UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: November 3, 2004
RECKSON ASSOCIATES REALTY CORP.
and
RECKSON OPERATING PARTNERSHIP, L.P.
(Exact name of each Registrant as specified in its Charter)
Reckson Associates Realty Corp. - Maryland Reckson Associates Realty Corp. -
Reckson Operating Partnership, L.P. - Delaware 11-3233650
(State or other jurisdiction of incorporation or Reckson Operating Partnership, L.P. -
organization) 11-3233647
(IRS Employer ID Number)
225 Broadhollow Road 11747
Melville, New York (Zip Code)
(Address of principal executive offices)
1-13762
(Commission File Number)
(631) 694-6900
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrants under any of
the following provisions (see General Instruction A.2. below):
|_| Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On November 3, 2004, Reckson Associates Realty Corp. (the "Company")
issued a press release announcing its consolidated financial results for the
quarter ended September 30, 2004. A copy of this press release is furnished as
Exhibit 99.1 to this Current Report on Form 8-K.
The information contained in this Current Report on Form 8-K, including
Exhibit 99.1, shall not be deemed "filed" with the Securities and Exchange
Commission for the purposes of Section 18 of the Securities Exchange Act of
1934 or otherwise subject to the liabilities of that section, nor shall it be
incorporated by reference in any registration statement filed by the Company
or Reckson Operating Partnership, L.P. under the Securities Act of 1933, as
amended.
Item 9.01. Financial Statements and Exhibits
(c) Exhibits
99.1 Reckson Associates Realty Corp. Earnings Press Release dated
November 3, 2004
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, each
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
RECKSON ASSOCIATES REALTY CORP.
By:/s/Scott Rechler
-----------------------------------------
Scott Rechler
Chief Executive Officer
and President
RECKSON OPERATING PARTNERSHIP, L.P.
By: Reckson Associates Realty Corp.,
its General Partner
By:/s/Scott Rechler
------------------------------------------
Scott Rechler
Chief Executive Officer
and President
Date: November 4, 2004
3
Exhibit 99.1
PRESS RELEASE
- -------------
Reckson Associates Realty Corp.
225 Broadhollow Road
Melville, NY 11747
(631) 694-6900 (Phone)
(631) 622-6790 (Facsimile)
Contact: Scott Rechler, CEO
Michael Maturo, CFO
- ------------------------------------------------------------------------------
FOR IMMEDIATE RELEASE
- --------------------
Reckson Announces Third Quarter 2004 Results Reflecting Continued
Solid Operating Performance and Increased Investment Activity
Same Property Portfolio Net Operating Income Increased by 5.5%
Announced Four Acquisitions Totaling Approximately $117 Million
(MELVILLE, NEW YORK, November 3, 2004) - Reckson Associates Realty Corp.
(NYSE: RA) today reported diluted funds from operations ("FFO") of $34.8
million or $0.47 per share for the third quarter of 2004, $0.56 per share when
adjusted for the $6.7 million or $0.09 per share accounting charge recognized
in connection with the redemption of the Company's 7 5/8% Series A Preferred
stock, as compared to FFO of $41.2 million or $0.56 per share for the third
quarter of 2003.
Commenting on the Company's performance, Scott Rechler, Reckson's President
and Chief Executive Officer, stated, "I believe that our third quarter's
leasing, investment and capital markets activity clearly demonstrate the
progress that we have made since closing our corporate restructuring
approximately one year ago. We are better positioned to capitalize on the
strength of our franchise, improving market conditions and flexible balance
sheet to execute on our growth plan and strategy of being the New York
Tri-State area's `Landlord of Choice'."
The Company also reported net income allocable to common shareholders of $8.8
million in the third quarter of 2004, including $2.2 million related to gain
on sales of real estate and the aforementioned $6.7 million accounting charge,
as compared to $10.0 million in the third quarter of 2003. The Company
reported diluted earnings per share ("EPS") of $0.13 in the third quarter of
2004, as compared to EPS of $0.17 in the third quarter of 2003.
A reconciliation of FFO to net income allocable to common shareholders, the
GAAP measure the Company believes to be the most directly comparable, is in
the financial tables accompanying this press release.
Commenting on the Company's significant capital markets activity, Michael
Maturo, Reckson's Chief Financial Officer, stated, "Our recent capital markets
transactions complete our post restructuring goal to significantly strengthen
our balance sheet. During this period, we issued $300 million of new common
equity, refinanced maturing unsecured debt and short-term borrowings with $300
million of long-term unsecured debt, redeemed or converted 100% of our
outstanding 7 5/8% Series A preferred stock saving $16.6 million in annualized
preferred dividends, and repaid approximately $350 million of outstanding
mortgage notes, substantially increasing the value of our unencumbered
portfolio and reducing our outstanding secured debt."
Summary Portfolio Performance
- -----------------------------
The Company reported office occupancy at September 30, 2004 of 93.9%. This
compares to 91.0% at September 30, 2003 and 94.0% at June 30, 2004. The
Company reported portfolio occupancy of 93.1% at September 30, 2004, as
compared to 89.9%, excluding the Long Island industrial properties, at
September 30, 2003, and 93.1% at June 30, 2004.
The Company also reported same property office occupancy at September 30, 2004
of 93.6%, as compared to 91.0% at September 30, 2003. The Company reported
same property portfolio occupancy of 92.7% at September 30, 2004, as compared
to 89.8% at September 30, 2003.
Office same property net operating income (property operating revenues less
property operating expenses) ("NOI") before termination fees for the third
quarter of 2004 increased 4.9% (cash) and 4.1% (including straight-line rent),
compared to the third quarter of 2003. Portfolio same property NOI before
termination fees for the third quarter of 2004 increased 5.5% (cash) and 4.7%
(including straight-line rent), compared to the third quarter of 2003.
Net of minority interests in joint ventures, office same property NOI before
termination fees for the third quarter of 2004 increased 5.0% (cash) and 4.5%
(including straight-line rent), compared to the third quarter of 2003. Net of
minority interests in joint ventures, portfolio same property NOI before
termination fees for the third quarter of 2004 increased 5.8% (cash) and 5.1%
(including straight-line rent), compared to the third quarter of 2003.
Rent performance on renewal and replacement space during the third quarter of
2004 decreased (1.8%) (cash) and increased 4.2% (including straight-line rent)
in the office portfolio.
Other Highlights
- ----------------
Leasing Activity
- ----------------
- Executed 53 lease transactions totaling 676,389 square feet during
the third quarter of 2004
- Executed office leasing transactions during the third quarter of
2004 that resulted in a 75% renewal rate
Investment Activity
- -------------------
Completed $117 million of investments which the Company expects to generate a
blended stabilized GAAP NOI yield in excess of 9.5%. This activity includes:
- Acquisition of a 215,000 square foot, Class A office building
located at 44 Whippany Road in Morristown, New Jersey, for $30
million, with cash and the issuance of common units of limited
partnership interest, valued at $28.70 per unit
- Acquisition of a 141,000 square foot, Class A office building
located at 3 Giralda Farms within the Giralda Farms Corporate Campus
in Madison, New Jersey, for a total anticipated investment of
approximately $31 million - within two months after acquiring the
property the Company signed a long-term lease with Daiichi
Pharmaceutical Corporation to occupy the entire building
- Acquisition of a 260,500 square foot, Class A office building
located at 300 Broadhollow Road in Melville, Long Island,
strategically located at the intersection of Route 110 and the Long
Island Expressway, for approximately $41 million, or an approximate
30% discount to replacement cost
- Acquisition of the remaining 49% interest in a 235,300 square foot,
nine story, Class A office building located at 90 Merrick Avenue in
East Meadow, Long Island, from the Company's joint venture partner,
for approximately $14.9 million, or $130 per square foot
Disposition Activity
- --------------------
- Sale of a 92,000 square foot, industrial property located at 500 Saw
Mill River Road in Elmsford, Westchester, for approximately $7.3
million
Development Activity
- --------------------
- Construction remains on schedule at the Company's ground-up
development of 68 South Service Road in Melville, Long Island, a
277,000 square foot, Class A office building, for a total
anticipated investment of approximately $60 million
Capital Markets Activity
- ------------------------
- Issued 5.0 million shares of common stock, raising approximately
$137.0 million of net proceeds, representing $27.39 per share -
proceeds were used to redeem a portion of the Company's outstanding
7 5/8% Series A preferred stock
- Redeemed or converted 100% of the Company's 7 5/8% Series A
preferred stock resulting in $16.6 million of annualized preferred
dividend savings and net dividend savings of $2.7 million
- Redeemed 6.8 million shares of Series A preferred stock for
cash at $25.7625 per share, or $175.4 million
- Converted 1.9 million shares of Series A preferred stock for
1.8 million shares of common stock
- Redemption resulted in an accounting charge of approximately
$6.7 million in the third quarter of 2004 and will result in an
accounting charge of approximately $9.5 million in the fourth
quarter of 2004
- Issued $150 million of 5.875% ten-year senior unsecured notes
(interest rate hedged down to an effective rate of 5.751%), with the
proceeds used to pay off the balance of the outstanding mortgage
debt on 1185 Avenue of the Americas, New York City
- Refinanced the Company's $500 million unsecured line of credit for
three years
- Completed the initial public offering ("IPO") of American Campus
Communities, Inc. ("ACC"), an RSVP controlled company, which is
expected to generate approximately $30.0 million in proceeds to
Reckson, with $10.6 million received to date
- Pre-paid on November 1, 2004 the outstanding mortgage debt of
approximately $100 million secured by One Orlando Centre, Florida
and Tower 45, New York City through a borrowing under the credit
facility
Earnings Guidance
- -----------------
On Thursday, November 4th, during the Company's quarterly earnings conference
call, management will discuss FFO guidance per share for the remainder of 2004
and for full year 2005.
Non-GAAP Financial Measures
- ---------------------------
Funds from Operations ("FFO")
- ----------------------------
The Company believes that FFO is a widely recognized and appropriate measure
of performance of an equity REIT. The Company presents FFO because it
considers it an important supplemental measure of the Company's operating
performance and believes it is frequently used by securities analysts,
investors and other interested parties in the evaluation of REITs, many of
which present FFO when reporting their results. FFO is intended to exclude
GAAP historical cost depreciation and amortization of real estate and related
assets, which assumes that the value of real estate diminishes ratably over
time. Historically, however, real estate values have risen or fallen with
market conditions. As a result, FFO provides a performance measure that, when
compared year over year, reflects the impact to operations from trends in
occupancy rates, rental rates, operating costs,
development activities, interest costs and other matters without the inclusion
of depreciation and amortization, providing perspective that may not
necessarily be apparent from net income. The Company computes FFO in
accordance with standards established by the National Association of Real
Estate Investment Trusts ("NAREIT"). FFO is defined by NAREIT as net income or
loss, excluding gains or losses from sales of depreciable properties plus real
estate depreciation and amortization, and after adjustments for unconsolidated
partnerships and joint ventures. FFO does not represent cash generated from
operating activities in accordance with GAAP and is not indicative of cash
available to fund cash needs. FFO should not be considered as an alternative
to net income as an indicator of the Company's operating performance or as an
alternative to cash flow as a measure of liquidity. Since all companies and
analysts do not calculate FFO in a similar fashion, the Company's calculation
of FFO presented herein may not be comparable to similarly titled measures as
reported by other companies.
Reckson Associates Realty Corp. is a self-administered and self-managed real
estate investment trust (REIT) specializing in the acquisition, leasing,
financing, management and development of Class A office properties.
Reckson's core growth strategy is focused on the markets surrounding and
including New York City. The Company is one of the largest publicly traded
owners, managers and developers of Class A office properties in the New York
Tri-State area, with 87 properties comprised of approximately 15.9 million
square feet either owned or controlled, or under contract. For additional
information on Reckson Associates Realty Corp., please visit the Company's web
site at www.reckson.com.
Conference Call and Webcast
- ---------------------------
The Company's executive management team, led by President and Chief Executive
Officer Scott Rechler, will host a conference call outlining third quarter
results on Thursday, November 4, 2004 at 10:00 a.m. EST. The conference call
may be accessed by dialing (800) 762-4717 (internationally (480) 629-9024). No
passcode is required. The live conference call will also be webcast in a
listen-only mode on the Company's web site at www.reckson.com, in the Investor
Relations section, with an accompanying slide show presentation outlining the
Company's third quarter results.
A replay of the conference call will be available telephonically from November
4, 2004 at 3:30 p.m. EST through November 12, 2004 at 11:59 p.m. EST. The
telephone number for the replay is (800) 475-6701, passcode 749458. A replay
of the webcast of the conference call will also be available via the Company's
web site.
Financial Statements Attached
- -----------------------------
The Supplemental Package and Slide Show Presentation outlining the Company's
third quarter 2004 results will be available prior to the Company's quarterly
conference call on the Company's web site at www.reckson.com in the Investor
Relations section, by e-mail to those on the Company's distribution list, as
well as by mail or fax, upon request. To
be added to the Company's e-mail distribution list or to receive a copy of the
quarterly materials by mail or fax, please contact Susan McGuire, Investor
Relations, Reckson Associates Realty Corp., 225 Broadhollow Road, Melville,
New York 11747-4883, investorrelations@reckson.com or (631) 622-6746.
Certain matters discussed herein, including guidance concerning the Company's
future performance, 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; financial condition of our tenants;
changes in the supply of and demand for office properties in the New York
Tri-State area; changes in interest rate levels; changes in the Company's
credit ratings; changes in the Company's cost of and access to capital;
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, real estate taxes, security and insurance
costs; repayment of debt owed to the Company by third parties (including
FrontLine Capital Group); risks associated with joint ventures; liability for
uninsured losses or environmental matters; 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 press release.
Reckson Associates Realty Corp.(NYSE: RA)
Consolidated Statements of Income
(in thousands, except share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2004 2003 2004 2003
------------------------------------------
Property Operating Revenues:
Base rents $ 111,260 $ 93,225 $ 332,060 $ 282,110
Tenant escalations and reimbursements 19,517 16,244 55,110 44,186
---------------------- -----------------------
Total property operating revenues 130,777 109,469 387,170 326,296
---------------------- -----------------------
Property Operating Expenses:
Operating expenses 32,779 27,517 94,185 79,307
Real estate taxes 21,865 18,705 62,550 52,734
---------------------- -----------------------
Total property operating expenses 54,644 46,222 156,735 132,041
---------------------- -----------------------
Net Operating Income 76,133 63,247 230,435 194,255
---------------------- -----------------------
Gross Margin percentage 58.2% 57.8% 59.5% 59.5%
---------------------- -----------------------
Other Income 7,433 6,518 16,827 18,501
---------------------- -----------------------
Other Expenses
Interest expense 24,120 19,883 74,388 60,125
Amortization of deferred financing costs 1,005 807 2,831 2,513
Depreciation and amortization 29,584 25,063 86,496 79,121
Marketing, general and administrative 7,681 8,163 22,122 24,527
---------------------- -----------------------
Total other expenses 62,390 53,916 185,837 166,286
---------------------- -----------------------
Income before minority interests, preferred dividends and distributions, gain
on sales of depreciable real estate and discontinued operations 21,176 15,849 61,425 46,470
Minority partners' interests in consolidated partnerships (4,135) (4,117) (14,738) (12,580)
Distributions to preferred unitholders (41) (273) (541) (820)
Limited partners' minority interest in the operating partnership (334) (658) (1,434) (1,793)
---------------------- -----------------------
Income before discontinued operations and preferred dividends 16,666 10,801 44,712 31,277
Discontinued operations (net of limited partners' minority interest)
Gain on sales of real estate 2,228 - 11,069 -
Income from discontinued operations 100 4,524 653 10,930
---------------------- -----------------------
Net income 18,994 15,325 56,434 42,207
Dividends to preferred shareholders (3,437) (5,316) (11,868) (15,950)
Redemption charges on Series A preferred stock (6,717) - (6,717) -
---------------------- -----------------------
Net income allocable to common shareholders $ 8,840 $ 10,009 $ 37,849 $ 26,257
===================== =======================
Allocable to Class A common $ 8,840 $ 7,613 $ 37,849 $ 19,977
Allocable to Class B common - 2,396 - 6,280
---------------------- -----------------------
Net income allocable to common shareholders $ 8,840 $ 10,009 $ 37,849 $ 26,257
====================== ========================
Basic weighted average common shares outstanding:
Class A common 70,237,000 48,009,000 66,179,000 48,070,000
Class B common - 9,915,000 - 9,915,000
Basic net income per weighted average common share:
Class A common stock - income from continuing operations $0.10 $0.09 $0.39 $0.25
Discontinued operations 0.03 0.07 0.18 0.17
------------------------ ---------------------
Basic net income per Class A common $0.13 $0.16 $0.57 $0.42
======================== =====================
Class B common stock - income from continuing operations - $0.13 - $0.37
Discontinued operations - 0.11 - 0.26
------------------------ ----------------------
Basic net income per Class B common - 0.24 - 0.63
======================== ======================
Diluted weighted average common shares outstanding:
Class A common 70,510,000 48,179,000 66,533,000 48,205,000
Class B common - 9,915,000 - 9,915,000
Diluted net income per weighted average common share:
Class A common $0.13 $0.16 $0.57 $0.41
========================= =====================
Class B common - $0.17 - $0.45
========================= =====================
Reckson Associates Realty Corp.
Supplemental Operating and Financial Data for the Quarter Ended
September 30, 2004
Reckson Associates Realty Corp. (NYSE: RA)
Consolidated Balance Sheets
(in thousands)
September 30, December 31,
2004 2003
------------ -----------
Assets: (unaudited)
Commercial real estate properties, at cost:
Land $ 398,790 $ 378,479
Buildings and improvements 2,664,258 2,211,566
Developments in progress:
Land 98,468 90,706
Development costs 27,889 68,127
Furniture, fixtures, and equipment 11,862 11,338
------------------ ----------
3,201,267 2,760,216
Less: accumulated depreciation (542,124) (464,382)
------------------ ----------
Investment in real estate, net of accumulated depreciation 2,659,143 2,295,834
Properties and related assets held for sale, net of accumulated depreciation - 52,517
Investments in real estate joint ventures 6,574 5,904
Investments in mortgage notes and notes receivable 53,525 54,986
Investments in service companies and affiliate loans and joint ventures 60,270 71,614
Cash and cash equivalents 53,275 22,330
Tenant receivables 10,903 11,929
Deferred rents receivable 127,672 111,962
Prepaid expenses and other assets 61,645 35,371
Contract and land deposits and pre-acquisition costs 77 20,203
Deferred leasing and loan costs (net of accumulated amortization) 74,880 64,345
------------------ -------------
Total Assets $ 3,107,964 $ 2,746,995
------------------- ------------
Liabilities:
Mortgage notes payable $ 712,337 $ 721,635
Unsecured credit facility 90,000 169,000
Senior unsecured notes 697,911 499,445
Liabilities associated with properties held for sale - 881
Accrued expenses and other liabilities 111,634 93,885
Dividends and distributions payable 35,174 28,290
------------------- ------------
Total Liabilities 1,647,056 1,513,136
------------------- ------------
Minority partners' interests in consolidated partnerships 212,057 233,070
Preferred unit interest in the operating partnership 1,200 19,662
Limited partners' minority interest in the operating partnership 50,737 44,518
------------------- -------------
263,994 297,250
------------------- -------------
Commitments and contingencies - -
Stockholders' Equity:
Preferred Stock, $.01 par value, 25,000,000 shares authorized
Series A - 5,320,485 and 8,834,500 shares issued and outstanding, respectively 53 88
Series B - 0 and 2,000,000 shares issued and outstanding, respectively - 20
Common Stock, $.01 par value, 100,000,000 shares authorized
Class A - 75,535,562 and 58,275,367 shares issued and outstanding, respectively 755 583
Treasury Stock, 3,318,600 shares (68,492) (68,492)
Retained earnings - 35,757
Additional paid in capital 1,264,598 968,653
------------------- ------------
Total Stockholders' Equity 1,196,914 936,609
------------------- -------------
Total Liabilities and Stockholders' Equity $ 3,107,964 $ 2,746,995
-------------------- ------------
Total debt to market capitalization (a): 36.2% 41.2%
- ---------------------------------------- ------------------- ------------
(a) Total debt includes the Company's pro rata share of consolidated and unconsolidated joint venture debt.
Reckson Associates Realty Corp. (NYSE: RA)
Funds From Operations
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------------------------------
2004 2003 2004 2003
----------------------------------------------
Net income allocable to common shareholders $ 8,840 $ 10,009 $ 37,849 $ 26,257
Add: Real estate depreciation and amortization 26,758 24,407 78,100 78,249
Minority partners' interests in consolidated partnerships 7,117 7,437 23,931 23,074
Limited partners' minority interest in the operating partnership 453 1,202 2,090 3,072
Less: Amounts distributable to minority partners in consolidated 6,070 6,339 20,985 19,914
partnerships
Gain on sales of depreciable real estate 2,381 - 11,322 -
------------------- ------------------------
Basic Funds From Operations ("FFO") 34,717 36,716 109,663 110,738
Add: Dividends and distributions on dilutive shares and units 41 4,485 541 13,452
------------------- ------------------------
Diluted FFO $ 34,758 $ 41,201 $ 110,204 $ 124,190
=================== ========================
Diluted FFO calculations:
Weighted average common shares outstanding 70,237 57,924 66,179 57,985
Weighted average units of limited partnership interest outstanding 3,552 7,554 3,551 7,370
-------------------- ------------------------
Basic weighted average common shares and units outstanding 73,789 65,478 69,730 65,355
Adjustments for dilutive FFO weighted average shares and units
outstanding:
Common stock equivalents 274 170 354 136
Series A preferred stock - 7,747 - 7,747
Limited partners' preferred interest 127 661 455 661
------------------- ------------------------
Total diluted weighted average shares and units outstanding 74,190 74,056 70,539 73,899
=================== ========================
Diluted FFO per weighted average share or unit $ 0.47 $ 0.56 $ 1.56 $ 1.68
Diluted weighted average dividends per share $ 0.42 $ 0.42 $ 1.27 $ 1.27
Diluted FFO payout ratio 90.7% 76.4% 81.6% 75.8%
FFO Data excluding redemption charges incurred on Series A preferred stock:
Diluted FFO per weighted average share or unit $ 0.56 $ 0.56 $ 1.65 $ 1.68
Diluted weighted average dividends per share $ 0.42 $ 0.42 $ 1.27 $ 1.27
Diluted FFO payout ratio 76.4% 76.4% 77.2% 75.8%
Reconciliation from Net Income allocable to common shareholders to Diluted FFO
excluding redemption charges:
Net income allocable to common shareholders $ 8,840 $ 10,009 $ 37,849 $ 26,257
Add: Redemption charges incurred on Series A preferred stock 6,717 - 6,717 -
Real estate depreciation and amortization 26,758 24,407 78,100 78,249
Minority partners' interests in consolidated partnerships 7,117 7,437 23,931 23,074
Limited partners' minority interest in the operating partnership 453 1,202 2,090 3,072
Dividends and distributions on dilutive shares and units 3,477 4,485 12,354 13,452
Less: Amounts distributable to minority partners in consolidated 6,070 6,339 20,985 19,914
partnerships
Gain on sales of depreciable real estate 2,381 - 11,322 -
------------------- ------------------------
Diluted FFO excluding redemption charges $ 44,911 $ 41,201 $ 128,734 $ 124,190
=================== ========================
Diluted weighted average shares and units outstanding 80,755 74,056 77,867 73,899
=================== ========================
- -------------------------------------------------------------------------------------------------------------------------------
Reckson Associates Realty Corp.(NYSE: RA)
Cash Available for Distribution
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- -----------------------
2004 2003 2004 2003
----------------------- -----------------------
Basic Funds From Operations $ 34,717 $ 36,716 $ 109,663 $ 110,738
Adjustments for basic cash available for distribution:
Less: Straight line rents and other FAS 141 non-cash rent adjustments 6,427 4,712 18,441 13,389
Committed non-incremental capitalized tenant improvements and
leasing costs 6,834 7,049 25,361 22,645
Actual non-incremental capitalized improvements 2,129 3,070 5,984 7,125
Add: Redemption charges on Series A preferred stock 6,717 - 6,717 -
---------------------- -----------------------
Basic Cash Available for Distribution ("CAD") 26,044 21,885 66,594 67,579
Add: Dividends and distributions on dilutive shares and units 25 - - -
--------------------- -----------------------
Diluted CAD $ 26,069 $ 21,885 $ 66,594 $ 67,579
===================== =======================
Diluted CAD calculations:
Weighted average common shares outstanding 70,237 57,924 66,179 57,985
Weighted average units of limited partnership interest outstanding 3,552 7,554 3,551 7,370
--------------------- -----------------------
Basic weighted average common shares and units outstanding 73,789 65,478 69,730 65,355
Adjustments for dilutive CAD weighted average shares and units
outstanding:
Common stock equivalents 274 170 354 136
Series A preferred stock - - - -
Limited partners' preferred interest 88 - - -
---------------------- -----------------------
Total diluted weighted average shares and units outstanding 74,151 65,648 70,084 65,491
====================== =======================
Diluted CAD per weighted average share or unit $ 0.35 $ 0.33 $ 0.95 $ 1.03
Diluted weighted average dividends per share $ 0.42 $ 0.42 $ 1.27 $ 1.27
Diluted CAD payout ratio 120.9% 127.4% 134.1% 123.5%
- -------------------------------------------------------------------------------------------------------------------------------