50,397,000
Melville Expressway Corporate Center, Melville, NY ( Phase II ) 277,500 $4,250,000 $45,040,000 $49,290,000
Reckson Executive Park, Rye Brook, NY 345,000 $8,000,000 $47,799,000 $55,799,000
AIP 2001, Islip, NY 71,000 $650,000 $5,042,000 $5,692,000
Landmark 7, Stamford, CT 61,000 $0 $13,208,000 $13,208,000
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL PROJECTS IN PLANNING 1,324,500 $23,289,921 $184,756,079 $208,046,000
- ------------------------------------------------------------------------------------------------------------------------------------
LAND
70 Andrews Road, Hicksville, NY 3.8 $487,500 $2,821,500 $3,309,000
Giralda Farms, Morris County, NJ (2) 40 $5,000,000 $75,091,000 $80,091,000
Old Willets Path, Hauppauge, NY 2 $595,000 $2,400,000 $2,995,000
Eagle Rock 3, East Hanover, NJ 15 $2,808,904 $14,816,096 $17,625,000
AIP Recapture, Islip, NY 4.2 $0 $0 $0
AIP, Islip NY 3.8 $0 $2,200,000 $2,200,000
AIP, Islip NY 2 $0 $1,400,000 $1,400,000
East Patchogue, East Patchogue, NY 23 $0 $0 $0
40 Cragwood, South Plainfield, NJ 7 $0 $0 $0
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TOTAL LAND 100.8 $8,891,404 $98,728,596 $107,620,000
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TOTAL UNREALIZED PIPELINE $59,018,325 $333,060,675 $392,079,000
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Investments that reached realization this quarter
50 Marcus Dr 163,762 sf
100 Grasslands 47,690 sf
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TOTAL REALIZED VALUE CREATION PROJECTS 8,254,990 767,805,720 297,368,083 1,065,173,803
- ------------------------------------------------------------------------------------------------------------------------------------
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INVESTMENT ANTICIPATED
TO STABILIZED CURRENT
STAGE/PROPERTY DATE RETURN (1) OCCUPANCY
- ------------------------------------------------------------------------------------------------------------------------------------
PROJECTS IN STABILIZATION PERIOD
- --------------------------------
Melville Expressway Corporate Center Melville NY ( Phase I ) $40,331,840 12.0% 31.0%
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL PROJECTS IN STABILIZATION PERIOD $40,331,840 12.0%
- ------------------------------------------------------------------------------------------------------------------------------------
PROJECTS UNDER DEVELOPMENT OR REPOSITIONING
- -------------------------------------------
103 JFK Expressway, Short Hills, NJ $22,051,071 10.0% 0.0%
400 Moreland Road, Commack, NY $2,984,408 12.0% 0.0%
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL PROJECTS UNDER DEVELOPMENT OR REPOSITIONING $25,035,479 10.2%
- ------------------------------------------------------------------------------------------------------------------------------------
PROJECTS IN PLANNING
- --------------------
Melville Square Corporate Center II, Melville, NY $7,260,645 12.5% 0.0%
University Square , Princeton, NJ $16,270,596 12.0% 0.0%
Melville Expressway Corporate Center, Melville, NY ( Phase II ) $8,594,309 13.0% 0.0%
Reckson Executive Park, Rye Brook, NY $14,434,500 12.0% 0.0%
AIP 2001, Islip, NY $2,201,167 12.0% 0.0%
Landmark 7, Stamford, CT $21,242 12.5% 0.0%
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL PROJECTS IN PLANNING $48,782,459 12.3%
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LAND
- ----
70 Andrews Road, Hicksville, NY $1,011,741 12.0%
Giralda Farms , Morris County, NJ (2) $13,794,434 11.0%
Old Willets Path, Hauppauge, NY $771,195 12.0%
Eagle Rock 3, East Hanover, NJ $3,965,412 12.0%
AIP Recapture, Islip, NY $0 12.0%
AIP, Islip NY $0 12.0%
AIP, Islip NY $0 12.0%
East Patchogue, East Patchogue, NY $0 12.0%
40 Cragwood, South Plainfield, NJ $0 12.0%
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LAND $19,542,782 11.3%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL UNREALIZED PIPELINE $133,692,560 11.8%
- ------------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL REALIZED VALUE CREATION PROJECTS 1,065,173,803 12.3% 98.3%
- ------------------------------------------------------------------------------------------------------------------------------------
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STAGE/PROPERTY BUSINESS PLAN
- ------------------------------------------------------------------------------------------------------------------------------------
PROJECTS IN STABILIZATION PERIOD
- --------------------------------
Melville Expressway Corporate Center Melville NY ( Phase I ) Complete lease up of building.
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL PROJECTS IN STABILIZATION PERIOD
- ------------------------------------------------------------------------------------------------------------------------------------
PROJECTS UNDER DEVELOPMENT OR REPOSITIONING
- -------------------------------------------
103 JFK Expressway, Short Hills, NJ Reposition 129,508 SF office building.
400 Moreland Road, Commack, NY Reposition vacant industrial property
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL PROJECTS UNDER DEVELOPMENT OR REPOSITIONING
- ------------------------------------------------------------------------------------------------------------------------------------
PROJECTS IN PLANNING
- --------------------
Melville Square Corporate Center II, Melville, NY Development of 255,000 SF office building
University Square , Princeton, NJ Commenced development on a 315,000 SF office building
Melville Expressway Corporate Center, Melville, NY ( Phase II ) Phase II of commercial land zoned for 550,000 SF office
development.
Reckson Executive Park, Rye Brook, NY Commercial land zoned for 345,000 SF office development.
Actively marketing to build to suits
AIP 2001, Islip, NY Development of a 71,000 SF industrial building. This represents
the last remaining parcel in a development which includes 3
fully leased industrial buildings encompassing 442,000 SF
Landmark 7, Stamford, CT Develop 61,000 sf building adjacent to existing Landmark Square
office complex.
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL PROJECTS IN PLANNING
- ------------------------------------------------------------------------------------------------------------------------------------
LAND
- ----
70 Andrews Road, Hicksville, NY Development of 50,000 SF building
Giralda Farms , Morris County, NJ (2) Commercial land zoned for 430,000 SF office development.
Presently marketing to corporate users
Old Willets Path, Hauppauge, NY Commercial land zoned for 30,000 SF industrial development.
Eagle Rock 3, East Hanover, NJ Development of 115,000 SF office building
AIP Recapture, Islip, NY Land lease to alternative use ( hotel , retail )
AIP, Islip NY Development of 43,000 SF office/R&D use
AIP, Islip NY Development of 30,000 SF office/R&D use
East Patchogue, East Patchogue, NY Intended for sale
40 Cragwood, South Plainfield, NJ Intended for sale
- ------------------------------------------------------------------------------------------------------------------------------------
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- -------------------------------------------------------------------------------------
ESTIMATED MONTHS
TO COMPLETION/
STAGE/PROPERTY STABILIZATION
- -------------------------------------------------------------------------------------
PROJECTS IN STABILIZATION PERIOD
- --------------------------------
Melville Expressway Corporate Center Melville NY ( Phase I ) 8 - 12
- -------------------------------------------------------------------------------------
TOTAL PROJECTS IN STABILIZATION PERIOD
PROJECTS UNDER DEVELOPMENT OR REPOSITIONING
- -------------------------------------------
103 JFK Expressway, Short Hills, NJ 12 - 18
400 Moreland Road, Commack, NY 12 - 18
- -------------------------------------------------------------------------------------
TOTAL PROJECTS UNDER DEVELOPMENT OR REPOSITIONING
- -------------------------------------------------------------------------------------
PROJECTS IN PLANNING
- --------------------
Melville Square Corporate Center II, Melville, NY 24 - 30
University Square , Princeton, NJ 24 - 36
Melville Expressway Corporate Center, Melville, NY ( Phase II ) 18 - 30
Reckson Executive Park, Rye Brook, NY 18 - 36
AIP 2001, Islip, NY 12 - 24
Landmark 7, Stamford, CT 18 - 24
- -------------------------------------------------------------------------------------
TOTAL PROJECTS IN PLANNING
- -------------------------------------------------------------------------------------
LAND
- ----
70 Andrews Road, Hicksville, NY 18
Giralda Farms , Morris County, NJ (2) 30 - 36
Old Willets Path, Hauppauge, NY 18
Eagle Rock 3, East Hanover, NJ 24 - 36
AIP Recapture, Islip, NY 36
AIP, Islip NY 36
AIP, Islip NY 36
East Patchogue, East Patchogue, NY 48
40 Cragwood, South Plainfield, NJ 60
- -------------------------------------------------------------------------------------
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(1) Forward looking statement based upon management's estimates. Actual results may differ materially.
(2) 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.
39