SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
-------------
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: March 5, 2003
RECKSON ASSOCIATES REALTY CORP.
and
RECKSON OPERATING PARTNERSHIP, L.P.
(Exact name of each Registrant as specified in its Charter)
Reckson Associates Realty Corp. - Reckson Associates Realty Corp. -
Maryland 11-3233650
Reckson Operating Partnership, L.P. -
Delaware Reckson Operating Partnership, L.P. -
(State or other jurisdiction of 11-3233647
incorporation or organization) (IRS Employer ID Number)
225 Broadhollow Road 11747
Melville, New York (Zip Code)
(Address of principal executive offices)
1-13762
(Commission File Number)
(631) 694-6900
(Registrant's telephone number, including area code)
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99.1 Supplemental Operating and Financial Data for the Quarter and
Year Ended December 31, 2002
ITEM 9. REGULATION FD DISCLOSURE
For the quarter and year ended December 31, 2002, Registrants intend to
make available supplement data regarding their operations that is too voluminous
for a press release. Registrants are attaching the supplemental data as Exhibit
99.1 to this Current Report on Form 8-K.
Note: the information in this report (including the exhibit) is
furnished pursuant to Item 9 and shall not be deemed to be "filed" for the
purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise
subject to the liabilities of that section. This report will not be deemed an
admission as to the materiality of any information in the report that is
required to be disclosed solely by Regulation FD.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
each registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
RECKSON ASSOCIATES REALTY CORP.
By: /s/ Michael Maturo
--------------------------------
Michael Maturo
Executive Vice President
and Chief Financial Officer
RECKSON OPERATING PARTNERSHIP, L.P.
By: Reckson Associates Realty Corp.,
its General Partner
By: /s/ Michael Maturo
--------------------------------
Michael Maturo
Executive Vice President
and Chief Financial Officer
Date: March 5, 2003
EXHIBIT 99.1
RECKSON ASSOCIATES REALTY CORP.
FOURTH QUARTER 2002
SUPPLEMENTAL OPERATING AND FINANCIAL DATA
MARCH 5, 2002
225 BROADHOLLOW ROAD, MELVILLE, NY 11747
PHONE: 631.694.6900 1.888.RECKSON FAX: 631.622.6790
WWW.RECKSON.COM
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TABLE OF CONTENTS
Page(s)
Corporate Information........................................................................................................2-3
Financial Highlights
o Reporting Period Highlights...........................................................................................4-5
o Stock Performance.......................................................................................................6
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...........................................................................................15-18
o Portfolio Snapshot.....................................................................................................19
o Occupancy Analysis.....................................................................................................20
o Leasing Statistics..................................................................................................21-23
o Lease Expiration Schedules..........................................................................................24-28
o Top Tenants and Tenant Diversification.................................................................................29
o Capital Expenditures Analysis.......................................................................................30-33
Market Statistics
o Suburban Markets Overview...........................................................................................34-35
o New York City Sub -Markets..........................................................................................36-37
o Long Island Sub-Markets................................................................................................38
o Westchester Sub-Markets................................................................................................39
o New Jersey Sub-Markets.................................................................................................40
Value Creation Pipeline Schedule..............................................................................................41
Unconsolidated Real Estate Joint Ventures.....................................................................................42
Reckson Strategic Venture Partners (RSVP)
o Combined Balance Sheets................................................................................................43
o Summary of Invested Capital............................................................................................44
o Summarized Platform Balance Sheets.....................................................................................45
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 supplemental
operating and financial data.
###
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended December 31, 2002
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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 178 properties comprised of approximately 20.3 million
square feet located throughout the New York Tri-State area markets. These
properties are comprised of 13.6 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 $3.1 billion and has generated a total return to
its initial Class A common shareholders of approximately 182% for the period
June 2, 1995 through December 31, 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
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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)
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
2
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CORPORATE INFORMATION
RESEARCH COVERAGE
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 Steve Sakwa
(212) 902-6781 (212) 449-0335
Greenstreet Advisors Salomon Smith Barney
John Lutzius Jonathan Litt/Gary Boston
(949) 640-8780 (212) 816-0231/(212) 816-1383
Legg Mason
David Fick/Kenneth Weinberg
(410) 454-5018/(410) 454-5175
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 Early March
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
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
3
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REPORTING PERIOD HIGHLIGHTS
SUMMARY FOURTH QUARTER 2002 RESULTS
Reported fourth quarter diluted funds from operations ("FFO") of $.59 per share,
as compared to FFO of $.57 per share for the fourth quarter of 2001,
representing a per share increase of 3.5%.
Reported diluted FFO for the year ended December 31, 2002 of $2.36 per share on
total revenues of $506.1 million, as compared to FFO of $2.61 per share for the
year-ended December 31, 2001, representing a per share decrease of (9.6%).
SUMMARY PORTFOLIO PERFORMANCE
Portfolio performance remained stable during the fourth quarter of 2002 with
overall portfolio occupancy of 95.4% at December 31, 2002, as compared to 94.2%
at September 30, 2002 and 94.6% at December 31, 2001. The Company reported
occupancies at December 31, 2002 of 95.7% for the office portfolio and 94.7% for
the industrial/R&D portfolio. This compares to 95.1% and 92.4%, respectively, at
September 30, 2002 and 96.1% and 91.7%, respectively, at December 31, 2001.
The Company also reported same property occupancy of 95.6% for the overall
portfolio at December 31, 2002, as compared to 94.2% at September 30, 2002 and
94.6% at December 31 2001. Reported same property occupancies at December 31,
2002 of 96.1% for the office portfolio and 94.6% for the industrial/R&D
portfolio. This compares to 95.6% and 91.6%, respectively, at September 30, 2002
and 96.2% and 91.6%, respectively, at December 31, 2001.
During the quarter, the Company executed 63 leases encompassing 699,328 square
feet, representing 3.4% of the total portfolio. For the year, the Company
executed 255 leases encompassing 2.8 million square feet, representing 13.7% of
the total portfolio. During the quarter and the year, the company renewed 45%
and 60% of expiring square feet, respectively. As of December 31, 2002, the
Company reduced total portfolio exposure to expiring leases to 7.6% in 2003 and
8.0% in 2004. This excludes the impact of the rejection of 191,972 square feet
of leases by WorldCom/MCI.
Core same property net operating income ("NOI") before termination fees for the
fourth quarter of 2002 increased 8.3% (cash) and 3.0% (GAAP), compared to the
fourth quarter of 2001. Core same property NOI before termination fees for the
year ended December 31, 2002 increased 7.7% (cash) and 0.7% (GAAP), compared to
year ended December 31, 2001.
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
4
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REPORTING PERIOD HIGHLIGHTS (continued)
Net of minority interests in joint ventures, core same property NOI before
termination fees for the fourth quarter of 2002 increased 3.9% (cash) and 2.0%
(GAAP), compared to the fourth quarter of 2001. Net of minority interests in
joint ventures, core same property NOI before termination fees for the year
ended December 31, 2002 increased 3.9% (cash) and decreased (0.3%) (GAAP),
compared to year ended December 31, 2001.
Rent performance on renewal and replacement space during the fourth quarter of
2002 increased 5.8% (cash) and 9.5% (GAAP) in the office properties and
decreased (8.3%) (cash) and increased 11.9% (GAAP) in the industrial/R&D
properties. Rent performance on renewal and replacement space during the year
ended December 31, 2002 increased 9.2% (cash) and 13.8% (GAAP) in the office
properties and 1.1% (cash) and 14.4% (GAAP) in the industrial/R&D properties.
OTHER HIGHLIGHTS
Announced that the Company has entered into a sale contract with an affiliate of
First Data Corp. for a 19.3 acre parcel of land located in Melville, Long
Island, along with a contract for the build-to-suit construction of a 195,000
square foot office building, for an aggregate consideration of approximately $47
million.
Subsequent to year-end, WorldCom/MCI announced the rejection of 191,972 square
feet of leases totaling approximately $5.3 million of annual GAAP revenues.
Closed on the refinancing of the Company's unsecured revolving credit facility,
scheduled to mature in September of 2003, with a group of 14 banks. The facility
bears interest at LIBOR plus a spread of 90 basis points, representing a
reduction of 15 basis points from the previous facility.
CONSOLIDATED FINANCIAL RESULTS
The Company reported diluted earnings per Class A common share ("EPS") of $.14
for the fourth quarter of 2002, as compared to $.46 per Class A common share for
the comparable 2001 period.
The Company also reported diluted earnings per Class A common share ("EPS") of
$.83 for the twelve months ended December 31, 2002, as compared to a loss of
($.92) per Class A common share for the comparable 2001 period.
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
5
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STOCK PERFORMANCE
The following summarizes recent activity of Reckson's Class A common stock (RA):
3rd 4th
Quarter Quarter 1/1/03 to
2002 2002 2/28/03
----------------------------------------------
High Price* $ 24.92 $ 22.95 $ 21.40
Low Price* $ 21.08 $ 20.10 $ 19.48
Closing Price* $ 22.77 $ 21.05 $ 20.17
Average daily trading volume* 334,372 315,061 326,398
Indicated dividend per share** $ 1.6984 $ 1.6984 $ 1.6984
Closing dividend yield 7.46% 8.07% 8.42%
Closing shares and units outstanding (thousands) 56,428 55,522 55,522
Closing market value of shares and units outstanding (thousands) $1,284,866 $1,168,738 $1,119,879
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The following summarizes recent activity of Reckson's Class B common stock
(RA.B):
3rd 4th
Quarter Quarter 1/1/03 to
2002 2002 2/28/03
----------------------------------------------
High Price* $ 25.95 $ 23.88 $ 22.50
Low Price* $ 22.30 $ 20.70 $ 19.85
Closing Price* $ 23.75 $ 22.40 $ 20.55
Average daily trading volume* 80,700 12,266 114,705
Indicated dividend per share** $ 2.5884 $ 2.5884 $ 2.5884
Closing dividend yield 10.90% 11.56% 12.60%
Closing shares outstanding (thousands) 9,915 9,915 9,915
Closing market value of shares outstanding (thousands) $ 235,481 $ 222,096 $ 203,753
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The following summarizes recent activity of Reckson's Series A preferred stock
(RA.A):
3rd 4th
Quarter Quarter 1/1/03 to
2002 2002 2/28/03
----------------------------------------------
High Price* $ 24.10 $ 23.88 $ 23.27
Low Price* $ 20.30 $ 21.00 $ 22.25
Closing Price* $ 23.70 $ 22.50 $ 22.90
Average daily trading volume* 23,419 45,452 53,707
Indicated dividend per share** $ 1.9064 $ 1.9064 $ 1.9064
Closing dividend yield 8.04% 8.47% 8.32%
Closing shares outstanding (thousands) 9,192 8,835 8,835
Closing market value of shares outstanding (thousands) $ 217,850 $ 198,788 $ 202,322
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* New York Stock Exchange trades only
** On an annual basis
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
6
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KEY FINANCIAL DATA
(Dollars in thousands, except per share data)
FOR THE THREE MONTHS ENDED OR AS OF
-------------------------------------------------------------------------
12/31/02 9/30/02 6/30/02 3/31/02 12/31/01
-------------------------------------------------------------------------
SHARES AND UNITS
- ----------------
Common Shares Outstanding - Class A 48,246,083 49,152,033 50,988,233 50,305,143 49,982,377
Common Shares Outstanding - Class B 9,915,313 9,915,313 10,283,513 10,283,513 10,283,513
Operating Partnership Units Outstanding 7,276,224 7,276,224 7,276,224 7,942,692 7,487,218
-------------------------------------------------------------------------
Total Shares and Operating Partnership Units 65,437,620 66,343,570 68,547,97 68,531,348 67,753,108
=========================================================================
SHARE PRICE & DIVIDENDS - CLASS A
- ---------------------------------
End of Period $ 21.05 $ 22.77 $ 24.90 $ 24.66 $ 23.36
High during period $ 22.95 $ 24.92 $ 26.00 $ 24.68 $ 24.46
Low during period $ 20.10 $ 21.08 $ 24.18 $ 22.54 $ 22.15
Dividend declared $ 0.42 $ 0.42 $ 0.42 $ 0.42 $ 0.42
Closing dividend yield 8.1% 7.5% 6.8% 6.9% 7.3%
SHARE PRICE & DIVIDENDS - CLASS B
- ---------------------------------
End of period $ 22.40 $ 23.75 $ 25.50 $ 25.76 $ 25.51
High during period $ 23.88 $ 25.95 $ 27.07 $ 25.76 $ 25.76
Low during period $ 20.70 $ 22.30 $ 25.30 $ 23.86 $ 23.55
Dividend declared $ 0.65 $ 0.65 $ 0.65 $ 0.65 $ 0.65
Closing dividend yield 11.6% 10.9% 10.2% 10.1% 10.2%
MARKET CAPITALIZATION
- ---------------------
Market Value of Common Equity (a) $ 1,390,848 $ 1,520,360 $ 1,713,015 $ 1,701,295 $ 1,604,822
Stated Value of Preferred Equity 290,524 299,462 299,462 299,462 310,765
Total Debt (b) 1,371,446 1,331,141 1,285,636 1,279,195 1,336,011
-------------------------------------------------------------------------
Total Market Capitalization $ 3,052,818 $ 3,150,963 $ 3,298,113 $ 3,279,952 $ 3,251,598
=========================================================================
Total Debt / Total Market Capitalization 44.9% 42.2% 39.0% 39.0% 41.1%
SELECTED BALANCE SHEET DATA
- ---------------------------
Book Value of Real Estate Assets before Depreciation $ 2,954,527 $ 2,935,695 $ 2,938,968 $ 2,894,481 $ 2,880,879
Total Assets $ 2,907,920 $ 2,898,948 $ 2,914,000 $ 2,914,546 $ 2,994,218
Total Liabilities $ 1,631,675 $ 1,578,835 $ 1,532,340 $ 1,518,623 $ 1,592,811
SELECTED OPERATING DATA
- -----------------------
Property Operating Revenues $ 127,002 $ 126,447 $ 122,929 $ 121,704 $ 121,314
Property Operating Expenses $ 45,580 $ 46,135 $ 41,431 $ 41,895 $ 42,244
Property Operating NOI $ 81,422 $ 80,312 $ 81,498 $ 79,809 $ 79,070
Property Gross Operating Margin 64.1% 63.5% 66.3% 65.6% 65.2%
Other Revenues (excluding gain on sales
of real estate) $ 2,356 $ 2,335 $ 2,008 $ 2,425 $ 2,706
Marketing, General & Administrative Expenses $ 8,868 $ 7,965 $ 7,650 $ 7,095 $ 7,115
as a percent of Total Revenues
(excluding gain on sales of real estate) 6.9% 6.2% 6.1% 5.7% 5.7%
Interest Expense $ 22,813 $ 22,653 $ 22,124 $ 20,995 $ 22,369
Capitalized Interest $ 1,962 $ 1,948 $ 1,799 $ 2,607 $ 2,442
Non-Incremental Capital Expenditures
to NOI as a percent (d) (e) 10.91% 27.41% 6.64% 7.43% 8.68%
FINANCIAL RATIOS
- ----------------
Debt Service Coverage Ratio 3.26 3.32 3.44 3.60 3.11
Fixed Charge Coverage Ratio 2.55 2.58 2.66 2.72 2.44
EPS, FFO AND CAD
- --------------
Class A Common stock:
Basic Net Income per share $ 0.14 $ 0.25 $ 0.21 $ 0.24 $ 0.47
Diluted Net Income per share $ 0.14 $ 0.25 $ 0.21 $ 0.24 $ 0.46
Class B Common stock:
Basic Net Income per share $ 0.21 $ 0.38 $ 0.32 $ 0.37 $ 0.71
Diluted Net Income per share $ 0.19 $ 0.26 $ 0.22 $ 0.26 $ 0.50
Diluted FFO per share $ 0.59 $ 0.59 $ 0.59 $ 0.60 $ 0.57
Diluted weighted average Class A & B dividends
per share or unit $ 0.45 $ 0.45 $ 0.45 $ 0.45 $ 0.45
Diluted FFO payout ratio (Class A & B combined) 77.3% 77.4% 77.2% 76.1% 80.2%
Diluted weighted average Class A dividends per share $ 0.42 $ 0.42 $ 0.42 $ 0.42 $ 0.42
Diluted FFO payout ratio - Class A 72.4% 72.5% 72.3% 71.2% 74.9%
Diluted weighted average Class B dividends per share $ 0.65 $ 0.65 $ 0.65 $ 0.65 $ 0.65
Diluted FFO payout ratio - Class B 110.3% 110.5% 110.3% 108.8% 114.6%
Diluted CAD per share (d) $ 0.36 $ 0.17 $ 0.45 $ 0.39 $ 0.33
Diluted weighted average Class A & B dividends
per share or unit (d) $ 0.46 $ 0.46 $ 0.46 $ 0.46 $ 0.46
Diluted CAD payout ratio (Class A & B combined) (d) 127.7% 277.1% 101.2% 117.2% 138.9%
Diluted weighted average Class A
dividends per share (d) $ 0.42 $ 0.42 $ 0.42 $ 0.42 $ 0.42
Diluted CAD payout ratio - Class A (d) 118.4% 257.0% 93.9% 108.5% 128.7%
Diluted weighted average Class B
dividends per share (d) $ 0.65 $ 0.65 $ 0.65 $ 0.65 $ 0.65
Diluted CAD payout ratio - Class B (d) 180.4% 391.7% 143.2% 166.0% 196.7%
TRI-STATE PORTFOLIO STATISTICS
- ------------------------------
Office properties 75 75 77 77 77
Office square footage 13,549,033 13,614,217 13,770,743 13,771,319 13,777,009
Office occupancy at end of quarter (c) 95.7% 95.1% 95.2% 96.2% 96.1%
Industrial properties 101 101 102 102 103
Industrial square footage 6,716,394 6,720,342 6,755,843 6,755,949 6,813,536
Industrial occupancy at end of quarter (c) 94.7% 92.4% 92.0% 92.9% 91.7%
Total portfolio occupancy at end of quarter (c) 95.4% 94.2% 94.2% 95.1% 94.6%
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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) Calculated based on committed non incremental tenant improvements and
leasing costs and actual non incremental capitalized improvements. In
addition, for the three months ended September 30, 2002, these amounts
include approximately $11.2 million of TI and leasing costs associated with
the Fuji Photo Film USA Inc, transaction. This transaction encompasses nine
tenants and approximately 239,000 square feet located in Westchester
County. Payout ratios would have been (Class A and B combined: 137.8%),
(Class A: 127.8%) and (Class B: 194.8%) for the three months ended
September 30, 2002 had these costs not been included.
(e) For the three months ended September 30, 2002, this calculation would have
yielded 13.46% exclusive of the approximately $11.2 million of committed
costs related to the Fuji Photo Film USA Inc. transaction.
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Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
7
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STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended The Years Ended
December 31, December 31,
- -----------------------------------------------------------------------------------------------------------------------------------
REVENUES 2002 2001 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------------
Base Rents $ 110,969 $ 106,974 $ 437,393 $ 434,671
Tenant escalations and reimbursements 16,033 14,340 60,689 59,538
Interest income on mortgage notes and notes receivable 1,569 1,587 6,279 6,238
Investment and other income 272 736 1,731 14,199
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Total Operating Revenues 128,843 123,637 506,092 514,646
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EXPENSES
Property operating expenses 25,756 25,041 101,165 98,069
Real estate taxes 19,824 17,203 73,876 69,222
Marketing, general and administrative 8,868 7,115 31,578 30,553
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Total Expenses 54,448 49,359 206,619 197,844
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Equity in earnings of service companies and real estate
joint ventures 515 383 1,113 2,087
- -----------------------------------------------------------------------------------------------------------------------------------
EBITDA 74,910 74,661 300,586 318,889
Depreciation and amortization 29,428 25,507 112,341 102,108
Interest expense 22,813 22,369 88,585 93,070
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Income from continuing operations before minority interests and
discontinued operations 22,669 26,785 99,660 123,711
Minority partners' interests in consolidated partnerships (4,351) (3,090) (18,730) (15,975)
Limited partners' minority interest in the operating partnership (1,442) (1,909) (6,238) (9,436)
Distributions to preferred unitholders (274) (481) (1,288) (2,111)
- -----------------------------------------------------------------------------------------------------------------------------------
Income from continuing operations 16,602 21,305 73,404 96,189
Adjust for non operating items, net of limited partners'
minority interest:
Discontinued operations (281) 338 4,762 1,019
Valuation reserves on affiliate loans and joint ventures -- (2,783) -- (148,717)
Gain on sales of real estate -- 17,233 537 18,103
Extraordinary loss on extinguishment or debt (2,335) -- (2,335) (2,595)
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Income (loss) before dividends to preferred shareholders 13,986 36,093 76,368 (36,001)
Dividends to preferred shareholders (5,374) (5,487) (21,835) (21,866)
- -----------------------------------------------------------------------------------------------------------------------------------
Net income (loss) allocable to common shareholders $ 8,612 $ 30,606 $ 54,533 $ (57,867)
===================================================================================================================================
Net income (loss) allocable to:
Class A Shareholders $ 6,563 $ 23,284 $ 41,604 $ (44,243)
Class B Shareholders $ 2,049 $ 7,322 $ 12,929 $ (13,624)
PER SHARE DATA
Basic net income (loss) per weighted average common share:
Class A common stock $ 0.18 $ 0.20 $ 0.79 $ (1.19)
Gain on sales of real estate -- 0.26 0.01 0.29
Discontinued operations -- 0.01 0.07 0.02
Extraordinary loss (0.04) -- (0.03) (0.04)
- -----------------------------------------------------------------------------------------------------------------------------------
Basic net income (loss) per Class A common $ 0.14 $ 0.47 $ 0.84 $ (0.92)
===================================================================================================================================
Class B common stock $ 0.27 $ 0.30 $ 1.21 $ (1.70)
Gain on sales of real estate -- 0.40 0.01 0.42
Discontinued operations -- 0.01 0.11 0.02
Extraordinary loss (0.06) -- (0.05) (0.06)
- -----------------------------------------------------------------------------------------------------------------------------------
Basic net income (loss) per Class B common $ 0.21 $ 0.71 $ 1.28 $ (1.32)
===================================================================================================================================
Diluted net income (loss) per weighted average common share:
Class A common $ 0.14 $ 0.46 $ 0.83 $ (0.92)
Class B common $ 0.19 $ 0.50 $ 0.90 $ (1.32)
Basic weighted average common shares outstanding:
Class A common 48,384 49,994 49,669 48,121
Class B common 9,915 10,284 10,122 10,284
Diluted weighted average common shares outstanding:
Class A common 48,551 51,005 49,968 48,121
Class B common 9,915 10,284 10,122 10,284
- -----------------------------------------------------------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
8
- -------------------------------------------------------------------------------
SUMMARY DATA
FUNDS FROM OPERATIONS ("FFO") AND FFO PAYOUT RATIOS
CASH AVAILABLE FOR DISTRIBUTION ("CAD") AND CAD PAYOUT RATIOS
- -------------------------------------------------------------------------------
Three Months Ended The Years Ended
December 31, December 31,
----------------------------------------------------
2002 2001 2002 2001
-----------------------------------------------------
FUNDS FROM OPERATIONS:
- ----------------------
Diluted FFO per weighted average share or unit $ 0.59 $ 0.57 $ 2.36 $ 2.61
Diluted weighted average Class A & B dividends per share or unit $ 0.45 $ 0.46 $ 1.81 $ 1.77
Diluted FFO payout ratio (Class A & B combined) 77.3% 80.2% 77.0% 67.9%
Diluted weighted average Class A dividends per share $ 0.42 $ 0.42 $ 1.70 $ 1.66
Diluted FFO payout ratio - Class A 72.4% 74.9% 72.1% 63.6%
Diluted weighted average Class B dividends per share $ 0.65 $ 0.65 $ 2.59 $ 2.53
Diluted FFO payout ratio - Class B 110.3% 114.6% 110.0% 97.0%
CAD - TOTAL COMMITTED TI & LEASING COSTS INCURRED DURING PERIOD (A)
- -------------------------------------------------------------------
Diluted CAD per weighted average share or unit $ 0.36 $ 0.33 $ 1.37 $ 1.77
Diluted weighted average Class A & B dividends per share or unit $ 0.46 $ 0.46 $ 1.83 $ 1.79
Diluted CAD payout ratio (Class A & B combined) 127.7% 138.9% 133.6% 101.6%
Diluted weighted average Class A dividends per share $ 0.42 $ 0.42 $ 1.70 $ 1.66
Diluted CAD payout ratio - Class A 118.4% 128.7% 123.9% 94.0%
Diluted weighted average Class B dividends per share $ 0.65 $ 0.65 $ 2.59 $ 2.53
Diluted CAD payout ratio - Class B 180.4% 196.7% 189.0% 143.3%
CAD - ACTUAL PAID OR ACCRUED TI & LEASING COSTS DURING PERIOD
- -------------------------------------------------------------
Diluted CAD per weighted average share or unit $ 0.30 $ 0.33 $ 1.42 $ 1.65
Diluted weighted average Class A & B dividends per share or unit $ 0.46 $ 0.46 $ 1.83 $ 1.79
Diluted CAD payout ratio (Class A & B combined) 153.8% 140.7% 129.2% 108.6%
Diluted weighted average Class A dividends per share $ 0.42 $ 0.42 $ 1.70 $ 1.66
Diluted CAD payout ratio - Class A 142.5% 130.3% 119.8% 100.4%
Diluted weighted average Class B dividends per share $ 0.65 $ 0.65 $ 2.59 $ 2.53
Diluted CAD payout ratio - Class B 217.2% 199.2% 182.7% 153.1%
CAD - COMMITTED TI & LEASING COSTS ON SIGNED LEASES, EXCLUDING
EARLY RENEWALS (B)
- ----------------------------------------------------------------
Diluted CAD per weighted average share or unit $ 0.38 $ 1.43
Diluted weighted average Class A & B dividends per share or unit $ 0.46 $ 1.83
Diluted CAD payout ratio (Class A & B combined) 122.2% 143.1%
Diluted weighted average Class A dividends per share $ 0.42 $ 1.70
Diluted CAD payout ratio - Class A 113.2% 118.7%
Diluted weighted average Class B dividends per share $ 0.65 $ 2.59
Diluted CAD payout ratio - Class B 172.5% 181.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Notes:
(A) For the year ended December 31, 2002 these amounts include
approximately $11.2 million of TI and leasing costs associated with
the Fuji Photo Film USA Inc., transaction. This transaction
encompasses nine tenants and approximately 239,000 square feet
located in Westchester County. Payout ratios would have been (Class
A and B combined: 119.2%), (Class A: 110.5%) and (Class B: 168.6%)
for the year ended December 31, 2002 had these costs not been
included.
(B) For the year ended December 31, 2002 these amounts include
approximately $11.2 million of TI and leasing costs associated with
the Fuji Photo Film USA Inc., transaction. This transaction
encompasses nine tenants and approximately 239,000 square feet
located in Westchester County. Payout ratios would have been (Class
A and B combined: 159.7%), (Class A: 106.3%) and (Class B: 162.2%)
for the year ended December 31, 2002 had these costs not been
included.
- -------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
9
- -------------------------------------------------------------------------------
FUNDS FROM OPERATIONS AND FFO PAYOUT RATIO DATA
(In thousands, except per share / unit data)
Three Months Ended The Years Ended
December 31, December 31,
- -----------------------------------------------------------------------------------------------------------------------------------
2002 2001 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------------
FUNDS FROM OPERATIONS
- -----------------------------------------------------------------------------------------------------------------------------------
Net income allocable to common shareholders $ 8,612 $ 30,606 $ 54,533 $ (57,867)
Add back: Real estate depreciation and amortization 28,336 24,911 108,906 100,967
Minority partners' interests in consolidated partnerships 4,351 3,090 18,730 15,975
Limited partners' minority interest in the operating partnership 1,410 3,599 6,948 --
Valuation reserves on investments in affiliate loans
and joint ventures -- -- -- 163,000
Extraordinary loss on exinguishment of debt (net of limited
partners minority interest) 2,335 -- 2,335 2,595
Less: Limited partners' minority interest in the operating partnership -- -- -- 5,727
Gain on sales of real estate -- 19,201 5,433 20,173
Amounts distributable to minority partners in consolidated partnerships 6,053 4,072 24,996 19,083
- -----------------------------------------------------------------------------------------------------------------------------------
Basic Funds From Operations 38,991 38,933 161,023 179,687
Add dividends and distributions on dilutive shares and units:
Series A preferred stock 4,267 4,381 17,410 17,524
Series B preferred stock 1,106 -- 4,425 4,342
Minority partners' preferred interest -- -- -- 2,624
Limited partners' preferred interest 274 481 1,288 2,111
- -----------------------------------------------------------------------------------------------------------------------------------
Diluted FFO $ 44,638 $ 43,795 $ 184,146 206,288
===================================================================================================================================
Diluted weighted average shares and units outstanding:
Common shares 58,299 60,278 59,791 58,405
Limited operating partnership units 7,276 7,505 7,389 7,652
Common stock equivalents 168 445 299 433
Series A preferred stock 7,791 8,060 7,992 8,060
Series B preferred stock 1,919 -- 1,919 1,919
Minority partners' preferred interest -- -- -- 1,419
Limited partners' preferred interest 661 1,009 743 1,139
- -----------------------------------------------------------------------------------------------------------------------------------
Total diluted weighted average shares and units outstanding 76,114 77,297 78,133 79,027
===================================================================================================================================
Diluted FFO per weighted average share or unit $ 0.59 $ 0.57 $ 2.36 $ 2.61
Diluted weighted average Class A & B dividends per share or unit $ 0.45 $ 0.46 $ 1.81 $ 1.77
Diluted FFO payout ratio (Class A & B combined) 77.3% 80.2% 77.0% 67.9%
Diluted weighted average Class A dividends per share $ 0.42 $ 0.42 $ 1.70 $ 1.66
Diluted FFO payout ratio - Class A 72.4% 74.9% 72.1% 63.6%
Diluted weighted average Class B dividends per share $ 0.65 $ 0.65 $ 2.59 $ 2.53
Diluted FFO payout ratio - Class B 110.3% 114.6% 110.0% 97.0%
- -----------------------------------------------------------------------------------------------------------------------------------
CASH AVAILABLE FOR DISTRIBUTION AND CAD PAYOUT RATIO DATA
(In thousands, except per share / unit data)
- -----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
CAD - TOTAL COMMITTED TI & LEASING COSTS INCURRED DURING PERIOD
- ----------------------------------------------------------------------------------------------------------------------------------
Basic FFO $ 38,991 $ 38,933 $ 161,023 $ 179,687
Less: Straight line rents 6,529 9,550 26,247 41,293
Committed non-incremental capitalized tenant improvements and
leasing costs (Note A) 6,230 4,432 33,407 14,281
Actual non-incremental capitalized improvements 2,653 2,437 8,832 6,697
- ----------------------------------------------------------------------------------------------------------------------------------
Basic Cash Available for Distribution 23,579 22,514 92,537 117,416
Add dividends and distributions on dilutive shares and units:
Series A preferred stock -- -- -- --
Series B preferred stock -- -- -- --
Limited partners' preferred interest -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Diluted CAD $ 23,579 $ 22,514 $ 92,537 $ 117,416
==================================================================================================================================
Diluted weighted average shares and units outstanding:
Common shares 58,299 60,278 59,791 58,405
Limited operating partnership units 7,276 7,505 7,389 7,652
Common stock equivalents 168 445 299 433
Series A preferred stock -- -- -- --
Series B preferred stock -- -- -- --
Limited partners' preferred interest -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Diluted weighted average shares and units outstanding 65,743 68,228 67,479 66,490
==================================================================================================================================
Diluted CAD per weighted average share or unit $ 0.36 $ 0.33 $ 1.37 $ 1.77
Diluted weighted average Class A & B dividends per share or unit $ 0.46 $ 0.46 $ 1.83 $ 1.79
Diluted CAD payout ratio (Class A & B combined) 127.7% 138.9% 133.6% 101.6%
Diluted weighted average Class A dividends per share $ 0.42 $ 0.42 $ 1.70 $ 1.66
Diluted CAD payout ratio - Class A 118.4% 128.7% 123.9% 94.0%
Diluted weighted average Class B dividends per share $ 0.65 $ 0.65 $ 2.59 $ 2.53
Diluted CAD payout ratio - Class B 180.4% 196.7% 189.0% 143.3%
- ----------------------------------------------------------------------------------------------------------------------------------
Note:
(A) For the year ended December 31, 2002 these amounts include
approximately $11.2 million of TI and leasing costs associated with
the Fuji Photo Film USA Inc., transaction. This transaction
encompasses nine tenants and approximately 239,000 square feet
located in Westchester County. Payout ratios would have been (Class
A and B combined: 119.2%), (Class A: 110.5%) and (Class B: 168.6%)
for the year ended December 31, 2002 had these costs not been
included.
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
10
- -------------------------------------------------------------------------------
CASH AVAILABLE FOR DISTRIBUTION AND CAD PAYOUT RATIO DATA - CONTINUED
(In thousands, except per share / unit data)
Three Months Ended The Years Ended
December 31, December 31,
- ----------------------------------------------------------------------------------------------------------------------------------
2002 2001 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------------
CAD - ACTUAL PAID OR ACCRUED TI & LEASING COSTS DURING PERIOD
- -----------------------------------------------------------------------------------------------------------------------------------
Basic FFO $ 38,991 $ 38,933 $ 161,023 179,687
Less: Straight line rents 6,529 9,550 26,247 41,293
Actual non-incremental capitalized tenant improvements
and leasing costs 10,224 4,711 30,261 21,775
Actual non-incremental capitalized improvements 2,653 2,437 8,832 6,697
- -----------------------------------------------------------------------------------------------------------------------------------
Basic Cash Available for Distribution 19,585 22,235 95,683 109,922
Add dividends and distributions on dilutive shares and units:
Series A preferred stock -- -- -- --
Series B preferred stock -- -- -- --
Limited partners' preferred interest -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Diluted CAD $ 19,585 $ 22,235 $ 95,683 109,922
===================================================================================================================================
Diluted weighted average shares and units outstanding:
Common shares 58,299 60,278 59,791 58,405
Limited operating partnership units 7,276 7,505 7,389 7,652
Common stock equivalents 168 445 299 433
Series A preferred stock -- -- -- --
Series B preferred stock -- -- -- --
Limited partners' preferred interest -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Diluted weighted average shares and units outstanding 65,743 68,228 67,479 66,490
===================================================================================================================================
Diluted CAD per weighted average share or unit $ 0.30 $ 0.33 $ 1.42 $ 1.65
Diluted weighted average Class A & B dividends per share or unit $ 0.46 $ 0.46 $ 1.83 $ 1.79
Diluted CAD payout ratio (Class A & B combined) 153.8% 140.7% 129.2% 108.6%
Diluted weighted average Class A dividends per share $ 0.42 $ 0.42 $ 1.70 $ 1.66
Diluted CAD payout ratio - Class A 142.5% 130.3% 119.8% 100.4%
Diluted weighted average Class B dividends per share $ 0.65 $ 0.65 $ 2.59 $ 2.53
Diluted CAD payout ratio - Class B 217.2% 199.2% 182.7% 153.1%
- -----------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
CAD - COMMITTED TI & LEASING COSTS ON SIGNED LEASES,
EXCLUDING EARLY RENEWALS
- -------------------------------------------------------------------------------
Basic FFO $ 38,991 $ 161,023
Less: Straight line rents 6,529 26,247
Committed non-incremental capitalized tenant improvements and
leasing costs scheduled to expire in future periods (Note B) 5,154 29,372
Actual non-incremental capitalized improvements 2,653 8,832
- -----------------------------------------------------------------------------------------------------------------------------------
Basic Cash Available for Distribution 24,655 96,572
Add dividends and distributions on dilutive shares and units:
Series A preferred stock -- --
Series B preferred stock -- --
Limited partners' preferred interest -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Diluted CAD $ 24,655 $ 96,572
===================================================================================================================================
Diluted weighted average shares and units outstanding:
Common shares 58,299 59,791
Limited operating partnership units 7,276 7,389
Common stock equivalents 168 299
Series A preferred stock -- --
Series B preferred stock -- --
Limited partners' preferred interest -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Diluted weighted average shares and units outstanding 65,743 67,479
===================================================================================================================================
Diluted CAD per weighted average share or unit $ 0.38 $ 1.43
Diluted weighted average Class A & B dividends per share or unit $ 0.46 $ 1.83
Diluted CAD payout ratio (Class A & B combined) 122.2% 143.1%
Diluted weighted average Class A dividends per share $ 0.42 $ 1.70
Diluted CAD payout ratio - Class A 113.2% 118.7%
Diluted weighted average Class B dividends per share $ 0.65 $ 2.59
Diluted CAD payout ratio - Class B 172.5% 181.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Note:
(B) For the year ended December 31, 2002 these amounts include
approximately $11.2 million of TI and leasing costs associated with
the Fuji Photo Film USA Inc., transaction. This transaction
encompasses nine tenants and approximately 239,000 square feet
located in Westchester County. Payout ratios would have been (Class
A and B combined: 159.7%), (Class A: 106.3%) and (Class B: 162.2%)
for the year ended December 31, 2002 had these costs not been
included.
- -------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
11
- -------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31,
-------------------------------------------
2002 2001
- -----------------------------------------------------------------------------------------------------------------------------------
ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
Commercial real estate properties, at cost:
Land $ 418,040 $ 408,837
Building and improvements 2,415,252 2,328,374
Developments in progress:
Land 92,924 69,365
Development costs 28,311 74,303
Furniture, fixtures, and equipment 13,595 7,725
- -----------------------------------------------------------------------------------------------------------------------------------
2,968,122 2,888,604
Less: accumulated depreciation (454,018) (361,960)
- -----------------------------------------------------------------------------------------------------------------------------------
Investment in real estate, net of accumulated depreciation 2,514,104 2,526,644
Investments in real estate joint ventures 6,116 5,744
Investments in mortgage notes and notes receivable 54,547 56,234
Investments in service companies and affiliate loans and joint ventures 73,332 79,184
Cash and cash equivalents 30,827 121,975
Tenant receivables 14,050 9,633
Deferred rents receivable 107,366 81,089
Prepaid expenses and other assets 37,235 45,495
Contract and land deposits and pre-acquisition costs 240 3,782
Deferred leasing and loan costs (net of accumulated amortization) 70,103 64,438
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 2,907,920 $ 2,994,218
===================================================================================================================================
LIABILITIES AND STOCKHOLDER'S EQUITY
- -----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Mortgage notes payable $ 740,012 $ 751,077
Unsecured credit facility 267,000 271,600
Senior unsecured notes 499,305 449,463
Accrued expenses and other liabilities 93,783 87,683
Dividends and distributions payable 31,575 32,988
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 1,631,675 1,592,811
- -----------------------------------------------------------------------------------------------------------------------------------
MINORITY INTERESTS:
Minority partners' interests in consolidated partnerships 242,934 242,698
Preferred unit interest in the operating partnership 19,662 30,965
Limited partners' minority interest in the operating partnership 71,420 81,887
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL MINORITY INTERESTS 334,016 355,550
- -----------------------------------------------------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY:
Preferred Stock, $.01 par value, 25,000,000 shares authorized
Series A - 8,834,500 and 9,192,000 shares issued and outstanding, respectively 88 92
Series B - 2,000,000 shares issued and outstanding 20 20
Common Stock, $.01 par value, 100,000,000 shares authorized
Class A - 48,246,083 and 49,982,377 shares issued and outstanding, respectively 482 500
Class B - 9,915,313 and 10,283,513 shares issued and outstanding, respectively 99 103
Treasury Stock, Class A common, 2,698,400 and 0 shares, respectively and
Class B common, 368,200 and 0 shares, respectively (63,954) --
Additional paid in capital 1,005,494 1,045,142
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 942,229 1,045,857
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,907,920 $ 2,994,218
===================================================================================================================================
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
12
- --------------------------------------------------------------------------------
DEBT SUMMARY AT DECEMBER 31, 2002
(Dollars in thousands)
DEBT BREAKDOWN
- -----------------------------------------------------------------------------------------------------------------------------------
% of Weighted Average Weighted Average
Balance Total Interest Rate Maturity (Years)
- -----------------------------------------------------------------------------------------------------------------------------------
Fixed Rate Secured Debt $ 740,012 49.1% 7.3% 9.0
Fixed Rate Senior Unsecured Notes (a) 499,305 33.2% 7.4% 4.6
Variable Rate Unsecured Credit Facility 267,000 17.7% 4.3% 3.0
- -----------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average $1,506,317 100.0% 6.8% 6.5
===================================================================================================================================
DEBT AMORTIZATION AND MATURITY
- -----------------------------------------------------------------------------------------------------------------------------------
Secured Debt Senior Unsecured Unsecured Credit
Year Amortization Due at Maturity Notes Facility Total
- -----------------------------------------------------------------------------------------------------------------------------------
2003 12,300 0 12,300
2004 13,169 2,616 100,000 115,785
2005 14,167 18,553 267,000 299,720
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
2012 3,527 0 3,527
Thereafter 80,125 0 80,125
- -----------------------------------------------------------------------------------------------------------------------------------
Total Debt $182,115 $557,897 $500,000 (a) $267,000 $1,507,012
===================================================================================================================================
PROPERTY MORTGAGE DETAIL
- -----------------------------------------------------------------------------------------------------------------------------------
Interest Maturity Amortization
Property $ Outstanding Rate Date Term (Years)
- -----------------------------------------------------------------------------------------------------------------------------------
80 Orville Drive, Islip, NY 2,616 10.10% February -04 Interest only
395 North Service Road, Melville, NY 19,709 6.45% October -05 $34k per month
200 Summit Lake Drive, Valhalla, NY 19,373 9.25% January -06 25
1350 Avenue of the Americas, NY, NY 74,631 6.52% June-06 30
Landmark Square, Stamford, CT 45,090 8.02% October -06 25
100 Summit Lake Drive, Valhalla, NY 19,101 8.50% April-07 15
333 Earle Ovington Blvd., Mitchel Field, NY (b) 53,864 7.72% August-07 25
810 Seventh Avenue, NY,NY 82,854 7.73% August-09 25
100 Wall Street, NY, NY 35,904 7.73% August-09 25
6900 Jericho Turnpike, Syosset, NY 7,348 8.07% July-10 25
6800 Jericho Turnpike, Syosset, NY 13,922 8.07% July-10 25
580 White Plains Road, Tarrytown, NY 12,685 7.86% September-10 25
919 Third Avenue, NY, NY (c) 246,651 6.867% August-11 30
110 Bi -County Blvd., Farmingdale, NY 3,635 9.125% November-12 20
One Orlando Center, Orlando, FL (d) 38,366 6.82% November -27 28
120 West 45th Street, NY,NY (d) 64,263 6.82% November -27 28
- -----------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average $740,012 7.26%
===================================================================================================================================
- -------------------------------------------------------------------------------
(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 $694,678
(b) The Company has a 60% general partnership interest in this property and
its proportionate share of the aggregate principal amount is
approximately $32.3 million
(c) The Company has a 51% membership interest in this property and its
proportionate share of the aggregate principal amount is approximately
$125.8 million
(d) 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 $7.5
million.
- --------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
13
- -------------------------------------------------------------------------------
PREFERRED SECURITIES AT DECEMBER 31, 2002
(in thousands)
The following table sets forth certain information regarding the Company's
preferred securites as of December 31, 2002.
- -----------------------------------------------------------------------------------------------------------------------------------
Liquidation Current Conversion price
Security Preference Value Yield Per Share Issuance date
- -----------------------------------------------------------------------------------------------------------------------------------
7 5/8 % Series A Convertible Cumulative Preferred Stock $220,863 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 $290,525
- -----------------------------------------------------------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
14
- -------------------------------------------------------------------------------
SAME PROPERTY PERFORMANCE - CONSOLIDATED
For the 3 month period December 31, 2002 vs. December 31, 2001
(In thousands)
REGIONAL BREAKDOWN PROPERTY TYPE BREAKDOWN
------------------ -----------------------
CASH REVENUE (a) CASH REVENUE (a)
4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change
- --------------------------------------------------------------- ---------------------------------------------------------------
Long Island $ 35,972 $ 34,586 $ 1,386 4.0 % Office $ 103,673 $ 94,670 $ 9,003 9.5 %
Westchester $ 19,463 $ 20,060 $ (597) (3.0)% Industrial (b) $ 9,687 $ 9,378 $ 309 3.3 %
Connecticut $ 8,547 $ 8,545 $ 2 0.0 % R&D $ 3,426 $ 3,613 $ (186) (5.2)%
New Jersey $ 12,693 $ 12,979 $ (286) (2.2)% ---------------------------------------------------------------
New York City $ 40,111 $ 31,489 $ 8,622 27.4 % Total $ 116,786 $ 107,661 $ 9,126 8.5 %
- --------------------------------------------------------------- ---------------------------------------------------------------
Total $ 116,786 $ 107,661 $ 9,126 8.5 %
- ---------------------------------------------------------------
GAAP REVENUE (a) GAAP REVENUE (a)
4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change
- --------------------------------------------------------------- ---------------------------------------------------------------
Long Island $ 37,113 $ 35,883 $ 1,230 3.4 % Office $ 108,852 $ 103,419 $ 5,433 5.3 %
Westchester $ 21,218 $ 20,502 $ 716 3.5 % Industrial (b) $ 10,114 $ 9,736 $ 378 3.9 %
Connecticut $ 8,718 $ 8,666 $ 53 0.6 % R&D $ 3,555 $ 3,594 $ (39) (1.1)%
New Jersey $ 12,982 $ 13,052 $ (70) (0.5)% ---------------------------------------------------------------
New York City $ 42,488 $ 38,645 $ 3,843 9.9 % Total $ 122,520 $ 116,748 $ 5,772 4.9 %
- --------------------------------------------------------------- ---------------------------------------------------------------
Total $ 122,520 $ 116,748 $ 5,772 4.9 %
- ---------------------------------------------------------------
OPERATING EXPENSES OPERATING EXPENSES
4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change
- --------------------------------------------------------------- ---------------------------------------------------------------
Long Island $ 6,191 $ 6,183 $ 8 0.1 % Office $ 22,952 $ 21,863 $ 1,089 5.0 %
Westchester $ 5,206 $ 4,837 $ 370 7.6 % Industrial (b) $ 780 $ 561 $ 220 39.2 %
Connecticut $ 2,306 $ 2,361 $ (55) (2.3)% R&D $ 439 $ 774 $ (335) (14.4)%
New Jersey $ 2,209 $ 2,200 $ 9 0.4 % ---------------------------------------------------------------
New York City $ 8,259 $ 7,616 $ 642 8.4 % Total $ 24,172 $ 23,198 $ 974 9.0 %
- --------------------------------------------------------------- ---------------------------------------------------------------
Total $ 24,172 $ 23,198 $ 974 4.2 %
- ---------------------------------------------------------------
REAL ESTATE TAXES REAL ESTATE TAXES
4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change
- --------------------------------------------------------------- ---------------------------------------------------------------
Long Island $ 6,404 $ 6,161 $ 243 4.0 % Office $ 17,285 $ 14,860 $ 2,425 10.0%
Westchester $ 2,801 $ 2,397 $ 405 16.9 % Industrial (b) $ 1,746 $ 1,640 $ 106 6.5%
Connecticut $ 776 $ 741 $ 35 4.7 % R&D $ 507 $ 504 $ 3 0.6%
New Jersey $ 1,673 $ 1,681 $ (8) (0.5)% -----------------------------------------------------------------
New York City $ 7,883 $ 6,025 $ 1,859 30.9 % Total $ 19,538 $ 17,004 $ 2,534 14.9%
- --------------------------------------------------------------- -----------------------------------------------------------------
Total $ 19,538 $ 17,004 $ 2,534 14.9 %
- ---------------------------------------------------------------
CASH NOI CASH NOI
4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change
- --------------------------------------------------------------- ---------------------------------------------------------------
Long Island $ 23,376 $ 22,242 $ 1,134 5.1 % Office $ 63,436 $ 57,946 $ 5,489 9.5 %
Westchester $ 11,455 $ 12,827 $ (1,371) (10.7)% Industrial (b) $ 7,160 $ 7,178 $ (17) (0.2)%
Connecticut $ 5,465 $ 5,443 $ 22 0.4 % R&D $ 2,480 $ 2,335 $ 145 6.2 %
New Jersey $ 8,811 $ 9,099 $ (288) (3.2)% ---------------------------------------------------------------
New York City $ 23,969 $ 17,848 $ 6,121 34.3 % Total $ 73,076 $ 67,459 $ 5,617 8.3 %
- --------------------------------------------------------------- ---------------------------------------------------------------
Total $ 73,076 $ 67,459 $ 5,617 8.3 %
- ---------------------------------------------------------------
GAAP NOI GAAP NOI
4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change
- --------------------------------------------------------------- ---------------------------------------------------------------
Long Island $ 24,518 $ 23,539 $ 979 4.2 % Office $ 68,615 $ 66,696 $ 1,919 2.9%
Westchester $ 13,210 $ 13,269 $ (58) (0.4)% Industrial (b) $ 7,587 $ 7,535 $ 52 0.7%
Connecticut $ 5,636 $ 5,563 $ 73 1.3 % R&D $ 2,609 $ 2,316 $ 293 12.6%
New Jersey $ 9,100 $ 9,172 $ (72) (0.8)% ---------------------------------------------------------------
New York City $ 26,346 $ 25,004 $ 1,342 5.4 % Total $ 78,810 $ 76,547 $ 2,264 3.0%
- --------------------------------------------------------------- ---------------------------------------------------------------
Total $ 78,810 $ 76,547 $ 2,264 3.0 %
- ---------------------------------------------------------------
(a) Excludes lease termination fees
(b) Includes two retail properties.
Note: Including the one office property located in Orlando, Florida the cash NOI
same store performance was 7.7% and the GAAP NOI same store performance was
2.6%.
- ----------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
15
- -------------------------------------------------------------------------------
SAME PROPERTY PERFORMANCE - NET OF MINORITY INTERESTS IN JOINT VENTURES
For the 3 month period December 31, 2002 vs. December 31, 2001
(In thousands)
REGIONAL BREAKDOWN PROPERTY TYPE BREAKDOWN
------------------ -----------------------
CASH REVENUE (a) CASH REVENUE (a)
4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change
- --------------------------------------------------------------- ------------------------------------------------------------
Long Island $ 31,504 $ 30,196 $ 1,307 4.3 % Office $ 87,018 $ 81,857 $ 5,161 6.3 %
Westchester $ 18,033 $ 18,893 $ (860) (4.6)% Industrial (b) $ 9,687 $ 9,378 $ 309 3.3 %
Connecticut $ 7,324 $ 7,359 $ (36) (0.5)% R&D $ 3,426 $ 3,613 $ (186) (5.2)%
New Jersey $ 11,447 $ 11,806 $ (360) (3.0)% ------------------------------------------------------------
New York City $ 31,825 $ 26,593 $ 5,232 19.7 % Total $ 100,131 $ 94,848 $ 5,284 5.6 %
- --------------------------------------------------------------- ------------------------------------------------------------
Total $ 100,131 $ 94,848 $ 5,284 5.6 %
- ---------------------------------------------------------------
GAAP REVENUE (a) GAAP REVENUE (a)
4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change
- --------------------------------------------------------------- ---------------------------------------------------------------
Long Island $ 32,553 $ 31,376 $ 1,177 3.8 % Office $ 91,145 $ 87,234 $ 3,911 4.5 %
Westchester $ 19,761 $ 19,310 $ 451 2.3 % Industrial (b) $ 10,114 $ 9,736 $ 378 3.9 %
Connecticut $ 7,488 $ 7,451 $ 37 0.5 % R&D $ 3,555 $ 3,594 $ (39) (1.1)%
New Jersey $ 11,700 $ 11,858 $ (158) (1.3)% ---------------------------------------------------------------
New York City $ 33,312 $ 30,569 $ 2,743 9.0 % Total $ 104,813 $ 100,563 $ 4,250 4.2 %
- --------------------------------------------------------------- ---------------------------------------------------------------
Total $ 104,813 $ 100,563 $ 4,250 4.2 %
- ---------------------------------------------------------------
OPERATING EXPENSES OPERATING EXPENSES
4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change
- --------------------------------------------------------------- ---------------------------------------------------------------
Long Island $ 5,255 $ 5,184 $ 72 1.4 % Office $ 19,550 $ 18,646 $ 904 4.8 %
Westchester $ 4,944 $ 4,594 $ 350 7.6 % Industrial (b) $ 780 $ 561 $ 220 39.2 %
Connecticut $ 1,995 $ 2,073 $ (78) (3.8)% R&D $ 439 $ 774 $ (335) (43.2)%
New Jersey $ 1,935 $ 2,012 $ (78) (3.9)% ---------------------------------------------------------------
New York City $ 6,640 $ 6,117 $ 523 8.5 % Total $ 20,770 $ 19,980 $ 789 3.9 %
- --------------------------------------------------------------- ---------------------------------------------------------------
Total $ 20,770 $ 19,980 $ 789 3.9 %
- ---------------------------------------------------------------
REAL ESTATE TAXES REAL ESTATE TAXES
4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change
- --------------------------------------------------------------- ---------------------------------------------------------------
Long Island $ 5,587 $ 5,338 $ 249 4.7 % Office $ 14,405 $ 12,347 $ 2,058 16.7%
Westchester $ 2,622 $ 2,237 $ 386 17.2 % Industrial (b) $ 1,746 $ 1,640 $ 106 6.5%
Connecticut $ 643 $ 616 $ 27 4.4 % R&D $ 507 $ 504 $ 3 0.6%
New Jersey $ 1,538 $ 1,543 $ (5) (0.3)% ---------------------------------------------------------------
New York City $ 6,268 $ 4,758 $ 1,511 31.7 % Total $ 16,658 $ 14,491 $ 2,167 15.0%
- --------------------------------------------------------------- ---------------------------------------------------------------
Total $ 16,658 $ 14,491 $ 2,167 15.0 %
- ---------------------------------------------------------------
CASH NOI CASH NOI
4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change
- --------------------------------------------------------------- ---------------------------------------------------------------
Long Island $ 20,662 $ 19,675 $ 987 5.0 % Office $ 53,063 $ 50,864 $ 2,199 4.3 %
Westchester $ 10,466 $ 12,062 $ (1,596) (13.2)% Industrial (b) $ 7,160 $ 7,178 $ (17) (0.2)%
Connecticut $ 4,685 $ 4,670 $ 15 0.3 % R&D $ 2,480 $ 2,335 $ 145 6.2 %
New Jersey $ 7,974 $ 8,251 $ (277) (3.4)% ---------------------------------------------------------------
New York City $ 18,917 $ 15,718 $ 3,199 20.3 % Total $ 62,703 $ 60,376 $ 2,327 3.9 %
- --------------------------------------------------------------- ---------------------------------------------------------------
Total $ 62,703 $ 60,376 $ 2,327 3.9 %
- ---------------------------------------------------------------
GAAP NOI GAAP NOI
4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change
- --------------------------------------------------------------- ---------------------------------------------------------------
Long Island $ 21,711 $ 20,854 $ 857 4.1 % Office $ 57,190 $ 56,241 $ 949 1.7%
Westchester $ 12,194 $ 12,479 $ (285) (2.3)% Industrial (b) $ 7,587 $ 7,535 $ 52 0.7%
Connecticut $ 4,849 $ 4,761 $ 88 1.8 % R&D $ 2,609 $ 2,316 $ 293 12.6%
New Jersey $ 8,227 $ 8,303 $ (76) (0.9)% ---------------------------------------------------------------
New York City $ 20,404 $ 19,694 $ 710 3.6 % Total $ 67,385 $ 66,092 $ 1,294 2.0%
- --------------------------------------------------------------- ---------------------------------------------------------------
Total $ 67,385 $ 66,092 $ 1,294 2.0 %
- ---------------------------------------------------------------
(a) Excludes lease termination fees
(b) Includes two retail properties.
Note: Including the one office property located in Orlando, Florida the cash
NOI same store performance was 3.3% and the GAAP NOI same store
performance was 1.5%.
- -----------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
16
- -----------------------------------------------------------------------------
SAME PROPERTY PERFORMANCE - CONSOLIDATED
For the 12 month period December 31, 2002 vs. December 31, 2001
(In thousands)
REGIONAL BREAKDOWN PROPERTY TYPE BREAKDOWN
------------------ -----------------------
CASH REVENUE (a) CASH REVENUE (a)
2002 2001 $ Change % Change 2002 2001 $ Change % Change
- -------------------------------------------------------------- ----------------------------------------------------------------
Long Island $ 141,031 $ 135,843 $ 5,188 3.8 % Office $ 404,231 $ 372,681 $ 31,550 8.5 %
Westchester $ 78,103 $ 78,240 (136) (0.2)% Industrial (b) $ 37,913 $ 36,401 $ 1,511 4.2 %
Connecticut $ 33,530 $ 34,446 (916) (2.7)% R&D $ 13,929 $ 14,305 $ (376) (2.6)%
New Jersey $ 51,322 $ 51,946 (623) (1.2)% ----------------------------------------------------------------
New York City $ 152,087 $ 122,913 29,174 23.7 % Total $ 456,073 $ 423,388 $ 32,685 7.7 %
- -------------------------------------------------------------- ----------------------------------------------------------------
Total $ 456,073 $ 423,388 $ 32,685 7.7 %
- --------------------------------------------------------------
GAAP REVENUE (a) GAAP REVENUE (a)
2002 2001 $ Change % Change 2002 2001 $ Change % Change
- -------------------------------------------------------------- ----------------------------------------------------------------
Long Island $ 146,476 $ 141,951 $ 4,525 3.2 % Office $ 424,200 $ 411,932 $ 12,268 3.0%
Westchester $ 80,595 $ 81,177 (583) (0.7)% Industrial (b) $ 39,278 $ 38,115 $ 1,163 3.1%
Connecticut $ 34,611 $ 34,672 (61) (0.2)% R&D $ 15,116 $ 14,426 $ 691 4.8%
New Jersey $ 51,760 $ 53,248 (1,488) (2.8)% ----------------------------------------------------------------
New York City $ 165,153 $ 153,424 11,729 7.6 % Total $ 478,594 $ 464,472 $ 14,122 3.0%
- -------------------------------------------------------------- ----------------------------------------------------------------
Total $ 478,594 $ 464,472 $ 14,122 3.0 %
- --------------------------------------------------------------
OPERATING EXPENSES OPERATING EXPENSES
2002 2001 $ Change % Change 2002 2001 $ Change % Change
- -------------------------------------------------------------- ----------------------------------------------------------------
Long Island $ 24,366 $ 23,080 $ 1,286 5.6% Office $ 90,520 $ 84,623 $ 5,896 7.0 %
Westchester $ 19,922 $ 18,955 967 5.1% Industrial (b) $ 2,511 $ 2,194 $ 317 14.4 %
Connecticut $ 8,493 $ 8,287 206 2.5% R&D $ 2,070 $ 2,274 $ (204) (9.0)%
New Jersey $ 8,082 $ 8,014 68 0.9% ----------------------------------------------------------------
New York City $ 34,238 $ 30,756 3,482 11.3% Total $ 95,101 $ 89,092 $ 6,009 6.7 %
- -------------------------------------------------------------- ----------------------------------------------------------------
Total $ 95,101 $ 89,092 $ 6,009 6.7%
- --------------------------------------------------------------
REAL ESTATE TAXES REAL ESTATE TAXES
2002 2001 $ Change % Change 2002 2001 $ Change % Change
- -------------------------------------------------------------- ----------------------------------------------------------------
Long Island $ 25,711 $ 24,229 $ 1,481 6.1% Office $ 63,701 $ 58,112 $ 5,589 9.6%
Westchester $ 10,997 $ 9,443 1,554 16.5% Industrial (b) $ 6,995 $ 6,597 $ 398 6.0%
Connecticut $ 3,036 $ 2,917 119 4.1% R&D $ 2,044 $ 1,993 $ 51 2.5%
New Jersey $ 6,384 $ 6,135 249 4.1% ----------------------------------------------------------------
New York City $ 26,613 $ 23,978 2,634 11.0% Total $ 72,739 $ 66,702 $ 6,037 9.1%
- -------------------------------------------------------------- ----------------------------------------------------------------
Total $ 72,739 $ 66,702 $ 6,037 9.1%
- --------------------------------------------------------------
CASH NOI CASH NOI
2002 2001 $ Change % Change 2002 2001 $ Change % Change
- -------------------------------------------------------------- ----------------------------------------------------------------
Long Island $ 90,954 $ 88,534 $ 2,420 2.7 % Office $ 250,011 $ 229,946 $ 20,065 8.7 %
Westchester $ 47,185 $ 49,842 (2,657) (5.3)% Industrial (b) $ 28,407 $ 27,610 $ 797 2.9 %
Connecticut $ 22,001 $ 23,242 (1,241) (5.3)% R&D $ 9,815 $ 10,038 $ (223) (2.2)%
New Jersey $ 36,856 $ 37,797 (941) (2.5)% ----------------------------------------------------------------
New York City $ 91,237 $ 68,179 23,057 33.8 % Total $ 288,233 $ 267,594 $ 20,638 7.7 %
- -------------------------------------------------------------- ----------------------------------------------------------------
Total $ 288,233 $ 267,594 $ 20,638 7.7 %
- --------------------------------------------------------------
GAAP NOI GAAP NOI
2002 2001 $ Change % Change 2002 2001 $ Change % Change
- -------------------------------------------------------------- ---------------------------------------------------------------
Long Island $ 96,399 $ 94,641 $ 1,757 1.9 % Office $ 269,980 $ 269,197 $ 783 0.3%
Westchester $ 49,676 $ 52,779 (3,103) (5.9)% Industrial (b) $ 29,772 $ 29,324 $ 448 1.5%
Connecticut $ 23,082 $ 23,468 (386) (1.6)% R&D $ 11,002 $ 10,158 $ 844 8.3%
New Jersey $ 37,294 $ 39,099 (1,805) (4.6)% ----------------------------------------------------------------
New York City $ 104,302 $ 98,690 5,612 5.7 % Total $ 310,753 $ 308,679 $ 2,075 0.7%
- -------------------------------------------------------------- ----------------------------------------------------------------
Total $ 310,753 $ 308,679 $ 2,075 0.7 %
- --------------------------------------------------------------
(a) Excludes lease termination fees and reserves against deferred rents
receivable
(b) Includes two retail properties
Note: Including the one office property located in Orlando, Florida the cash
NOI same store performance was 7.2% and the GAAP NOI same store
performance was 0.4%.
- -----------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
17
- -----------------------------------------------------------------------------
SAME PROPERTY PERFORMANCE - NET OF MINORITY INTEREST IN JOINT VENTURES
For the 12 month period December 31, 2002 vs. December 31, 2001
(In thousands)
REGIONAL BREAKDOWN PROPERTY TYPE BREAKDOWN
------------------ -----------------------
CASH REVENUE (a) CASH REVENUE (a)
4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change
- -------------------------------------------------------------- ----------------------------------------------------------------
Long Island $ 123,369 $ 118,567 $ 4,802 4.1 % Office $ 341,194 $ 323,199 17,994 5.6%
Westchester $ 73,435 $ 73,902 $ (466) (0.6)% Industrial (b) $ 37,913 $ 36,401 1,511 4.2%
Connecticut $ 28,730 $ 29,762 $ (1,032) (3.5)% R&D $ 13,929 $ 14,305 (376) 2.6%
New Jersey $ 46,237 $ 47,178 $ (941) (2.0)% ----------------------------------------------------------------
New York City $ 121,264 $ 104,497 $ 16,767 16.0 % Total $ 393,035 $ 373,906 19,129 5.1%
- -------------------------------------------------------------- ----------------------------------------------------------------
Total $ 393,035 $ 373,906 $ 19,129 5.1 %
- --------------------------------------------------------------
GAAP REVENUE (a) GAAP REVENUE (a)
4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change
- -------------------------------------------------------------- ----------------------------------------------------------------
Long Island $ 128,359 $ 123,920 $ 4,439 3.6 % Office $ 355,180 $ 348,204 6,977 2.0%
Westchester $ 75,863 $ 76,762 $ (899) (1.2)% Industrial (b) $ 39,278 $ 38,115 1,163 3.1%
Connecticut $ 29,766 $ 29,883 $ (117) (0.4)% R&D $ 15,116 $ 14,426 691 4.8%
New Jersey $ 46,555 $ 48,311 $ (1,756) (3.6)% ----------------------------------------------------------------
New York City $ 129,032 $ 121,869 $ 7,163 5.9 % Total $ 409,574 $ 400,744 8,830 2.2%
- -------------------------------------------------------------- ----------------------------------------------------------------
Total $ 409,574 $ 400,744 $ 8,830 2.2 %
- --------------------------------------------------------------
OPERATING EXPENSES OPERATING EXPENSES
4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change
- -------------------------------------------------------------- ----------------------------------------------------------------
Long Island $ 20,466 $ 19,280 $ 1,186 6.2 % Office $ 76,627 $ 72,351 4,276 5.9 %
Westchester $ 18,936 $ 17,975 $ 961 5.3 % Industrial (b) $ 2,511 $ 2,194 317 14.4 %
Connecticut $ 7,446 $ 7,295 $ 151 2.1 % R&D $ 2,070 $ 2,274 (204) (9.0)%
New Jersey $ 7,173 $ 7,224 $ (51) (0.7)% ----------------------------------------------------------------
New York City $ 27,188 $ 25,046 $ 2,142 8.6 % Total $ 81,209 $ 76,819 4,389 5.7 %
- -------------------------------------------------------------- ----------------------------------------------------------------
Total $ 81,209 $ 76,819 $ 4,389 5.7 %
- --------------------------------------------------------------
REAL ESTATE TAXES REAL ESTATE TAXES
4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change
- -------------------------------------------------------------- ----------------------------------------------------------------
Long Island $ 22,419 $ 21,125 $ 1,294 6.1% Office $ 53,141 $ 48,303 4,838 10.0%
Westchester $ 10,294 $ 8,802 $ 1,492 17.0% Industrial (b) $ 6,995 $ 6,597 398 6.0%
Connecticut $ 2,521 $ 2,426 $ 95 3.9% R&D $ 2,044 $ 1,993 51 2.5%
New Jersey $ 5,863 $ 5,603 $ 260 4.6% ----------------------------------------------------------------
New York City $ 21,083 $ 18,939 $ 2,145 11.3% Total $ 62,180 $ 56,894 5,286 9.3%
- -------------------------------------------------------------- ----------------------------------------------------------------
Total $ 62,180 $ 56,894 $ 5,286 9.3%
- --------------------------------------------------------------
CASH NOI CASH NOI
4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change
- -------------------------------------------------------------- ----------------------------------------------------------------
Long Island $ 80,484 $ 78,162 $ 2,322 3.0 % Office $ 211,425 $ 202,545 $ 8,880 4.4 %
Westchester $ 44,206 $ 47,125 $ (2,920) (6.2)% Industrial (b) $ 28,407 $ 27,610 $ 797 2.9 %
Connecticut $ 18,763 $ 20,041 $ (1,278) (6.4)% R&D $ 9,815 $ 10,038 $ (223) (2.2)%
New Jersey $ 33,201 $ 34,352 $ (1,151) (3.3)% ----------------------------------------------------------------
New York City $ 72,993 $ 60,512 $ 12,481 20.6 % Total $ 249,647 $ 240,193 $ 9,454 3.9 %
- -------------------------------------------------------------- ----------------------------------------------------------------
Total $ 249,647 $ 240,193 $ 9,454 3.9 %
- --------------------------------------------------------------
GAAP NOI GAAP NOI
4Q02 4Q01 $ Change % Change 4Q02 4Q01 $ Change % Change
- -------------------------------------------------------------- ----------------------------------------------------------------
Long Island $ 85,474 $ 83,515 $ 1,959 2.3 % Office $ 225,412 $ 227,549 $ (2,137) (0.9)%
Westchester $ 46,633 $ 49,985 $ (3,353) (6.7)% Industrial (b) $ 29,772 $ 29,324 $ 448 1.5 %
Connecticut $ 19,799 $ 20,162 $ (363) (1.8)% R&D $ 11,002 $ 10,158 $ 844 8.3 %
New Jersey $ 33,519 $ 35,484 $ (1,966) (5.5)% ----------------------------------------------------------------
New York City $ 80,761 $ 77,884 $ 2,877 3.7 % Total $ 266,186 $ 267,031 $ (845) (0.3)%
- -------------------------------------------------------------- ----------------------------------------------------------------
Total $ 266,186 $ 267,031 $ (845) (0.3)%
- --------------------------------------------------------------
(a) Excludes lease termination fees
(b) Includes two retail properties.
Note: Including the one office property located in Orlando, Florida the cash
NOI same store performance was 3.8% and the GAAP NOI same store
performance was -0.4%.
- -----------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
18
- -------------------------------------------------------------------------------
PORTFOLIO SNAPSHOT
Based on 4th 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% 22% 22% 21% 18% 21% 21% 21%
Industrial (c) 29% 9% 11% 11% 31% 11% 12% 12%
- -----------------------------------------------------------------------------------------------------------------------------------
Subtotal - Long Island 48% 31% 33% 32% 49% 32% 33% 33%
Westchester
Office 15% 15% 14% 14% 16% 17% 15% 16%
Industrial 1% 0% 0% 1% 1% 0% 1% 0%
- -----------------------------------------------------------------------------------------------------------------------------------
Subtotal - Westchester 16% 15% 14% 15% 17% 17% 16% 16%
Connecticut
Office 5% 7% 7% 6% 5% 7% 6% 6%
Industrial 2% 1% 1% 1% 2% 0% 1% 1%
- -----------------------------------------------------------------------------------------------------------------------------------
Subtotal - Connecticut 7% 8% 8% 7% 7% 7% 7% 7%
New Jersey
Office 10% 10% 11% 12% 10% 11% 12% 13%
Industrial 2% 1% 1% 1% 2% 1% 1% 1%
- -----------------------------------------------------------------------------------------------------------------------------------
Subtotal - New Jersey 12% 11% 12% 13% 12% 12% 13% 14%
New York City
Office 17% 35% 33% 33% 15% 32% 31% 30%
- -----------------------------------------------------------------------------------------------------------------------------------
Subtotal - New York City 17% 35% 33% 33% 15% 32% 31% 30%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
PROPERTY TYPE
- -----------------------------------------------------------------------------------------------------------------------------------
Office 66% 89% 87% 86% 64% 88% 85% 86%
Industrial 34% 11% 13% 14% 36% 12% 15% 14%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
SUBURBAN VS CBD ( OFFICE SPACE ONLY )
- -----------------------------------------------------------------------------------------------------------------------------------
Suburban 62% 50% 50% 51% 64% 52% 52% 53%
CBD 38% 50% 50% 49% 36% 48% 48% 47%
- -----------------------------------------------------------------------------------------------------------------------------------
(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
- -----------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
19
- ----------------------------------------------------------------------------
OCCUPANCY ANALYSIS
As of December 31, 2002
- ----------------------------------------------------------------------------
NUMBER OF RENTABLE (1) OCCUPANCY OCCUPANCY
BUILDINGS SQUARE FEET AS OF 9/30/02 AS OF 12/31/02
-------------------------------------------------------------------------------------------
OFFICE
LONG ISLAND 25 3,954,921 94.2% 94.4%
Eastern Nassau 2 299,276 96.6% 97.9%
Central Nassau 8 1,816,703 97.3% 97.0%
Western Nassau 2 67,758 92.0% 98.6%
Central Suffolk 1 185,475 88.8% 90.4%
Western Suffolk 12 1,585,709 91.0% 91.1%
NEW JERSEY 16 1,969,209 92.9% 95.8%
Clifton/Passaic 1 193,574 100.0% 100.0%
Parsippany 2 189,020 81.1% 85.8%
Princeton / Rt. 1 Corridor 3 131,727 100.0% 100.0%
Rt. 23/GSP Corridor 1 130,009 100.0% 100.0%
Rt. 280 Corridor 5 536,687 84.6% 92.8%
Rt. 4 Corridor 1 219,550 94.8% 94.9%
Short Hills 3 568,642 98.0% 98.9%
NEW YORK CITY 5 3,488,484 98.4% 97.8%
100 Wall Street 1 457,678 99.2% 100.0%
1350 Avenue of the Americas 1 543,415 99.3% 91.9%
919 Third Avenue 1 1,355,239 100.0% 100.0%
120 West 45th Street 1 441,175 96.6% 97.0%
810 Seventh Avenue 1 690,977 95.2% 97.0%
WESTCHESTER 21 3,047,088 94.1% 94.3%
Rye Brook 6 543,751 95.4% 94.9%
Tarrytown 7 1,054,677 90.3% 93.6%
Valhalla 5 856,462 100.0% 95.5%
White Plains 2 505,084 89.9% 92.2%
Standalone 1 87,114 100.0% 100.0%
CONNECTICUT 8 1,089,331 94.8% 97.7%
Stamford 8 1,089,331 94.8% 97.7%
-------------------------------------------------------------------------------------------
TOTAL OFFICE 75 13,549,033 95.1% 95.7%
-------------------------------------------------------------------------------------------
INDUSTRIAL
LONG ISLAND 76 5,086,301 95.4% 98.5%
Airport Industrial Plaza 17 1,212,113 98.3% 98.7%
Hauppauge Industrial Park 40 2,221,192 91.7% 98.5%
Islip 6 212,524 85.7% 85.7%
Melville / Farmingdale 9 902,435 100.0% 100.0%
Standalone 4 538,037 100.0% 100.0%
NEW JERSEY 4 189,468 100.0% 100.0%
Western Morris County 4 189,468 100.0% 100.0%
WESTCHESTER 1 92,000 100.0% 100.0%
Standalone 1 92,000 100.0% 100.0%
-------------------------------------------------------------------------------------------
TOTAL INDUSTRIAL 81 5,367,769 95.6% 98.5%
-------------------------------------------------------------------------------------------
RESEARCH & DEVELOPMENT
LONG ISLAND 17 717,728 95.8% 96.0%
Airport Industrial Plaza 4 77,298 100.0% 100.0%
Hauppauge Industrial Park 9 320,494 90.6% 91.1%
Melville / Farmingdale 3 284,936 100.0% 100.0%
Standalone 1 35,000 100.0% 100.0%
NEW JERSEY 1 130,793 69.3% 69.3%
Rt. 287 Corridor 1 130,793 69.3% 69.3%
WESTCHESTER 1 47,690 100.0% 100.0%
Standalone 1 47,690 100.0% 100.0%
CONNECTICUT 1 452,414 54.3% 54.3%
Standalone 1 452,414 54.3% 54.3%
-------------------------------------------------------------------------------------------
TOTAL R& D 20 1,348,625 79.5% 79.6%
-------------------------------------------------------------------------------------------
RETAIL
LONG ISLAND 2 18,537 81.8% 84.8%
Standalone 2 18,537 81.8% 84.8%
-------------------------------------------------------------------------------------------
TOTAL RETAIL 2 18,537 81.8% 84.8%
-------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL PORTFOLIO 178 20,283,964 94.2% 95.4%
- -----------------------------------------------------------------------------------------------------------------------------------
SQUARE FEET AS A % OF NOI AS A % OF
------------------------------------------ --------------------------------------
PROPERTY TYPE TOTAL PORTFOLIO PROPERTY TYPE TOTAL PORTFOLIO
------------------------------------------ --------------------------------------
OFFICE
LONG ISLAND 29.2% 19.5% 24.9% 21.7%
Eastern Nassau 2.2% 1.5% 1.8% 1.6%
Central Nassau 13.4% 9.0% 12.1% 10.6%
Western Nassau 0.5% 0.3% 0.4% 0.4%
Central Suffolk 1.4% 0.9% 1.2% 1.0%
Western Suffolk 11.7% 7.8% 9.4% 8.2%
NEW JERSEY 14.5% 9.7% 13.1% 11.4%
Clifton/Passaic 1.4% 1.0% 1.1% 0.9%
Parsippany 1.4% 0.9% 1.4% 1.2%
Princeton / Rt. 1 Corridor 1.0% 0.6% 1.0% 0.9%
Rt. 23/GSP Corridor 1.0% 0.6% 0.8% 0.7%
Rt. 280 Corridor 4.0% 2.6% 2.8% 2.4%
Rt. 4 Corridor 1.6% 1.1% 1.5% 1.3%
Short Hills 4.2% 2.8% 4.5% 3.9%
NEW YORK CITY 25.7% 17.2% 38.4% 33.5%
100 Wall Street 3.4% 2.3% 4.0% 3.5%
1350 Avenue of the Americas 4.0% 2.7% 5.4% 4.7%
919 Third Avenue 10.0% 6.7% 15.3% 13.3%
120 West 45th Street 3.3% 2.2% 7.0% 6.1%
810 Seventh Avenue 5.1% 3.4% 6.8% 5.9%
WESTCHESTER 22.5% 15.0% 15.7% 13.7%
Rye Brook 4.0% 2.7% 2.4% 2.1%
Tarrytown 7.8% 5.2% 4.6% 4.0%
Valhalla 6.3% 4.2% 4.9% 4.3%
White Plains 3.7% 2.5% 3.2% 2.8%
Standalone 0.6% 0.4% 0.6% 0.5%
CONNECTICUT 8.0% 5.4% 7.8% 6.8%
Stamford 8.0% 5.4% 7.8% 6.8%
-------------------------------------------------------------------------------------
TOTAL OFFICE 100.0% 66.8% 100.0% 87.2%
-------------------------------------------------------------------------------------
INDUSTRIAL
LONG ISLAND 94.8% 25.1% 91.6% 8.9%
Airport Industrial Plaza 22.6% 6.0% 24.9% 2.4%
Hauppauge Industrial Park 41.4% 11.0% 34.1% 3.3%
Islip 4.0% 1.0% 2.3% 0.2%
Melville / Farmingdale 16.8% 4.4% 20.2% 2.0%
Standalone 10.0% 2.7% 10.1% 1.0%
NEW JERSEY 3.5% 0.9% 5.7% 0.6%
Western Morris County 3.5% 0.9% 5.7% 0.6%
WESTCHESTER 1.7% 0.5% 2.7% 0.3%
Standalone 1.7% 0.5% 2.7% 0.3%
----------------------------------------------------------------------------------
TOTAL INDUSTRIAL 100.0% 26.5% 100.0% 9.7%
----------------------------------------------------------------------------------
RESEARCH & DEVELOPMENT
LONG ISLAND 53.2% 3.5% 67.6% 2.1%
Airport Industrial Plaza 5.7% 0.4% 6.9% 0.2%
Hauppauge Industrial Park 23.8% 1.6% 29.1% 0.9%
Melville / Farmingdale 21.1% 1.4% 26.7% 0.8%
Standalone 2.6% 0.2% 4.9% 0.2%
NEW JERSEY 9.7% 0.6% 2.6% 0.3%
Rt. 287 Corridor 9.7% 0.6% 2.6% 0.3%
WESTCHESTER 3.5% 0.2% 1.8% 0.2%
Standalone 3.5% 0.2% 1.8% 0.2%
CONNECTICUT 8.4% 2.2% 5.9% 0.6%
Standalone 33.5% 2.2% 5.9% 0.6%
---------------------------------------------------------------------------------
TOTAL R& D 100.0% 6.6% 100.0% 3.1%
---------------------------------------------------------------------------------
RETAIL
LONG ISLAND 100.0% 0.1% 100.0% 0.1%
Standalone 100.0% 0.1% 100.0% 0.1%
---------------------------------------------------------------------------------
TOTAL RETAIL 100.0% 0.1% 100.0% 0.1%
---------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL PORTFOLIO 100.0% 100.0% 100.0% 100.0%
- -----------------------------------------------------------------------------------------------------------------------------------
(1) Rentable square feet excludes amenity and storage space
(2) Statistics above exclude 800 North Magnolia Avenue, a 355,000 square foot
office building (81.5% occupied) located in Orlando Florida.
- -------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
20
- -------------------------------------------------------------------------------
LEASING STATISTICS
For the 3 months ended December 31, 2002
- -------------------------------------------------------------------------------------------------------------------------------
EXECUTED LEASES (a)
- -------------------------------------------------------------------------------------------------------------------------------
# of Total Average Average Average
Transactions Sq. Ft. Base Rent Effective Rent Term (Years)
- -----------------------------------------------------------------------------------------------------------------------------------
OFFICE PORTFOLIO
Long Island 12 50,542 $ 26.48 $ 23.16 5.5
Westchester 14 63,945 $ 24.64 $ 22.84 4.7
Connecticut 7 78,951 $ 37.62 $ 36.80 2.4
New Jersey 11 121,722 $ 24.62 $ 21.02 6.5
New York City 5 53,545 $ 34.04 $ 30.25 6.0
- -----------------------------------------------------------------------------------------------------------------------------------
Totals/Weighted Average 49 368,705 $ 29.03 $ 26.35 5.1
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL PORTFOLIO
Long Island 12 324,873 $ 6.59 $ 5.93 7.9
New Jersey 2 5,750 $ 11.30 $ 10.30 3.2
- -----------------------------------------------------------------------------------------------------------------------------------
Totals/Weighted Average 14 330,623 $ 6.67 $ 6.01 7.8
- -----------------------------------------------------------------------------------------------------------------------------------
RESEARCH & DEVELOPMENT PORTFOLIO
Long Island
Operational 0 0 $ 0.00 $ 0.00 0.0
Development 0 0 $ 0.00 $ 0.00 0.0
- -----------------------------------------------------------------------------------------------------------------------------------
Totals/Weighted Average 0 0 $ 0.00 $ 0.00 0.0
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO TOTALS 63 699,328
- -----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
SAME SPACE STATISTICS
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Total Base Rent GAAP Rent
Property Type Sq. Ft. Expiration Current (b) % Change Expiration Current (b) % Change
- ----------------------------------------------------------------------------------------------------------------------------------
Office
New 214,916 $ 27.77 $ 29.50 6.2% $ 26.75 $ 29.12 8.9%
Renewal 153,789 $ 24.83 $ 26.09 5.1% $ 24.72 $ 27.33 10.6%
- ----------------------------------------------------------------------------------------------------------------------------------
Total 368,705 $ 26.54 $ 28.08 5.8% $ 25.90 $ 28.37 9.5%
Industrial
New 270,965 $ 6.52 $ 5.78 -11.3% $ 5.73 $ 6.32 10.3%
Renewal 59,658 $ 7.69 $ 7.92 3.0% $ 7.15 $ 8.44 18.0%
- ----------------------------------------------------------------------------------------------------------------------------------
Total 330,623 $ 6.73 $ 6.17 -8.3% $ 5.99 $ 6.70 11.9%
Research & Development
New 0 $ 0.00 $ 0.00 0.0% $ 0.00 $ 0.00 0.0%
Renewal 0 $ 0.00 $ 0.00 0.0% $ 0.00 $ 0.00 0.0%
- ----------------------------------------------------------------------------------------------------------------------------------
Total 0 $ 0.00 $ 0.00 0.0% $ 0.00 $ 0.00 0.0%
$ 6.73 $ 6.17 -8.3% $ 5.99 $ 6.70 11.9%
- ----------------------------------------------------------------------------------------------------------------------------------
Totals/Weighted Average 699,328 $ 17.17 $ 17.72 3.2% $ 16.49 $ 18.13 9.9%
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
TENANT RETENTION
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
Leases Sq. Ft Sq. Ft Renewal
Property Type Expiring (c) Expiring (c) Renewing Percentage
- ---------------------------------------------------------------------------------------------------------------------------------
Office 54 392,597 153,789 39.2%
Industrial 10 84,751 59,658 70.4%
Research & Development 0 0 0 0.0%
- ---------------------------------------------------------------------------------------------------------------------------------
Totals 64 477,348 213,447 44.7%
- ---------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
(a) Includes new and renewed leases during the period
(b) Represents either renewed or released space
(c) Includes early renewals
- -------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
21
- -------------------------------------------------------------------------------
LEASING STATISTICS
For the 12 months ended December 31, 2002
- -----------------------------------------------------------------------------------------------------------------------------------
EXECUTED LEASES (A)
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
# of Total Average Average Average
Transactions Sq. Ft. Base Rent Effective Rent Term (Years)
- -----------------------------------------------------------------------------------------------------------------------------------
OFFICE PORTFOLIO
Long Island 55 355,304 $ 29.44 $ 25.64 6.6
Westchester 65 601,578 $ 25.48 $ 21.91 7.4
Connecticut 21 131,441 $ 34.69 $ 33.33 3.3
New Jersey 31 387,229 $ 28.48 $ 24.31 7.5
New York City 32 264,645 $ 47.18 $ 42.73 8.4
- -----------------------------------------------------------------------------------------------------------------------------------
Totals/Weighted Average 204 1,740,197 $ 30.95 $ 27.23 7.1
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL PORTFOLIO
Long Island 42 864,365 $ 6.45 $ 5.96 6.0
New Jersey 2 5,750 $ 11.30 $ 10.30 3.2
- -----------------------------------------------------------------------------------------------------------------------------------
Totals/Weighted Average 44 870,115 $ 6.48 $ 5.99 6.0
- -----------------------------------------------------------------------------------------------------------------------------------
RESEARCH & DEVELOPMENT PORTFOLIO
Long Island
Operating 7 168,971 $ 14.98 $ 12.62 7.9
Development 0 0 $ 0.00 $ 0.00 0.0
New Jersey 0 0 $ 0.00 $ 0.00 0.0
- -----------------------------------------------------------------------------------------------------------------------------------
Totals/Weighted Average 7 168,971 $ 14.98 $ 12.62 7.9
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO TOTALS 255 2,779,283
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
SAME SPACE STATISTICS
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Total Base Rent GAAP Rent
Property Type Sq. Ft. Expiration Current (b) % Change Expiration Current (b) % Change
- -----------------------------------------------------------------------------------------------------------------------------------
Office
New 903,470 $ 26.12 $ 28.75 10.1% $ 25.67 $ 29.49 14.9%
Renewal 496,763 $ 24.78 $ 26.63 7.5% $ 24.33 $ 27.18 11.7%
- -----------------------------------------------------------------------------------------------------------------------------------
Total 1,400,233 $ 25.64 $ 28.00 9.2% $ 25.19 $ 28.67 13.8%
Industrial
New 462,562 $ 6.27 $ 6.07 -3.2% $ 5.66 $ 6.50 14.8%
Renewal 407,550 $ 5.96 $ 6.24 4.7% $ 5.59 $ 6.33 13.2%
- -----------------------------------------------------------------------------------------------------------------------------------
Total 870,112 $ 6.12 $ 6.15 0.5% $ 5.63 $ 6.42 14.0%
Research & Development
New 18,402 $ 11.79 $ 12.24 3.8% $ 10.82 $ 13.45 24.3%
Renewal 52,830 $ 9.12 $ 9.71 6.5% $ 8.84 $ 10.05 13.7%
- -----------------------------------------------------------------------------------------------------------------------------------
Total 71,232 $ 9.81 $ 10.36 5.6% $ 9.35 $ 10.93 16.9%
$ 6.40 $ 6.47 1.1% $ 5.91 $ 6.76 14.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Totals/Weighted Average 2,341,577 $ 17.90 $ 19.34 8.0% $ 17.44 $ 19.86 13.9%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
TENANT RETENTION
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
Leases Sq. Ft Sq. Ft Renewal
Property Type Expiring (c) Expiring (c) Renewing Percentage
- -----------------------------------------------------------------------------------------------------------------------
Office 156 1,019,412 486,847 47.8%
Industrial 33 584,740 472,550 80.8%
Research & Development 4 21,503 16,883 78.5%
- -----------------------------------------------------------------------------------------------------------------------
Totals 193 1,625,655 976,280 60.1%
- -----------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
(a) Includes new and renewed leases during the period
(b) Represents either renewed or released space
(c) Includes early renewals
- -------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data
for the Quarter Ended December 31, 2002
22
- -------------------------------------------------------------------------------
LEASE ACTIVITY
As of December 31, 2002
- -------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
RENEWAL
NEW LEASES AT EXPIRATION EARLY RENEWAL EXSPANSIONS TOTAL PORTFOLIO
REGION # SF # SF # SF # SF # SF
- -----------------------------------------------------------------------------------------------------------------------------------
OFFICE PROPERTIES
Connecticut 1 45,490 4 28,177 0 0 1 2,760 6 76,427
Long Island 5 14,225 4 29,703 1 5,609 2 3,529 12 53,066
New Jersey 6 67,632 3 19,255 2 34,330 1 505 12 121,722
New York City 2 17,516 0 0 1 17,895 2 18,134 5 53,545
Westchester 9 38,628 5 25,317 0 0 0 0 14 63,945
- -----------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL -OFFICE 23 183,491 16 102,452 4 57,834 6 24,928 49 368,705
- -----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL PROPERTIES
Long Island 5 254,665 4 39,700 1 16,508 2 14,000 12 324,873
New Jersey 1 2,300 1 3,450 0 0 0 0 2 5,750
- -----------------------------------------------------------------------------------------------------------------------------------
SUBTOTAL -INDUSTRIAL 6 256,965 5 43,150 1 16,508 2 14,000 14 330,623
- -----------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO TOTAL 29 440,456 21 145,602 5 74,342 8 38,928 63 699,328
63% 21% 11% 5% 100%
- -----------------------------------------------------------------------------------------------------------------------------------
HOLDOVERS
# SF
------ ------
Long Island Office 6 36,806
Connecticut Office 4 7,186
New Jersey Office 2 20,126
New York City Office 2 18,882
Westchester Office 2 2,711
------ ------
sub-total Office 16 85,711
Long Island Industrial 0 0
------ ------
Total Holdovers 16 85,711
------ ------
EARLY TERMINATIONS
TERMINATED RELEASED VACANT
# SF SF SF
------- ---------- ---------- ------
OFFICE PROPERTIES
Long Island Industrial 1 106,515 106,515 0
Long Island Office 5 29,698 2,768 26,930
New Jersey Office 2 6,001 6,001 0
New York City Office 6 71,739 20,770 50,969
Connecticut Office 1 7,360 7,360 0
Westchester Office 3 15,198 13,486 1,712
------- ------- ------- -------
18 236,511 156,900 79,611
- -------------------------------------------------------------------------------------------------------------
DEFINITIONS:
- ------------
EARLY TERMINATION: When a tenant vacates their space before contract lease end
date. If tenant terminates part of their space, only the portion that has
terminated is reflected.
HOLDOVER: Any lease agreement less than 12 months.
RENEWAL: When an existing tenant renews space for longer than 12 months.
EARLY RENEWAL: When an existing tenant renews their space 12 months prior to
expiration & is renewing for more than 12 months.
EXSPANSION: When an existing tenant takes additional space, renews and takes
additional space and early renews and takes additional space. Only the
additional space is reflected.
RELOCATIONS: When a tenant "early terminates" to move to another space/building
A.) If the tenant relocates for less space and extends term for more
than 12 months, the amount of contraction is reflected in Early
Terminations and the renewal space is reflected in Renewal.
B.) If the tenant relocates for additional space, whether or not term
length is extended, the additional space only is reflected in
Expansion.
- -------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
23
- -------------------------------------------------------------------------------
LEASE EXPIRATION SCHEDULE
As of January 1, 2003
TOTAL PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total Cumulative
Year of Leases Feet Portfolio % of Total
Expiration Expiring Expiring Sq Ft Portfolio Sq Ft
- ---------------------------------------------------------------------------------------------------------------------------
2003 159 1,533,361 7.6% 7.6%
2004 192 1,622,196 8.0% 15.6%
2005 244 2,460,052 12.1% 27.7%
2006 223 2,649,790 13.1% 40.7%
2007 142 1,619,006 8.0% 48.7%
2008 98 1,420,922 7.0% 55.7%
2009 and thereafter 276 7,963,703 39.4% 95.0%
- ---------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 1,334 19,269,030 95.0% --
- ---------------------------------------------------------------------------------------------------------------------------
Total Portfolio Square Feet 20,283,964
- ---------------------------------------------------------------------------------------------------------------------------
OFFICE PORTFOLIO
- ------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total Cumulative
Year of Leases Feet Office % of Total
Expiration Expiring Expiring Sq Ft Portfolio Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------
2003 139 1,064,852 7.9% 7.9%
2004 151 1,012,551 7.5% 15.3%
2005 211 1,804,599 13.3% 28.7%
2006 170 1,647,446 12.2% 40.8%
2007 110 1,255,054 9.3% 50.1%
2008 69 766,199 5.7% 55.7%
2009 and thereafter 227 5,339,943 39.4% 95.2%
- ------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 1,077 12,890,644 95.2% --
- ------------------------------------------------------------------------------------------------------------------------------
Total Office Portfolio Square Feet 13,549,033
- ------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL/R&D PORTFOLIO
- ------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total Cumulative
Year of Leases Feet Industrial/R&D % of Total
Expiration Expiring Expiring Sq Ft Portfolio Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------
2003 20 468,509 7.0% 7.0%
2004 41 609,645 9.1% 16.0%
2005 33 655,453 9.7% 25.7%
2006 53 1,002,344 14.9% 40.6%
2007 32 363,952 5.4% 46.0%
2008 29 654,723 9.7% 55.7%
2009 and thereafter 49 2,623,760 39.0% 94.7%
- --------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 257 6,378,386 94.7% --
- --------------------------------------------------------------------------------------------------------------------------------
Total Industrial/R&D Portfolio Square Feet 6,734,931
- --------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
24
- -------------------------------------------------------------------------------
LEASE EXPIRATION SCHEDULE
As of January 1, 2003
LONG ISLAND OFFICE (EXCLUDING OMNI)
- ---------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total LI Cumulative Expiring Expiring
Year of Leases Feet (excluding Omni) % of Total GAAP Cash
Expiration Expiring Expiring Sq Ft Portfolio Sq Ft Rent (1) Rent (2)
- ---------------------------------------------------------------------------------------------------------------------------------
2003 51 312,592 9.3% 9.3% $25.77 $27.27
2004 48 293,940 8.7% 18.0% $23.34 $26.08
2005 71 367,257 10.9% 28.8% $23.94 $27.04
2006 40 159,434 4.7% 33.6% $26.09 $29.66
2007 40 427,590 12.7% 46.2% $24.54 $30.31
2008 25 349,954 10.4% 56.6% $22.63 $26.35
2009 and thereafter 68 1,266,600 37.5% 94.1% $26.41 $32.21
- ---------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 343 3,177,367 94.1% -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total LI Portfolio (excluding Omni)
Square Feet 3,376,123
- ---------------------------------------------------------------------------------------------------------------------------------
OMNI
- ---------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total LI Cumulative Expiring Expiring
Year of Leases Feet Omni % of Total GAAP Cash
Expiration Expiring Expiring Sq Ft Portfolio Sq Ft Rent (1) Rent (2)
- ---------------------------------------------------------------------------------------------------------------------------------
2003 4 71,193 12.3% 12.3% $31.17 $35.07
2004 5 113,793 19.7% 32.0% $27.17 $34.96
2005 5 44,578 7.7% 39.7% $27.94 $35.34
2006 0 -- 0.0% 39.7% -- --
2007 2 59,722 10.3% 50.0% $26.78 $34.63
2008 2 13,672 2.4% 52.3% $30.40 $33.99
2009 and thereafter 12 246,335 42.6% 94.9% $33.16 $39.30
- -------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 30 549,293 94.9% -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Total Omni Portfolio Square Feet 578,798
- -------------------------------------------------------------------------------------------------------------------------------
WESTCHESTER OFFICE
- ---------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total LI Cumulative Expiring Expiring
Year of Leases Feet Westchester % of Total GAAP Cash
Expiration Expiring Expiring Sq Ft Portfolio Sq Ft Rent (1) Rent (2)
- ---------------------------------------------------------------------------------------------------------------------------------
2003 31 138,339 4.5% 4.5% $21.83 $23.71
2004 29 142,296 4.7% 9.2% $21.48 $23.12
2005 44 416,006 13.7% 22.9% $23.55 $24.96
2006 36 649,560 21.3% 44.2% $22.59 $24.87
2007 32 448,928 14.7% 58.9% $25.55 $27.42
2008 15 132,771 4.4% 63.3% $22.71 $24.19
2009 and thereafter 34 925,220 30.4% 93.6% $25.58 $29.26
- -------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 221 2,853,120 93.6% -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Total Westchester Portfolio
Square Feet 3,047,088
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
(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
(3) Tenants that have expired on 12/31/02 are not included (6,722 SF for Long
Island and 20,807 SF for Westchester).
- -------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
25
- -------------------------------------------------------------------------------
LEASE EXPIRATION SCHEDULE
As of January 1, 2003
STAMFORD OFFICE
- ---------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total LI Cumulative Expiring Expiring
Year of Leases Feet Westchester % of Total GAAP Cash
Expiration Expiring Expiring Sq Ft Portfolio Sq Ft Rent (1) Rent (2)
- ---------------------------------------------------------------------------------------------------------------------------------
2003 24 93,783 8.6% 8.6% $26.14 $26.67
2004 25 144,127 13.2% 21.8% $21.03 $22.41
2005 29 252,612 23.2% 45.0% $34.61 $36.04
2006 25 308,463 28.3% 73.3% $24.92 $25.79
2007 14 100,796 9.3% 82.6% $31.99 $34.46
2008 6 34,223 3.1% 85.7% $30.49 $32.72
2009 and thereafter 8 127,632 11.7% 97.5% $20.60 $22.69
- -------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 131 1,061,636 97.5% -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Total Portfolio Square Feet 1,089,331
- -------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY OFFICE
- ---------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total LI Cumulative Expiring Expiring
Year of Leases Feet Westchester % of Total GAAP Cash
Expiration Expiring Expiring Sq Ft Portfolio Sq Ft Rent (1) Rent (2)
- ---------------------------------------------------------------------------------------------------------------------------------
2003 17 284,221 14.4% 14.4% $27.39 $28.13
2004 26 143,701 7.3% 21.7% $23.71 $24.59
2005 31 316,849 16.1% 37.8% $24.05 $25.04
2006 16 170,137 8.6% 46.5% $23.92 $25.76
2007 8 83,806 4.3% 50.7% $22.30 $23.89
2008 10 139,990 7.1% 57.8% $29.47 $32.51
2009 and thereafter 21 717,699 36.4% 94.3% $26.55 $29.50
- -------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 129 1,856,403 94.3% -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Total Portfolio Square Feet 1,969,209
- -------------------------------------------------------------------------------------------------------------------------------
NEW YORK CITY OFFICE
- ---------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total LI Cumulative Expiring Expiring
Year of Leases Feet Westchester % of Total GAAP Cash
Expiration Expiring Expiring Sq Ft Portfolio Sq Ft Rent (1) Rent (2)
- ---------------------------------------------------------------------------------------------------------------------------------
2003 12 164,724 4.7% 4.7% $35.94 $37.12
2004 18 174,694 5.0% 9.7% $33.65 $36.77
2005 31 407,297 11.7% 21.4% $36.90 $39.34
2006 53 359,852 10.3% 31.7% $30.29 $32.03
2007 14 134,212 3.8% 35.6% $37.25 $39.77
2008 11 95,589 2.7% 38.3% $38.02 $43.05
2009 and thereafter 84 2,056,457 58.9% 97.4% $46.57 $52.09
- --------------------------------------------------------------------------------------------------------------------------------
Total/Weighted Average 223 3,392,825 97.4% -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Total Portfolio Square Feet 3,488,484
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(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
(3) Tenants that have expired on 12/31/02 are not included (2,600 SF for CT,
30,167 SF for NJ and 17,790 SF for NYC).
- --------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
26
- -------------------------------------------------------------------------------
LEASE EXPIRATION SCHEDULE
As of January 1, 2003
INDUSTRIAL
- ---------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total LI Cumulative Expiring Expiring
Year of Leases Feet Westchester % of Total GAAP Cash
Expiration Expiring Expiring Sq Ft Portfolio Sq Ft Rent (1) Rent (2)
- ---------------------------------------------------------------------------------------------------------------------------------
2003 16 428,552 8.0% 8.0% $6.35 $7.31
2004 32 510,427 9.5% 17.4% $6.46 $7.60
2005 29 523,314 9.7% 27.1% $6.02 $7.78
2006 39 829,656 15.4% 42.6% $6.70 $8.28
2007 28 278,508 5.2% 47.7% $7.55 $8.77
2008 25 618,947 11.5% 59.2% $7.49 $9.99
2009 and thereafter 38 2,115,817 39.3% 98.5% $7.62 $9.03
- -------------------------------------------------------------------------------------------------------------------------------
Total / Weighted Average 207 5,305,221 98.5% -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Total Portfolio Square Feet 5,386,306
- -------------------------------------------------------------------------------------------------------------------------------
RESEARCH & DEVELOPMENT
- ---------------------------------------------------------------------------------------------------------------------------------
Number of Square % of Total LI Cumulative Expiring Expiring
Year of Leases Feet Westchester % of Total GAAP Cash
Expiration Expiring Expiring Sq Ft Portfolio Sq Ft Rent (1) Rent (2)
- ---------------------------------------------------------------------------------------------------------------------------------
2003 4 39,957 3.0% 3.0% $ 6.60 $ 7.57
2004 9 99,218 7.4% 10.3% $13.86 $15.46
2005 4 132,139 9.8% 20.1% $10.12 $11.70
2006 14 172,688 12.8% 32.9% $14.34 $15.90
2007 4 85,444 6.3% 39.3% $12.60 $13.97
2008 4 35,776 2.7% 41.9% $17.80 $19.14
2009 and thereafter 11 507,943 37.7% 79.6% $10.83 $13.83
- -------------------------------------------------------------------------------------------------------------------------------
Total / Weighted Average 50 1,073,165 79.6% -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Total Portfolio Square Feet 1,348,625
- -------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(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
(3) Tenants that have expired on 12/31/02 are not included (4,529 SF for R&D).
- --------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
27
- -------------------------------------------------------------------------------
LEASE EXPIRATION COMPARISON
As of December 31, 2002
EXPIRING RENTS VS. RECKSON FORECAST RENTS(a)
OFFICE PORTFOLIO
CBD PORTFOLIO
636,282 SQ. FT. EXPIRING
Cash GAAP
------- -------
Expiring $29.84 $29.25
Forecasted(b) $37.94 $38.62
Increase 27.1% 32.0%
SUBURBAN PORTFOLIO
1.4 MILLION SQ. FT. EXPIRING
Cash GAAP
------- -------
Expiring $26.41 $25.01
Forecasted(b) $26.64 $27.15
Increase 0.9% 8.6%
(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.
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
28
- ----------------------------------------------------------------------------
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% 5.6%
* American Express Office 335,242 2.0% 1.8%
* WorldCom/MCI Office 365,242 1.8% 1.7%
Bell Atlantic Office 210,426 1.6% 1.4%
* Schulte Roth & Zabel Office 238,052 1.4% 2.4%
* HQ Global Office/Industrial 201,900 1.2% 1.5%
United Distillers Office 137,918 1.1% 1.0%
T.D. Waterhouse Office 139,211 1.1% 0.9%
* Prudential Office 127,153 0.9% 0.9%
* Banque Nationale De Paris Office 145,834 0.9% 1.5%
* Kramer Levin Nessen Kamin Office 158,144 0.9% 1.5%
Vytra Healthcare Office 105,613 0.8% 0.7%
P.R. Newswire Associates Office 67,000 0.8% 0.7%
Hoffmann -La Roche Inc. Office 120,736 0.7% 0.6%
D.E. Shaw Office 89,526 0.7% 0.6%
Heller Ehrman White Office 64,526 0.7% 0.6%
* State Farm Office/Industrial 164,175 0.7% 1.0%
EMI Entertainment World Office 65,844 0.7% 0.6%
Laboratory Corp. of America Office 108,000 0.7% 0.6%
Estee Lauder Industrial 374,578 0.7% 0.6%
* Draft Worldwide, Inc. Office 124,008 0.7% 1.2%
Practicing Law Institute Office 62,000 0.7% 0.6%
Lockheed Martin Corp. Office 123,554 0.7% 0.6%
Towers Perrin Foster Office 88,233 0.6% 0.6%
Radianz (Reuters) Office 130,009 0.6% 0.5%
- -------------------------------------------------------------------------------------------------------------------------
TENANT DIVERSIFICATION (2)
TOTAL PORTFOLIO
[GRAPHIC OMITTED]
Accounting 1%
Advertising 1%
Commercial Banking 5%
Consumer Products 14%
Defense/Electronics 2%
Financial Services 13%
Government 2%
Healthcare 4%
Hospitality 1%
Insurance 8%
Legal Services 11%
Manufacturing 3%
Media/Entertainment 6%
Other Professional Services 4%
Pharmaceuticals 4%
Real Estate 4%
Research/Consulting 3%
Retail/Wholesale 2%
Technology 4%
Telecom 7%
Transportation 1%
- -------------------------------------------------------------------------------
(1) Ranked by pro rata share of annualized base rental revenue adjusted for pro
rata share of joint venture interests and to reflect WorldCom/MCI leases
rejected to date.
(2) Based on annualized base rental revenue adjusted for pro rata share of joint
venture interests and to reflect WorldCom/MCI leases rejected to date.
* Part or all of space occupied by tenant is in a 51% or more owned joint
venture building.
- ----------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
29
- --------------------------------------------------------------------------------
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 twelve months ended December 31, 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 $5,283,674
Per Square Foot $ 0.23 $ 0.23 $ 0.33 $ 0.45 $ 0.31 $ 0.53
NYC Office Properties
Total N/A N/A $ 946,718 $1,584,501 $1,265,610 $1,939,111
Per Square Foot N/A N/A 0.38 0.45 0.42 $ 0.56
Industrial Properties
Total $1,205,266 $1,048,688 $ 813,431 $ 711,666 $ 944,763 $1,881,627
Per Square Foot $ 0.12 $ 0.11 $ 0.11 $ 0.11 $ 0.11 $ 0.28
TOTAL PORTFOLIO
---------- ----------- ---------- --------- ---------- ----------
Total $3,210,242 $3,347,587 $5,049,265 $6,902,236 $9,104,412
Per Square Foot $ 0.17 $ 0.17 $ 0.25 $ 0.34 $ 0.45
- --------------------------------------------------------------------------------------------------------------------------------
NON-INCREMENTAL REVENUE GENERATING TENANT IMPROVEMENTS AND LEASING COMMISSIONS (3)
- --------------------------------------------------------------------------------------------------------------------------------
Average YTD
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 $ 1,917,466 $ 960,804 $ 956,662
Per Square Foot Improved $ 3.98 $ 4.73 6.99 $ 8.47 $ 6.04 $ 7.81 $ 11.18 $ 6.00
Leasing Commissions $ 418,191 $ 551,762 2,208,604 $1,444,412 $1,155,742 $ 1,026,970 $ 392,462 $ 634,508
Per Square Foot Leased $ 1.46 $ 2.59 4.96 $ 4.49 $ 3.38 $ 4.18 $ 4.57 $ 3.98
---------- ---------- --------- ---------- ---------- ----------- ----------- ---------
Total Per Square Foot $ 5.44 $ 7.32 11.95 $ 12.96 $ 9.42 $ 11.99 $ 15.75 $ 9.98
========== ========== ========= ========== ========== =========== =========== =========
Westchester Office Properties
Tenant Improvements $ 711,160 $1,316,611 1,860,027 $2,584,728 $1,618,132 $26,391,589(2)$4,265,406 $2,126,183
Per Square Foot Improved $ 4.45 $ 5.62 5.72 $ 5.91 $ 5.43 $ 15.05 $ 17.53 $ 11.73
Leasing Commissions $ 286,150 $ 457,730 412,226 $1,263,012 $ 604,780 $ 1,975,850 $1,618,240 $ 357,609
Per Square Foot Leased $ 1.79 $ 1.96 3.00 $ 2.89 $ 2.41 $ 4.65 $ 6.16 $ 2.21
---------- ---------- --------- ---------- ---------- ----------- ---------- ----------
Total Per Square Foot $ 6.24 $ 7.58 8.72 $ 8.80 $ 7.84 $ 19.70 $ 23.69 $ 13.94
========== ========== ========= ========== ========== =========== ========== ==========
Connecticut Office Properties
Tenant Improvements $ 202,880 $ 179,043 385,531 $ 213,909 $ 245,341 $ 491,435 $ 489,715 $ 1,720
Per Square Foot Improved $ 5.92 $ 4.88 4.19 $ 1.46 $ 4.11 $ 3.81 $ 4.86 $ 0.06
Leasing Commissions $ 151,063 $ 110,252 453,435 $ 209,322 $ 231,018 $ 307,023 $ 203,055 $ 103,968
Per Square Foot Leased $ 4.41 $ 3.00 4.92 $ 1.43 $ 3.44 $ 2.38 $ 2.01 $ 3.67
---------- ---------- --------- ---------- ---------- ----------- ---------- ----------
Total Per Square Foot $ 10.33 $ 7.88 9.11 $ 2.89 $ 7.55 $ 6.19 $ 6.87 $ 3.73
========== ========== ========= ========== ========== =========== ========== ==========
New Jersey Office Properties
Tenant Improvements $ 654,877 $ 454,054 1,580,323 $1,146,385 $ 958,910 $ 2,842,521 $2,148,751 $ 693,770
Per Square Foot Improved $ 3.78 $ 2.29 6.71 $ 2.92 $ 3.93 $ 10.76 $ 16.47 $ 5.19
Leasing Commissions $ 396,127 $ 787,065 1,031,950 $1,602,962 $ 954,526 $ 1,037,012 $ 448,363 $ 588,649
Per Square Foot Leased $ 2.08 $ 3.96 4.44 $ 4.08 $ 3.64 3.92 $ 3.44 $ 4.40
---------- ---------- --------- ---------- ---------- ----------- ---------- ----------
Total Per Square Foot $ 5.86 $ 6.25 11.15 $ 7.00 $ 7.57 $ 14.68 $ 19.91 $ 9.59
========== ========== ========= ========== ========== =========== ========== ==========
New York City Office Properties
Tenant Improvements N/A N/A 65,267 $ 788,930 $ 427,099 $ 4,350,106 $3,407,278 $ 942,828
Per Square Foot Improved N/A N/A 1.79 $ 15.69 $ 8.74 $ 18.39 $ 19.11 $ 16.17
Leasing Commissions N/A N/A 418,185 $1,098,829 $ 758,507 $ 2,019,837 $1,398,069 $ 621,768
Per Square Foot Leased N/A N/A 11,50 $ 21.86 $ 16.68 $ 8.54 $ 7.84 $ 10.67
---------- ---------- --------- ---------- ---------- ----------- ---------- ----------
Total Per Square Foot N/A N/A 13.29 $ 37.55 $ 25.42 $ 26.93 $ 26.95 $ 26.84
========== ========== ========= ========== ========== =========== ========== ==========
Industrial Properties
Tenant Improvements $ 283,842 $ 375,646 650,216 $1,366,488 $ 669,048 $ 1,850,812 $1,577,958 $ 272,854
Per Square Foot Improved $ 0.76 $ 0.25 0.95 $ 1.65 $ 0.90 $ 1.97 $ 3.28 $ 0.59
Leasing Commissions $ 200,154 $ 835,108 436,506 $ 354,572 $ 456,585 $ 890,688 $ 826,089 $ 64,599
Per Square Foot Leased $ 0.44 $ 0.56 0.64 $ 0.43 $ 0.52 $ 0.95 $ 1.71 $ 0.14
---------- ---------- --------- ---------- ---------- ----------- ---------- ----------
Total Per Square Foot $ 1.20 $ 0.81 1.59 $ 2.08 $ 1.42 $ 2.92 $ 5.01 $ 0.73
========== ========== ========= ========== ========== =========== ========== ==========
- ----------------------------------------------------------------------------------------------------------------- ----------
TOTAL PORTFOLIO
Tenant Improvements $2,993,010 $3,334,711 7,395,070 $8,822,897 $5,849,971 $17,843,929 $12,849,912 $4,994,017
Per Square Foot Improved $ 2.91 $ 1.53 4.15 $ 4.05 $ 3.42 $ 7.96 $ 10.54 $ 4.89
Leasing Commissions $1,451,685 $2,741,917 4,960,906 $5,973,109 $4,161,158 $ 7,257,379 $ 4,886,278 $2,371,101
Per Square Foot Leased $ 1.29 $ 1.26 3.05 $ 2.75 $ 2.25 $ 3.24 $ 3.94 $ 2.37
---------- ---------- --------- ---------- ---------- ----------- ----------- -----------
Total Per Square Foot $ 4.20 $ 2.79 7.20 $ 6.80 $ 5.67 $ 11.20 $ 14.48 $ 7.26
========== ========== ========= ========== ========== =========== ========== ==========
NOTES:
(1) Excludes non-incremental capital expenditures, tenant improvements and
leasing commissions for One Orlando Center in Orlando, Florida.
(2) Excludes tenant improvements and leasing commissions related to a 163,880
square foot leasing transaction with Fuji Photo Film U.S.A. Leasing
commissions on this transaction amounted to $5.33 per square foot and
tenant improvement allowance amounted to $40.88 per square foot.
(3) All amounts represent tenant improvements and leasing costs committed on
leases signed during the period.
- -------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
30
- -------------------------------------------------------------------------------
ANALYSIS OF CAPITAL EXPENDITURES, TENANT IMPROVEMENTS AND LEASING COSTS (5)
As of December 31, 2002
- -----------------------------------------------------------------------------------------------------
4Q02 COSTS PER YEAR-TO-DATE COSTS PER
CAPITAL EXPENDITURES COSTS SQUARE FOOT COSTS SQUARE FOOT
- -----------------------------------------------------------------------------------------------------
NON-INCREMENTAL CAPITAL EXPENDITURES
------------------------------------
Maintenance Capital Expenditures $2,688,038 $ 0.13 $ 9,104,412 $ 0.45
---------- ------ ----------- -----------
Total Recurring Capital Expenditures $2,688,038 $ 0.13 $ 9,104,412 $ 0.45
========== ====== =========== ===========
INCREMENTAL CAPITAL EXPENDITURES
- --------------------------------
Property Renovations $1,493,734 $ 0.07 $ 7,910,509 $ 0.39
---------- ------ ----------- -----------
Total Non-recurring Capital Expenditures $1,493,734 $ 0.07 $ 7,910,509 $ 0.39
========== ====== =========== ===========
ACQUISITION AND DEVELOPMENT COSTS $4,592,169 $41,895,785
========== ===========
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
4Q02 COSTS PER YEAR-TO-DATE COSTS PER
TENANT IMPROVEMENTS AND LEASING COSTS (1) COSTS SQUARE FOOT COSTS SQUARE FOOT
- -----------------------------------------------------------------------------------------------------
COMMITTED (6)
NON-INCREMENTAL
---------------
Leasing Costs $2,191,936 $ 3.13 $ 7,257,378 $ 3.24
Tenant Improvements $4,184,890 $ 5.98 $17,843,929 $ 7.96
---------- ------ ----------- -----------
TOTAL NON -INCREMENTAL $6,376,826 $ 9.11 $25,101,307 $ 11.20
INCREMENTAL (4)
---------------
Leasing Costs $ 0 $ 0.00 $ 3,773,197 $ 10.08
Tenant Improvements $ 0 $ 0.00 $14,225,835 $ 38.00
---------- ------ ----------- -----------
TOTAL INCREMENTAL $ 0 $ 0.00 $17,999,032 $ 48.08
---------- ------ ----------- ----------
TOTAL COMMITTED/ WTD AVG. $6,376,826 $ 9.11 $43,100,339 $ 26.60
========== ====== =========== ===========
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
4Q02 COSTS PER YEAR-TO-DATE COSTS PER
TENANT IMPROVEMENTS AND LEASING COSTS (1) COSTS SQUARE FOOT COSTS SQUARE FOOT
- -----------------------------------------------------------------------------------------------------
PAID OR ACCRUED
NON-INCREMENTAL
---------------
Leasing Costs $ 2,269,081 $ 1.35 $10,482,832 $ 1.72
Tenant Improvements $ 8,173,056 $ 3.02 $20,973,163 $ 2.83
----------- ------ ----------- -----------
TOTAL NON-INCREMENTAL $10,442,137 $ 4.37 $31,455,995 $ 4.55
INCREMENTAL (4)
---------------
Leasing Costs $ 1,356,349 $ 4.85 $ 5,931,620 $ 2.17
Tenant Improvements $ 4,668,240 $ 8.61 $10,063,706 $ 3.49
----------- ------ ----------- ----------
TOTAL INCREMENTAL $ 6,024,589 $13.46 $15,995,326 $ 5.66
----------- ------ ----------- ----------
TOTAL PAID OR ACCRUED $16,466,726 $ 7.69 $47,451,321 $ 4.92
=========== ====== =========== ==========
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
4Q02 COSTS PER YEAR-TO-DATE COSTS PER
TENANT IMPROVEMENTS AND LEASING COSTS (1) COSTS SQUARE FOOT COSTS SQUARE FOOT
- -----------------------------------------------------------------------------------------------------
COMMITTED TENANT IMPROVEMENTS AND LEASING COSTS ON SIGNED LEASES, EXCLUDING EARLY RENEWALS (6)
NON-INCREMENTAL
---------------
Leasing Costs $ 1,560,891 $ 2.65 $ 6,626,333 $ 8.16
Tenant Improvements $ 3,739,946 $ 6.14 $17,398,985 $ 8.09
----------- ------ ----------- -----------
TOTAL NON-INCREMENTAL $ 5,300,837 $ 8.79 $17,398,985 $ 16.25
INCREMENTAL (4)
- ---------------
Leasing Costs $ 0 $ 0.00 $ 3,773,197 $ 10.08
Tenant Improvements $ 0 $ 0.00 $14,225,835 $ 38.00
----------- ------ ----------- -----------
TOTAL INCREMENTAL $ 0 $ 0.00 $17,999,032 $ 48.08
----------- ------ ----------- -----------
TOTAL $ 5,300,837 $ 8.79 $35,398,017 $ 32.44
=========== ====== =========== ===========
- -------------------------------------------------------------------------------
(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 early renewals.
(4) Represents tenant improvements and leasing costs on developments and
repositionings.
(5) Excludes non-incremental capital expenditures, tenant improvements and
leasing commissions for One Orlando Center in Orlando, Florida.
(6) Year-to-date number excludes tenant improvements and leasing commissions
related to a 163,880 square foot leasing transaction with Fuji Photo Film
U.S.A. Leasing commissions on this transaction amounted to $5.33 per square
foot and tenant improvement allowance amounted to $40.88 per square foot.
- -------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
31
- -------------------------------------------------------------------------------
CAPITAL EXPENDITURES
As of December 31, 2002
- ------------------------------------------------------------------------------------------------------------------------------------
3Q01 4Q01 1Q02 2QO2 3Q02 4Q02 2002
TENANT IMPROVEMENTS AND LEASING COSTS (1) AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT YTD AMOUNT
- ------------------------------------------------------------------------------------------------------------------------------------
RECURRING - NON INCREMENTAL
---------------------------
Amenities (Health Club,
Cafe, etc.) $ 32,858 $ 3,607 $ 85,670 $ 20,230 $ -- $ 11,113 $ 117,013
Bathrooms $ 132,968 $ 325,582 $ 316,963 $ 55,871 $ 88,216 $ 109,192 $ 570,242
Corridors $ 97,442 $ 187,429 $ 161,964 $ 82,480 $ 65,586 $ 102,945 $ 412,975
Elevators $ 200,094 $ 33,585 $ 24,589 $ 2,123 $ 41,870 $ 31,789 $ 100,372
Exterior Renovation $ 272,828 $ 205,918 $ 214,344 $ 600,148 $ 1,079,221 $ 692,151 $ 2,585,864
Lobby $ 47,176 $ 89,752 $ 37,635 $ 90,566 $ 237,657 $ 181,873 $ 547,730
Mechanical, Electrical &
Plumbing $ 385,100 $ 505,362 $ 468,287 $ 663,361 $ 625,584 $ 684,780 $ 2,442,013
Other $ 383,304 $ 632,354 $ 140,591 $ 291,271 $ 293,218 $ 395,910 $ 1,120,991
Parking Lots $ 113,333 $ 446,703 $ 12,789 $ 150,057 $ 269,198 $ 250,876 $ 682,920
Roofs $ 260,183 $ 107,557 $ 15,377 $ 80,414 $ 124,615 $ 176,236 $ 396,642
Security $ 13,386 $ 30,624 $ 33,525 $ 42,953 $ 51,173 $ 127,650
--------------------------------------------------------------------------------------------
TOTAL RECURRING - NON INCREMENTAL $ 1,938,672 $ 2,568,473 $ 1,511,734 $ 2,079,474 $ 2,825,165 2,688,038 $ 9,104,412
Amount Per Square Foot $ 0.09 $ 0.12 $ 0.07 $ 0.10 $ 0.14 $ 0.13 $ 0.45
NON-RECURRING - INCREMENTAL (1) $ 2,331,452 $ 3,025,187 $ 1,673,606 $ 3,529,974 $ 1,213,194 1,493,734 $ 7,910,509
- -------------------------------
Amount Per Square Foot $ 0.11 $ 0.15 $ 0.08 $ 0.17 $ 0.06 $ 0.07 $ 0.39
Rentable SF 20,695,723 20,610,545 20,546,468 20,545,786 20,353,759 20,283,964 20,283,964
# of Buildings 183 182 181 181 178 178 178
- -------------------------------------------------------------------------------
(1) Represents value enhancing capital expenditures.
(2) Excludes non-incremental tenant improvements and leasing commissions for
One Orlando Center in Orlando, Florida.
- -------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
32
- -------------------------------------------------------------------------------
TENANT IMPROVEMENTS AND LEASING COSTS
As of December 31, 2002
- --------------------------------------------------------------------------------------------------------------------------------
3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 2002
COMMITTED (1) AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT YTD AMOUNT
- --------------------------------------------------------------------------------------------------------------------------------
NON -INCREMENTAL
---------------
LEASING COSTS $ 1,054,004 $ 2,383,854 $ 1,532,939 $ 1,234,199 $ 2,298,304 (5) $ 2,191,936 $ 7,257,378
TENANT IMPROVEMENTS $ 765,749 $ 4,309,256 $ 3,293,408 $ 2,607,037 $ 7,758,594 (5) $ 4,184,890 $17,843,929
----------------------------------------------------------------------------------- -----------
Non-Recurring Capital
Expenditures $ 1,819,753 $ 6,693,110 $ 4,826,347 $ 3,841,236 $10,056,898 $ 6,376,826 $25,101,307
INCREMENTAL (4)
---------------
LEASING COSTS $ 1,430,544 $ 339,337 $ 2,910,232 $ 392,312 $ 470,653 $ 0 $ 3,773,197
TENANT IMPROVEMENTS $ 1,929,149 $ 2,345,122 $11,095,857 $ 1,986,445 $ 1,143,533 $ 0 $14,225,835
----------------------------------------------------------------------------------- -----------
Total Incremental $ 3,359,693 $ 2,684,459 $14,006,089 $ 2,378,757 $ 1,614,186 $ 0 $17,999,032
----------------------------------------------------------------------------------- -----------
TOTAL COMMITTED $ 5,179,446 $ 9,377,569 $18,832,436 $ 6,219,993 $11,671,084 $ 6,376,826 $43,100,339
=================================================================================== ===========
- --------------------------------------------------------------------------------------------------------------------------------
3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 2002
PAID OR ACCRUED (2) AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT YTD AMOUNT
- --------------------------------------------------------------------------------------------------------------------------------
NON-INCREMENTAL
---------------
LEASING COSTS $ 1,237,447 $ 1,503,116 $ 2,240,976 $ 2,188,337 $ 3,784,438 $ 2,269,081 $10,482,832
TENANT IMPROVEMENTS $ 2,751,620 $ 5,107,743 $ 4,243,242 $ 3,681,440 $ 4,875,425 $ 8,173,056 $20,973,163
--------------------------------------------------------------------------------- -----------
Total Non-Incremental $ 3,989,067 $ 6,610,859 $ 6,484,218 $ 5,869,777 $ 8,659,863 $10,442,137 $31,455,995
INCREMENTAL (4)
---------------
LEASING COSTS $ 237,482 $ 2,199,465 $ 829,468 $ 910,336 $ 2,835,467 $ 1,356,349 $ 5,931,620
TENANT IMPROVEMENTS $ 8,137,624 $11,489,202 $ 1,244,676 $ 2,846,454 $ 1,304,335 $ 4,668,240 $10,063,706
--------------------------------------------------------------------------------- -----------
Total Incremental $ 8,375,106 $13,688,667 $ 2,074,145 $ 3,756,790 $ 4,139,802 $ 6,024,590 $15,995,326
--------------------------------------------------------------------------------- -----------
TOTAL PAID OR ACCRUED $12,364,173 $20,299,526 $ 8,558,362 $ 9,626,567 $12,799,665 $16,466,727 $47,451,321
================================================================================= ===========
- -------------------------------------------------------------------------------
(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.
(5) Excludes tenant improvements and leasing commissions related to a 163,880
square foot leasing transaction with Fuji Photo Film U.S.A. Leasing
commissions on this transaction amounted to $5.33 per square foot and
tenant improvement allowance amounted to $40.88 per square foot.
(6) Excludes non-incremental tenant improvements and leasing commissions for
One Orlando Center in Orlando, Florida.
- -------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
33
CLASS A OFFICE STATISTICS
LONG ISLAND 1998 1999 2000 2001 4Q02
- ----------- ------ ------ ------ ------ ------
Average Asking Rental Rates $27.23 $27.69 $28.86 $30.06 $29.15
Overall Vacancy 6.7% 6.5% 8.4% 11.9% 12.5%
Direct Vacancy 6.1% 5.6% 6.3% 7.7% 8.1%
WESTCHESTER 1998 1999 2000 2001 4Q02
- ----------- ------ ------ ------ ------ ------
Average Asking Rental Rates $26.67 $27.23 $29.62 $30.15 $29.83
Overall Vacancy 19.2% 16.3% 12.0% 20.5% 18.9%
Direct Vacancy 16.4% 15.0% 10.7% 16.3% 15.3%
SOUTHERN CONNECTICUT 1998 1999 2000 2001 4Q02
- -------------------- ------ ------ ------ ------ ------
Average Asking Rental Rates $32.22 $31.78 $44.41 $36.10 $36.59
Overall Vacancy 4.2% 4.7% 8.1% 13.6% 17.3%
Direct Vacancy 3.6% 4.0% 7.2% 8.8% 8.8%
NORTHERN NEW JERSEY 1998 1999 2000 2001 4Q02
- -------------------- ------ ------ ------ ------ ------
Average Asking Rental Rates $27.42 $28.52 $29.66 $30.92 $30.74
Overall Vacancy 7.5% 7.1% 9.9% 13.4% 17.8%
Direct Vacancy 5.3% 4.6% 6.5% 8.1% 10.2%
Source: Cushman & Wakefield
34
NEW YORK CITY CLASS A OFFICE STATISTICS
AVERAGE ASKING RENTS 1998 1999 2000 2001 4Q02
- -------------------- ------ ------ ------ ------ ------
Financial East $40.21 $37.64 $52.90 $48.07 $47.64
Midtown West Side $43.36 $48.28 $60.89 $61.22 $51.91
Midtown East Side $47.85 $51.18 $61.46 $59.81 $54.23
6th Ave./Rockefeller Center $51.33 $53.12 $65.91 $67.15 $62.36
FINANCIAL EAST 1998 1999 2000 2001 4Q02
------ ------ ------ ------ ------
Overall Vacancy 7.3% 4.1% 2.1% 7.0% 16.1%
Direct Vacancy 6.6% 3.4% 1.4% 2.3% 9.3%
MIDTOWN WEST
Overall Vacancy 4.3% 6.0% 2.7% 6.2% 8.3%
Direct Vacancy 3.3% 4.6% 2.4% 4.0% 5.8%
MIDTOWN EAST
Overall Vacancy 8.0% 5.0% 2.6% 8.9% 12.5%
Direct Vacancy 6.0% 3.8% 1.9% 3.1% 5.7%
6TH AVE/ROCK CTR
Overall Vacancy 5.0% 2.6% 1.2% 4.3% 9.0%
Direct Vacancy 2.2% 1.6% 0.9% 2.7% 3.3%
Source: Cushman & Wakefield
Breakdown of New York City Revenue:
Midtown East Side 41%
Midtown West Side 34%
6th Ave./Rockefeller Center 14%
Financial East 11%
35
CLASS A OFFICE STATISTICS
LONG ISLAND SUBMARKET
DIRECT VACANCY RATES 1998 1999 2000 2001 4Q02
-------------------- ------ ------ ------ ------ ------
Central Nassau County 5.1% 5.1% 4.7% 5.6% 6.0%
Western Suffolk County 7.7% 11.6% 15.4% 17.5% 12.0%
Eastern Nassau County 4.9% 0.9% 1.4% 1.2% 1.1%
AVERAGE ASKING RENTS 1998 1999 2000 2001 4Q02
-------------------- ------ ------ ------ ------ ------
Central Nassau County $29.10 $29.93 $31.15 $31.94 $31.44
Western Suffolk County $26.22 $27.34 $28.22 $30.06 $29.84
Eastern Nassau County $27.49 $26.23 $28.75 $29.02 $28.99
Breakdown of Long Island office revenue:
Central Nassau 47%
Western Suffolk 36%
Eastern Nassau 8%
Other 9%
- ------------------------------------------------------------------------------
WESTCHESTER SUBMARKET
DIRECT VACANCY RATES 1998 1999 2000 2001 4Q02
-------------------- ------ ------ ------ ------ ------
Central 12.3% 13.5% 12.0% 20.6% 21.6%
Tarrytown / Western 7.8% 8.0% 6.0% 8.4% 13.6%
Eastern 12.2% 10.1% 8.1% 16.6% 9.4%
White Plains CBD 22.7% 22.6% 11.5% 15.3% 15.6%
AVERAGE ASKING RENTS 1998 1999 2000 2001 4Q02
-------------------- ------ ------ ------ ------ -----
Central $22.91 $27.07 $28.49 $29.53 $29.51
Tarrytown/Western $24.66 $27.30 $27.03 $28.37 $26.73
Eastern $29.35 $27.70 $29.65 $30.62 $31.06
White Plains CBD $26.84 $27.44 $30.62 $30.52 $31.26
Breakdown of Westchester office revenue:
White Plains 19%
Tarrytown/Western 32%
Central 29%
Eastern 17
Other 3%
Note: The 21.6% 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 17%.
- -------------------------------------------------------------------------------
NEW JERSEY SUBMARKET
DIRECT VACANCY RATES 1998 1999 2000 2001 4Q02
-------------------- ------ ------ ------ ------ ------
Essex County 3.30% 6.00% 9.60% 6.80% 9.70%
Bergen County 6.80% 5.30% 5.10% 9.90% 11.90%
Mercer County 1.50% 5.20% 6.30% 6.20% 6.00%
AVERAGE ASKING RENTS 1998 1999 2000 2001 4Q02
-------------------- ------ ------ ------ ------ ------
Essex County $27.74 $28.78 $28.90 $30.24 $28.19
Bergen County $27.37 $28.07 $29.41 $29.78 $29.29
Mercer County $24.49 $27.46 $30.32 $30.06 $29.81
Breakdown of New Jersey office revenue:
Essex County 50%
Bergen County 11%
Mercer County 8%
Other 31%
- -------------------------------------------------------------------------------
Source: Cushman & Wakefield
36
- -------------------------------------------------------------------------------
VALUE CREATION PIPELINE
As of December 31, 2002
- -----------------------------------------------------------------------------------------------------------------------------------
Anticipated Estimated Anticipated
Square Feet/ Investment Total Current % Stabilization Stabilized
Stage / Property Acres To Date Investment(a) Leased Date (a) Return (a)
- -----------------------------------------------------------------------------------------------------------------------------------
PROJECTS UNDER DEVELOPMENT OR REPOSITIONING
2001 Orville Drive North, Bohemia, NY 71,000 5,364,000 $ 7,280,000 0.0% Q2 2003 9.0%
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL PROJECTS UNDER DEVELOPMENT OR REPOSITIONING 71,000 $ 5,364,000 $ 7,280,000 0.0% 9.0%
- -----------------------------------------------------------------------------------------------------------------------------------
PROJECTS IN PLANNING
- --------------------
Melville Square II, Melville, NY 275,000 TBD
University Square , Princeton, NJ 316,000 TBD
68 South Service Road, Melville, NY 277,000 TBD
Reckson Executive Park - Ryebrook
(Building 7), Ryebrook, NY 315,000 TBD
Giralda Farms , Madison Township, NJ 436,000 TBD
70 Andrews Road, Hicksville, NY 58,000 TBD
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL PROJECTS IN PLANNING 1,677,000 $ 70,187,000 $349,450,000 11% TO 12%
- -----------------------------------------------------------------------------------------------------------------------------------
LAND
- ----
Old Willets Path, Hauppauge, NY 2.0
Eagle Rock III, East Hanover, NJ 15.0
AIP 45, Bohemia, NY 4.2
AIP 43, Bohemia NY 3.8
East Patchogue, East Patchogue, NY 23.0
Giralda Farms , Chatham Township, NJ 113.0
Valhalla Land, Valhalla, NY 52.7
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL LAND 213.7 $ 45,653,000
- -----------------------------------------------------------------------------------------------------------------------------------
Investments that reached realization during 2002
- ------------------------------------------------
SQ. FT. % LEASED
------- --------
58 South Service Road, Melville, NY 277,500 74.1%
103 JFK Expressway, Short Hills, NJ 123,000 100.0%
400 Moreland Road, Commack, NY 57,050 100.0%
- -------------------------------------------------------------------------------
(a) Forward looking statement based upon management's estimates. Actual results
may differ materially.
- -------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
37
- -------------------------------------------------------------------------------
UNCONSOLIDATED REAL ESTATE JOINT VENTURES
December 31,
BALANCE SHEETS ------------------------------
(in thousands) 2002 2001
---- ----
(Unaudited) (Unaudited)
ASSETS
Commercial real estate property, at cost:
Land $ 3,462 $ 3,462
Building and improvements 20,800 20,711
Furniture, fixtures, and equipment 15 15
- --------------------------------------------------------------------------------------------
24,277 24,188
Less: accumulated depreciation (4,981) (4,081)
- --------------------------------------------------------------------------------------------
Investment in real estate, net of accumulated depreciation 19,296 20,107
Cash and cash equivalents 425 271
Tenant receivables 75 172
Deferred rents receivable 682 960
Prepaid expenses and other assets 338 306
Deferred leasing and loan costs 144 161
- --------------------------------------------------------------------------------------------
TOTAL ASSETS $ 20,960 $ 21,977
- --------------------------------------------------------------------------------------------
LIABILITIES AND PARTNERS' CAPITAL
- --------------------------------------------------------------------------------------------
LIABILITIES:
Mortgage note payable $ 12,548 $ 13,057
Accrued expenses and other liabilities 197 995
- --------------------------------------------------------------------------------------------
TOTAL LIABILITIES 12,745 14,052
- --------------------------------------------------------------------------------------------
PARTNERS' CAPITAL 8,215 7,925
- --------------------------------------------------------------------------------------------
TOTAL PARTNERS' CAPITAL 8,215 7,925
- --------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 20,960 $ 21,977
- --------------------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
(in thousands)
Three Months Ended Years Ended
December 31, December 31,
- --------------------------------------------------------------------------------------------------------------
REVENUES 2002 2001 2002 2001
- --------------------------------------------------------------------------------------------------------------
Base Rents $1,546 $ 904 $3,955 $3,617
Other Income 1 3 $ 10 19
Tenant escalations and reimbursements 92 159 248 322
- --------------------------------------------------------------------------------------------------------------
Total Operating Revenues 1,639 1,066 4,213 3,958
- --------------------------------------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------------------------------------
Property operating expenses 158 178 648 663
Real estate taxes 140 118 536 475
Marketing, general and administrative 13 11 48 53
Depreciation and amortization 230 229 919 917
Interest expense 279 290 1,131 1,189
- --------------------------------------------------------------------------------------------------------------
Total Expenses 820 826 3,282 3,297
- --------------------------------------------------------------------------------------------------------------
Net Income $ 819 $ 240 $ 931 $ 661
- --------------------------------------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
38
- -------------------------------------------------------------------------------
RSVP (INCLUDING IT'S EQUITY INVESTMENTS)
COMBINED BALANCE SHEETS
(In thousands)
(UNAUDITED) (AUDITED)
DECEMBER 31, DECEMBER 31,
2002 2001
---------------- ---------------
ASSETS
- ------
Cash and other assets $ 380,964 $ 358,985
Equity investments $ 106,228 $ 135,416
--------- ---------
Total assets $ 487,192 $ 494,401
========= =========
LIABILITIES
- -----------
Accounts payable and accrued expenses $ 20,021 10,546
Long term debt $ 251,977 234,449
Other liabilities $ 8,370 15,878
--------- ---------
Total liabilities $ 280,368 $ 260,873
--------- ---------
MEMBER'S EQUITY (a)
- -------------------
Preferred equity $ 129,702 153,340
Common equity $ 84,826 87,892
Offering costs (7,704) (7,704)
--------- ---------
Total member's equity 206,824 233,528
--------- ---------
--------- ---------
Total liabilities and member's equity $ 487,192 $ 494,401
========= =========
- -------------------------------------------------------------------------------
(a) RSVP has guaranteed $10 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 December 31, 2002
39
- -------------------------------------------------------------------------------
RSVP
SUMMARY OF INVESTED CAPITAL
(Amounts in thousands)
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:
- -------------------------------------------------------------------------------------------------------------
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 $16.5 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.
- -------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
40
- -------------------------------------------------------------------------------
RSVP
SUMMARIZED PLATFORM BALANCE SHEETS AS OF DECEMBER 31, 2002 (UNAUDITED)
(Amounts in thousands)
-------------------------------------------------------------------------
STUDENT MEDICAL
PRIVATIZATION (3) HOUSING OFFICE PARKING
-------------------------------------------------------------------------
ASSETS
- ------
Real estate assets $ 44,809 $285,470 $ 59,184 $ 56,183
Other assets 10,187 34,977 47,859 $ 6,241
-----------------------------------------------------------
Total Assets $ 54,996 $320,447 $107,043 $ 62,424
===========================================================
LIABILITIES
- -----------
Accounts payable & other liabilities $ -- $ 20,542 $ 1,482 $ 3,102
Property related debt 251,977 44,156 $ 31,497
-----------------------------------------------------------
Total Liabilities 0 272,519 45,638 34,599
-----------------------------------------------------------
PARTNER'S CAPITAL
- -----------------
RSVP / RAP capital 54,996 47,694 57,533 $ 19,166
Other partners (2) 0 234 3,872 $ 8,659
-----------------------------------------------------------
Total Partner's Capital 54,996 47,928 61,405 27,825
-----------------------------------------------------------
Total Liabilities and Partner's Capital $ 54,996 $320,447 $107,043 $ 62,424
===========================================================
-----------------------------------------------------
NET LEASED
RESORTS RETAIL OTHER (1)
-----------------------------------------------------
ASSETS
- ------
Real estate assets $62,282 $ 2,866 $ --
Other assets 7,701 4,832 7,452
---------------------------------------
Total Assets $69,983 $ 7,698 $ 7,452
=======================================
LIABILITIES
- -----------
Accounts payable & other liabilities $ 4,930 $ 1,608 $ --
Property related debt 24,296 2,030 0
---------------------------------------
Total Liabilities 29,226 3,638 0
---------------------------------------
PARTNER'S CAPITAL
- -----------------
RSVP / RAP capital 21,138 4,060 7,452
Other partners (2) 19,619 0 0
---------------------------------------
Total Partner's Capital 40,757 4,060 7,452
---------------------------------------
Total Liabilities and Partner's Capital $69,983 $ 7,698 $ 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 values of assets received through settlement.
Facility was sold on January 17, 2003.
- -------------------------------------------------------------------------------
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for
the Quarter Ended December 31, 2002
41
