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 7, 2002
3
EXHIBIT 99.1
RECKSON ASSOCIATES REALTY CORP.
SECOND QUARTER 2002
SUPPLEMENTAL OPERATING AND FINANCIAL DATA
AUGUST 7, 2002
225 BROADHOLLOW ROAD, MELVILLE, NY 11747
PHONE: 631.694.6900 1.888.RECKSON FAX: 631.622.6790
WWW.RECKSON.COM
[RECKSON GRAPHIC OMITTED]
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TABLE OF CONTENTS
Page(s)
-------
Company Information
o Corporate Information.............................................................................2-3
o Reporting Period Highlights.......................................................................4-5
o Stock Performance...................................................................................6
Financial Highlights
o Key Financial Data..................................................................................7
o Statements of Operations............................................................................8
o Funds from Operations and Cash Available for Distribution........................................9-11
o Consolidated Balance Sheets........................................................................12
o Debt Summary.......................................................................................13
o Preferred Securities...............................................................................14
Portfolio Performance
o Same Property Performance.......................................................................15-16
o Portfolio Snapshot.................................................................................17
o Occupancy Analysis..............................................................................18-19
o Leasing Statistics..............................................................................20-21
o Lease Expirations...............................................................................22-25
o Top 25 Tenants.....................................................................................26
o Capital Expenditures Analysis...................................................................27-29
Market Statistics
o Suburban Market Overviews.......................................................................30-31
o New York City Sub-Markets.......................................................................32-33
o Long Island Sub-Markets............................................................................34
o Westchester Sub-Markets............................................................................35
o New Jersey Sub-Markets.............................................................................36
Value Creation Pipeline Schedule..................................................................................37
Unconsolidated Real Estate Joint Ventures.........................................................................38
Reckson Strategic Venture Partners (RSVP)
o Combined Balance Sheets............................................................................39
o Summary of Invested Capital........................................................................40
o Summarized Platform Balance Sheets.................................................................41
Certain matters discussed herein are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Although the
Company believes 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; credit of our tenants; 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 re-lease 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 and insurance 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 Reckson,
reference is made to Reckson's filings with the Securities and Exchange
Commission. Reckson undertakes no responsibility to update or supplement
information contained in this presentation.
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CORPORATE INFORMATION
CORPORATE PROFILE
Reckson Associates Realty Corp. 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.
Through a predecessor entity, Reckson commenced operations in 1958 and grew
steadily by acquiring, developing and redeveloping Class A office and industrial
properties throughout Long Island. In June 1995, Reckson successfully completed
its initial public offering. Subsequently, the Company expanded from its Long
Island base and established operating divisions in Westchester, Connecticut, New
Jersey and New York City. By transporting the formula that built its success on
Long Island to the other Tri-State area markets, Reckson is now positioned as
the premier real estate franchise in the New York Tri-State area.
Today, Reckson owns 181 properties comprised of approximately 20.5 million
square feet located throughout the New York Tri-State area markets. These
properties are comprised of 13.8 million square feet of Class A office space and
6.7 million square feet of industrial space. The Company has a total market
capitalization of approximately $3.3 billion and has generated a total return to
its initial Class A common shareholders of approximately 212% for the period
June 2, 1995 through June 30, 2002.
Reckson is a fully integrated real estate operating company specializing in the
acquisition, leasing, financing, property and asset management, design and
development and construction of Class A office and industrial properties in the
New York Tri-State area.
CORPORATE HEADQUARTERS
225 Broadhollow Road
Melville, New York 11747-4883
Telephone: (631) 694-6900
(888) RECKSON
Facsimile: (631) 622-6790
Web site: www.reckson.com
EXECUTIVE OFFICER CONTACTS
Donald Rechler Co-Chief Executive Officer
Chairman of the Board
Scott Rechler Co-Chief Executive Officer
Chairman of the Executive Committee
Michael Maturo Chief Financial Officer
Executive Vice President
INVESTOR RELATIONS
Susan McGuire Vice President Investor Relations
Telephone: (631) 622-6642
Facsimile: (631) 622-6790
E-mail: smcguire@reckson.com
To request an Investor Relations package or be added to our distribution list,
please contact us at:
Telephone: (631) 622-6746
Facsimile: (631) 622-6790
E-mail: investorrelations@reckson.com
Web site: www.reckson.com (Go to Information Request in the Investor
Relations section)
2
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CORPORATE INFORMATION
RESEARCH COVERAGE
CIBC World Markets Legg Mason
Anthony Paolone David Fick/Kenneth Weinberg
(212) 667-8116 (410) 454-5018/(410) 454-5175
Credit Suisse First Boston Lehman Brothers
Lawrence Raiman David Shulman/Stuart Axelrod
(212) 538-2380 (212) 526-3413/(212) 526-3410
Deutsche Bank Securities McDonald & Company
Louis Taylor Anatole Pevnev
(212) 469-4912 (216) 263-4783
Goldman Sachs Merrill Lynch
David Kostin/James Kammert Steve Sakwa/Rahul Bhattacharjee
(212) 902-6781/(212) 855-0670 (212) 449-0335/(212) 449-1920
Greenstreet Advisors Salomon Smith Barney
John Lutzius Jonathan Litt/Gary Boston
(949) 640-8780 (212) 816-0231/(212) 816-1383
QUARTERLY REPORTING SCHEDULE
Quarterly results will be announced according to the following anticipated
schedule:
First Quarter Early May
Second Quarter Early August
Third Quarter Early November
Fourth Quarter and Year End Late February
SENIOR UNSECURED DEBT RATINGS
Moody's Baa3
Standard & Poor's BBB-
STOCK LISTING
The stock of Reckson Associates Realty Corp. is traded primarily on the New York
Stock Exchange under the following symbols:
Class A Common Stock: RA
Class B Common Stock: RA.B
Series A Preferred Stock: RA.A
3
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REPORTING PERIOD HIGHLIGHTS
SUMMARY SECOND QUARTER 2002 RESULTS
Reported second quarter diluted funds from operations ("FFO") of $.59 per share,
inclusive of $.02 per share of reserves against GAAP deferred rents receivable,
as compared to FFO of $.70 per share for the second quarter of 2001,
representing a per share decrease of 15.7%.
Reported diluted cash available for distribution ("CAD") of $.45 per share for
the second quarter of 2002, inclusive of $.02 per share of reserves against GAAP
deferred rents receivable, as compared to $.48 per share for the comparable 2001
period, representing a per share decrease of 6.3%.
SUMMARY PORTFOLIO PERFORMANCE
Portfolio performance remained stable during the second quarter of 2002 with
occupancies at June 30, 2002 of 95.2% for the office portfolio and 92.0% for the
industrial portfolio. This compares to 96.2% and 92.9%, respectively, at March
31, 2002 and 97.0% and 97.9%, respectively, at June 30, 2001. Reported overall
portfolio occupancy of 94.2% at June 30, 2002, as compared to 95.1% at March 31,
2002 and 97.2% at June 30, 2001.
The Company also reported same property office portfolio occupancy of 95.9% at
June 30, 2002, as compared to 96.2% at March 31, 2002 and 97.0%, at June 30,
2001. Reported same property occupancy of 94.9% for the overall portfolio at
June 30, 2002, as compared to 95.1% at March 31, 2002 and 97.5% at June 30 2001.
During the quarter, the Company executed 64 leases, encompassing 478,000 square
feet, representing 2.3% of the total portfolio and renewed 57% of expiring
square feet. The Company reduced total portfolio exposure to expiring leases to
3.1% in 2002 and 9.2% in 2003.
Same property net operating income ("NOI"), before termination fees and reserves
against GAAP deferred rents receivable, for the second quarter of 2002 increased
12.0% (cash) and 2.1% (GAAP) for the total portfolio, compared to the second
quarter of 2001.
During the second quarter of 2002, the Company reported bad debt reserves mainly
attributable to GAAP deferred rents receivable in the amount of approximately
$2.5 million, as compared to approximately $0.1 million for the second quarter
of 2001.
Rents on same space leases executed during the second quarter of 2002 increased
19.3% (GAAP) and 14.1% (cash) in the office properties and 12.4% (GAAP) and 9.0%
(cash) in the industrial/R&D properties.
4
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REPORTING PERIOD HIGHLIGHTS (CONTINUED)
OTHER HIGHLIGHTS
Completed an offering of $50 million of 6.00% (6.13% effective rate) five-year
senior unsecured notes due June 15, 2007. Proceeds were used to repay
outstanding borrowings under the Company's Corporate Credit Facility.
Subsequent to June 30, 2002, repurchased 1,856,200 Class A common shares at a
weighted average stock price of $21.98 per share and 368,200 Class B common
shares at a weighted average stock price of $22.90 per share. Aggregate purchase
of 2,224,400 shares of Class A and Class B common stock amounted to
approximately $49.2 million.
Announce that the Company will begin expensing the cost of stock options
effective January 1, 2002.
Standard & Poor's reaffirmed its BBB- investment grade rating and maintained a
stable outlook opinion.
CONSOLIDATED FINANCIAL RESULTS
The Company reported diluted operating earnings per share ("OpEPS") of $.23 for
the second quarter of 2002, as compared to $.34 per share for the comparable
2001 period.
The Company reported diluted earnings per Class A common share ("EPS") of $.21
for the second quarter of 2002, as compared to $.32 per Class A common share for
the comparable 2001 period.
5
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STOCK PERFORMANCE
The following summarizes recent activity of Reckson's Class A common stock (RA):
1st 2nd 7/1/02
Quarter Quarter to
2002 2002 8/1/02
-----------------------------------------
High Price* $ 24.68 $ 26.00 $ 24.92
Low Price* $ 22.54 $ 24.18 $ 21.08
Closing Price* $ 24.66 $ 24.90 $ 22.68
Average daily trading volume* 354,233 351,706 622,957
Indicated dividend per share** $ 1.6984 $ 1.6984 $ 1.6984
Closing dividend yield 6.89% 6.82% 7.49%
Closing shares and units outstanding (thousands) 58,248 58,264 56,347
Closing market value of shares and units outstanding (thousands) $1,436,396 $1,450,774 $1,277,950
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The following summarizes recent activity of Reckson's Class B common stock
(RA.B):
1st 2nd 7/1/02
Quarter Quarter to
2002 2002 8/1/02
-----------------------------------------
High Price* $ 25.76 $ 27.07 $ 25.95
Low Price* $ 23.86 $ 25.30 $ 22.30
Closing Price* $ 25.76 $ 25.50 $ 24.22
Average daily trading volume* 87,175 72,400 196,139
Indicated dividend per share** $ 2.5968 $ 2.5884 $ 2.5884
Closing dividend yield 10.08% 10.15% 10.69%
Closing shares outstanding (thousands) 10,284 10,284 9,915
Closing market value of shares outstanding (thousands) $264,916 $262,242 $240,141
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The following summarizes recent activity of Reckson's Series A preferred stock
(RA.A):
1st 2nd 7/1/02
Quarter Quarter to
2002 2002 8/1/02
-----------------------------------------
High Price* $ 24.35 $ 24.85 $ 24.10
Low Price* $ 22.65 $ 23.75 $ 20.30
Closing Price* $ 24.30 $ 23.95 $ 22.25
Average daily trading volume* 22,630 42,320 56,413
Indicated dividend per share** $ 1.9064 $ 1.9064 $ 1.9064
Closing dividend yield 7.85% 7.96% 8.57%
Closing shares outstanding (thousands) 9,192 9,192 9,192
Closing market value of shares outstanding (thousands) $223,366 $220,148 $204,522
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* New York Stock Exchange trades only
** On an annual basis
6
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KEY FINANCIAL DATA
(Dollars in thousands, except per share data)
For the three months ended or as of
----------------------------------------------------------------------
6/30/02 3/31/02 12/31/01 9/30/01 6/30/01
----------------------------------------------------------------------
Shares and Units
- ----------------
Common Shares Outstanding - Class A 50,988,233 50,305,143 49,982,377 49,806,885 49,619,419
Common Shares Outstanding - Class B 10,283,513 10,283,513 10,283,513 10,283,513 10,283,513
Operating Partnership Units Outstanding 7,276,224 7,942,692 7,487,218 7,638,043 7,644,135
----------------------------------------------------------------------
Total Shares and Operating Partnership Units 68,547,970 68,531,348 67,753,108 67,728,441 67,547,067
----------------------------------------------------------------------
Share Price & Dividends - Class A
- ---------------------------------
End of period $ 24.90 $ 24.66 $ 23.36 $ 24.15 $ 23.00
High during period $ 26.00 $ 24.68 $ 24.46 $ 24.15 $ 23.90
Low during period $ 24.18 $ 22.54 $ 22.15 $ 21.90 $ 21.14
Dividend declared $ 0.42 $ 0.42 $ 0.42 $ 0.42 $ 0.42
Closing dividend yield 6.8% 6.9% 7.3% 7.0% 7.4%
Share Price & Dividends - Class B
- ---------------------------------
End of period $ 25.50 $ 25.76 $ 25.51 $ 25.51 $ 24.61
High during period $ 27.07 $ 25.76 $ 25.76 $ 25.60 $ 25.00
Low during period $ 25.30 $ 23.86 $ 23.55 $ 23.29 $ 22.40
Dividend declared $ 0.65 $ 0.65 $ 0.65 $ 0.65 $ 0.65
Closing dividend yield 10.2% 10.1% 10.2% 10.2% 10.6%
Market Capitalization
- ---------------------
Market Value of Common Equity (a) $ 1,713,015 $ 1,701,295 $ 1,604,822 $ 1,649,627 $ 1,570,139
Stated Value of Preferred Equity 299,462 299,462 310,765 310,765 314,533
Total Debt (b) 1,285,636 1,279,195 1,336,011 1,444,473 1,500,081
----------------------------------------------------------------------
Total Market Capitalization $ 3,298,113 $ 3,279,952 $ 3,251,598 $ 3,404,865 $ 3,384,753
----------------------------------------------------------------------
Total Debt / Total Market Capitalization 39.0% 39.0% 41.1% 42.4% 44.3%
Selected Balance Sheet Data
- ---------------------------
Book Value of Real Estate Assets
before Depreciation $ 2,938,968 $ 2,894,481 $ 2,880,879 $ 2,814,024 $ 2,860,491
Total Assets $ 2,914,000 $ 2,914,546 $ 2,994,218 $ 2,861,651 $ 3,112,242
Total Liabilities $ 1,532,340 $ 1,518,623 $ 1,592,811 $ 1,566,012 $ 1,639,095
Selected Operating Data
- -----------------------
Property Operating Revenues $ 123,627 $ 122,505 $ 122,261 $ 126,722 $ 125,349
Property Operating Expenses $ 41,739 $ 42,212 $ 42,565 $ 44,231 $ 40,874
Property Operating NOI $ 81,888 $ 80,293 $ 79,696 $ 82,491 $ 84,475
Property Gross Operating Margin 66.2% 65.5% 65.2% 65.1% 67.4%
Other Revenues (excluding gain on sales of real estate) $ 2,008 $ 2,425 $ 2,706 $ 5,333 $ 7,038
Marketing, General & Administrative Expenses $ 7,693 $ 7,139 $ 7,160 $ 7,679 $ 8,411
as a percent of Total Revenues (excluding gain on
sales of real estate) 6.1% 5.7% 5.7% 5.8% 6.4%
Interest Expense $ 22,124 $ 20,996 $ 22,369 $ 23,510 $ 23,562
Capitalized Interest $ 1,799 $ 2,607 $ 2,442 $ 2,627 $ 2,434
Non-Incremental Capital Expenditures to NOI as a
percent (e) 6.61% 7.39% 8.62% 6.18% 6.78%
Financial Ratios
- ----------------
Debt Service Coverage Ratio 3.44 3.60 3.11 3.27 3.35
Fixed Charge Coverage Ratio 2.66 2.72 2.44 2.60 2.67
EPS, FFO and CAD
- ----------------
Class A Common stock:
Basic Net Income (loss) per share $ 0.21 $ 0.24 $ 0.47 $ (1.97) $ 0.32
Diluted Net Income (loss) per share $ 0.21 $ 0.24 $ 0.46 $ (1.97) $ 0.32
Class B Common stock:
Basic Net Income (loss) per share $ 0.32 $ 0.37 $ 0.71 $ (3.01) $ 0.45
Diluted Net Income (loss) per share $ 0.22 $ 0.26 $ 0.50 $ (3.01) $ 0.34
Basic operating earnings per share (d) $ 0.22 $ 0.26 $ 0.27 $ 0.31 $ 0.34
Diluted operating earnings per share (d) $ 0.22 $ 0.26 $ 0.27 $ 0.31 $ 0.34
Diluted FFO per share $ 0.59 $ 0.60 $ 0.57 $ 0.66 $ 0.70
Diluted weighted average Class A & B dividends
per share or unit $ 0.45 $ 0.45 $ 0.46 $ 0.45 $ 0.45
Diluted FFO payout ratio (Class A & B combined) 77.2% 76.1% 80.2% 68.7% 64.9%
Diluted weighted average Class A dividends per share $ 0.42 $ 0.42 $ 0.42 $ 0.42 $ 0.42
Diluted FFO payout ratio - Class A 72.3% 71.2% 74.9% 64.3% 61.0%
Diluted weighted average Class B dividends per share $ 0.65 $ 0.65 $ 0.65 $ 0.65 $ 0.63
Diluted FFO payout ratio - Class B 110.3% 108.8% 114.6% 98.3% 90.9%
Diluted CAD per share (e) $ 0.45 $ 0.39 $ 0.33 $ 0.46 $ 0.48
Diluted weighted average Class A & B dividends per
share or unit (e) $ 0.46 $ 0.46 $ 0.46 $ 0.46 $ 0.46
Diluted CAD payout ratio (Class A & B combined) (e) 101.2% 117.2% 138.9% 99.3% 95.4%
Diluted weighted average Class A dividends per share (e) $ 0.42 $ 0.42 $ 0.42 $ 0.42 $ 0.42
Diluted CAD payout ratio - Class A (e) 93.9% 108.5% 128.7% 92.1% 88.9%
Diluted weighted average Class B dividends per share (e) $ 0.65 $ 0.65 $ 0.65 $ 0.65 $ 0.63
Diluted CAD payout ratio - Class B (e) 143.2% 166.0% 196.7% 140.7% 132.5%
Tri-State Portfolio Statistics
- ------------------------------
Office properties 77 77 77 78 82
Office square footage 13,770,743 13,771,319 13,777,009 13,863,565 14,438,850
Office occupancy at end of quarter (c) 95.2% 96.2% 96.1% 96.7% 97.0%
Industrial properties 102 102 103 103 104
Industrial square footage 6,755,843 6,755,949 6,813,536 6,812,158 6,836,803
Industrial occupancy at end of quarter (c) 92.0% 92.9% 91.7% 96.2% 97.9%
Total portfolio occupancy at end of quarter (c) 94.2% 95.1% 94.6% 96.0% 97.2%
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(a) Includes Operating Partnership Units valued at the closing price of the Class A common stock
(b) Includes pro rata share of consolidated and unconsolidated joint venture debt
(c) Excludes properties under development
(d) Before, when applicable, gain on sales of real estate, extraordinary loss and valuation reserves on investment in affiliate
loans and joint ventures and other investments.
(e) Calculated based on committed non incremental tenant improvements and leasing costs and actual non incremental capitalized
improvements
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7
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STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
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REVENUES 2002 2001 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------------
Base Rents $ 109,528 $ 111,184 $ 216,697 $ 218,678
Tenant escalations and reimbursements 14,099 14,165 29,435 30,110
Equity in earnings of service companies and real estate joint ventures 159 801 494 1,199
Interest income on mortgage notes and notes receivable 1,565 1,559 3,121 3,067
Investment and other income 284 4,678 818 10,219
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Total Operating Revenues 125,635 132,387 250,565 263,273
EXPENSES
Property operating expenses 23,760 23,453 48,151 47,223
Real estate taxes 17,979 17,421 35,800 34,645
Marketing, general and administrative 7,693 8,411 14,832 15,908
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EBITDA 76,203 83,102 151,782 165,497
Depreciation and amortization 28,031 27,172 54,167 50,693
Interest expense 22,124 23,562 43,120 47,193
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Income from operations before minority interests 26,048 32,368 54,495 67,611
Minority partners' interests in consolidated partnerships (4,813) (4,065) (9,933) (9,820)
Limited partners' minority interest in the operating partnership (1,663) (2,616) (3,542) (5,331)
Distributions to preferred unitholders (280) (461) (741) (1,121)
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Income from operations 19,292 25,226 40,279 51,339
Adjust for non operating items, net of limited partners' minority
interest:
Gain on sales of real estate -- -- 482 --
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Income before dividends to preferred shareholders 19,292 25,226 40,761 51,339
Dividends to preferred shareholders (5,487) (5,467) (10,974) (10,892)
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Net income allocable to common shareholders $ 13,805 $ 19,759 $ 29,787 $ 40,447
===================================================================================================================================
Net income allocable to:
Class A Shareholders $ 10,548 $ 15,109 $ 22,707 $ 30,417
Class B Shareholders $ 3,257 $ 4,650 $ 7,080 $ 10,030
PER SHARE DATA
Basic operating earnings $ 0.22 $ 0.34 $ 0.49 $ 0.71
Diluted operating earnings $ 0.22 $ 0.34 $ 0.49 $ 0.71
Basic net income:
Basic net income per Class A common share $ 0.21 $ 0.32 $ 0.45 $ 0.66
Basic net income per Class B common share $ 0.32 $ 0.45 $ 0.69 $ 0.98
Diluted net income:
Diluted net income per Class A common share $ 0.21 $ 0.32 $ 0.45 $ 0.65
Diluted net income per Class B common share $ 0.22 $ 0.34 $ 0.49 $ 0.71
Basic weighted average common shares outstanding:
Class A common stock 50,775 47,222 50,396 46,358
Class B common stock 10,284 10,284 10,284 10,284
Diluted weighted average common shares outstanding:
Class A common stock 51,165 47,600 50,760 46,780
Class B common stock 10,284 10,284 10,284 10,284
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8
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SUMMARY DATA
FUNDS FROM OPERATIONS ("FFO") AND FFO PAYOUT RATIOS
CASH AVAILABLE FOR DISTRIBUTION ("CAD") AND CAD PAYOUT RATIOS
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Three Months Ended Six Months Ended
June 30, June 30,
------------------------------------------------------------
2002 2001 2002 2001
------------------------------------------------------------
Funds From Operations:
- ----------------------
Diluted FFO per weighted average share or unit $ 0.59 $ 0.70 $ 1.18 $ 1.38
Diluted weighted average Class A & B dividends per share or unit $ 0.45 $ 0.45 $ 0.91 $ 0.87
Diluted FFO payout ratio (Class A & B combined) 77.2% 64.9% 76.6% 62.6%
Diluted weighted average Class A dividends per share $ 0.42 $ 0.42 $ 0.85 $ 0.81
Diluted FFO payout ratio - Class A 72.3% 61.0% 71.7% 58.6%
Diluted weighted average Class B dividends per share $ 0.65 $ 0.63 $ 1.30 $ 1.23
Diluted FFO payout ratio - Class B 110.3% 90.9% 109.5% 89.1%
Cash Available for Distribution:
- --------------------------------
(Total committed TI & leasing costs incurred during period)
Diluted CAD per weighted average share or unit $ 0.45 $ 0.48 $ 0.84 $ 0.98
Diluted weighted average Class A & B dividends per share or unit $ 0.46 $ 0.46 $ 0.92 $ 0.87
Diluted CAD payout ratio (Class A & B combined) 101.2% 95.4% 108.5% 89.5%
Diluted weighted average Class A dividends per share $ 0.42 $ 0.42 $ 0.85 $ 0.81
Diluted CAD payout ratio - Class A 93.9% 88.9% 100.6% 83.1%
Diluted weighted average Class B dividends per share $ 0.65 $ 0.63 $ 1.30 $ 1.23
Diluted CAD payout ratio - Class B 143.2% 132.5% 153.6% 126.3%
Cash Available for Distribution:
- --------------------------------
(Actual paid or accrued TI & leasing costs during period)
Diluted CAD per weighted average share or unit $ 0.43 $ 0.44 $ 0.80 $ 0.88
Diluted weighted average Class A & B dividends per share or unit $ 0.46 $ 0.46 $ 0.92 $ 0.88
Diluted CAD payout ratio (Class A & B combined) 106.9% 104.1% 114.7% 99.8%
Diluted weighted average Class A dividends per share $ 0.42 $ 0.42 $ 0.85 $ 0.81
Diluted CAD payout ratio - Class A 99.2% 96.8% 106.3% 92.2%
Diluted weighted average Class B dividends per share $ 0.65 $ 0.63 $ 1.30 $ 1.23
Diluted CAD payout ratio - Class B 151.3% 144.3% 162.3% 140.2%
Cash Available for Distribution:
- --------------------------------
(Committed TI & leasing costs excluding leases scheduled to
expire in future periods)
Diluted CAD per weighted average share or unit $ 0.47 $ 0.88
Diluted weighted average Class A & B dividends per share or unit $ 0.46 $ 0.92
Diluted CAD payout ratio (Class A & B combined) 97.7% 87.8%
Diluted weighted average Class A dividends per share $ 0.42 $ 0.85
Diluted CAD payout ratio - Class A 90.7% 96.7%
Diluted weighted average Class B dividends per share $ 0.65 $ 1.30
Diluted CAD payout ratio - Class B 138.3% 147.7%
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FUNDS FROM OPERATIONS AND FFO PAYOUT RATIO DATA
(In thousands, except per share / unit data)
- ------------------------------------------------------------------------------------------------------------------------------------
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FUNDS FROM OPERATIONS
- ------------------------------------------------------------------------------------------------------------------------------------
Net income allocable to common shareholders $ 13,805 $ 19,759 $ 29,787 $ 40,447
Add back: Real estate depreciation and amortization 27,041 26,727 52,362 49,715
Minority partners' interests in consolidated partnerships 4,813 4,065 9,933 9,820
Limited partners' minority interest in the operating
partnership 1,663 2,616 3,597 5,331
Less: Gain on sales of real estate -- -- 537 --
Amounts distributable to minority partners in consolidated
partnerships 6,329 5,104 12,893 10,805
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Basic Funds From Operations 40,993 48,063 82,249 94,508
Add dividends and distributions on dilutive shares and units:
Series A preferred stock 4,381 4,381 8,762 8,762
Series B preferred stock 1,086 1,086 2,212 2,130
Minority partners' preferred interest -- 1,030 -- 2,624
Limited partners' preferred interest 300 461 741 1,121
- ------------------------------------------------------------------------------------------------------------------------------------
Diluted FFO $ 46,760 $ 55,021 $ 93,964 $ 109,145
- ------------------------------------------------------------------------------------------------------------------------------------
Diluted weighted average shares and units outstanding:
Common shares 61,059 57,505 60,680 56,641
Limited operating partnership units 7,500 7,763 7,504 7,728
Common stock equivalents 390 378 363 422
Series A preferred stock 8,060 8,060 8,060 8,060
Series B preferred stock 1,919 1,919 1,919 1,919
Minority partners' preferred interest -- 2,277 -- 2,862
Limited partners' preferred interest 661 1,127 834 1,246
- ------------------------------------------------------------------------------------------------------------------------------------
Total diluted weighted average shares and units outstanding 79,589 79,029 79,360 78,878
- ------------------------------------------------------------------------------------------------------------------------------------
Diluted FFO per weighted average share or unit $ 0.59 $ 0.70 $ 1.18 $ 1.38
Diluted weighted average Class A & B dividends per share or unit $ 0.45 $ 0.45 $ 0.91 $ 0.87
Diluted FFO payout ratio (Class A & B combined) 77.2% 64.9% 76.6% 62.6%
Diluted weighted average Class A dividends per share $ 0.42 $ 0.42 $ 0.85 $ 0.81
Diluted FFO payout ratio - Class A 72.3% 61.0% 71.7% 58.6%
Diluted weighted average Class B dividends per share $ 0.65 $ 0.63 $ 1.30 $ 1.23
Diluted FFO payout ratio - Class B 110.3% 90.9% 109.5% 89.1%
- ------------------------------------------------------------------------------------------------------------------------------------
9
CASH AVAILABLE FOR DISTRIBUTION AND CAD PAYOUT RATIO DATA
(In thousands, except per share / unit data)
Three Months Ended Six Months Ended
June 30, June 30,
- ----------------------------------------------------------------------------------------------------------------------
2002 2001 2002 2001
- ----------------------------------------------------------------------------------------------------------------------
CASH AVAILABLE FOR DISTRIBUTION
- ----------------------------------------------------------------------------------------------------------------------
(TOTAL COMMITTED TI & LEASING COSTS INCURRED DURING PERIOD)
Basic FFO $40,993 $48,063 $82,249 $94,508
Less: Straight line rents 4,368 10,854 13,035 22,013
Committed non-incremental capitalized tenant improvements and
leasing costs 3,406 4,098 7,903 6,744
Actual non-incremental capitalized improvements 2,007 1,629 3,441 2,264
- ----------------------------------------------------------------------------------------------------------------------
Basic Cash Available for Distribution 31,212 31,482 57,870 57,870
Add dividends and distributions on dilutive shares and units:
Series A preferred stock -- -- -- --
Series B preferred stock -- -- -- --
Minority partners' preferred interest -- 1,030 -- 2,624
Limited partners' preferred interest 236 461 310 1,121
- ----------------------------------------------------------------------------------------------------------------------
Diluted CAD $31,448 $32,973 $58,180 $67,232
======================================================================================================================
Diluted weighted average shares and units outstanding:
Common shares 61,059 57,505 60,680 60,680
Limited operating partnership units 7,500 7,763 7,504 7,728
Common stock equivalents 390 378 363 422
Series A preferred stock -- -- -- --
Series B preferred stock -- -- -- --
Minority partners' preferred interest -- 2,277 -- 2,862
Limited partners' preferred interest 566 1,127 368 1,246
- ----------------------------------------------------------------------------------------------------------------------
Diluted weighted average shares and units outstanding 69,515 69,050 68,915 68,547
======================================================================================================================
Diluted CAD per weighted average share or unit $ 0.45 $ 0.48 $ 0.84 $ 0.98
Diluted weighted average Class A & B dividends per share or unit $ 0.46 $ 0.46 $ 0.92 $ 0.87
Diluted CAD payout ratio (Class A & B combined) 101.2% 95.4% 108.5% 89.5%
Diluted weighted average Class A dividends per share $ 0.42 $ 0.42 $ 0.85 $ 0.81
Diluted CAD payout ratio - Class A 93.9% 88.9% 100.6% 83.1%
Diluted weighted average Class B dividends per share $ 0.65 $ 0.63 $ 1.30 $ 1.23
Diluted CAD payout ratio - Class B 143.2% 132.5% 153.6% 126.3%
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
CASH AVAILABLE FOR DISTRIBUTION
- ----------------------------------------------------------------------------------------------------------------------
(ACTUAL PAID OR ACCRUED TI & LEASING COSTS DURING PERIOD)
Basic FFO $40,993 $48,063 $82,249 $94,508
Less: Straight line rents 4,368 10,854 22,013 13,035
Actual non-incremental capitalized tenant improvements
and leasing costs 5,087 6,750 11,008 13,261
Actual non-incremental capitalized improvements 2,007 1,629 3,441 2,264
- ----------------------------------------------------------------------------------------------------------------------
Basic Cash Available for Distribution 29,531 28,830 56,970 54,765
Add dividends and distributions on dilutive shares and units:
Series A preferred stock -- -- -- --
Series B preferred stock -- -- -- --
Minority partners' preferred interest -- -- -- --
Limited partners' preferred interest 236 366 -- --
- ----------------------------------------------------------------------------------------------------------------------
Diluted CAD $29,767 $29,196 $54,765 $56,970
======================================================================================================================
Diluted weighted average shares and units outstanding:
Common shares 61,059 57,505 60,680 56,641
Limited operating partnership units 7,500 7,763 7,504 7,728
Common stock equivalents 390 378 363 422
Series A preferred stock -- -- -- --
Series B preferred stock -- -- -- --
Minority partners' preferred interest -- -- -- --
Limited partners' preferred interest 566 921 -- --
- ----------------------------------------------------------------------------------------------------------------------
Diluted weighted average shares and units outstanding 69,515 66,567 68,547 64,791
======================================================================================================================
Diluted CAD per weighted average share or unit $ 0.43 $ 0.44 $ 0.80 $ 0.88
Diluted weighted average Class A & B dividends per share or unit $ 0.46 $ 0.46 $ 0.92 $ 0.88
Diluted CAD payout ratio (Class A & B combined) 106.9% 104.1% 114.7% 99.8%
Diluted weighted average Class A dividends per share $ 0.42 $ 0.42 $ 0.85 $ 0.81
Diluted CAD payout ratio - Class A 99.2% 96.8% 106.3% 92.2%
Diluted weighted average Class B dividends per share $ 0.65 $ 0.63 $ 1.30 $ 1.23
Diluted CAD payout ratio - Class B 151.3% 144.3% 162.3% 140.2%
- ----------------------------------------------------------------------------------------------------------------------
10
CASH AVAILABLE FOR DISTRIBUTION AND CAD PAYOUT RATIO DATA - CONTINUED
(In thousands, except per share / unit data)
Three Months Ended Six Months Ended
June 30, June 30,
- -----------------------------------------------------------------------------------------------------------------------------------
2002 2001 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------------
CASH AVAILABLE FOR DISTRIBUTION
- -----------------------------------------------------------------------------------------------------------------------------------
(COMMITTED TI & LEASING COSTS EXCLUDING LEASES SCHEDULED TO
EXPIRE IN FUTURE PERIODS)
Basic FFO $40,993 $82,249
Less: Straight line rents 4,368 13,035
Committed non-incremental capitalized tenant improvements and
leasing costs scheduled to expire in future periods 2,300 5,578
Actual non-incremental capitalized improvements 2,007 3,441
- -----------------------------------------------------------------------------------------------------------------------------------
Basic Cash Available for Distribution 32,318 60,195
Add dividends and distributions on dilutive shares and units:
Series A preferred stock -- --
Series B preferred stock -- --
Limited partners' preferred interest 280 486
- -----------------------------------------------------------------------------------------------------------------------------------
Diluted CAD $32,598 $60,681
- -----------------------------------------------------------------------------------------------------------------------------------
Diluted weighted average shares and units outstanding:
Common shares 61,059 60,680
Limited operating partnership units 7,500 7,504
Common stock equivalents 390 363
Series A preferred stock
Series B preferred stock
Limited partners' preferred interest 661 574
- -----------------------------------------------------------------------------------------------------------------------------------
Diluted weighted average shares and units outstanding 69,610 69,121
- -----------------------------------------------------------------------------------------------------------------------------------
Diluted CAD per weighted average share or unit $ 0.47 $ 0.88
Diluted weighted average Class A & B dividends per share or unit $ 0.46 $ 0.92
Diluted CAD payout ratio (Class A & B combined) 97.7% 87.8%
Diluted weighted average Class A dividends per share $ 0.42 $ 0.85
Diluted CAD payout ratio - Class A 90.7% 96.7%
Diluted weighted average Class B dividends per share $ 0.65 $ 1.30
Diluted CAD payout ratio - Class B 138.3% 147.7%
- -----------------------------------------------------------------------------------------------------------------------------------
11
- --------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, December 31,
2002 2001
- -----------------------------------------------------------------------------------------------------------------------------------
ASSETS
- -----------------------------------------------------------------------------------------------------------------------------------
Commercial real estate properties, at cost:
Land $ 418,748 $ 408,837
Building and improvements 2,405,072 2,328,374
Developments in progress:
Land 90,229 69,365
Development costs 24,919 74,303
Furniture, fixtures, and equipment 7,791 7,725
- -----------------------------------------------------------------------------------------------------------------------------------
2,946,759 2,888,604
Less: accumulated depreciation (408,349) (361,960)
- -----------------------------------------------------------------------------------------------------------------------------------
Investment in real estate, net of accumulated depreciation 2,538,410 2,526,644
Investments in real estate joint ventures 5,697 5,744
Investments in mortgage notes and notes receivable 55,368 56,234
Investments in service companies and affiliate loans and joint ventures 79,178 79,184
Cash and cash equivalents 39,389 121,975
Tenant receivables 11,511 9,633
Deferred rents receivable 94,264 81,089
Prepaid expenses and other assets 25,271 45,495
Contract and land deposits and pre-acquisition costs 101 3,782
Deferred leasing and loan costs 64,811 64,438
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 2,914,000 $ 2,994,218
- -----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDER'S EQUITY
- -----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Mortgage notes payable $ 745,983 $ 751,077
Unsecured credit facility 176,000 271,600
Senior unsecured notes 499,239 449,463
Accrued expenses and other liabilities 77,919 87,683
Dividends and distributions payable 33,199 32,988
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 1,532,340 1,592,811
- -----------------------------------------------------------------------------------------------------------------------------------
MINORITY INTERESTS:
Minority partners' interests in consolidated partnerships 243,286 242,698
Preferred unit interest in the operating partnership 19,662 30,965
Limited partners' minority interest in the operating partnership 78,173 81,887
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL MINORITY INTERESTS 341,121 355,550
- -----------------------------------------------------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY:
Preferred Stock, $.01 par value, 25,000,000 shares authorized
Series A - 9,192,000 shares issued and outstanding 92 92
Series B - 2,000,000 shares issued and outstanding 20 20
Common Stock, $.01 par value, 100,000,000 shares authorized
Class A - 50,988,233 and 49,982,377 shares issued and outstanding, respectively 510 500
Class B - 10,283,513 shares issued and outstanding 103 103
Treasury stock, Class A - 61,668 shares held (1,388) --
Additional paid in capital 1,039,814 1,045,142
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 1,040,539 1,045,857
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,914,000 $ 2,994,218
- -----------------------------------------------------------------------------------------------------------------------------------
12
- -------------------------------------------------------------------------------
DEBT SUMMARY AT JUNE 30, 2002
(Dollars in thousands)
DEBT BREAKDOWN
- -----------------------------------------------------------------------------------------------------------------------------------
% of Weighted Average Weighted Average
Balance Total Interest Rate Maturity (Years)
- -----------------------------------------------------------------------------------------------------------------------------------
Fixed Rate Secured Debt $ 745,983 52.5% 7.3% 9.5
Fixed Rate Senior Unsecured Notes (a) 499,239 35.1% 7.4% 5.1
Variable Rate Unsecured Credit Facility 176,000 12.4% 3.0% 1.2
- -----------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average $1,421,222 100.0% 6.8% 6.9
- -----------------------------------------------------------------------------------------------------------------------------------
DEBT AMORTIZATION AND MATURITY
- -----------------------------------------------------------------------------------------------------------------------------------
Secured Debt Senior Unsecured Unsecured Credit
Year Amortization Due at Maturity Notes Facility Total
- -----------------------------------------------------------------------------------------------------------------------------------
2002 $ 5,965 $ 0 $ 5,965
2003 12,300 0 176,000 188,300
2004 13,169 2,616 100,000 115,785
2005 14,167 18,553 32,720
2006 13,785 129,920 143,705
2007 11,305 60,539 200,000 271,844
2008 10,357 0 10,357
2009 9,991 100,254 200,000 310,245
2010 7,818 28,423 36,241
2011 5,571 217,592 223,163
Thereafter 83,658 0 83,658
- -----------------------------------------------------------------------------------------------------------------------------------
Total Debt $188,086 $557,897 $500,000 (a) $176,000 $1,421,983
- -----------------------------------------------------------------------------------------------------------------------------------
PROPERTY MORTGAGE DETAIL
- -----------------------------------------------------------------------------------------------------------------------------------
Interest Maturity Amortization
Property $ Outstanding Rate Date Term (Years)
- -----------------------------------------------------------------------------------------------------------------------------------
80 Orville Dr, Islip, NY 2,616 10.10% February-04 Interest only
395 North Service Road, Melville, NY 19,913 6.45% October-05 $34k per month
200 Summit Lake Drive, Valhalla, NY 19,576 9.25% January-06 25
1350 Avenue of the Americas, NY, NY 75,000 6.52% June-06 (b)
Landmark Square, Stamford, CT 45,589 8.02% October-06 25
100 Summit Lake Drive, Valhalla, NY 19,750 8.50% April-07 15
333 Earle Ovington Blvd, Mitchel Field, NY (c) 54,337 7.72% August-07 25
810 Seventh Avenue, NY,NY 83,583 7.73% August-09 25
100 Wall Street, NY, NY 36,219 7.73% August-09 25
6900 Jericho Turnpike, Syosset, NY 7,404 8.07% July-10 25
6800 Jericho Turnpike, Syosset, NY 14,029 8.07% July-10 25
580 White Plains Road, Tarrytown, NY 12,784 7.86% September-10 25
919 Third Ave, NY, NY (d) 248,037 6.867% August-11 30
110 Bi-County Blvd., Farmingdale, NY 3,744 9.125% November-12 20
One Orlando Center, Orlando, FL (e) 38,655 6.82% November-27 28
120 West 45th Street, NY,NY (e) 64,747 6.82% November-27 28
- -----------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average $745,983 7.27%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
(a) These notes were issued at an aggregate discount of $1,005,500, which is
being amortized over the term of the Senior Unsecured Notes to which they
relate. Current unamortized discount is approximately $760,911.
(b) Interest only for the 1st year; 30 years thereafter
(c) The Company has a 60% general partnership interest in this property and its
proportionate share of the aggregate principal amount is approximately
$32.6 million
(d) The Company has a 51% membership interest in this property and its
proportionate share of the aggregate principal amount is approximately
$126.5 million
(e) Subject to interest rate adjustment on November 1, 2004
In addition, the Company has a 60% interest in an unconsolidated joint venture
property. The pro rata share of this debt is approximately $7.7 million.
- -------------------------------------------------------------------------------
13
- ----------------------------------------------------------------------------------------------------------------------------
PREFERRED SECURITIES AT JUNE 30, 2002
(in thousands)
The following table sets forth certain information regarding the Company's preferred securites as of June 30, 2002.
Liquidation Current Conversion price
Security Preference Value 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 3,081 5.560% $32.51 April 1998
Series C Preferred Units of Limited Partnership Interest 10,581 5.560% $29.39 April 1998
Series D Preferred Units of Limited Partnership Interest 6,000 5.560% $29.12 July 1998
- ----------------------------------------------------------------------------------------------------------------------------
Total $299,462
- ----------------------------------------------------------------------------------------------------------------------------
14
- -------------------------------------------------------------------------------
SAME PROPERTY PERFORMANCE
For the 3 month period June 30, 2002 vs. June 30, 2001
(In thousands)
REGIONAL BREAKDOWN PROPERTY TYPE BREAKDOWN
------------------ -----------------------
CASH REVENUE (A) CASH REVENUE (A)
2Q02 2Q01 $ Change % Change 2Q02 2Q01 $ Change % Change
- ----------------------------------------------------------------- ------------------------------------------------------------
Long Island $ 34,635 $ 33,292 $ 1,343 4.0% Office $ 103,255 $ 93,070 $ 10,185 10.9%
Westchester 19,451 19,531 (80) -0.4% Industrial (b) 12,921 12,406 515 4.2%
Connecticut 8,241 8,429 (188) -2.2% ------------------------------------------------------------
New Jersey 13,073 11,868 1,205 10.2% Total $ 116,176 $ 105,476 $ 10,700 10.1%
New York City 38,586 30,054 8,532 28.4% ------------------------------------------------------------
Florida 2,190 2,302 (112) -4.9%
- -----------------------------------------------------------------
Total $ 116,176 $ 105,476 $ 10,700 10.1%
- -----------------------------------------------------------------
GAAP REVENUE (A) GAAP REVENUE (A)
2Q02 2Q01 $ Change % Change 2Q02 2Q01 $ Change % Change
- ----------------------------------------------------------------- ------------------------------------------------------------
Long Island $ 35,870 $ 35,115 $ 755 2.2% Office $ 106,985 $ 103,237 $ 3,748 3.6%
Westchester 19,960 20,297 (337) -1.7% Industrial (b) 13,624 13,067 557 4.3%
Connecticut 8,404 8,442 (38) -0.5% ------------------------------------------------------------
New Jersey 13,221 12,086 1,135 9.4% Total $ 120,609 $ 116,304 $ 4,305 3.7%
New York City 40,948 38,030 2,918 7.7% ------------------------------------------------------------
Florida 2,206 2,334 (128) -5.5%
- -----------------------------------------------------------------
Total $ 120,609 $ 116,304 $ 4,305 3.7%
- -----------------------------------------------------------------
OPERATING EXPENSES OPERATING EXPENSES
2Q02 2Q01 $ Change % Change 2Q02 2Q01 $ Change % Change
- ----------------------------------------------------------------- ------------------------------------------------------------
Long Island $ 5,699 $ 5,733 $ (34) -0.6% Office $ 22,217 $ 20,697 $ 1,520 7.3%
Westchester 4,445 4,540 (95) -2.1% Industrial (b) 1,021 997 24 2.4%
Connecticut 2,083 1,946 137 7.0% ------------------------------------------------------------
New Jersey 1,996 1,778 218 12.3% Total $ 23,238 $ 21,694 $ 1,544 7.1%
New York City 8,491 7,304 1,187 16.3% ------------------------------------------------------------
Florida 524 393 131 33.3%
- -----------------------------------------------------------------
Total $ 23,238 $ 21,694 $ 1,544 7.1%
- -----------------------------------------------------------------
REAL ESTATE TAXES REAL ESTATE TAXES
2Q02 2Q01 $ Change % Change 2Q02 2Q01 $ Change % Change
- ----------------------------------------------------------------- ------------------------------------------------------------
Long Island $ 6,376 $ 6,029 $ 347 5.8% Office $ 15,384 $ 14,399 $ 985 6.8%
Westchester 2,556 2,307 249 10.8% Industrial (b) 2,285 2,173 112 5.2%
Connecticut 741 717 24 3.3% ------------------------------------------------------------
New Jersey 1,651 1,445 206 14.3% Total $ 17,669 $ 16,572 $ 1,097 6.6%
New York City 6,105 5,828 277 4.8% ------------------------------------------------------------
Florida 240 246 (6) -2.4%
- -----------------------------------------------------------------
Total $ 17,669 $ 16,572 $ 1,097 6.6%
- -----------------------------------------------------------------
CASH NOI CASH NOI
2Q02 2Q01 $ Change % Change 2Q02 2Q01 $ Change % Change
- ----------------------------------------------------------------- ------------------------------------------------------------
Long Island $ 22,560 $ 21,530 $ 1,030 4.8% Office $ 65,654 $ 57,974 $ 7,680 13.2%
Westchester 12,450 12,684 (234) -1.8% Industrial (b) 9,615 9,236 379 4.1%
Connecticut 5,417 5,766 (349) -6.1% ------------------------------------------------------------
New Jersey 9,426 8,645 781 9.0% Total $ 75,269 $ 67,210 $ 8,059 12.0%
New York City 23,990 16,922 7,068 41.8% ------------------------------------------------------------
Florida 1,426 1,663 (237) -14.3%
- -----------------------------------------------------------------
Total $ 75,269 $ 67,210 $ 8,059 12.0%
- -----------------------------------------------------------------
GAAP NOI GAAP NOI
2Q02 2Q01 $ Change % Change 2Q02 2Q01 $ Change % Change
- ----------------------------------------------------------------- ------------------------------------------------------------
Long Island $ 23,795 $ 23,353 $ 442 1.9% Office $ 69,384 $ 68,141 $ 1,243 1.8%
Westchester 12,959 13,450 (491) -3.7% Industrial (b) 10,318 9,897 421 4.3%
Connecticut 5,580 5,779 (199) -3.4% ------------------------------------------------------------
New Jersey 9,574 8,863 711 8.0% Total $ 79,702 $ 78,038 $ 1,664 2.1%
New York City 26,352 24,898 1,454 5.8% ------------------------------------------------------------
Florida 1,442 1,695 (253) -14.9%
- -----------------------------------------------------------------
Total $ 79,702 $ 78,038 $ 1,664 2.1%
- -----------------------------------------------------------------
- --------------------------------------------------------------------------------
(a) Excludes lease termination fees and reserves against deffered rents
receivable
(b) Includes two retail properties.
- --------------------------------------------------------------------------------
15
- -------------------------------------------------------------------------------
SAME PROPERTY PERFORMANCE
For the 6 month period June 30, 2002 vs. June 30, 2001
(In thousands)
REGIONAL BREAKDOWN PROPERTY TYPE BREAKDOWN
------------------ -----------------------
CASH REVENUE (A) CASH REVENUE (A)
2002 2001 $ Change % Change 2002 2001 $ Change % Change
- ----------------------------------------------------------------- ------------------------------------------------------------
Long Island $ 68,360 $ 66,412 $ 1,948 2.9% Office $ 202,417 $ 184,772 $ 17,645 9.5%
Westchester 38,964 38,443 521 1.4% Industrial (b) 24,635 24,704 (69) -0.3%
Connecticut 16,481 16,916 (435) -2.6% ------------------------------------------------------------
New Jersey 26,344 23,709 2,635 11.1% Total $ 227,052 $ 209,476 $ 17,576 8.4%
New York City 72,455 59,403 13,052 22.0% ------------------------------------------------------------
Florida 4,448 4,593 (145) -3.2%
- -----------------------------------------------------------------
Total $ 227,052 $ 209,476 $ 17,576 8.4%
- -----------------------------------------------------------------
GAAP REVENUE (A) GAAP REVENUE (A)
2002 2001 $ Chang % Change 2002 2001 $ Change % Change
- ----------------------------------------------------------------- ------------------------------------------------------------
Long Island $ 70,381 $ 69,282 $ 1,099 1.6% Office $ 213,784 $ 205,801 $ 7,983 3.9%
Westchester 40,152 40,258 (106) -0.3% Industrial (b) 25,481 (189) 25,670 -0.7%
Connecticut 16,783 17,021 (238) -1.4% ------------------------------------------------------------
New Jersey 26,367 24,782 1,585 6.4% Total $ 239,265 $ 231,471 $ 7,794 3.4%
New York City 81,117 75,474 5,643 7.5% ------------------------------------------------------------
Florida 4,465 4,654 (189) -4.1%
- -----------------------------------------------------------------
Total $ 239,265 $ 231,471 $ 7,794 3.4%
- -----------------------------------------------------------------
OPERATING EXPENSES OPERATING EXPENSES
2002 2001 $ Change % Change 2002 2001 $ Change % Change
- ----------------------------------------------------------------- ------------------------------------------------------------
Long Island $ 11,130 $ 10,879 $ 251 2.3% Office $ 44,098 $ 41,839 $ 2,259 5.4%
Westchester 9,282 9,688 (406) -4.2% Industrial (b) 2,057 2,235 (178) -8.0%
Connecticut 4,107 3,893 214 5.5% ------------------------------------------------------------
New Jersey 3,773 3,849 (76) -2.0% Total $ 46,155 $ 44,074 $ 2,081 4.7%
New York City 16,889 14,990 1,899 12.7% ------------------------------------------------------------
Florida 974 775 199 25.7%
- -----------------------------------------------------------------
Total $ 46,155 $ 44,074 $ 2,081 4.7%
- -----------------------------------------------------------------
REAL ESTATE TAXES REAL ESTATE TAXES
2002 2001 $ Change % Change 2002 2001 $ Change % Change
- ----------------------------------------------------------------- ------------------------------------------------------------
Long Island $ 12,638 $ 11,936 $ 702 5.9% Office $ 30,658 $ 28,677 $ 1,981 6.9%
Westchester 5,027 4,634 393 8.5% Industrial (b) 4,421 4,201 220 5.2%
Connecticut 1,481 1,433 48 3.3% ------------------------------------------------------------
New Jersey 3,313 2,728 585 21.4% Total $ 35,079 $ 32,878 $ 2,201 6.7%
New York City 12,140 11,656 484 4.2% ------------------------------------------------------------
Florida 480 491 (11) -2.2%
- -----------------------------------------------------------------
Total $ 35,079 $ 32,878 $ 2,201 6.7%
- -----------------------------------------------------------------
CASH NOI CASH NOI
2002 2001 $ Change % Change 2002 2001 $ Change % Change
- ----------------------------------------------------------------- ------------------------------------------------------------
Long Island $ 44,592 $ 43,597 $ 995 2.3% Office $ 127,661 $ 114,256 $ 13,405 11.7%
Westchester 24,655 24,121 534 2.2% Industrial (b) 18,157 18,268 (111) -0.6%
Connecticut 10,893 11,590 (697) -6.0% ------------------------------------------------------------
New Jersey 19,258 17,132 2,126 12.4% Total $ 145,818 $ 132,524 $ 13,294 10.0%
New York City 43,426 32,757 10,669 32.6% ------------------------------------------------------------
Florida 2,994 3,327 (333) -10.0%
- -----------------------------------------------------------------
Total $ 145,818 $ 132,524 $ 13,294 10.0%
- -----------------------------------------------------------------
GAAP NOI GAAP NOI
2002 2001 $ Change % Change 2002 2001 $ Change % Change
- ----------------------------------------------------------------- ------------------------------------------------------------
Long Island $ 46,613 $ 46,467 $ 146 0.3% Office $ 139,028 $ 135,285 $ 3,743 2.8%
Westchester 25,843 25,936 (93) -0.4% Industrial (b) 19,003 19,234 (231) -1.2%
Connecticut 11,195 11,695 (500) -4.3% ------------------------------------------------------------
New Jersey 19,281 18,205 1,076 5.9% Total $ 158,031 $ 154,519 $ 3,512 2.3%
New York City 52,088 48,828 3,260 6.7% ------------------------------------------------------------
Florida 3,011 3,388 (377) -11.1%
- -----------------------------------------------------------------
Total $ 158,031 $ 154,519 $ 3,512 2.3%
- -----------------------------------------------------------------
- -------------------------------------------------------------------------------
(a) Excludes lease termination fees and reserves against deffered rents
receivable
(b) Includes two retail properties
- -------------------------------------------------------------------------------
16
- ----------------------------------------------------------------------------------------------------------------------
PORTFOLIO SNAPSHOT
Based on 2nd quarter 2002
GAAP CONSOLIDATED AMOUNTS (A) PRO FORMA AMOUNTS (B)
----------------------------------- ---------------------------------
- ----------------------------------------------------------------------------------------------------------------------
GEOGRAPHIC DISTRIBUTION
- ----------------------------------------------------------------------------------------------------------------------
Square Cash Cash GAAP Square Cash Cash GAAP
Feet Revenue NOI NOI Feet Revenue NOI NOI
- ----------------------------------------------------------------------------------------------------------------------
Long Island
Office 19% 21% 20% 21% 18% 20% 19% 20%
Industrial (c) 29% 9% 11% 11% 31% 11% 12% 12%
- ----------------------------------------------------------------------------------------------------------------------
Subtotal - Long Island 48% 31% 31% 32% 49% 31% 31% 32%
Westchester
Office 16% 19% 19% 17% 17% 21% 20% 19%
Industrial 1% 0% 0% 0% 1% 0% 1% 0%
- ----------------------------------------------------------------------------------------------------------------------
Subtotal - Westchester 17% 19% 19% 17% 18% 21% 21% 19%
Connecticut
Office 5% 6% 7% 6% 5% 6% 7% 6%
Industrial 2% 1% 1% 1% 2% 1% 1% 1%
- ----------------------------------------------------------------------------------------------------------------------
Subtotal - Connecticut 7% 7% 8% 7% 7% 7% 8% 7%
New Jersey
Office 9% 10% 11% 12% 10% 11% 12% 12%
Industrial 2% 1% 1% 1% 2% 1% 1% 1%
- ----------------------------------------------------------------------------------------------------------------------
Subtotal - New Jersey 11% 11% 12% 13% 12% 12% 13% 13%
New York City
Office 17% 32% 31% 31% 15% 29% 28% 28%
- ----------------------------------------------------------------------------------------------------------------------
Subtotal - New York City 17% 32% 31% 31% 15% 29% 28% 28%
- ----------------------------------------------------------------------------------------------------------------------
PROPERTY TYPE
- ----------------------------------------------------------------------------------------------------------------------
Office 66% 89% 88% 87% 65% 87% 85% 86%
Industrial (c) 34% 11% 13% 13% 35% 13% 14% 14%
- ----------------------------------------------------------------------------------------------------------------------
SUBURBAN VS CBD (OFFICE SPACE ONLY)
- ----------------------------------------------------------------------------------------------------------------------
Suburban 62% 50% 50% 51% 60% 44% 46% 54%
CBD 38% 50% 50% 49% 40% 56% 54% 46%
- ----------------------------------------------------------------------------------------------------------------------
(a) Information in accordance with GAAP accounting
(b) Adjusted for pro rata share of consolidated and unconsolidated joint venture properties
(c) Includes 2 retail properties
Note: The Company also owns a 357,000 square foot office building in Orlando, FL. Percentage calculations exclude this
property
- ----------------------------------------------------------------------------------------------------------------------
17
- -------------------------------------------------------------------------------------------------------------------------------
OCCUPANCY ANALYSIS
As of June 30, 2002
- -------------------------------------------------------------------------------------------------------------------------------
Square Feet
as a % of NOI as a % of
Number of Rentable Occupancy as of Property Total Property Total
Property Buildings Square Feet Mar-02 June-02 Type Portfolio Type Portfolio
- -------------------------------------------------------------------------------------------------------------------------------
OFFICE PROPERTIES
SUBURBAN OFFICE
- ---------------
LONG ISLAND
Nassau West Corporate Center, Mitchel Field, NY 6 1,531,021 96.8% 97.9% 11.1% 7.5% 9.6% 8.4%
Huntington Melville Corporate Center,
Melville, NY (1) 7 1,054,569 97.9% 88.9% 7.7% 5.1% 6.1% 5.4%
North Shore Atrium, Syosset, NY 2 304,263 96.8% 96.8% 2.2% 1.5% 1.5% 1.3%
Standalone Office Properties 10 1,064,231 93.6% 94.2% 7.7% 5.2% 5.7% 4.9%
- -------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL - LONG ISLAND (1) 25 3,954,084 96.1% 94.4% 28.7% 19.2% 22.9% 20.0%
WESTCHESTER
Tarrytown Corporate Center, Tarrytown, NY 6 875,726 92.2% 92.3% 6.4% 4.3% 4.6% 4.1%
Summit at Vallhalla, Vahalla, NY 3 699,045 97.0% 97.0% 5.1% 3.4% 4.3% 3.8%
Mt. Pleasant Corporate Center, Valhalla, NY 2 162,004 98.3% 96.5% 1.2% 0.8% 0.8% 0.7%
Reckson Executive Park, Rye Brook, NY 6 541,903 98.8% 87.3% 3.9% 2.6% 2.8% 2.4%
Standalone Office Properties 6 953,673 96.6% 96.2% 6.9% 4.6% 9.0% 7.9%
- -------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL - WESTCHESTER 23 3,232,351 96.0% 93.8% 23.5% 15.7% 21.6% 18.8%
NEW JERSEY
Short Hills Office Center, Short Hills, NJ 3 568,642 100.0% 100.0% 4.1% 2.8% 4.4% 3.9%
Executive Hill Office Park, West Orange, NJ 4 391,382 87.1% 84.2% 2.8% 1.9% 1.9% 1.7%
University Square, Princeton, NJ 3 131,727 100.0% 100.0% 1.0% 0.6% 0.9% 0.8%
Standalone Office Properties 6 872,003 96.7% 95.4% 6.3% 4.2% 5.9% 5.1%
- -------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL - NEW JERSEY 16 1,963,754 96.0% 94.8% 14.3% 9.6% 13.1% 11.4%
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL - SUBURBAN OFFICE 64 9,150,189 96.0% 94.2% 66.4% 44.5% 57.5% 50.3%
===============================================================================================================================
CBD Office
- ----------
CONNECTICUT
Landmark Square, Stamford, CT 6 799,048 91.7% 92.8% 5.8% 3.9% 4.8% 4.2%
Stamford Towers, Stamford, CT 2 323,315 100.0% 100.0% 2.3% 1.6% 2.5% 2.2%
- -------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL - CONNECTICUT 8 1,122,363 93.9% 94.9% 8.2% 5.5% 7.3% 6.4%
NEW YORK CITY
919 Third Avenue 1 1,356,796 100.0% 100.0% 9.9% 6.6% 15.4% 13.5%
810 Seventh Avenue 1 692,060 97.6% 97.6% 5.0% 3.4% 6.3% 5.6%
100 Wall Street 1 466,226 96.2% 96.8% 3.4% 2.3% 3.7% 3.2%
120 W. 45th Street 1 443,109 91.6% 93.6% 3.2% 2.2% 5.0% 4.4%
1350 Ave. of the Americas 1 540,000 97.4% 96.5% 3.9% 2.6% 4.7% 4.1%
- -------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL - NEW YORK CITY 5 3,498,191 97.5% 97.8% 25.4% 17.0% 35.2% 30.8%
- -------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL - CBD OFFICE 13 4,620,554 96.6% 96.8% 33.6% 22.5% 42.5% 37.1%
===============================================================================================================================
SUBTOTAL-
OFFICE PROPERTIES 77 13,770,743 96.2% 95.2% 100.0% 67.0% 100.0% 87.4%
===============================================================================================================================
- -------------------------------------------------------------------------------------------------------------------------------
(1) Rentable square feet at March 31, 2002 included a recently completed 277,500 sf Class A office building which was currently
61% leased; percent leased excludes this property at March 31, 2002. Property is still 61% occupied and is included in the
percent leased calculation.
- -------------------------------------------------------------------------------------------------------------------------------
18
- ------------------------------------------------------------------------------------------------------------------------------------
OCCUPANCY ANALYSIS
As of June 30, 2002
- ------------------------------------------------------------------------------------------------------------------------------------
Square Feet as a % of NOI as a %
Number of Rentable Occupancy as of Property Total Property Total
Property Buildings Square Feet Mar-02 Jun-02 Type Portfolio Type Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL PROPERTIES
LONG ISLAND INDUSTRIAL PROPERTIES
- ---------------------------------
Vanderbilt Industrial Park, Hauppauge, NY 47 2,331,996 92.4% 91.4% 34.5% 11.4% 28.9% 3.6%
Airport International Plaza, Bohemia, NY 21 1,290,401 99.0% 98.4% 19.1% 6.3% 21.1% 2.6%
County Line Industrial Center, Melville, NY 4 342,354 100.0% 100.0% 5.1% 1.7% 5.2% 0.7%
Other Submarkets
Farmingdale 3 520,008 100.0% 100.0% 7.7% 2.5% 8.1% 1.0%
Melville 4 246,769 100.0% 100.0% 3.7% 1.2% 6.0% 0.8%
Islip/Islandia 6 212,524 100.0% 85.7% 3.1% 1.0% 1.6% 0.2%
Hauppauge 2 195,942 99.1% 99.1% 2.9% 1.0% 4.4% 0.6%
Other 7 699,277 96.6% 96.6% 10.4% 3.4% 10.1% 1.3%
- ------------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL - LONG ISLAND INDUSTRIAL 94 5,839,271 96.3% 95.3% 86.4% 28.4% 85.3% 10.7%
- ------------------------------------------------------------------------------------------------------------------------------------
Stand-alone Westchester Industrial Properties 2 139,690 100.0% 100.0% 2.1% 0.7% 3.8% 0.5%
Stand-alone Connecticut Industrial Properties 1 452,414 54.3% 54.3% 6.7% 2.2% 4.2% 0.5%
Stand-alone New Jersey Industrial Properties 5 324,468 82.6% 82.6% 4.8% 1.6% 6.7% 0.8%
- ------------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL-
INDUSTRIAL PROPERTIES 102 6,755,843 92.9% 92.0% 100.0% 32.9% 100.0% 12.6%
====================================================================================================================================
RETAIL PROPERTIES 2 19,200 81.8% 81.8% 0.1% 0.1% 0.1% 0.0%
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL - ALL PROPERTIES (1) 181 20,545,786 95.1% 94.2% 100.0% 100.0% 100.0% 100.0%
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Percent leased excludes properties under development.
- ------------------------------------------------------------------------------------------------------------------------------------
19
- -------------------------------------------------------------------------------
LEASING STATISTICS
For the 3 months ended June 30, 2002
- -----------------------------------------------------------------------------------------------------------------------------------
EXECUTED LEASES (A)
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
# of Total Average Average Average
Transactions Sq. Ft. Base Rent Effective Rent Term (Years)
- -----------------------------------------------------------------------------------------------------------------------------------
OFFICE PORTFOLIO
Long Island 17 90,752 $28.63 $26.79 5.6
Westchester 15 60,854 $24.38 $22.83 5.4
Connecticut 7 38,635 $29.75 $27.56 4.9
New Jersey 6 42,220 $23.89 $21.15 7.0
New York City 9 54,973 $50.91 $46.42 8.1
- -----------------------------------------------------------------------------------------------------------------------------------
Totals/Weighted Average 54 287,434 $31.45 $28.98 6.1
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL PORTFOLIO
Long Island 8 123,689 $ 6.75 $6.41 5.3
- -----------------------------------------------------------------------------------------------------------------------------------
Totals/Weighted Average 8 123,689 $ 6.75 $6.41 5.3
- -----------------------------------------------------------------------------------------------------------------------------------
RESEARCH & DEVELOPMENT PORTFOLIO
Long Island
Operational 1 10,030 $ 9.25 $9.25 3.0
Development 1 57,050 $19.31 $16.32 12.0
- -----------------------------------------------------------------------------------------------------------------------------------
Totals/Weighted Average 2 67,080 $17.81 $15.26 10.7
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO TOTALS 64 478,203
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
SAME SPACE STATISTICS
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Total Base Rent GAAP Rent
Property Type Sq. Ft. Expiration Current (b) % Change Expiration Current (b) % Change
- -----------------------------------------------------------------------------------------------------------------------------------
Office
New 111,490 $27.51 $31.34 13.9% $27.41 $32.45 18.4%
Renewal 115,673 $24.57 $28.06 14.2% $23.57 $28.34 20.2%
------------------------------------------------------------------------------------------------------
Total 227,163 $26.01 $29.67 14.1% $25.45 $30.36 19.3%
Industrial
New 42,700 $6.66 $ 6.79 2.0% $ 6.38 $ 7.13 11.8%
Renewal 80,989 $6.01 $ 6.87 14.3% $ 5.70 $ 6.46 13.3%
------------------------------------------------------------------------------------------------------
Total 123,689 $6.23 $ 6.84 9.8% $ 5.93 $ 6.69 12.7%
Research & Development
New 0 $0.00 $ 0.00 0.0% $ 0.00 $ 0.00 0.0%
Renewal 10,300 $8.75 $ 9.00 2.9% $ 8.50 $ 9.25 8.8%
------------------------------------------------------------------------------------------------------
Total 10,300 $8.75 $ 9.00 2.9% $ 8.50 $ 9.25 8.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Totals/Weighted Average 361,152 $18.77 $21.26 13.3% $19.51 $22.97 17.7%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
TENANT RETENTION
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Leases Sq. Ft Sq. Ft Renewal
Property Type Expiring (c) Expiring (c) Renewing Percentage
- -----------------------------------------------------------------------------------------------------------------------------------
Office 45 234,834 118,547 50.5%
Industrial 8 233,086 145,989 62.6%
Research & Development 1 10,030 10,030 100.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Totals 54 477,950 274,566 57.4%
- -----------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
(a) Includes new and renewed leases during the period
(b) Represents either renewed or released space
(c) Includes early renewals
- -------------------------------------------------------------------------------
20
- --------------------------------------------------------------------------------
LEASING STATISTICS
For the 12 months ended June 30, 2002
- -----------------------------------------------------------------------------------------------------------------------------------
EXECUTED LEASES (A)
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
# of Total Average Average Average
Transactions Sq. Ft. Base Rent Effective Rent Term (Years)
- -----------------------------------------------------------------------------------------------------------------------------------
OFFICE PORTFOLIO
Long Island
Operating 71 439,385 $26.92 $24.85 5.8
Development 2 83,504 $34.57 $25.50 7.9
Westchester 64 407,982 $25.15 $23.24 5.0
Connecticut 21 111,244 $31.24 $30.15 4.5
New Jersey
Operational 16 317,867 $28.31 $26.38 2.9
Development 1 123,000 $36.13 $28.67 10.0
New York City 25 184,765 $54.40 $49.43 9.6
- -----------------------------------------------------------------------------------------------------------------------------------
Totals/Weighted Average 200 1,667,747 $31.15 $28.14 5.8
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL PORTFOLIO
Long Island 52 886,851 $ 6.68 $ 6.33 6.2
New Jersey 1 36,059 $ 9.85 $ 7.81 5.0
- -----------------------------------------------------------------------------------------------------------------------------------
Totals/Weighted Average 53 922,910 $ 6.80 $ 6.39 6.2
- -----------------------------------------------------------------------------------------------------------------------------------
RESEARCH & DEVELOPMENT PORTFOLIO
Long Island
Operational 9 220,045 $11.04 $10.57 3.9
Development 2 97,930 $17.87 $14.23 9.9
New Jersey 1 13,013 $17.60 $12.02 5.0
- -----------------------------------------------------------------------------------------------------------------------------------
Totals/Weighted Average 12 330,988 $13.32 $11.71 5.7
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO TOTALS 265 2,921,645
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
SAME SPACE STATISTICS
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Total Base Rent GAAP Rent
Property Type Sq. Ft. Expiration Current (b) % Change Expiration Current (b) % Change
- -----------------------------------------------------------------------------------------------------------------------------------
Office
New 713,534 $24.73 $28.68 16.0% $24.32 $29.49 21.3%
Renewal 518,462 $24.61 $26.54 7.8% $23.48 $27.60 17.5%
------------------------------------------------------------------------------------------------
Total 1,231,996 $24.68 $27.77 12.5% $23.97 $28.69 19.7%
Industrial
New 460,908 $ 5.92 $6.37 7.6% $ 5.64 $7.00 24.1%
Renewal 450,902 $ 5.89 $6.28 6.6% $ 5.57 $6.38 14.5%
------------------------------------------------------------------------------------------------
Total 911,810 $ 5.91 $6.32 6.9% $ 5.61 $6.69 19.3%
Research & Development
New 23,215 $13.26 $13.86 4.5% $12.37 $15.23 23.1%
Renewal 166,830 $10.74 $10.73 -0.1% $ 9.69 $11.02 13.7%
------------------------------------------------------------------------------------------------
Total 190,045 $11.05 $11.11 0.5% $10.02 $11.53 15.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Totals/Weighted Average 2,333,851 $16.24 $18.03 11.1% $15.66 $18.70 19.4%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
TENANT RETENTION
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Leases Sq. Ft Sq. Ft Renewal
Property Type Expiring (c) Expiring (c) Renewing Percentage
- -----------------------------------------------------------------------------------------------------------------------------------
Office 155 956,028 600,228 62.8%
Industrial 41 793,719 661,402 83.3%
Research & Development 9 406,583 170,883 42.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Totals 205 2,156,330 1,432,513 66.4%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(a) Includes new and renewed leases during the period
(b) Represents either renewed or released space
(c) Includes early renewals
- --------------------------------------------------------------------------------
21
- -------------------------------------------------------------------------------
LEASE EXPIRATION SCHEDULE
As of June 30, 2002
TOTAL PORTFOLIO
- -----------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total Cumulative
Year of Leases Feet Leased % of Total
Expiration Expiring Expiring Sq Ft Leased Sq Ft
- -----------------------------------------------------------------------------------------------------------------------------------
2002 83 606,195 3.1% 3.1%
2003 169 1,781,746 9.2% 12.4%
2004 212 1,920,852 9.9% 22.3%
2005 248 2,687,386 13.9% 36.2%
2006 224 2,657,188 13.8% 50.0%
2007 124 1,502,131 7.8% 57.7%
2008 and thereafter 310 8,162,156 42.3% 100.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 1,370 19,317,654 100.0% --
- -----------------------------------------------------------------------------------------------------------------------------------
OFFICE PORTFOLIO
- -----------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total Cumulative
Year of Leases Feet Leased % of Total
Expiration Expiring Expiring Sq Ft Leased Sq Ft
- -----------------------------------------------------------------------------------------------------------------------------------
2002 74 509,697 3.9% 3.9%
2003 146 1,190,535 9.1% 13.0%
2004 168 1,259,399 9.6% 22.6%
2005 211 1,753,405 13.4% 36.0%
2006 178 1,708,307 13.0% 49.0%
2007 98 1,187,371 9.1% 58.1%
2008 and thereafter 245 5,493,032 41.9% 100.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 1,120 13,101,746 100.0% --
- -----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL/R&D PORTFOLIO
- -----------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total Cumulative
Year of Leases Feet Leased % of Total
Expiration Expiring Expiring Sq Ft Leased Sq Ft
- -----------------------------------------------------------------------------------------------------------------------------------
2002 9 96,498 1.6% 1.6%
2003 23 591,211 9.5% 11.1%
2004 44 661,453 10.6% 21.7%
2005 37 933,981 15.0% 36.7%
2006 46 948,881 15.3% 52.0%
2007 26 314,760 5.1% 57.1%
2008 and thereafter 65 2,669,124 42.9% 100.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 250 6,215,908 100.0% --
- -----------------------------------------------------------------------------------------------------------------------------------
22
- -------------------------------------------------------------------------------
LEASE EXPIRATION SCHEDULE
As of June 30, 2002
LONG ISLAND OFFICE (EXCLUDING OMNI)
- ------------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total Cumulative Expiring Expiring
Year of Leases Feet Leased % of Total GAAP Cash
Expiration Expiring Expiring Sq Ft Leased Sq Ft Rent (1) Rent (2)
- ------------------------------------------------------------------------------------------------------------------------------------
2002 17 66,399 2.1% 2.1% $23.83 $26.06
2003 50 319,071 10.0% 12.1% $24.48 $26.72
2004 49 301,455 9.5% 21.6% $21.75 $24.38
2005 71 396,191 12.5% 34.0% $24.95 $27.66
2006 44 169,206 5.3% 39.4% $25.18 $28.45
2007 36 423,707 13.3% 52.7% $24.60 $30.25
2008 and thereafter 81 1,505,191 47.3% 100.0% -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 348 3,181,220 100.0% -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
OMNI
- ------------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total Cumulative Expiring Expiring
Year of Leases Feet Leased % of Total GAAP Cash
Expiration Expiring Expiring Sq Ft Leased Sq Ft Rent (1) Rent (2)
- ------------------------------------------------------------------------------------------------------------------------------------
2002 2 34,975 6.3% 6.3% $28.02 $33.80
2003 3 49,793 9.0% 15.4% $29.54 $35.16
2004 5 113,793 20.6% 36.0% $27.29 $34.79
2005 4 43,780 7.9% 43.9% $28.24 $35.42
2006 -- -- 0.0% 43.9% -- --
2007 2 59,722 10.8% 54.7% $26.78 $34.41
2008 and thereafter 12 250,112 45.3% 100.0% -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 28 552,175 100.0% -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
WESTCHESTER OFFICE
- ------------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total Cumulative Expiring Expiring
Year of Leases Feet Leased % of Total GAAP Cash
Expiration Expiring Expiring Sq Ft Leased Sq Ft Rent (1) Rent (2)
- ------------------------------------------------------------------------------------------------------------------------------------
2002 24 172,220 5.7% 5.7% $21.16 $22.28
2003 46 242,271 8.0% 13.7% $22.17 $23.82
2004 38 177,296 5.9% 19.6% $21.50 $22.52
2005 51 465,316 15.4% 35.0% $22.62 $23.91
2006 40 720,326 23.8% 58.8% $22.69 $24.55
2007 33 425,732 14.1% 72.9% $25.36 $27.15
2008 and thereafter 35 819,145 27.1% 100.0% -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 267 3,022,306 100.0% -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Represents annualized straightline rent as of the lease expiration date
(2) Represents annualized base rent as of the lease expiration date plus
non-recoverable operating expense pass-throughs
- -------------------------------------------------------------------------------
23
- -------------------------------------------------------------------------------
LEASE EXPIRATION SCHEDULE
As of June 30, 2002
STAMFORD OFFICE
- ------------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total Cumulative Expiring Expiring
Year of Leases Feet Leased % of Total GAAP Cash
Expiration Expiring Expiring Sq Ft Leased Sq Ft Rent (1) Rent (2)
- ------------------------------------------------------------------------------------------------------------------------------------
2002 13 32,118 3.0% 3.0% $24.53 $25.96
2003 20 145,085 13.6% 16.6% $30.97 $31.81
2004 28 236,570 22.2% 38.9% $22.02 $23.08
2005 24 123,864 11.6% 50.5% $26.41 $28.18
2006 24 291,313 27.4% 77.9% $24.22 $25.11
2007 10 94,890 8.9% 86.8% $32.04 $34.41
2008 and thereafter 9 140,729 13.2% 100.0% -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 128 1,064,569 100.0% -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY OFFICE
- ------------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total Cumulative Expiring Expiring
Year of Leases Feet Leased % of Total GAAP Cash
Expiration Expiring Expiring Sq Ft Leased Sq Ft Rent (1) Rent (2)
- ------------------------------------------------------------------------------------------------------------------------------------
2002 8 81,618 4.4% 4.4% $21.13 $21.64
2003 20 319,328 17.2% 21.5% $27.16 $28.22
2004 28 206,608 11.1% 32.6% $23.08 $23.91
2005 27 272,784 14.7% 47.3% $23.83 $24.84
2006 16 181,060 9.7% 57.0% $24.48 $26.12
2007 5 57,237 3.1% 60.1% $21.25 $23.18
2008 and thereafter 20 743,082 39.9% 100.0% -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 124 1,861,717 100.0% -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK CITY OFFICE
- ------------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total Cumulative Expiring Expiring
Year of Leases Feet Leased % of Total GAAP Cash
Expiration Expiring Expiring Sq Ft Leased Sq Ft Rent (1) Rent (2)
- ------------------------------------------------------------------------------------------------------------------------------------
2002 10 122,367 3.6% 3.6% $43.61 $40.26
2003 7 114,987 3.4% 6.9% $32.10 $33.65
2004 20 223,677 6.5% 13.5% $36.54 $39.89
2005 34 451,470 13.2% 26.7% $36.30 $38.34
2006 54 346,402 10.1% 36.8% $30.29 $31.95
2007 12 126,083 3.7% 40.5% $34.66 $37.35
2008 and thereafter 88 2,034,773 59.5% 100.0% -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 225 3,419,759 100.0% -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Represents annualized straightline rent as of the lease expiration date
(2) Represents annualized base rent as of the lease expiration date plus
non-recoverable operating expense pass-throughs
- -------------------------------------------------------------------------------
24
- -------------------------------------------------------------------------------
LEASE EXPIRATION SCHEDULE
As of June 30, 2002
INDUSTRIAL
- ------------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total Cumulative Expiring Expiring
Year of Leases Feet Leased % of Total GAAP Cash
Expiration Expiring Expiring Sq Ft Leased Sq Ft Rent (1) Rent (2)
- ------------------------------------------------------------------------------------------------------------------------------------
2002 8 91,878 1.8% 1.8% $7.15 $7.95
2003 19 499,273 9.8% 11.6% $5.67 $6.86
2004 35 562,235 11.0% 22.6% $6.55 $7.60
2005 26 476,541 9.4% 32.0% $5.85 $7.30
2006 39 865,820 17.0% 49.0% $6.65 $7.91
2007 22 229,316 4.5% 53.5% $7.70 $9.16
2008 and thereafter 50 2,371,109 46.5% 100.0% -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total / Weighted Average 199 5,096,172 100.0% -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
RESEARCH & DEVELOPMENT
- ------------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total Cumulative Expiring Expiring
Year of Leases Feet Leased % of Total GAAP Cash
Expiration Expiring Expiring Sq Ft Leased Sq Ft Rent (1) Rent (2)
- ------------------------------------------------------------------------------------------------------------------------------------
2002 1 4,620 0.4% 0.4% $12.85 $12.85
2003 4 91,938 8.2% 8.6% $10.59 $10.97
2004 9 99,218 8.9% 17.5% $13.86 $15.07
2005 11 457,440 40.9% 58.3% $9.95 $11.45
2006 7 83,061 7.4% 65.8% $17.49 $20.08
2007 4 85,444 7.6% 73.4% $12.60 $13.95
2008 and thereafter 15 298,015 26.6% 100.0% -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total / Weighted Average 51 1,119,736 100.0% -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
(1) Represents annualized straightline rent as of the lease expiration date
(2) Represents annualized base rent as of the lease expiration date plus
non-recoverable operating expense pass-throughs
- -------------------------------------------------------------------------------
25
LEASE EXPIRATION COMPARISON
As of June 30, 2002
Expiring Rents vs. Reckson Forecast Rents (a)
[Graphics omitted]
CBD Portfolio - 400,000 sq. ft. expiring
- ----------------------------------------
Cash GAAP
Expiring $32.16 $33.25
Forecasted (b) $40.13 $40.14
Increase 25% 21%
Suburban Portfolio - 1.3 million sq. ft. expiring
- -------------------------------------------------
Cash GAAP
Expiring $25.45 $24.24
Forecasted (b) $25.42 $26.22
Increase 0% 8%
(a) Represents leases expiring during 2002 and 2003
(b) Company's forecast rent for space to be re-leased. There can be no
assurance that the Company's properties can achieve such rents
26
- ---------------------------------------------------------------------------------------------------------------------------
TOP 25 TENANTS
(Based on Base Rental Revenue)
- ---------------------------------------------------------------------------------------------------------------------------
Percent of Pro-Rata Percent of Consolidated
Total Share of Annualized Annualized Base
Tenant Name (1) Tenant Type Square Feet Base Rental Revenue Rental Revenue
- ---------------------------------------------------------------------------------------------------------------------------
* Debevoise & Plimpton Office 465,420 3.3% 5.5%
* WorldCom/MCI Office 547,018 3.2% 2.9%
* American Express Office 238,261 2.0% 1.7%
Bell Atlantic Office 208,661 1.5% 1.3%
* Shulte Roth & Zabel Office 230,621 1.3% 2.2%
* HQ Global Office/Industrial 201,900 1.3% 1.5%
United Distillers Office 137,918 1.1% 0.9%
Waterhouse Securities Office 127,143 1.1% 0.9%
* Prudential Office 219,416 0.9% 0.9%
* Banque Nationale De Paris Office 144,334 0.9% 1.5%
D.E. Shaw Office 89,526 0.9% 0.7%
Vytra Healthcare Office 105,612 0.8% 0.7%
Metromedia Fiber Network Svcs. Office 112,075 0.8% 0.7%
* Kramer Levin Nessen Kamin, Office 140,892 0.8% 1.3%
Hoffman-La Roche Inc. Office 120,736 0.7% 0.6%
Heller Ehrman White Office 54,815 0.7% 0.6%
Lab Corp Office 108,000 0.7% 0.6%
* Novartis Office 150,747 0.7% 0.9%
* Draft Worldwide, Inc. Office 124,008 0.7% 1.1%
Practicing Law Institute Office 62,000 0.7% 0.6%
Lockheed Martin Corporation Office 123,554 0.6% 0.5%
* State Farm Office/Industrial 162,650 0.7% 1.0%
Estee Lauder Industrial 370,000 0.6% 0.5%
* JP Morgan Chase Bank Office 69,527 0.6% 0.6%
Radianz U.S. No. 2 Inc. Office 130,009 0.6% 0.5%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
(1) Ranked by pro rata share of annualized base rental revenue
* Part or all of space occupied by tenant is in a 51% or more owned joint venture building.
- ---------------------------------------------------------------------------------------------------------------------------
27
TENANT DIVERSIFICATION (1)
Total Portfolio
[Graphic Omitted]
Accounting 2%
Advertising 1%
Commercial Banking 5%
Consumer Products 12%
Defense/Electronics 2%
Financial Services 12%
Government 2%
Healthcare 4%
Hospitality 1%
Insurance 7%
Legal Services 11%
Manufacturing 3%
Media/Entertainment 6%
Other Professional Services 8%
Pharmaceuticals 4%
Real Estate 3%
Retail/Wholesale 2%
Technology 5%
Telecom 9%
Transportation 1%
(1) Based on annualized base rental revenue adjusted for pro rata share of joint
venture interests. Part or all of space occupied by tenants is in a 51% or more
owned joint venture building.
28
- --------------------------------------------------------------------------------
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 years 1998 through 2001 and the six months ended June 30, 2002.
- -----------------------------------------------------------------------------------------------------------------------
NON-INCREMENTAL REVENUE GENERATING CAPITAL EXPENDITURES
- -----------------------------------------------------------------------------------------------------------------------
Average
1998 1999 2000 2001 1998-2001 2002
---------- ---------- ---------- ---------- ---------- ----------
Suburban Office Properties
Total $2,004,976 $2,298,899 $3,289,116 $4,606,069 $3,049,765 $2,325,404
Per Square Foot 0.23 0.23 0.33 0.45 $ 0.31 0.23
NYC Office Properties
Total N/A N/A $ 946,718 $1,584,501 $1,265,610 $ 828,596
Per Square Foot N/A N/A 0.38 0.45 $0.42 0.24
Industrial Properties
Total $1,205,266 $1,048,688 $ 813,431 $ 711,666 $ 944,763 $ 437,208
Per Square Foot 0.12 0.11 0.11 0.11 $ 0.11 0.07
$3,591,208
- -------------------------------------------------------------------------------------------------------------------------------
NON-INCREMENTAL REVENUE GENERATING TENANT IMPROVEMENTS AND LEASING COMMISSIONS
- -------------------------------------------------------------------------------------------------------------------------------
Average
1998 1999 2000 2001 1998-2001 2002 New Renewal
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Long Island Office Properties
Tenant Improvements $1,140,251 $1,009,357 $2,853,706 $2,722,457 $1,931,443 $ 817,925 $ 470,774 $ 347,151
Per Square Foot Improved 3.98 4.73 6.99 8.47 6.04 5.33 10.51 3.20
Leasing Commissions $ 418,191 $ 551,762 $2,208,604 $1,444,412 $1,155,742 $ 661,559 $ 253,957 $ 407,602
Per Square Foot Leased 1.46 2.59 4.96 4.49 3.38 4.31 5.67 3.75
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Per Square Foot $ 5.44 $ 7.32 $ 11.95 $ 12.96 $ 9.42 9.63 $ 16.18 $ 6.95
========== ========== ========== ========== ========== ========== ========== ==========
Westchester Office Properties
Tenant Improvements $ 711,160 $1,316,611 $1,860,027 $2,584,728 $1,618,132 $1,200,380 $ 967,886 $ 232,494
Per Square Foot Improved 4.45 5.62 5.72 5.91 5.43 7.59 11.53 3.13
Leasing Commissions $ 286,150 $ 457,730 $ 412,226 $1,263,012 $ 604,780 $ 513,884 $ 357,295 $ 156,589
Per Square Foot Leased 1.79 1.96 3.00 2.89 2.41 3.25 4.26 2.11
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Per Square Foot $ 6.24 $ 7.58 $ 8.72 $ 8.80 $ 7.84 $ 10.84 $ 15.79 $ 5.24
========== ========== ========== ========== ========== ========== ========== ==========
Connecticut Office Properties
Tenant Improvements $ 202,880 $ 179,043 $ 385,531 $ 213,909 $ 245,341 $ 385,999 $ 384,279 $ 1,720
Per Square Foot Improved 5.92 4.88 4.19 1.46 4.11 8.86 9.34 0.71
Leasing Commissions $ 151,063 $ 110,252 $ 453,435 $ 209,322 $ 231,018 $ 101,574 $ 101,574 $ 0
Per Square Foot Leased 4.41 3.00 4.92 1.43 3.44 2.33 2.47 --
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Per Square Foot $ 10.33 $ 7.88 $ 9.11 $ 2.89 $ 7.55 $ 11.19 $ 11.81 0.71
========== ========== ========== ========== ========== ========== ========== ==========
New Jersey Office Properties
Tenant Improvements $ 654,877 $ 454,054 $1,580,323 $1,146,385 $ 958,910 $ 624,731 $ 336,076 $ 288,655
Per Square Foot Improved 3.78 2.29 6.71 2.92 3.93 10.22 19.80 6.54
Leasing Commissions $ 396,127 $ 787,065 $1,031,950 $1,602,962 $ 954,526 $ 330,520 $ 127,681 $ 202,839
Per Square Foot Leased 2.08 3.96 4.44 4.08 3.64 5.13 6.30 4.60
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Per Square Foot $ 5.86 $ 6.25 $ 11.15 $ 7.00 $ 7.57 $ 15.35 $ 26.10 $ 11.14
========== ========== ========== ========== ========== ========== ========== ==========
New York City Office Properties
Tenant Improvements N/A N/A $ 65,267 $ 788,930 $ 427,099 $2,074,924 $1,348,436 $ 726,488
Per Square Foot Improved N/A N/A 1.79 15.69 8.74 20.23 20.47 19.82
Leasing Commissions N/A N/A $ 418,185 $1,098,829 $ 758,507 $ 816,045 $ 389,781 $ 426,264
Per Square Foot Leased N/A N/A 11.50 21.86 16.68 7.96 5.92 11.63
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Per Square Foot N/A N/A $ 13.29 $ 37.55 $ 25.42 $ 28.19 $ 26.39 31.44
========== ========== ========== ========== ========== ========== ========== ==========
Industrial Properties
Tenant Improvements $ 283,842 $ 375,646 $ 650,216 $1,366,488 $ 669,048 $ 743,640 $ 672,728 $ 70,912
Per Square Foot Improved 0.76 0.25 0.95 1.65 0.90 1.56 3.71 --
Leasing Commissions $ 200,154 $ 835,108 $ 436,506 $ 354,572 $ 456,585 $ 330,391 $ 289,591 $ 40,800
Per Square Foot Leased 0.44 0.56 0.64 0.43 0.52 0.69 1.60 0.14
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Per Square Foot $ 1.20 $ 0.81 $ 1.59 $ 2.08 $ 1.42 $ 2.25 $ 5.32 0.14
========== ========== ========== ========== ========== ========== ========== ==========
29
- -------------------------------------------------------------------------------
ANALYSIS OF CAPITAL EXPENDITURES, TENANT IMPROVEMENTS AND LEASING COSTS
As of June 30, 2002
- -------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2Q02 COSTS PER YEAR-TO-DATE COSTS PER
CAPITAL EXPENDITURES COSTS SQUARE FOOT COSTS SQUARE FOOT
- ------------------------------------------------------------------------------------------------------------------------------------
Recurring Capital Expenditures
------------------------------
Maintenance Capital Expenditures $2,079,474 $0.10 $3,591,208 $0.17
---------------- ------------- -------------- ---------
Total Recurring Capital Expenditures $2,079,474 $0.10 $3,591,208 $0.17
================ ============= ============== =========
Non-Recurring Capital Expenditures
----------------------------------
Property Renovations $3,529,974 $0.17 $5,203,580 $0.25
---------------- ------------- -------------- ---------
Total Non-recurring Capital Expenditures $3,529,974 $0.17 $5,203,580 $0.25
================ ============= ============== =========
---------------- --------------
Acquisition and Development Costs $29,988,288 $31,809,230
================ ==============
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
2Q02 COSTS PER YEAR-TO-DATE COSTS PER
TENANT IMPROVEMENTS AND LEASING COSTS (1) COSTS SQUARE FOOT COSTS SQUARE FOOT
- -----------------------------------------------------------------------------------------------------------------------------------
COMMITTED
Non-Incremental
Leasing Costs $1,221,034 $0.06 $2,753,973 $0.13
Tenant Improvements $2,554,191 $0.12 $5,847,599 $0.28
---------------- ------------- -------------- ---------
Total Non-Incremental $3,775,225 $0.18 $8,601,572 $0.42
Incremental (4)
Leasing Costs $392,312 $0.02 $3,302,544 $0.16
Tenant Improvements $1,986,445 $0.10 $13,082,302 $0.64
---------------- ------------- -------------- ---------
Total Incremental $2,378,757 $0.12 $16,384,846 $0.80
---------------- ------------- -------------- ---------
Total Committed $6,153,982 $0.30 $24,986,418 $1.22
================ ============= ============== =========
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
2Q02 COSTS PER YEAR-TO-DATE COSTS PER
TENANT IMPROVEMENTS AND LEASING COSTS (2) COSTS SQUARE FOOT COSTS SQUARE FOOT
- -----------------------------------------------------------------------------------------------------------------------------------
PAID OR ACCRUED
Non-Incremental
---------------
Leasing Costs $2,188,337 $0.11 $4,429,313 $0.22
Tenant Improvements $3,681,440 $0.18 $7,924,682 $0.39
---------------- ------------- -------------- ---------
Total Non-Incremental $5,869,778 $0.29 $12,353,995 $0.60
Incremental (4)
---------------
Leasing Costs $910,336 $0.04 $1,739,804 $0.08
Tenant Improvements $2,846,454 $0.14 $4,091,131 $0.20
---------------- ------------- -------------- ---------
Total Incremental $3,756,790 $0.18 $5,830,935 $0.28
---------------- ------------- -------------- ---------
Total Paid or Accrued $9,626,568 $0.47 $18,184,930 $0.89
================ ============= ============== =========
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2Q02 COSTS PER YEAR-TO-DATE COSTS PER
TENANT IMPROVEMENTS AND LEASING COSTS (3) COSTS SQUARE FOOT COSTS SQUARE FOOT
- ------------------------------------------------------------------------------------------------------------------------------------
COMMITTED EXCLUDING LEASES SCHEDULED TO EXPIRE IN FUTURE PERIODS
Non-Incremental
---------------
Leasing Costs $538,510 $0.03 $1,654,974 $0.08
Tenant Improvements $2,083,858 $0.10 $4,356,804 $0.21
---------------- ------------ -------------- ---------
Total Non-Incremental $2,622,368 $0.13 $6,011,778 $0.29
Incremental (4)
---------------
Leasing Costs $392,312 $0.02 $3,302,544 $0.16
Tenant Improvements $1,986,445 $0.10 $13,082,302 $0.64
---------------- ------------ -------------- ---------
Total Incremental $2,378,757 $0.12 $16,384,846 $0.80
---------------- ------------ -------------- ---------
Total Paid or Accrued $5,001,125 $0.24 $22,396,624 $1.09
================ ============ ============== =========
- --------------------------------------------------------------------------------
(1) Represents tenant Improvements and leasing costs committed on leases signed
during the period.
(2) Represents tenant improvements and leasing costs paid or accrued during the
period.
(3) Represents tenant Improvements and leasing costs committed to leases signed
during the period excluding leases that were scheduled to expire in future
periods.
(4) Represents tenant improvements and leasing costs on developments and
repositionings.
- --------------------------------------------------------------------------------
30
- -------------------------------------------------------------------------------
CAPITAL EXPENDITURES
As of June 30, 2002
- --------------------------------------------------------------------------------------------------------------------------------
1Q01 2Q01 3Q01 4Q01
CAPITAL EXPENDITURES Amount Amount Amount Amount
- --------------------------------------------------------------------------------------------------------------------------------
Recurring - Non Incremental
---------------------------
Amenities (Health Club, Cafe, etc.) $ -- $ 46,474 $ 32,858 $ 3,607
Bathrooms $ 5,094 $ 13,530 $ 125,132 $ 325,582
Boiler $ 848 $ 72,515 $ 44,885 $ 64,058
Chillers $ 63,370 $ 97,653 $ 25,501 $ 17,814
Non-Recurring Capital Expenditures $ 11,623 $ 31,335 $ 200,094 $ 33,585
Exterior Renovation $ (4,739) $ 64,922 $ 83,638 $ 119,938
HVAC $ 28,343 $ 32,926 $ 309,333 $ 367,750
Lobby/Plaza $ 529,326 $ 801,645 $ 734,224 $ 1,030,749
Parking Lots $ 48,677 $ 184,531 $ 107,319 $ 467,208
Roofs $ -- $ 286,101 $ 260,183 $ 107,557
Security $ -- $ 77,043 $ 15,506 $ 30,624
------------------------------------------------------------
Total Recurring - Non Incremental $ 682,542 $ 1,708,674 $ 1,938,674 $ 2,568,473
Amount Per Square Foot $ 0.03 $ 0.08 $ 0.09 $ 0.12
Non-Recurring - Incremental $ 4,594,235 $ 3,519,314 $ 2,331,452 $ 3,025,187
---------------------------
Amount Per Square Foot $ 0.22 $ 0.17 $ 0.11 $ 0.15
Rentable SF 21,291,351 21,298,951 20,695,723 20,610,545
# of Buildings 188 188 183 182
- -----------------------------------------------------------------------------------------------------------------------------------
1Q02 2Q02 2002
CAPITAL EXPENDITURES Amount Amount YTD Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Recurring - Non Incremental
---------------------------
Amenities (Health Club, Cafe, etc.) $ 85,670 $ 20,230 $ 105,900
Bathrooms $ 316,695 $ 55,871 $ 372,565
Boiler $ (66,274) $ 38,643 $ (27,630)
Chillers $ 97,773 $ 104,411 $ 202,184
Non-Recurring Capital Expenditures $ 24,589 $ 2,123 $ 26,712
Exterior Renovation $ 86,779 $ 442,126 $ 528,905
HVAC $ 372,014 $ 466,540 $ 838,553
Lobby/Plaza $ 532,041 $ 707,007 $ 1,239,048
Parking Lots $ 16,595 $ 119,157 $ 135,753
Roofs $ 15,377 $ 80,414 $ 95,790
Security $ 30,476 $ 42,953 $ 73,428
---------------------------------------------------------------
Total Recurring - Non Incremental $ 1,511,734 $ 2,079,474 $ 3,591,208
Amount Per Square Foot $ 0.07 $ 0.10 $ 0.17
Non-Recurring - Incremental $ 1,673,606 $ 3,529,974 $ 5,203,580
---------------------------
Amount Per Square Foot $ 0.08 $ 0.17 $ 0.25
Rentable SF 20,546,468 20,545,786 20,545,786
# of Buildings 181 181 181
31
- ---------------------------------------------------------------------------------------------------------------------------------
TENANT IMPROVEMENTS AND LEASING COSTS
As of June 30, 2002
- ---------------------------------------------------------------------------------------------------------------------------------
1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 2002
COMMITTED (1) Amount Amount Amount Amount Amount Amount YTD Amount
- ---------------------------------------------------------------------------------------------------------------------------------
Non-Incremental
---------------
Leasing Costs $1,089,006 $1,446,245 $1,054,004 $2,383,854 $1,532,939 $1,221,034 $2,753,973
Tenant Improvements $1,782,554 $1,965,338 $765,749 $4,309,256 $3,293,408 $2,554,191 $5,847,599
--------------------------------------------------------------------------------- --------------
Non-Recurring Capital
Expenditures $2,871,560 $3,411,583 $1,819,753 $6,693,110 $4,826,347 $3,775,225 $8,601,572
Incremental (4)
---------------
Leasing Costs $886,139 $611,015 $1,430,544 $339,337 $2,910,232 $392,312 $3,302,544
Tenant Improvements $2,452,956 $2,230,664 $1,929,149 $2,345,122 $11,095,857 $1,986,445 $13,082,302
--------------------------------------------------------------------------------- --------------
Total Incremental $3,339,095 $2,841,679 $3,359,693 $2,684,459 $14,006,089 $2,378,757 $16,384,846
--------------------------------------------------------------------------------- --------------
Total Committed $6,210,655 $6,253,262 $5,179,446 $9,377,569 $18,832,436 $6,153,982 $24,986,418
================================================================================= ==============
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 2002
PAID OR ACCRUED (2) Amount Amount Amount Amount Amount Amount YTD Amount
- ---------------------------------------------------------------------------------------------------------------------------------
Non-Incremental
---------------
Leasing Costs $1,416,261 $2,819,470 $1,237,447 $1,503,116 $2,240,976 $2,188,337 $4,429,313
Tenant Improvements $5,530,627 $4,849,956 $2,751,620 $5,107,743 $4,243,242 $3,681,440 $7,924,682
--------------------------------------------------------------------------------- --------------
Total Non-Incremental $6,946,888 $7,669,426 $3,989,067 $6,610,859 $6,484,218 $5,869,778 $12,353,995
Incremental (4)
---------------
Leasing Costs $887,114 $3,471,436 $237,482 $2,199,465 $829,468 $910,336 $1,739,804
Tenant Improvements $14,978,769 $23,776,980 $8,137,624 $11,489,202 $1,752,473 $2,846,454 $4,598,928
--------------------------------------------------------------------------------- --------------
Total Incremental $15,865,882 $27,248,416 $8,375,106 $13,688,667 $2,581,942 $3,756,790 $6,338,732
--------------------------------------------------------------------------------- --------------
Total Paid or Accrued $22,812,770 $34,917,842 $12,364,173 $20,299,526 $9,066,159 $9,626,568 $18,692,727
================================================================================= ==============
- ---------------------------------------------------------------------------------------------------------------------------------
(1) Represents tenant Improvements and leasing costs committed on leases signed during the period.
(2) Represents tenant improvements and leasing costs paid or accrued during the period.
(3) Represents tenant improvements at 100% of cost for all consolidated properties.
(4) Represents tenant improvements and leasing costs on developments and repositionings.
- ---------------------------------------------------------------------------------------------------------------------------------
32
CLASS A OFFICE STATISTICS
LONG ISLAND STATISTICS
- ----------------------
1998 1999 2000 2001 2Q02
---- ---- ---- ---- ----
Direct Vacancy 6.1% 5.6% 6.3% 7.7% 8.5%
Overall Vacancy 6.7% 6.5% 8.4% 11.9% 13.0%
Average Asking Rental Rates $27.23 $27.69 $28.86 $30.06 $29.49
WESTCHESTER STATISTICS
- ----------------------
1998 1999 2000 2001 2Q02
---- ---- ---- ---- ----
Direct Vacancy 16.4% 15.0% 10.7% 16.3% 14.2%
Overall Vacancy 19.2% 16.3% 12.0% 20.5% 19.7%
Average Asking Rental Rates $26.67 $27.23 $29.62 $30.15 $29.58
SOUTHERN CONNECTICUT STATISTICS
- -------------------------------
1998 1999 2000 2001 2Q02
---- ---- ---- ---- ----
Direct Vacancy 3.6% 4.0% 7.2% 8.8% 9.3%
Overall Vacancy 4.2% 4.7% 8.1% 13.6% 18.2%
Average Asking Rental Rates $32.22 $31.78 $44.41 $ 36.10 $ 37.85
NORTHERN NEW JERSEY STATISTICS
- ------------------------------
1998 1999 2000 2001 2Q02
---- ---- ---- ---- ----
Direct Vacancy 5.3% 4.6% 6.5% 8.1% 7.7%
Overall Vacancy 7.5% 7.1% 9.9% 13.4% 13.7%
Average Asking Rental Rates $27.42 $28.52 $29.66 $30.92 $30.01
Source: Cushman & Wakefield
33
- -------------------------------------------------------------------------------
NEW YORK CITY CLASS A OFFICE STATISTICS
AVERAGE ASKING RENTS
- --------------------
1998 1999 2000 2001 2Q02
---- ---- ---- ---- ----
Financial East $ 40.21 $ 37.64 $ 52.90 $ 48.07 $ 48.00
Midtown West Side $ 43.36 $ 48.28 $ 60.89 $ 61.22 $ 56.53
Midtown East Side $ 47.85 $ 51.18 $ 61.46 $ 59.81 $ 59.08
6th Ave./Rockefeller Center $ 51.33 $ 53.12 $ 65.91 $ 67.15 $ 66.76
Source: Cushman & Wakefield
Breakdown of New York City Revenue:
Midtown East Side 43%
Midtown West Side 32%
6th Ave./Rockefeller Center 15%
Financial East 11%
34
- --------------------------------------------------------------------------------
NEW YORK CITY CLASS A OFFICE STATISTICS
1998 1999 2000 2001 2Q02
---- ---- ---- ---- ----
FINANCIAL EAST
Overall Vacancy 7.3% 4.1% 2.1% 7.0% 14.1%
Direct Vacancy 6.6% 3.4% 1.4% 2.3% 9.1%
MIDTOWN WEST
Overall Vacancy 4.3% 6.0% 2.7% 6.2% 6.3%
Direct Vacancy 3.3% 4.6% 2.4% 4.0% 3.5%
MIDTOWN EAST
Overall Vacancy 8.0% 5.0% 2.6% 8.9% 10.3%
Direct Vacancy 6.0% 3.8% 1.9% 3.1% 4.7%
6TH AVE/ROCK CTR
Overall Vacancy 5.0% 2.6% 1.2% 4.3% 7.0%
Direct Vacancy 2.2% 1.6% 0.9% 2.7% 3.5%
Source: Cushman & Wakefield
Breakdown of New York City Revenue:
Midtown East Side 43%
Midtown West Side 32%
6th Ave./Rockefeller Center 15%
Financial East 11%
35
- --------------------------------------------------------------------------------
LONG ISLAND SUBMARKET CLASS A OFFICE STATISTICS
AVERAGE ASKING RENTS
- --------------------
1998 1999 2000 2001 2Q02
---- ---- ---- ---- ----
Central Nassau County $ 29.10 $ 29.93 $31.15 $ 31.94 $ 32.02
Western Suffolk County $ 26.22 $ 27.34 $28.22 $ 30.06 $ 30.72
Eastern Nassau County $ 27.49 $ 26.23 $28.75 $ 29.02 $ 29.26
DIRECT VACANCY RATES
- --------------------
1998 1999 2000 2001 2Q02
---- ---- ---- ---- ----
Central Nassau County 5.1% 5.1% 4.7% 5.6% 5.4%
Western Suffolk County 7.7% 11.6% 15.4% 17.5% 13.3%
Eastern Nassau County 4.9% 0.9% 1.4% 1.2% 1.1%
Source: Cushman & Wakefield
Breadown of Long Island office revenue:
Central Nassau 48%
Western Suffolk 33%
Eastern Nassau 8%
Other 11%
36
- --------------------------------------------------------------------------------
WESTCHESTER SUBMARKETS CLASS A OFFICE STATISTICS
AVERAGE ASKING RENTS
- --------------------
1998 1999 2000 2001 2Q02
---- ---- ---- ---- ----
Central $ 22.91 $ 27.07 $ 28.49 $ 29.53 $ 27.91
Tarrytown/Western $ 24.66 $ 27.30 $ 27.03 $ 28.37 $ 29.32
Eastern $ 29.35 $ 27.70 $ 29.65 $ 30.62 $ 30.73
White Plains CBD $ 26.84 $ 27.44 $ 30.62 $ 30.52 $ 30.26
DIRECT VACANCY RATES
- --------------------
1998 1999 2000 2001 2Q02
---- ---- ---- ---- ----
Central 12.3% 13.5% 12.0% 20.6% 18.6%
Tarrytown / Western 7.8% 8.0% 6.0% 8.4% 9.0%
Eastern 12.2% 10.1% 8.1% 16.6% 8.0%
White Plains CBD 22.7% 22.6% 11.5% 15.3% 13.8%
Source: Cushman & Wakefield
Breakdown of Westchester office revenue:
White Plains 28%
Tarrytown / Western 26%
Central 24%
Eastern 15%
Other 7%
Note: The 18.6% vacancy in Central Westchester is impacted by IBM selling a
383,000 SF owner occupied building. The location of this building is
not easily accessible to major thoroughfares and employee bedroom
communities. Excluding this building the vacancy rate is 18%.
37
- --------------------------------------------------------------------------------
NEW JERSEY SUBMARKETS CLASS A OFFICE STATISTICS
AVERAGE ASKING RENTS
- --------------------
1998 1999 2000 2001 2Q02
---- ---- ---- ---- ----
Essex County $ 27.74 $ 28.78 $ 28.90 $ 30.24 $ 27.14
Bergen County $ 27.37 $ 28.07 $ 29.41 $ 29.78 $ 29.07
Mercer County $ 24.49 $ 27.46 $ 30.32 $ 30.06 $ 31.76
DIRECT VACANCY RATES
- --------------------
1998 1999 2000 2001 2Q02
---- ---- ---- ---- ----
Essex County 3.3% 6.0% 9.6% 6.8% 6.7%
Bergen County 6.8% 5.3% 5.1% 9.9% 9.4%
Mercer County 1.5% 5.2% 6.3% 6.2% 6.0%
Source: Cushman & Wakefield
Breakdown of New Jersey office revenue:
Essex County 50%
Bergen County 11%
Mercer County 6%
Other 32%
38
- --------------------------------------------------------------------------------
VALUE CREATION PIPELINE
As of June 30, 2002
- --------------------------------------------------------------------------------------------------------------------------------
Square Feet/ Investment Anticipated Current %
STAGE / PROPERTY Acres To Date Total Investment (A) Leased
- --------------------------------------------------------------------------------------------------------------------------------
PROJECTS IN PLANNING
- --------------------
Melville Square Corporate Center II, Melville, NY 255,000 $ 33,660,000
University Square , Princeton, NJ 315,000 $ 50,397,000
Melville Expressway Corporate Center, Melville, NY ( Phase II) 277,500 $ 49,290,000
Reckson Executive Park, Rye Brook, NY 345,000 $ 55,799,000
AIP 2001, Islip, NY 71,000 $ 5,692,000
Landmark 7, Stamford, CT 61,000 $ 13,208,000
Giralda Farms , Morris County, NJ 430,000 $ 80,091,000
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL PROJECTS IN PLANNING 1,754,500 $ 68,422,921 $288,137,000 0.0%
- --------------------------------------------------------------------------------------------------------------------------------
LAND
- ----
70 Andrews Road, Hicksville, NY 3.8 $ 3,309,000 --
Old Willets Path, Hauppauge, NY 2.0 $ 2,995,000 --
Eagle Rock 3, East Hanover, NJ 15.0 $ 17,625,000 --
AIP Recapture, Islip, NY 4.2 $ 0 --
AIP, Islip NY 3.8 $ 2,200,000 --
AIP, Islip NY 2.0 $ 1,400,000 --
East Patchogue, East Patchogue, NY 23.0 $ 0 --
40 Cragwood, South Plainfield, NJ 7.0 $ 0 --
Giralda Farms , Chatham County, NJ 113.0 $130,000,000 --
Valhalla Land, Valhalla, NY 52.7 $212,000,000 --
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL LAND 226.5 $ 45,070,297 $369,529,000
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL UNREALIZED PIPELINE $113,493,218 $657,666,000
- --------------------------------------------------------------------------------------------------------------------------------
Investments that reached realization during 2002
- ------------------------------------------------
Melville Expressway Corporate Center, Melville, NY
(Phase I) 277,500
103 JFK Expressway, Short Hills, NJ 123,000
400 Moreland Road, Commack, NY 57,050
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL REALIZED VALUE CREATION PROJECTS 8,142,015 $1,089,838,191 $1,089,838,191 96.4%
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL VALUE CREATION PIPELINE $1,203,331,409 $1,747,504,191
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
Estimated Anticipated
STAGE / PROPERTY Stabilization Date (a) Stabilized Return (a)
- ------------------------------------------------------------------------------------------------------------------
Projects in Planning
- --------------------
Melville Square Corporate Center II, Melville, NY Q3 2003
University Square , Princeton, NJ Q4 2003
Melville Expressway Corporate Center, Melville, NY ( Phase II) Q4 2003
Reckson Executive Park, Rye Brook, NY Q4 2003
AIP 2001, Islip, NY Q4 2002
Landmark 7, Stamford, CT Q1 2003
Giralda Farms , Morris County, NJ Q1 2004
- ------------------------------------------------------------------------------------------------------------------
TOTAL PROJECTS IN PLANNING 12.0%
- ------------------------------------------------------------------------------------------------------------------
LAND
- ----
70 Andrews Road, Hicksville, NY --
Old Willets Path, Hauppauge, NY --
Eagle Rock 3, East Hanover, NJ --
AIP Recapture, Islip, NY --
AIP, Islip NY --
AIP, Islip NY --
East Patchogue, East Patchogue, NY --
40 Cragwood, South Plainfield, NJ --
Giralda Farms , Chatham County, NJ --
Valhalla Land, Valhalla, NY --
- ------------------------------------------------------------------------------------------------------------------
TOTAL LAND 11.0%
- ------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
TOTAL UNREALIZED PIPELINE 11.4%
- ------------------------------------------------------------------------------------------------------------------
Investments that reached realization during 2002
- ------------------------------------------------
Melville Expressway Corporate Center, Melville, NY
(Phase I)
103 JFK Expressway, Short Hills, NJ
400 Moreland Road, Commack, NY
- ------------------------------------------------------------------------------------------------------------------
TOTAL REALIZED VALUE CREATION PROJECTS 12.7%
- ------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
TOTAL VALUE CREATION PIPELINE
- ------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
(a) Forward looking statement based upon management's estimates. Actual results
may differ materially.
- --------------------------------------------------------------------------------
39
- -------------------------------------------------------------------------------
UNCONSOLIDATED REAL ESTATE JOINT VENTURES
BALANCE SHEETS June 30, December 31,
(in thousands) 2002 2001
(Unaudited) (Unaudited)
ASSETS
- --------------------------------------------------------------------------------------------------
Commercial real estate property, at cost:
Land $ 3,462 $ 3,462
Building and improvements 20,719 20,711
Furniture, fixtures, and equipment 15 15
- --------------------------------------------------------------------------------------------------
24,196 24,188
Less: accumulated depreciation (4,531) (4,081)
- --------------------------------------------------------------------------------------------------
Investment in real estate, net of accumulated depreciation 19,665 20,107
Cash and cash equivalents 320 271
Tenant receivables 114 172
Deferred rents receivable 905 960
Prepaid expenses and other assets 311 306
Deferred leasing and loan costs 152 161
- --------------------------------------------------------------------------------------------------
TOTAL ASSETS $21,467 $21,977
- --------------------------------------------------------------------------------------------------
LIABILITIES AND PARTNERS' CAPITAL
- --------------------------------------------------------------------------------------------------
LIABILITIES:
Mortgage note payable $12,808 $13,057
Accrued expenses and other liabilities 919 995
- --------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 13,727 14,052
- --------------------------------------------------------------------------------------------------
PARTNERS' CAPITAL 7,740 7,925
- --------------------------------------------------------------------------------------------------
TOTAL PARTNERS' CAPITAL 7,740 7,925
- --------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND PARTNERS' CAPITAL $21,467 $21,977
- --------------------------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
(in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
- -----------------------------------------------------------------------------------------------------------------------------------
REVENUES 2002 2001 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------------
Base Rents $ 909 $ 903 $ 1,536 $ 1,808
Other Income 0 1 0 4
Tenant escalations and reimbursements 57 63 79 142
- -----------------------------------------------------------------------------------------------------------------------------------
Total Operating Revenues 966 967 1,615 1,954
- -----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
- -----------------------------------------------------------------------------------------------------------------------------------
Property operating expenses 181 169 326 323
Real estate taxes 129 124 256 236
Marketing, general and administrative 11 12 25 25
Depreciation and amortization 229 228 459 460
Interest expense 284 309 571 606
- -----------------------------------------------------------------------------------------------------------------------------------
Total Expenses 834 843 1,637 1,650
- -----------------------------------------------------------------------------------------------------------------------------------
Net Income (Loss) $ 132 $ 125 $ (22) $ 304
- -----------------------------------------------------------------------------------------------------------------------------------
40
- -------------------------------------------------------------------------------
RSVP (AND IT'S EQUITY INVESTMENTS)
Combined Balance Sheets
(amounts in thousands)
(UNAUDITED) (AUDITED)
JUNE 30, DECEMBER 31,
2002 2001
----------- ------------
Assets
- ------
Cash and other assets $ 376,240 $ 358,985
Equity investments $ 133,676 135,416
--------- ---------
Total assets $ 509,916 $ 494,401
========= =========
Liabilities
- -----------
Accounts payable and accrued expenses $ 10,375 10,546
Long term debt $ 254,639 234,449
Other liabilities $ 15,093 15,878
--------- ---------
Total liabilities $ 280,107 $ 260,873
--------- ---------
Member's equity (a)
- -------------------
Preferred equity $ 150,734 153,340
Common equity $ 86,779 87,892
Offering costs (7,704) (7,704)
--------- ---------
Total member's equity 229,809 233,528
--------- ---------
Total liabilities and member's equity $ 509,916 $ 494,401
========= =========
- -------------------------------------------------------------------------------
(a) RSVP has guaranteed $8 million of secured first mortgage debt to third party
financial institutions with respect to the Resort platform.
- -------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2002
41
- -------------------------------------------------------------------------------
RSVP
Summary of Invested Capital
The following table sets forth the Company's invested capital (before valuation
reserves) in RSVP controlled (REIT-qualified) joint ventures and amounts which
were advanced under the RSVP Commitment to FrontLine, for its investment in RSVP
controlled investments:
(amounts in thousands)
- -------------------------------------------------------------------------------------------------
RSVP CONTROLLED AMOUNTS
PLATFORM JOINT VENTURES ADVANCED TOTAL
- -------------------------------------------------------------------------------------------------
Privatization (Prisons/Gov't offices) $ 21,480 $ 3,520 $ 25,000
Student housing 18,086 3,935 22,021
Medical office 20,185 -- 20,185
Parking -- 9,091 9,091
Resorts -- 8,057 8,057
Net leased retail -- 3,180 3,180
Other assets and overhead -- 21,598 21,598
--------------------------------------------------
Total $ 59,751 $ 49,381 $109,132
==================================================
- -------------------------------------------------------------------------------
Included in these investments is approximately $17.5 million of cash that has
been contributed to the respective RSVP controlled joint ventures or advanced
under the RSVP Commitment to FrontLine and is being held, along with cash from
the preferred investors.
At June 30, 2002, the net carrying value of the Company's investments in
FrontLine loans, including advances under the RSVP commitment and RSVP
controlled joint ventures is approximately $65 million.
- -------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for the Quarter Ended June 30, 2002
42
- --------------------------------------------------------------------------------
RSVP
Summarized Platform Balance Sheets as of June 30, 2002 (unaudited)
(amounts in thousands)
- ----------------------
------------------------------------------------------
STUDENT MEDICAL
PRIVATIZATION HOUSING OFFICE PARKING
------------------------------------------------------
ASSETS:
- -------
Real estate assets $ -- $ 287,091 $ 59,096 $ 56,722
Other assets 75,362 40,037 50,548 $ 5,459
------------------------------------------------------
Total Assets $ 75,362 $ 327,128 $ 109,644 $ 62,181
======================================================
LIABILITIES:
- ------------
Accounts payable & other liabilities $ -- $ 20,822 $ 1,384 $ 2,278
Property related debt 254,639 44,461 $ 31,136
------------------------------------------------------
Total Liabilities -- 275,461 45,845 33,414
------------------------------------------------------
PARTNER'S CAPITAL
- -----------------
RSVP / RAP capital 75,362 51,850 59,093 $ 19,559
Other partners (2) -- (183) 4,706 $ 9,208
------------------------------------------------------
Total Partner's Capital 75,362 51,667 63,799 28,767
------------------------------------------------------
------------------------------------------------------
Total Liabilities and Partner's Capital $ 75,362 $ 327,128 $ 109,644 $ 62,181
======================================================
--------------------------------------
NET LEASED
RESORTS RETAIL OTHER (1)
-------------------------------------
ASSETS:
- -------
Real estate assets $ 59,784 $ 6,174 $ --
Other assets 12,304 2,255 7,452
------------------------------------
Total Assets $ 72,088 $ 8,429 $ 7,452
====================================
LIABILITIES:
- ------------
Accounts payable & other liabilities $ 7,261 $ 954 $ --
Property related debt 23,675 4,162 --
------------------------------------
Total Liabilities 30,936 5,116 --
------------------------------------
PARTNER'S CAPITAL
- -----------------
RSVP / RAP capital 23,289 3,313 7,452
Other partners (2) 17,863 -- --
------------------------------------
Total Partner's Capital 41,152 3,313 7,452
------------------------------------
------------------------------------
Total Liabilities and Partner's Capital $ 72,088 $ 8,429 $ 7,452
====================================
- --------------------------------------------------------------------------------
(1) Represents note receivable collateralized by interests in certain senior
living facilities, less impairment allowances.
(2) Includes amounts that are subordinated to RSVP / RAP capital
(3) Reflects carrying value of investment
- --------------------------------------------------------------------------------
43
